UNICLO CASE STUDY

1. UNIQLO Case Study
Weiting WANG 1155081820
Wuyi DENG 1155089216
Kejin WU 1155081995
Yibing SHEN 1155081938
Jingfan ZHAO 1155081873
Ziyi GAO 1155080948

2. Chart
• High quality
• Well-recognized brand
image
• Well R&D
• Cost performance
• Large consumer scale
Uniqlo SWOT
s W
• Single product type
• Only suitable for Asian
consumer
• Risk resulting from
production pattern
O T
• Develop new materials,
such as Airism
• Large potential market in
2nd and 3rd tier cities
• Good reputation of
Japanese products
• Anti-Japan group
• Product homogeneity
• Increasing fixed cost
(human resource,
material, etc)

3. Chart2 Uniqlo Porter’s five forces
Buyer Power
Taobao makes it available for
customers to get price information
of all brands . e.g. special offer both
online and offline on Taobao 11.11
festival

4. Chart2 Uniqlo Porter’s five forces
Uniqlo is faced with competition
from web celebrities’ clothing shop
on Taobao. The convenience of
online shopping and Alipay even
lowers the switching cost.
Threat of substitution

5. Chart2 Uniqlo Porter’s five forces
Threat of new entry
Build Brand
Awareness and Brand
Loyaty;
Technological innovations;
Large cutomer base

6. Chart2 Uniqlo Porter’s five forces
Competitive rivalry
A large number of competitors in
fast fashion industry like GAP(U.S.),
Zara(Spain), H&M( Sweden), and
Meters/bonwe(China).
A need for extensive advertising to
maintain brand awareness, which
requires a large budget.

7. Chart2 Uniqlo Porter’s five forces
Over 70 manufacture factories in Asia
Cooperates with large cooperate like Dongli
inc.;
UNIQLO sends professional teams to places like
Nei Mongol and Nepal to buy raw materials;
Sign contracts with suppliers 2 or 3 years in
advance to make sure that the supply of raw
materials meets no delay risk, and this is also
an effective way in cost reduce;
BUT High cost and reputation risk from
labor right issue in some suppliers’ factories.
Supplier power

8. Chart3 Uniqlo Business Model Canvas
- Line
- Disneyland
- Lego
- Pixel
- Independent
designers
- Takumi
- Toray
Industries
- High-quality
product
insurance
- Global stores
- Material
suppliers
- Provide high
quality but low
price product
for daily
common wear
Online and
offline
stores
(Large-
Scale Store
Model)
- Merchandise store sellers
- Customer relationship
manager
- Aftersales service center
- Online customer service
Middle-class
customers
with average
income in
first class
and second
class cities
Raw materials, Manufacture, Design,
Logistic, Store management, Human
Resource management, Promotion and
marketing, Distribution
Sales volume
- Production
- Promotion
- Customer
Relationship
Management

9. Chart4 Uniqlo Blue Ocean Strategy Canvas
Low
High
Quality
Advertising
Price
C
ostperform
ance
Q
uantity
ofstyles
Fashion
Services
Ease
of selection
H
igh-tech
fabrics
Uniqlo
ZARA

10. Chart4 ERRC GRID - Fast fashion industry
Quality problems/ Pollution /
waste of resources
Advertising cost/ Over stock/ Price
Cost performance ratio ( 性价比 )/
Quantity of styles/ Fashion
Services like online orders picked up
in stores ( 门店自提 ) / Ease of
selection / high-tech fabrics
Eliminate Reduce
Raise Create

11. Thank you