Porter's Five Forces Analysis Of Uniqlo Singapore

J.Crew is an American multi-brand retailer that sells women’s, men’s, and children’s apparel and accessories, “including swimwear, outerwear, loungewear, wedding, bags, sweaters, denim, dresses, suiting, jewelry, and shoes.” (wikipedia.org.) It was originally founded as Popular Merchandise Inc., which was branded as Popular Club Plan at stores in 1947. Popular Club Plan sold affordable women’s clothing until mid 1980’s when their sales declined as another brand was launched and sold cheaper women’s clothing. Popular Club Plan changed its brand name to J.Crew in 1983, and changed their marketing approach from in-home demonstrations to mailing the catalogs to their customers’ homes and have the customers come to J.Crew stores to shop. Ever since the brand name change, J.Crew’s sales grew rapidly. The annual sales grew from 3 million to 100 million within 5 years as customers reacted positively to the catalogs and retailers. J.Crew faced some threats in late 1980’s, but continued to expand as a retail company. J.Crew went global in August 2011 and launched an online store in 2012. And now, J.Crew sell their products through 520 retails in the United States and some in Canada, Paris, London, and Hong Kong, and ships internationally to over hundred countries.

Substitutes: The threat of substitutes is high. The threat of online apparel stores has the potential of destroying the traditional retail industry business model (Bandt, 2000). The ecommerce platforms allow retailers expand their consumer base across national and global markets with lower capital requirements and improved efficiency.

Switching Cost: If there is anything that can go in favor of a new entrant is switching cost of the buyer. Only loyalty buyers typically have these days is to value. If a new entrant can offer better value, buyers can switch to the new entrant with no switching cost. Better value can only come from sacrificing profits which might deter new entrants as a low profit margin does not promises long term growth.

company has been in existence for a little over 15 years and has made huge strides in the textile,

Threat: Forces shaping the Nordstrom’s strategy is that it is operating in highly competitive environment, where apparel sold by it is not only competing with large organized departmental chains but, also from small independent boutiques in the U.S. As a result competition has become very stiff in retail

Despite the fact that the retail industry is easy for players to enter, Uniqlo has already made a strong brand name for itself and piqued the interest of Singaporeans when news of the first store was opening in our homeland. With that, we can conclude that the threat of new entrants is Low.

2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.

This model is relating to Primark. Primark source globally, they don’t have their own factories that make their own products. They work with around 700 suppliers and all of their suppliers are from China, India and Bangladesh to Turkey and Eastern Europe. They take worker welfare seriously and they make sure that suppliers must follow the Code of Conduct to make products in good working conditions. Every factory of the suppliers is carefully inspected against the code before Primark replace and order with a supplier. If there is an any issues or problems they find in the products they will sent their inspected team to check all the products.

The corporate tax rate has just decreased from 35% to 21% which is good news for UA but not as much as companies that do more business in the US and also for a company that has significantly less debt than the highly leveraged Under Armour has (The Economist, 2018). Social factors are quite important for the retail industry and in 2017 a large demographic for clothing sales, teens, spent less overall and claimed Under Armour a brand they did not wear and athleisure in general to not be preferred attire anymore (Reagan, 2017). Thus, Under Armour’s demographics changed just in the last year with teenagers claiming to not be wearers of the brand, and also the trend of athleisure coming to an end. Technology is an external environmental factor that affects Under Armour, but not as much its competitors in the industry. When fitness bands were introduced the company also came out with their own line of bands that proved unsuccessful and were discontinued (Booton, 2017). Under Armour maintained their fitness apps however and they are able to have an edge over their competitors by having all of this information

In the apparel industry, the American Apparel’ faces stiff competition from the Gap, Urban Outfitters, American eagle, and Express.

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 in South Africa has always been an industry where there is intense rivalry between the companies. There are main companies in the industry namely Edgars, Woolworths Truworths, but there are smaller retail companies that enter the market that can satisfy the demand of the consumer’s better.

The Porter`s five forces are threats of new entrants, the bargaining power of buyers ,product substitution and intensity of rival of rival among competitors .These forces measure the competitiveness of the market and also helps the company to identify strategies to use to penetrate such and gain market share.

Outlet stores and the constantly evolving fashion trends can make prices for last season significantly lower

Production of Uniqlo base set up not only in China, but also slowly passed into other Asian countries as well. The production facilities absolutely dispersed, assuring the application of the quality management system of goods through multinational technology. Uniqlo send