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    UNIQLO Assignment

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    Wisely
    Uniqlo was initially unsuccessful in the US market for three main reasons: [1] It lacked brand awareness among American consumers; [2] It failed to properly localize and adapt its store design, customer service approach, and product styles for the US market; [3] Uniqlo's basic and simple clothing styles did not appeal to American preferences for more fashion-forward apparel. However, Uniqlo is determined to succeed in the large US market by applying lessons learned from operations globally.

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    UNIQLO Assignment

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    Wisely
    382 views2 pages
    Uniqlo was initially unsuccessful in the US market for three main reasons: [1] It lacked brand awareness among American consumers; [2] It failed to properly localize and adapt its store design, customer service approach, and product styles for the US market; [3] Uniqlo's basic and simple clothing styles did not appeal to American preferences for more fashion-forward apparel. However, Uniqlo is determined to succeed in the large US market by applying lessons learned from operations globally.

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    Uniqlo was initially unsuccessful in the US market for three main reasons: [1] It lacked brand awareness among American consumers; [2] It failed to properly localize and adapt its store design, customer service approach, and product styles for the US market; [3] Uniqlo's basic and simple clothing styles did not appeal to American preferences for more fashion-forward apparel. However, Uniqlo is determined to succeed in the large US market by applying lessons learned from operations globally.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    382 views2 pages

    UNIQLO Assignment

    Uploaded by

    Wisely
    Uniqlo was initially unsuccessful in the US market for three main reasons: [1] It lacked brand awareness among American consumers; [2] It failed to properly localize and adapt its store design, customer service approach, and product styles for the US market; [3] Uniqlo's basic and simple clothing styles did not appeal to American preferences for more fashion-forward apparel. However, Uniqlo is determined to succeed in the large US market by applying lessons learned from operations globally.

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    Operation & Management of MNEs

    Individual Assignment
    Wisely 许良义

    1. Why was Uniqlo successful in Japan?

    Uniqlo build its business with delivering high-quality basic casual clothing at low prices. There are
    several factors that lead Uniqlo to become the Japanese number-one apparel brand and retailer:

     Japanese consumer’s preference fit Uniqlo’s value proposition of high quality at low prices.
     Uniqlo founder, Tadashi Yanai, was a prominent and vocal leader that focused on sales
    growth and profitability. He had a strong emphasis on profitability that was rare in Japanese
    business. The firm largest shareholder also has a strong control and top-down approach, that
    authorized firm to make quick changes that other traditional local companies could not.
     New marketing approach inspired from several US apparel chains. Where customers can
    stroll comfortably around the store and select items freely, without requiring salesman.
     Deployed SPA (Specialty retailer of Private label Apparel) model. Uniqlo designed and set
    price according to what it wanted. Uniqlo’s approach also differ from some foreign apparel
    retailers by adding production experts that worked with suppliers to improve the outcome and
    relationships with suppliers that allowed access to specific inputs but maintain low costs.

    2. How was Uniqlo’s business model similar to or different from that of its main competitors?

    Domestic Competitors Similiarity Different


    Shimamura Low-priced in sales Has a fashion-oriented apparel
    design
    Purchased directly from
    manufacturers in high volumes
    and bargained hard
    Muji Simplicity in design Various of product lines:
    household items, foods,
    stationary and apparel ( Uniqlo
    focused on casual basic
    clothing)

    International Competitors Similiarity Different


    Forever 21 Has a trendy apparel design
    Gap Had a various brands that
    aimed at different type of
    Vertical integrated business customers
    H&M model, outsourced to low-cost Focused on fast inventory
    countries updates and large volumes
    Zara High speed in supply chain.
    Higher priced and more fashion
    conscious compare to Uniqlo.
    3. Why was Uniqlo not doing well in US market?

    Tadashi Yanai aware that as world’s second largest market for apparel, entering US market is crucial to
    becoming a successful global brand. Some factors that resulted Uniqlo situation in US market：

     Low brand awareness


    Uniqlo stores that were opened in malls in New Jersey suburbs and Americans do not know
    Uniqlo yet and it resulted failure. At that time, Uniqlo do not have name recognition in overseas
    market.
     Lack of localization toward the local market
    Uniqlo did not localize according to the market environment.
    o Uniqlo USA did not imply to the local store design, as they imitate Japanese style in the
    store by placing metal shelving where it is very efficient and functional, but in the US that
    was only used for discounters.
    o Uniqlo standardize its usual custom to US market and it turns out awkward to the US
    customers. Every time we enter Uniqlo in Asia, the employees will greet us (Welcome to
    Uniqlo). In US, customers are not used to these conventions.
     Uniqlo’s basic style approach
    Uniqlo design does not compatible to the local market preference. Even though it has a really high
    quality but the apparel’s style apparently looks very simple for the local customers. The casual
    basic clothes makes Uniqlo subtle compare to other brands.

    Despite all the hurdles, Uniqlo is still determining to have a breakthrough in US market. Uniqlo
    utilize all the practices they got across the world to exist in US market.

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