Uniqlo Written Proposal

Levi’s decided to place their product in department stores as they had good relations with the retailers due to their volume sales of jeans. They did not have any real relationship with the specialty stores where the independent male shopped. Rather than placing their new products which would be considered as high-end in these specialty stores and where they would be among the lower price range, they chose to place their products in the department stores where their products showed a deviation from the regular Levi formula and were considered very pricy as compared to other high-end department store brands such as Haggar’s. This price raised some concerns among the retailers as they were unsure if Levi’s formal wear would move out of the stores at a required pace. Also, due to price-quality inference, if Levi’s was placed in a specialty store, the Q2 customer might prefer to buy a more expensive product.  Levi tried to sell these formal clothes in the same stores as their casual clothes for the same segment of customers. Customers saw these formal clothes at the same place priced higher than the casuals, and therefore found them to be expensive.

Having identified the target market of their products, Patagonia was also able to more effectively develop innovative new products. Knowing that their core users wanted high performing fabrics and that they were willing to pay for it, Patagonia was able to make the necessary investments to develop superior fabrics over longer development cycles than their competitors. The new innovations in fabrics and materials trickled down from the higher end lines like Alpine, allowing Patagonia to add value across all their lines and maintain a high price point.

That being said, suppliers can have some power in regards to choosing the number of stores where their product can be purchased at. This allows the suppliers to regulate their sales and stay away from the “red tape”. The bargaining power of customers impacts HBC as customers are able to influence pricing based on their buying habits. Of course, customers do not choose the retail prices offered to them, however, if inexpensive clothing were to lead the industry, retail stores would adapt to this consumer demand and offer an abundance of inexpensive clothing due to consumer preferences. These forces lead to rivalry among competitors due to the many options offered to consumers to grant their desires. These forces combine to cause strategic implications for HBC. HBC must differentiate itself from its competitors who, similar to HBC, have large annual revenue, strong and profitable supplier agreements and large amounts of capital. As well, due to competitors large sale volumes, competitive pricing is an implication which faces

H&M cruelly underlined the continuity of its expansion strategy in long-term perspective (Regnér and Yildiz, 2014), which means continuing to open stores ultimately (Barman and Petersson, 2002). It is planned that H&M will establish another 300 new stores, especially China, the United States and the United Kingdom as the largest growing market. Despite the countries mentioned before, South America, Latvia, Indonesia, Bulgaria and Thailand will be involved (Regnér and Yildiz, 2014).

* Procurement: As it is the second Europe’s cloth retailer company, for the production H&M uses a lot of material and workers so its mains recourses are material, labour and energy. That is why small changes in prices can affect the company’s profit a lot, and the fact that it does not own any manufactories causes some problems in controlling the production’s prices. However, not owning the factories can be an advantage in some cases. Indeed, if a problem appears, H&M can easily change its suppliers. Moreover, due to its huge size, H&M can easily manipulate with its suppliers to have the best quality at the lowest production’s price.

Companies like Under Armour, Nike and Adidas/Reebok have high threats of substitute´s products. These companies share the sport apparel industry and are vulnerable to competitive pressure from the actions of buyers whenever they view that their products can be substituted for others. The availability of substitutes invites the costumer to compare performance, features, and ease of use as well as price. Under Armour’s major competitors are Nike and Adidas/Reebok because they have a similar or competing product offerings. The top sport apparel brands offer similar products and that is why each one of them needs to keep a high standard and produce good quality products in order for customers to keep buying their product.

Uniqlo sells basic apparel and has a wide range of items on its shelf, it is a necessity for daily lifestyle. Uniqlo uses technology to its advantage by using premium high quality materials to create its product and yet make it look fashionable. They say there are two kinds of people, one who picks style over comfort and the other who goes with comfort, Uniqlo has managed to blend this two together. This is what brings loyal customers back for more, making the threat of substitute products low.

H&M promises the best articles, trying to produce fashion clothes in a sustainable way and selling quality clothes

The threat of substitutes in this industry is high in my opinion. I say this because there are so many companies in the industry that have varying sports apparel, footwear and accessories. Customers can easily substitute one product by using another similar product of another company.

Under Armour did well in their distribution since they have great an effective and efficiency system and well international expansion plan. Under Armour have a SAP system to manage a more diverse inventory and to ship directly to distributor, this make the distribution work efficiently and effectively, it save cost of distribution. Under Armour make a good distribution network, they sell product over 13 countries, through in-house distribution, partnership, third-party distributor and online store. This is because of a well international expansion plan, Good distribution network make more consumers can come into contact with their product and more convenient to buy their product, it directly increases their sales. Armour oversea business are done through partnership and third-party distributor, therefore Under Armour need not to open its’ store, this act can save cost of open new store. Therefore, Under Armour performance has been improved.

Under Armour is a very popular and well-known brand throughout the world, there are many reasons why this is the case and why they are very successful as a company. Under Armour creates value for their customers in many ways, one of these ways is with their basketball shoes. Customers wouldn't want to buy shoes if they didn't think it would be durable and a good shoe. Customers can trust Under Armour’s basketball shoe because it is a shoe that somebody in the NBA wears. This shows that someone is willing to trust their million-dollar contract with their shoes to help them get their well-earned money, and that shows to confidence in Under Armour. Under Armour also gives many different options that the customer can choose from. They offer different technologies, materials, and articles of clothing. There are many different technologies they have, but I will only list a few. One of these technologies is cool switch, this helps athletes perform longer because the clothing will keep them cool and save them from sweating as much which helps save energy. Also, they offer many different materials in case a customer is allergic to a certain type of material there is always another so that they don't lose a customer. They also offer all different types of clothing so that whatever you need they'll have. Based on this research it proves that Under Armour has done so much to get where they are and be as successful as they are.

In UNIQLO, most of the clothes are produced from white cotton, such as their T-shirts, tank tops and innerwear tops, etc. Cotton is one of their major

They buy large volume of garments direct from the manufacturer; they have very few middle man and efficient logistics.

The power of buyer is high as there is an overabundance of retailers in the market. For instance, Zara, Gap and Uniqlo. (Johnson et al., 2014, pg 576) This implied that customers have a wide variety of stores to shop around for bargainable apparel at the best prices. This leads the buyers to switch from one brand to another effortlessly.

Customers can choose to purchase handbags and accessories from boutiques that don’t have the brand name