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Uniqlo

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by

Nicole Fitch

on 5 November 2013

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Transcript of Uniqlo

Conclusion
Support Functions
Primary Functions
Introduction
Low personnel costs
Simplicity of stores
Consistency
Materials Cost
Worldwide procurement
Few products
Large lot sizes
History
UNIQLO University for new store managers.
Special training for global business managers
Human Resources Management
Outsourcing
Quality control
Inventory management
Manufacturing Cost Leadership
Bargaining power (1,137 shops around the world)

Direct negotiation with material suppliers
Procurement of Resources
"Made for All"
Reasonable & Functional
Basics
Resources
1949 - Uniqlo predecessor Ogori Shoji founded in Ube, Yamaguchi

1985 - "Unique Clothing Warehouse" or "Uniqlo" store opened

1991 - Ogori Shoji becomes "Fast Retailing"

1994 - over 100 stores domestically

2001 - first overseas branch - London

2005 - listed on Tokyo Stock Exchange

2012 - 845 stores in Japan, 292 abroad
Strengths
Full vertical integration
Low-price product
Intellectual property
HEATTECH
Silky Dry
Global Operations
Low number of products
Consistent, quality product
Weaknesses
Limited brand recall
Seasonal products
"Made for all"?
No recent product success
Opportunities
High-quality, low-price trend leader

Opportunities for brand promotion

Increase global presence
Threats
Increasing competition
Cost leadership not sustainable long-term
Access to substitutes
FDI regulations limit global expansion
Store Development
Low store rents
(7.1% in relation to sales)
Sales & Marketing
Current stock price: ¥33,950.00
Market capitalization: ¥3,553,468.00
Market share (Japan): 5.6%
Trade-off: Risk of stocking raw materials
Procurement of Resources
Development of new functional materials through supplier's collaboration
HEATTECH: heat-retention and anti-perspiration functions
Silky Dry: quickly wicked away perspiration to prevent a
sticky feel
Technology Development
R&D centers in Tokyo and New York
support and coordinate with internal
supply chain
60% of stores are located at
suburb roadsides
Conclusion
Is Uniqlo's cost leadership strategy sustainable long-term?

Will Uniqlo's vision of clothing America be realized?
Full transcript