Retail analyst Edited has put together a break down of Uniqlo’sstrategy for success. According to Edited’s findings, Uniqlo is theworld’s third largest retailer, behind only Zara and H&M. And Uniqlodoesn’t fit into the typical fast fashion models as Zara and H&M do.Rather, Uniqlo focuses on sustainability and moderate productofferings.
The retailer is valued at 7 billion dollars and has ambitiousexpansion plans ahead, such as a plan to double its number of storesin South East Asia and Oceania in the next four years. Uniqlocurrently has about 180 stores in the region. The retailer is also inthe process of opening four new store locations in Canada thisseason.
Uniqlo’s emphasis on low-cost, everyday styles might make theretailer easily confused with a fast fashion chain, but it in factoperates very differently from retailers like Zara and H&M. Unlike afast fashion brand, Uniqlo delivers large orders in consistentmanufacturing batches to achieve maximum value. Its focus on well-madebasics and values rather than quick trends keeps the retailer unique.According to Edited’s findings, these principles contribute to theretailer’s success.
In its research, Edited sought to understand Uniqlo’s strategybetter, and broke this strategy down into a few key elements:technology, inclusivity, price points, moderate selections andsustainability.
Tech focus
Tadashi Yanai, chief executive officer of Uniqlo’s parent company,Fast Retailing, has called Uniqlo a “digital consumer retail company”rather than an apparel company. Uniqlo has invented signaturetechnological fabrics, such as HeatTech to keep a wearer warm andAirism to help a wearer cool down. These tech fabrics help to furtherUniqlo’s mission of quality basic items.
Inclusivity
Uniqlo’s slogan, “Made for All,” is clearly represented in itsconsumer base. The retailer’s shoppers come from all demographics,income levels and age ranges. Edited credits this to the simplicity ofUniqlo’s product offerings—it shows few patterns and trend—as well asthe inclusivity of its size range.
Targeted price point
Edited determined that 35 percent of Uniqlo’s offerings fall intothe under 10 dollar price range, and 7 percent is priced over 50dollars. This allows almost 25 percent of Uniqlo’s products to fallbetween 10 and 40 dollars, emphasizing both quality andaffordability.
Curated offerings
Uniqlo has decreased its assortment by 4.4 percent in the last 12months, showing that it looks at product design very thoughtfully. Bycomparison, Zara expanded its assortment by 4 percent in the last 12months, and H&M expanded by just over 50 percent. Uniqlo offers acareful selection of seasonless, essential products so as to notoverwhelm consumers with trends and instead focus on meeting theirneeds.
Sustainability
Today’s shoppers make purchasing decisions based on whether a brandmeets their values, so Uniqlo’s concern for sustainability resonateswith its consumer base and works to secure a long term brand-consumerrelationship.
Photo: Uniqlo Facebook
