ARTD 1077 16/01/13

PRINCIPLES OF
FASHION MARKETING
25064002
REIKA NAGAO

CONTENTS

1. INTRODUCTION

1. INTRODUCTION

2. THE MACRO ENVIRONMENT

3. THE MICRO ENVIRONMENT

4. SWOT ANALYSIS

5. SEGMENTATION, TARGETING and POSITIONING

5.1. SEGMENTATION AND TARGETING

10

5.2. POSITIONING

12

6. THE MARKETING MIX (4Ps)

6.1. PRODUCT

14

6.2. PRICE

16

6.3. PLACE

18

6.4. PROMOTION

19

6.5. 4Ps for BRANDING

21

7. STRATEGY AND PLANNING

23

8. CONCLUSION AND CHALLENGES

27

UNIQLO, which is shortened from Unique Clothing Warehouse, is a Japanese casual wear retailer
owned by the apparel holding company, Fast Retailing Co,. Ltd. Since its first store was opened in 1984,
the retailer has created a UNIQLO boom across
Japan and now became the largest apparel retailer in
Japan with a 5.5% share of the market.
UNIQLOs clothes are Made for all, offering simple
and high quality products at affordable price, and especially its functional fabric HEATTECH that keeps
people warm has been driving the demand.
The brand started venturing into global markets in
2001, and currently its operations are worldwide
including the UK, the US, South Korea, China, Taiwan,
Hong Kong, France, Singapore, Malaysia, Thailand and
Russia. Based on research and fashion marketing principles, this report will illustrate UNIQLOs strategies of
how the brand manages its marketing operations in
Japan and global markets.

2. THE MACRO ENVIRONMENT

The Macro environment is about external influences that could have an impact on brands and retailers businesses and decision-making. This can be analysed by using a PEST model that includes
Political, Economical, Social and Technological forces (Posner, 2011 p65).

POLITICAL
Climate Change

A Territorial Dispute within China, Taiwan and

Japan

Scientists forecast that the worldwide weather

condition will continue to change in the next
years, and it will become more unpredictable.
Higher risk of climate extreme and variability
can affect overall apparel businesses. In 2011,
UNIQLO announced that the sale on their core
products such as Heattech clothing decreased
2.8% from 49.85 billion yen to 48.45 billion yen
due to the unseasonably warm weather.

There has been a territorial issue on uninhabited islands called the Senkaku islands, and
nearby countries namely Japan, China and Taiwan have claimed the islands. In 2012, the Japanese government purchased three of the islands from their private owner, which provoked
a large scale of anti-Japanese demonstration
amongst Chinese citizens. On 18th September
2012, 60 of UNIQLO stores in China were closed
for safety purpose, and it is still concerned the
impact of the boycott against Japanese brands
and products.

Closer Partnership Economic Arrangement and

Txtile Memorandum of Understanding

Cool Biz Campaign in Japan

UNIQLO conforms to two trade agreements,

Mainland and Hong Kong Closer Partnership
Economic Arrangement (CEPA) and the US-China Textile Memorandum of Understanding. The
former one enables UNIQLO to enjoy a tariff-free treatment between China and HK, and
the latter one can bring the annual growth rate
of 8-17% in 21 categories of Chinese textiles and
garment exports to America. As 80% of UNIQLO products are manufactured in China, those
agreements, particularly the former one, may
have significant impact on the retailer.

ECONOMICAL

In 2005, the Japanese Ministry of the Environment started an energy-saving campaign

known as Cool-Biz. The government advised to set air conditioner temperature at 28
degrees, and encouraged workers to dress a
short sleeved shirts that help them remain cool.
Following the energy shortage caused by the
3.11 earthquake, the campaign was extended
to Super Cool Biz which allows more casual
styles at work. UNIQLO Japan provided a further line of innovative summer clothing made
from materials Silky Dry that absorb moisture
and prevent body odors. This resulted in 11.2%
increase in July 2011 sales.

Manufacturing cost in China

As for the dramatic growth of Chinese economy, manufacturing and labor costs in China are
rising. This seems one of the negative factors
for UNIQLO whose clothes are mostly made in
the country.

