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Case
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Reference no. 312-167-1
Published by: Amity Research Centers
Published in: 2012
Length: 12 pages
Data source: Published sources

Abstract

UNIQLO, founded in 1949, was the biggest apparel retailer in Japan and was popular for its unique cheap clothes. However, Tadashi Yanai, founder of UNIQLO wanted to expand the company’s business in various parts of the world and intended to earn majority of its revenue from the outside markets. Further, stagnancy in the Japanese economy, ageing population and low birth rate of the country were also some of the factors that led the company to rethink its business expansion aggressively in the overseas market. In 2011, UNIQLO had planned to open most of its stores in the emerging Asian markets. It was aiming to launch around 100 new stores in China/per year, 100 in Southeast Asia, 50 in South Korea, 30 in Taiwan and 20 new stores every year in the US and Europe. UNIQLO always preferred to open its stores in the posh areas of the cities and this further increased the brand visibility of the company. In March 2012, UNIQLO had opened its largest store in Ginza, Tokyo. UNIQLO was having almost 843 stores in Japan and 181 stores in various international locations as of 2011. In 2011, UNIQLO’s Japanese sales were around 600 billion ($7 billion) and the external markets sale of the company accounted less than one sixth of its total sales. UNIQLO’s unique approach of business such as outsourcing the manufacturing materials of the company in bulk, relying on large volumes of quality goods at cheaper price, particularly fleeces and jeans, contributed significantly for the growth of the company over the years. However, some experts feared that the fashion statement of Japan which UNIQLO wanted to bring in the Asian market might not work well. Besides, a number of global leading fast fashion retailers namely Zara, Gap Inc, H & M etc were also throwing tough challenges to UNIQLO along with their systematic marketing strategies. In this scenario, whether the Japanese fast fashion retailer would reap success from its international expansion strategies remained to be seen.
Location:
Industry:
Other setting(s):
2011-2012

About

Abstract

UNIQLO, founded in 1949, was the biggest apparel retailer in Japan and was popular for its unique cheap clothes. However, Tadashi Yanai, founder of UNIQLO wanted to expand the company’s business in various parts of the world and intended to earn majority of its revenue from the outside markets. Further, stagnancy in the Japanese economy, ageing population and low birth rate of the country were also some of the factors that led the company to rethink its business expansion aggressively in the overseas market. In 2011, UNIQLO had planned to open most of its stores in the emerging Asian markets. It was aiming to launch around 100 new stores in China/per year, 100 in Southeast Asia, 50 in South Korea, 30 in Taiwan and 20 new stores every year in the US and Europe. UNIQLO always preferred to open its stores in the posh areas of the cities and this further increased the brand visibility of the company. In March 2012, UNIQLO had opened its largest store in Ginza, Tokyo. UNIQLO was having almost 843 stores in Japan and 181 stores in various international locations as of 2011. In 2011, UNIQLO’s Japanese sales were around 600 billion ($7 billion) and the external markets sale of the company accounted less than one sixth of its total sales. UNIQLO’s unique approach of business such as outsourcing the manufacturing materials of the company in bulk, relying on large volumes of quality goods at cheaper price, particularly fleeces and jeans, contributed significantly for the growth of the company over the years. However, some experts feared that the fashion statement of Japan which UNIQLO wanted to bring in the Asian market might not work well. Besides, a number of global leading fast fashion retailers namely Zara, Gap Inc, H & M etc were also throwing tough challenges to UNIQLO along with their systematic marketing strategies. In this scenario, whether the Japanese fast fashion retailer would reap success from its international expansion strategies remained to be seen.

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Location:
Industry:
Other setting(s):
2011-2012

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