1.0 Background of the entrepreneur
Tadashi Yanai is the founder of the fourth largest apparel company in the world, Fast Retailing, also known for its UNIQLO casual clothing shop. He was born in 1949 in Yamaguchi and grew up in the retail clothing industry (Coban et al., 2015). He graduated from Waseda University in Tokyo in 1971 with a bachelor’s degree in economic and political science. He started selling men’s clothing and kitchenware at Jusco supermarket after finishing his graduation. After a year, he quits his job and joined his father’s tailoring business (SuccessStory, 2017). In 1984, he took over his father’s clothing chain of 22 stores and opened the first Uniqlo store in Hiroshima. The name stems from an abbreviation of “Unique Clothing Warehouse” (Martin et al., 2016). Uniqlo started as a typical multi-brand shop carrying Nike, Adidas, and other foreign brands and “The Great Recession” of Japan in the 90s has provided Uniqlo with a great opportunity to grow rapidly for which Uniqlo products quickly gained popularity among price conscious Japanese customers. Uniqlo has achieved great success in East Asia as it can be seen where more than 300 stores were expanded across Japan in 1998. Although there was struggles
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Retail fashion brands throughout the world invariably develop different market segments such as young women, mature men and so on. Uniqlo does just the opposite. It has positioned itself as a fashion retailer for the entire human race, selling clothing that is ‘made for all.’ It persists in this marketing approach and succeeds in getting recognised as such. His decisiveness and insights are second to none. For example, he has a policy to turn around merchandise quickly at the retail level. Items that do not sell well within the prescribed period will be taken off the shelf. I think it takes super-human willpower to be able to make such firm
“We believed from the start that if we brought the customer quality merchandise at the right price and offered excellent service, we could change retailing in the United States. Today, we are the model of what retailing should be.” – Bernie Marcus
The mind-set of the company is to put sales and profit second to creating a special style that can change the world through fashion.
According to the mission statement of Anthropologie: “Lifestyle merchandising is our business and our passion. The goal for our brands is to build a strong emotional bond with the customer. To do this we must build lifestyle environments that appeal emotionally, and offer fashion correct products on a timely basis. Our customers are the reason and the inspiration for everything we do.” UO considers the relationship it has with its customers before making decisions that affect them. Therefore, UO has kept in touch with customers continuously by utilizing various platforms such as SNS messages, connections with its online store, campaigns, events, and social media. In 2016, the growth rate of the company of retail segment is 1.6%, $47.4 million (URBN FY 2016 Annual report, 35). The basic concept of gaining inspiration from customers forms a diverse and progressive corporate culture; this is the driving force behind the development of the
Under Armour’s business strategy towards market segmentation is broken down into three different basis; Age, Gender, Uses. The first major market segmentation is by age, different age groups demand different products and Under Armour has produced certain merchandise to appeal to each generation. The second is Gender, both male and female respectively make up roughly 50% of the market equally.To appeal to females UA produces apparel in brighter colo, as a fashion forward athletic wear. While for males they they cater toward masculine vibe of tight fitting and resistant to wear and tear. Lastly, UA segments by the range of uses for their products.
With over 3,000 stores in 6 countries and a network of over 16,000 vendors in 60 countries, TJX is able to offer consumers deep discounts on many top names in fashion apparel and home goods merchandise. However the Company does not like to be labeled as a “discount store.” Instead, TJX’s vision is to be a “global, off-price value retailer” with a mission to deliver the same brand name value and
In this report we will focus on Singapore’s Uniqlo companies by providing a PESTEL analysis and review of the Porter’s Five Forces analysis to gauge the company’s competitive environment. Lastly,
2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.
Topshop has multiple strategies in keeping ahead of their competition. They fundamentally believe that what sets them apart from their competitors is the fact that they are not just selling a product but they are selling an experience (Justin Cooke). You can see this notion
Quick response of Zara leads it to be successful in the fashion clothing industry. Zara adopts international strategy for its operation. With vertical integration, it benefits Zara in cost aspect, however, it involves some risks. Due to our anaylysis on Zara’s operations, some of the recommendations are made to facilitate its further improvements.
Burberry, founded in 1856, is a leading international luxury brand. Burberry designs, manufactures and licenses apparel and accessories for distribution through its own stores and network of prestige retailers worldwide. In early 1998, the new management team at Burberry set out its strategy to reposition and revitalise the brand, which resulted in significantly improved results and strengthened the base to build the business. With continuous growth since last five years, Burberry has faced new challenges of brand sustainability and positioning in a volatile industry (fashion) where customer behaviour is unpredictable. Thus, it requires a strategy that lays foundations for long-term growth and addresses the issues
Shanghai Tang has been in the business of selling high quality retail items for men and women, clothing and accessories, since 1994. Their designs have been based upon Chinese cultural influence while also being modern and wearable in markets around the world. Although business has gone well under the leadership of Rafael Le Manse, the company is experiencing some new internal and external issues. Shanghai Tang’s competition is about to establish a market presence in China and in order to stay ahead in the game; Le Manse needs to figure out how to expand the existing customer base. Also, Le Manse’s long time creative partner, Joanne Ooi, is leaving
The clothing industry, as one of the most globalized industries in the world (Bonacich et al 1994), is currently undergoing a restructuring, especially the fast fashion sector. Fashion markets are synonymous with rapid changes and short product life cycles. Therefore, changes in consumer demand for newness and fashion trend force the emergence of ‘fast fashion’ strategy in retailers like Zara and H&M and shifts in the focus of competitive advantage from price towards quick response. That is to say, clothing firms, which are adopting global or offshore sourcing strategy, are not considered to have more competitive advantages as before.
The world has become fascinated towards the fashion. The first thing need to be considered is Fashion; it can be behavior, implementing new ideas on clothing’s, hairstyle, decorations and so on which are automatically linked to our day to day activities. In today’s context, fast fashion has become a trend to a fashion industry patterns yet delivered utilizing less costly materials to guarantee a low cost tag. Many companies have been successful and unsuccessful to earn a trust from their customer. For the matter of success level it depends on how innovativeness they are and also applies the principle of supply chain and logistic management activities for the growth of their
Yanai is general manager of Uniqlo. This brand is the first brand of Japan, introduction of hypermarkets style clothing sales. Through product planning for unique, development and marketing system to achieve operational lower cost of the shop, which issue in the influx of
UNIQLO is the abbreviation of “Unique Clothing Warehouse”, a Japanese casual wear designer, manufacturer and retailer which provides consumers with the business philosophy of " low price, quality assurance ", and achieved remarkable results as world's top apparel retailer. UNIQLO plans to have 100 fresh stores annually in China while many other retailers have retarded store openings on account of China's slowing economic growth (Doland, 2015). This report, therefore, will set out to evaluate UNIQLO's marketing strategies in China, with a particular focus on the importance of pricing, development of product and the need for precise positioning.