Global Recession

BRIC Countries

UNIQLO reported that their stores in New Jersey closed because of the worldwide economic
downturn and investment drifts in the USA. On
the other hand, consumers are nowadays likely
to purchase clothes from cheaper brands so
UNIQLO managed to achieve 10.3% increase in
sales at the end of 2008 while the other apparel
retailers were struggling (Posner, 2011 p88).
This economic trend and consumer behavior
may last the following years.

BRIC nations referring to Brazil, Russia, India

and China can be an opportunity for UNIQLOs
potential markets. In particular, the brand is
planning to open 61 new stores in China and
Hong Kong with the target of growing middle-class population. The first store in Russia
opened in 2011, and the brand is also eyeing on
the Indian markets.

SOCIAL

TECHNOLOGICAL

Aging Society

Corporate Social Responsibility

Social Media

Japan will need to deal with a serious problem

of aging population; the proportion of youth is
shrinking and instead the number of old population is rising significantly. This demographic
phenomenon also began to emerge in other
nations such as China and the UK. The brand
must take account into its possible influences
on their marketing operation, for instance,
change in its target customers and their buying
behavior.

Consumers are now becoming more aware of

ethical and environmental issues. UNIQLO has
committed to Corporate Social Responsibility
(CSR) activities through ensuring the safety
of workers, monitoring the entire production
processes, collaborating with communities and
reducing its environmental impact.

Social networking sites such as Facebook, Twitter and blogs have now a significant impact on
marketing exercises in the contemporary fashion industry. In fact, Mollison (2012b) stated
that 80% of mobile users utilize social media to
look for products, compare and contact. Brands
and retailers are able to provide the latest
information simply by posing it on the web and
invite overseas viewers into their promotional
activities. This gives the audiences personalized
experiences, and drives them to engage with
the brand. UNIQLO has also optimised its store
web pages, Facebook and Twitter with the purpose of advertising, promoting and interacting
with customers.

The Population Expansion and Globalization

Online shopping

The world population reached 7billions in 2011

and is expected to increase in the next decade.
In addition to this, the globalization of communication and transformation may accelerate the
number of immigration. This may create further
international society where various ethnics and
religious exist, therefore, it is important to consider the brands marketing plan from multicultural perspectives.

The development of portable smartphones and

tablets has created the explosion in customers
purchasing online. According to Hall (2012),
almost 60% of the UKs population ordered or
purchased products or services on the Internet,
and 68.2 billion was spent on online purchasing transaction in 2011, which is the largest
number amongst the developed nations. For
apparel companies, improving online shopping
services with incorporation of social media
seems as vital as a retail store. UNIQLOs online stores are available in Japan, China, Korea,
Taiwan, the UK, and it was recently launched in
the US market in 2012.

3. THE MICRO ENVIRONMENT

The micro marketing environment refers to factors that more directly affect the organizations
ability to maintain successful business within its specific market. Forces to consider are customers,
competitors, distribution channels, suppliers and manufacturers, and shareholders and partner
relationships (Posner, 2011 p69).

4. SWOT ANALYSIS
Once the external environment has been examined, it is then important for marketers to use the
SWOT analysis tool and evaluate the internal strengths and weaknesses of their organization and
external threats and opportunities (Jackson and Shaw, 2009 p 305).

S
SUPPLIERS and MANUFACTURERS
Uniqlo has built Business partnership with Kaihara Corporation and Toray Industries. Both are the key companies supplying Japanese technological and functional materials (e.g.
HEATTECH, Windproof Jeans, Silky Dry). If these business
partnerships become unable to function, this could damage
the brands ability to supply its core products.
About 80% of its products are made in China.

DISTRIBUTORS
UNIQLO has set up an SPA business
(Specialty store retailer of Private
label Apparel) to cover the entire
processes from its design and manufacturing to final sale. It allows the
brand to develop unique products,
react quickly to the change of sales
environment, reduce store-operation costs, and offer high-quality
clothes at reasonable price (more
detail in page 18).
COMPETITORS
In recent years, value market in
fashion industry is becoming extremely competitive. Zara, H&M,
Primark and GAP are examples of
brands that can be threat for UNIQLO.

CONSUMERS
Nowadays consumers tend to explore their individual and unique
styles. It is also vital to carry out
relation marketing strategies that
create emotional and personal
connection with consumers.
UNIQLO may need to reconsider its brand image simple and
casual, and continually offer
unique marketing promotions in
order to meet their expectation.

SHAREHOLDERS
Tadashi Yanai, a chairman, president and CEO of UNIQLO,
and four other external directors play a significant role in
management by bringing objective and professional ideas.
However, it could be a management personal risk in case
any of them cannot meet their responsibilities.

High quality essentials at cheap price

Functional and Innovative materials
Offer significant number of colour ranges
and sizes
Cater for all ages, and different types of
customers womens, mens, childrens
wear
Contribution to reduce their environmental impact throughout business operation
Creative digital marketing promotion
Low operation costs due to the SPA business model
Interesting collaboration with highbrands (e.g. Jil Sander)

W
Influence of China is significant
(e.g. excessive reliance on the country for
manufacturing and trade agreements)
Designs and styles could be too basic and
plain
Not all products are available in every countries

O
Consumers higher interest in value retailers
Consider to expand the operation of
online stores in Thailand, Malaysia, France,
Russia, Philippines and Singapore
Further market expansion in Asian and
BRIC countries
Promote ecological fashion styles with
their technology
Collaborate with well-known fashion designers and brands
launch a new product line of sportswear
and collaborate with athletes and sponsorship for international sport events such as
Olympic

Rise in manufacturing and labor costs in

China
Anti-Japanese protesters in China
Rising cotton and cashmere prices
Weather condition is anticipated to remain
volatile

Amplify their CSR activities

5.1. SEGMENTATION, TARGETING

and positioning

AREA

There are various types of consumers and markets. In order to attract well-defined audiences, it is
important for markers to divide a customer base into subgroups that share similar characteristics
(Segmentation), select a specific market (Targeting), and then position the brand itself within the
market (Positioning).

5.1. SEGMENTATION and TARGETING

UNIQLOs clothes are simple and casual styles, and offers wide selection of colours and sizes. As
explained in chapter Promotion, the brand promotional activities are also designed for various
types of customers regardless of age, gender and nationalities. This implies that, unlike typical apparel companies, UNIQLO has conducted undifferentiated targeting strategies with the aim to meet the
needs of as many people as possible.

SOCIAL
CLASS

Urban area

(e.g) Mostly UNIQLO UK stores are located in

London.

All, particularly working class

Fig.5 VALS Model, MOLLISON-BRAGG, A
Lecture Presentation (2011)

PERSONALITY
TYPE

Rogers Diffusion of innovations (Posner, 2007 p119) identifies five types

of population categorised by their behavior towards innovation. As UNIQLOs products are simple and can suit wide range of customers, their main
segments
are mass
markets
including theory
early majority
and late majorSimilarly, this is further reinforcedtarget
by Roger
(1995, p.119)
Diffusion
of Innovation
which also
However,
the brand
innovative
and functional
suggests the Herms customer isity.
likely
to be an innovator
and
an early adopter
in that theyclothes may also meet
correspond to trends before others
and
are likelyof
to early
take chances
as they have the belief and
the
demands
adopters.

confidence to follow and adapt trends and styles.

Based on primary research and the main criteria of fashion marketing segmentation (Jackson and
Shaw, 2007 p54), the Tables below suggest UNIQLOs current target customers.

AGE

GENDER
USER occation
BENEFITS
WANTED

ALL

In particular, UNICQLO seems to focus on generation

Y. Posner (2011, p110) describes that they are familiar
with social media and technology, and almost 50% of
Gen Y workers prefer business casual styles. UNIQLOs
techniques of digital marketing and simple fashion
styles are likely to satisfy their desires.

Women and men

(Posner, 2007ofp119)
Fig.
0)'3>4
Diffusion
Innovations, Marketing Fashion POSNER, H (2011)

Casual clothes for everyday and work

7"

"

High-quality and functionality of clothes at low price

SPENDING
ATTITUDE
10

Money savers

11

5.2. POSITIONING
The positioning strategy is dependent on the companys ideal attributes, competition, customers and the
characteristics of their products. Creating a positioning map can be useful to identify the brands desired
position and overview this position in relevance to its
competitors (Posner, 2011 p52).
Considering average price and product fashionability
of both UNIQLO and its competitors, their current
positions are suggested in Diagram1. This shows that
UNIQLOs target market is highly competitive, and
the company is perceived as slightly less fashionable
than its major competitor brands; Zara, GAP and
H&M. In spite of this, UNIQLO successfully differentiates itself from others by offering cheaper and higher
quality of products.
In Section3 The micro analysis, it is assumed that
customers are more likely to prefer individual and
unique fashion styles in these days. Following this
trend, the company has started repositioning itself by
increasing its fashionable product lines, for example,
collaboration with a high-fashion designer, Jil Sander,
and Orla Kiely. However, it could force the brand to
enter more competitive market dominated by powerful value retailers such as H&M and Primark that offer
trendy clothes at cheap price.

brand features
Womens, Mens and Children
Target age is under 35
Fashionable clothes at cheap price
Low quality of products

Womens, Mens, Children and Maternity

Target age is between 18 and 35
Interesting collaboration (e.g. David
Beckham)

Womens, Mens, Baby, Kids, and Maternity

Clothes for all ages
Offer casual styles at good value
Charity activities (e.g. RED)
Good range of denim

price range
5-25

10-50

15-60

(Diagram 1)
Womens, Mens and children
Target age is between 25 and 40
High shopping experience
Stylish, premium but affordable

12

20-80
(Primary Research)

13

6. THE MARKEING MIX (4Ps)

Posner (2011, p34) describes that the marketing mix provides a framework that is practical to manage
and incorporate the organisations marketing exercises. This principle can be divided into four main
variables to be considered, namely, product, price, place and promotion (4Ps).

6.1. PRODUCT

product differentiation

Fashion market is saturated with a number of brands and retailers, and each of them offers similar
product to customers. It is therefore important to differentiate the product by its features and functions in order to appeal target customers.
As shown in Table below, UNIQLO provides simple, casual, cheap and functional clothes with the
wide range of colour and size. On the other hand, the similar jacket sold by ZARA can be featured as
more fashionable and trendy with details and feminine silhouette.

production mix
The Product mix refers to the total number of products an organisation sells, and vitally links to its
overall business performances (Learning Marketing.net, undated). This varies according to the brands
product strategies.
UNIQLO has tactically reduced the number of lines, and instead, focused on its core items such as HEATTECH, Premium Down Ultra Light jackets and Silky Dry. Although the number of UNIQLOs product
lines seems less compared to its competitors, each category is available in a wide selection of designs,
colours, patterns and sizes so that it is likely to meet the needs for all.
In response to high demands for its winter items, the brand has particularly prioritized selling HEATTECH by extending its production line from innerwear towards jeans and tights. This resulted in 18.5%
increase in December 2010 for Japan UNIQLO stores (Bane, 2010).

uniqlo

zara

product

Premium Down Ultra Light

Parka

Belted Puffer Jacket with Fur

Hood

price

59.90

99.99

design

Simple

Stylish and fashionable with fur

hood

choices

product
benefits

Warm
Light and potable
Good quality at cheap price

The Product Mix

UNIQLOs Core Items
Examples
HEATTECH






T-shirt
V-neck

Premium Down
Ultra Right Jacket

Jeans

Socks

Crew-neck

T-neck

Silky Dry

20 colours
XS to XXL

2 colours
XS to XL

A number of choice
Grey Dark Gray

XS

14

(Primary Research)

Black

XL

Trendy design
Exclusive and premium quality at affordable price
(Primary Research)

15

6.2. PRICE
In the context of marketing, pricing can be viewed from two perspectives; those are value from customers and income from brands and retailers (Message, 2012c).
Value is the worth that a product or service has in the mind of customers, which directly impacts on
how much they are willing to pay for it. Customers evaluate the value of product by its price and quality, and importantly, most of them are willing to pay for the minimum standard of quality at a lower
price (Jackson and Shaw, 2009 p124).
Meanwhile, for brands and retailers, the aim of selling products is to optimise the sales revenues and
maximize the profits. It is therefore important for pricing to understand customers perception of value, and consider how to satisfy them without loosing the companys ability to generate income.
The macro analysis in Section2 explains that customers are becoming more cautious about spending
money due to the global recession. In fact, primary research shows that 50% of respondents consider
price and quality are the most influential factors on their purchasing decision. UNIQLOs strategies are
based on offering good quality at cheap price as well as enforcing customers the brand image that its
products are affordable.

UNIQLOS pricing strategies

A PRICE ARCHITECTURE
Price is not only about one individual item but also companys entire offering, and must reflect supply and demand of each product.
Price Architecture (Posner, 2011) represents how the retailers pricing is structured from the lowest
up to the highest. UNIQLO sets its price points between 10 and 100, and those prices are dependent on the product features such as materials, functionalities and designs. The diagram shows that
the more expensive the price is, the more exclusive features the product offers. Furthermore, the
proportion of styles and individual stock levels within each of the categories are also adjusted to
the demand so that the retailer can satisfy a number of customers and produce the highest potential profit.

WOMEN Cashmere V Neck Cardigan

99,90
100% pure cashmere
Stock: lower volume

Mass production in Chinese factories helps UNIQLO cut the
cost dramatically. Customers seem to have a misapprehension about
production in China but the brand managed to enhance the value of
its clothes through heavily promoting the brand image of Japanese
high quality.

UNIQLO starts pricing at low-margin, and they drop their price
even lower at the end of the season, for example, bundling 3 shirts
for one. Thus, the brand can reinforce customer the image as a value
retailer.

UNIQLO sets its price point at 19.90 rather than 20, and
39.90 rather than 40. This strategy, which is called psychological pricing, is intended to make the customers believe the price is
cheaper than it actually is, and also effective to emphasis the value of
its product (Tutor2u, 2012).

16

Example

LOW

Top-Price Product

DEMAND

Mid-Price Product

Lowest-Price Product

Women Ultra Stretch Jeans

29,90
Japanese fabric
A slim silhoue<e
Stock: rela=vely large volume

Women HEATTECH Neck T-shirt

9.90
Basics
Stock: large volume
Large selec=on of colours
and styles

HIGH

17
17

6.3. PLACE
Distribution channels known as route to market are the methods of how products are transferred to
the final consumer (Posner, 2011). Bringing clothes to the end at the low price in an efficient way is one
key to success as an apparel retailer, and accordingly the right channel choice allows advantage over its
competitors.
UNIQLO established an SPA business model that brings the entire process from manufacturing to
marketing under the brands direct control. In marketing theory, this is known as vertical integration
helping companies to cut transportation expenses, improve the efficiency and ensure the product quality (Tungate, 2008 p 233). Emerging fashion retailers such as Zara and American Apparel also adopted
this distribution channel strategy.
On top of that, the direct control at every production stage enables UNIQLO to oversee its Global Quality and Safety Standards are maintained. As a consequence, the brand achieved to reduce the environmental impact and improve working conditions.

6.4. PROMOTION
Promotional activity is a vital element to increase the brand awareness and encourage customers to
purchase its products.
Importantly, the PEST analysis points out that the Internet has created a significant impact on customers communication tools. Digital marketing, promotion based on computers and smartphone, should
be taken into account in addition to traditional advertising channel (Posner, 2007 p166).
Besides this, the recent trend is that promotion needs to be interactive, emotional and personalised because customers are more likely to desire strong connection with brand and retailers (Amanda, 2012).
UNIQLOs promotional activities, particularly by utilizing digital tools, are adapted to the new tendency
of communication and consumer behavior. They give emotional and personalized experiences that are
related to the companys concept Japanese high-technology, and attract more multicultural set of
customers despite language barriers.

UNIQLOCK
The companys Uniqlock campaign launched in
2007 is the first online advertising that grabbed the
global attention. The campaign featured a clock
on the web with catchy music and choreographed
dancing that match the ticking, and it show current
local time in cities worldwide all year round. The girls
dancing are wearing the brand symbolic items; polo
shirts in summer and cashmere in winter.

The online catwalk show

18

(Fast Retailing, 2011)

The brands interactive catalogue of 2009 collection

is another good example. Audiences were able to
watch the online fashion show from various angles,
and check the detail of every item by clicking on the
model with the outfit they were interested in. As a
result, the product featured on the show brought
almost 40% rise in the companys sales and profits.

19

6.5. 4ps for BRANDING

Poser (2011, p 134) defines that branding is to develop the identity of its products and services, and create an emotional connection between a brand and customers. In terms of fashion industry, customers
often require newness and consistency when they engage with the brand. Even if the features of product a company offers could be different for each seasonal collection, brand message and its value must
retain stable and consistent. This will lead to establishing a strong brand identity, how the company
wishes consumers perceive and engage with the brand (Posner, 2011 p136). Having distinctive brand
identity will also allow increasing value and gaining competitive advantage.
According to Posner (2011, p136), the brand identity can be built by utilising several elements; the logo,
the product and services, window and visual merchandising, and promotion and advertisement.
The aspects of below as well as the marketing mix 4Ps (Product, Price, Place and Promotion) are integrated in order to create UNIQLOs brand identity: simple, casual, functional, cheap clothes with
Japanese high quality for all. Having such strong and distinctive brand identities result in brand loyalty
that gives customers confidence and respect about value the brand offer, and thus, helps the company
increase its sales and profits (Posner, 2007 p140).
The following are examples of how UNIQLO has created its strong identity;

LOGO
KINETIC ENERGY GAME
UNIQLO promoted their HEATTECH collection with Kinetic energy game in
various locations across London (Fashion and Mass, 2012). Customers were
encouraged to step on kinetic floor surfaces and a game console, and generate energy in exchange for a HEATTECH product. This promotional campaign
was accompanied with the brand website, facebook and twitter as well as a
mobile game that was available via QR codes in UNIQLO store windows and
on the heat spots.

The brands logo is simply designed and based on red.

Inventory
Control
Marketing
Online
Store
Singh (2006)
emphasizes
the importance of
colour
in marketing because it affects consumers mind.
The psychological properties of red are expressed
Customer Center
as strong but the simplest with no subtlety (Angera
Wright, 2011). This seems connected with the concept
of UNIQLOs product, simple and basic.
The Inventory Control Department maintains the optimum level of store inventory
by monitoring sales and stock on a weekly
basis, and dispatching necessary inventory
and new products to fulfill orders.
At the end of each season, merchandisers and the Marketing Department
help coordinate the timing of markdowns
and limited-period sales (20-30% off the
regular price) to ensure that inventory is
sold out.

Each season, UNIQLO conducts promotional campaigns for core products such
as fleece, Ultra Light Down jackets, polo
shirts, and HEATTECH. During campaigns, UNIQLO advertises a core products unique qualities and newsworthy
features on TV and in other media. In
Japan, for example, weekly flyers in the
Saturday edition of national newspapers
promote the latest apparel at weekendonly prices.

Sales at the UNIQLO Japan Online Store

totaled 19.9 billion yen in fiscal 2011, or
3.3% of total sales. We also offer online
sales internationally, including in China,
Hong Kong and Taiwan.
The Customer Center receives more than
70,000 opinions and requests annually
from customers. Appropriate departments then act on them to help improve
products, stores and services.

Promotional flyer

Sales

TV commercial

Products reach the warehouse

Customer Center

Shipped to stores

PRODUCT and SERVICE

As discussed earlier, UNIQLO manages to provide customers with high-quality products at reasonable price. In this
context, good quality is not only about its products but
also offering Japanese high standard of services. The brand
upholds Three promises; keep the sales floor clean, keep
advertised items in stock, and accept return and exchanges
within three months of purchase. Its product planning is
based on customer feedback to respond their demand precisely. Those attempts are directly linked to create the brand
value of Japanese high quality in the customers mind.

20

21
32

7. STRATEGIES and PLANNING

VISUAL MERCHANDISING
The displays and layout in UNIQLO stores
are designed to highlight the brand features
and benefits. For example, functionality is
the major selling point of the UNIQLOs products so each product feature is exhibited in
a huge post form motivating customers to
make a purchase. The folded clothes are also
displayed in a warehouse-like style making
customers believes that there are a variety of
products with large selection of colours and
sizes for everyone.

All marketing activities should be planned and

conducted carefully with following strategies.
Johnson and Scholes defines that strategy is
the direction and scope of an organization over
the long-term: which achieves advantage for
the organisation through its configuration of
resources within a challenging environment, to
meet the needs of markets and fulfill stakeholder
expectation (Mackie, 2012d). A well-considered,
clear and bold strategy is a key element to build a
successful brand in the fashion industry.

PROMOTION and ADVERISEMENT

The company needs to set its objectives, identify

external and internal factors that may affect the
brand, evaluate its strength and weakness, and
then make a plan with the consideration of all
of above. The foundation of marketing planning
process is demonstrated following;

This advertising image was used for the

brands UT collection selling T-shirts with
hundreds of designs. The models wearing the
T-shirts collection are various; Women and
men, old and young, many different nationality
and personal character.
This implies that UNIQLO directly appeals its
strength variety to the wide range of the
target customer segment.

22

23

1. corporate
objectives

2. marketing
objectives

This is the main purpose and direction of a brand, and often

stated explicitly in its mission statement. UNIQLOs corporate
objectives are clear and strong, Made for all, which means that
UNIQLOs simple and cheap clothes are universal regardless of
age, gender, occupation, ethnicity and all other ways that define
people. The brand also believes that clothes can make the world
a little better.
Marketing objective is more specified goals that an organisation
wants to achieve through its marketing activities within a particular period. UNIQLO is trying to accelerate new store openings outside the home market of Japan, particularly in Asia. The companys
current marketing objective is to increase its global awareness and
profits at the greater level so that sales at UNIQLO international
will overtake sales at UNIQLO Japan in 2015.

Strengths
Innovative and technical fabrics made in Japan
UNIQLO direct and close monitoring its distribution channel
Low cost of manufacturing
Simple designs that can suit many different ranges of customers
Threats
Global market is becoming intensely competitive with strong
and powerful value retailers selling fashionable garments such
as Zara and H&M
Higher cost in Chinese manufacturing

Focus on developing clothes made of innovative materials

that represent Japanese technology, for example, HEATTECH

(Fast Retailing, 2011)

3. marketing
audits

4. swot
analysis

5. evaluate
options
and
set strategies

The next to consider is marketing audits, external and internal factors that may affect companys business operation. Based on the
macro and micro analysis shown earlier, examples of UNIQLOs
marketing audits are below;
External
The development of digital communication tools
Growing the consumers interest in sustainable society
Labor cost in China is rising

Focus on developing its core product lines with various

choice of designs, colours and sizes for all (Product)

Internal
A SPA business model
Long-term partnership with synthetic fiber maker Toray Industries and Kaihara Corporation

oversee its entire process with a SPA model, and expand

manufacturing towards other Asian countries outside China
(Place)

keep low price through a several pricing strategies (Price)

6. the marketing
plan with 4ps

heavy investment in promoting its core items and using

digital devices that effectively communicate with customers
worldwide (Promotion)

24

25

When brands and retailers plan their strategy in a wrong way, this could end in poor marketing decision, huge loss and business failure. In fact, initial attempts of UNIQLOs expansion in the UK were
failed in 2001. The reason is that the brand misinterpreted the new market environment and tried to
sell its polo shirts that are not suitable for the cool weather in the UK. The lack of frag-ship stores and
promotional activities also led to customer indifferences. However, UNIQLO restructured its marketing
strategies and succeeded in re-entry into the Western market by increasing HEATTECH product lines
and providing more creative and inspiring promotion. Strategy and planning with careful research are
therefore vital component of entire marketing operation selling right products to appropriate customers.

8. CONCLUSION and UNIQLOs

CHALLENGES
To summarize, UNIQLO has competed at Japanese and global market offering clothes that made for
all with functionality and simplicity at low price. The brand image, the perception of company amongst
customers worldwide, is unique, distinctive and hence strong as a consequence of successful marketing.
As for the next three years, the brand will seek opportunities and challenge further expansion on a
global scale.

COST LEADERSHIP
Recently the middle market in the fashion industry is increasingly squeezed and mature, which causes
intense price competition. Global recession has also made customers more cautious about spending
money. In that case, cutting cost and providing clothes at cheaper price will remain essential for fashion marketing.
DISTRIBUTION CHANNEL
UNIQLO has managed to sell garments at low price by its SPA business model and cheap Chinese manufacturing but the labor cost in China is becoming more expensive. In order to keep low cost, the brand
needs to reconsider its distribution channel and gradually shift their manufacturing to other lower-wage nations such as Cambodia.

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STRENGTHEN THE BRAND IMAGE AND CONNECTION WITH CUSTOMERS

There are a number of competitors selling similar products at cheap price. Customers always demand
lower price but the latest trend is that they equally want good value as well as closer relationship with
brands and retailers. It is important for contemporary fashion marketing to provide products, services
and experiences that differ from other brands.

FOCUS ON ASIAN MARKETS

The demand in Asian market, especially China, is expected to grow significantly in the next 10 years. Unlike
the Western market, the recognition of UNIQLO in Asian countries is higher, and characteristics of the market environment are relatively similar with its home market Japan. When the brand opened the first store
in Singapore, UNIQLO was able to run a new business smoothly because almost 40% of the national population had already known about the brand. The company is aiming to open more than 100 stores per year in
China, and will continually focus on boosting its business performance at Asian market.

TECHNOLOGY + HEALTH
One of the UNIQLOs distinctive identities is high quality of product and services that originated from
Japanese DNA. The brand will continue to innovate more technological and functional products
with its partner Japanese fabric makers such as Toray and Kaihara. Its technology could bring further
opportunities for the UNIQLOs business in the future. In the wake of aging society, the proportion of
population aged over 65 is rising, particularly, in Japan and Asian nations. By introducing healthy functional clothes combined with its innovative materials, the brand may be able to explore the potential of
entering silver market.

TECHNOLOGY + CSR
UNIQLO also has a chance to recreate its brand image of CSR with its innovative garments. There has
been a change in consumers attitudes; they are becoming more ethically-aware when they purchase
products and services. UNIQLO has been making efforts for sustainable businesses, for instance, improving energy efficiency in each store, cutting CO2 occurred within distribution channels, and launching the UNQLOs product recycling projects. Nevertheless, primary research shows only 15% of the
respondents perceive UNIQLO as a sustainable fashion brand. In addition to HEATTECH, the brand is
recommended to develop and promote environmentally-friendly products so the company can reposition itself as a sustainable apparel company.

CROWDSOURCING
Crowdsourcing is to outsource information and ideas from the public, and this is an emerging marketing method that invites customers into the brand promotional projects. UNIQLO adopted this by utilizing digital communication tools including its store web page, smartphones and social networking sites.
The application UNIQLOOK is a good example of this presenting hot looks with snap photos of
models wearing UNIQLOs clothes in streets worldwide. The audiences are able to exchange the idea
of how to coordinate UNIQLO clothes with other items, and how to customize it into their own tastes.
UNIQLOs garments can be criticized that the designs are too simple and plain but it allows customers
explore their own styles in a variety of ways. Therefore, crowdsourcing and encouraging customization
of its product could one of the key elements for the brand in the future.

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