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ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 24. Digital Marketing

Submission date 3/4/2022 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student names & codes Final scores Signatures

1. Nguyen Thai Bao – GBH200086 Bao

2. Phan Thanh Minh – GBH200467 Minh


Group number:
3. Pham Binh Minh – GBH200048 Minh

4. Chu Nhat Duy – GBH200628 Duy

5. Nguyen Minh Hien – GBH190739 Hien

Class GBH0906 Assessor name

Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a false declaration is
a form of malpractice.

P1 P2 P3 P4 M1 M2 D1
OBSERVATION RECORD
Student 1 Nguyen Thai Bao

Description of activity undertaken

- Consumer analysis
- Personas of customers
- Final editing

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student
Bao Date: 3/4/2022
signature:

Assessor
Date:
signature:

Assessor
name:
Student 2 Phan Thanh Minh

Description of activity undertaken

- Personas of customers
- Competitive analysis

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student
Minh Date: 3/4/2022
signature:

Assessor
Date:
signature:

Assessor
name:
Student 3 Pham Binh Minh

Description of activity undertaken

- Introduction and conclusion


- Analysis and research of digital marketing and marketing
- Digital tools and platform theories

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student
Minh Date: 3/4/2022
signature:

Assessor
Date:
signature:

Assessor
name:
Student 4 Chu Nhat Duy

Description of activity undertaken

- Digital tools and platforms application of UNIQLO


- Evalution of digital tools and platforms application of UNIQLO

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student
Duy Date: 3/4/2022
signature:

Assessor
Date:
signature:

Assessor
name:
Student 5 Nguyen Minh Hien

Description of activity undertaken

- Micro environment analysis


- The growth of E-commerce in Viet Nam and its impact on UNIQLO

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student
Hien Date: 3/4/2022
signature:

Assessor
Date:
signature:

Assessor
name:
 Summative Feedback:  Resubmission Feedback:

Grade: Assessor Signature: Date:


Internal Verifier’s Comments:

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Table of Contents
Introduction................................................................................................................................................................... 9
Analysis and research ................................................................................................................................................ 9
Online and offline marketing concepts ............................................................................................................................. 9
Marketing .................................................................................................................................................................................. 9
Digital marketing ................................................................................................................................................................ 10
Comparison................................................................................................................................................................................ 10
External digital environment audit .................................................................................................................... 11
Micro environment ................................................................................................................................................................. 11
Consumer analysis .............................................................................................................................................................. 11
Personas of customer ......................................................................................................................................................... 18
Competitive analysis........................................................................................................................................................... 20
Macro environment ................................................................................................................................................................ 21
Economic ................................................................................................................................................................................ 21
Social ........................................................................................................................................................................................ 22
Technology............................................................................................................................................................................. 23
Legal ......................................................................................................................................................................................... 24
Digital tools and platform audit ........................................................................................................................... 25
Hardware and software ........................................................................................................................................................ 25
Application of UNIQLO .......................................................................................................................................................... 26
Software .................................................................................................................................................................................. 26
Evaluation on company’s application of digital tools ............................................................................................ 32
The growth of E-commerce in Viet Nam .......................................................................................................... 32
The impact of E-commerce and online shopping platforms development on UNIQLO’s business
.......................................................................................................................................................................................... 34
Conclusion .................................................................................................................................................................... 35
References .................................................................................................................................................................... 36
Introduction
UNIQLO is a well-known retail fashion brand in Japan and a number of other countries. UNIQLO was
started in 1984 by Tadashi Yanai and is a firm that specializes in casual wear garment design and
retailing (Uniqlo, 2022). "Unique clothes" is abbreviated as UNIQLO. UNIQLO has consistently
developed since its first store opened in Hiroshima, Japan, and is currently one of the top five fashion
stores in the world (ZARA, H&M, GAP, The Limited, UNIQLO). UNIQLO has grown from a network of
roadside apparel retail outlets in Japan to over 800 stores in Japan and over 600 stores in other
countries across the world, including China, Korea, Hong Kong, France, and others. Malaysia, the
Philippines, Russia, Taiwan, Singapore, Thailand, the United Kingdom, and China are among the
countries involved. The focus of this report will be on researching and assessing UNIQLO’s digital
marketing development tactics. The first part will focus on analyzing the digital environment audit,
which will include an overview of the digital marketing environment of the fashion industry in
Vietnam, an analysis to clarify the concept of digital marketing and traditional marketing, consumer
behavior research, and identifying opportunities and challenges impacting UNIQLO’s business based
on that. Part 2 studies and investigates UNIQLO’s digital tools, platforms, and channels, including a
review of digital tools, an examination of the growth of e-commerce, and an online shopping
platform, all of which will be used to analyze and evaluate UNIQLO’s present digital tactics.

Analysis and research


Online and offline marketing concepts
Marketing
Marketing activities are an important aspect of increasing revenue and profit in enterprises in any
country across the world as part of the process of economic development and expanding market
share. Marketing is very incredibly popular currently, especially in the corporate world. "Marketing
is the efficiency of a business that drives the flow of products and services from the producer to the
consumer," the American Marketing Association (AMA) defined marketing in 1935 (AMA, 1935).
According to Kotler and Armstrong (2013), marketing is the process by which businesses generate
value for customers and establish strong customer connections in order to recoup value from
customers (Kotler & Armstrong, 2013).
Digital marketing
The first definitions of digital marketing were that it was a projection of traditional marketing,
including its tools and techniques, onto the Internet. The peculiarities of the digital environment and
its use for marketing, on the other hand, have fueled the development of new channels, formats,
and languages, resulting in tools and strategies that would be inconceivable offline (Chaffey & Ellis-
Chadwick, 2016).

Comparison
Businesses employed traditional marketing strategies to bring their products to customers in the
past, when technology was not developing rapidly. Traditional marketing is a type of offline
marketing that doesn't use the internet and reaches out to clients directly. To attract customers and
broaden their reach, traditional marketing organizations would employ well-known marketing
channels such as print, television, phone calls, and direct mail. Traditional marketers will devote a
significant amount of time and energy to developing great marketing campaigns that generate
significant money. Traditional marketing, is a complex of concepts, beliefs, and technique, based on
the work of scientists, consultants, and marketing practices (Durmaz & Efendioglu, 2016). The
product and its nature, consumer behavior, and competitive conflicts are all discussed in classic
marketing principles and concepts. These are used to develop new products, plan sales and brand
classifications, communicate with consumers, and respond to competition (Grundey, 2008).

These are used to develop new products, plan sales and brand classifications, communicate with
consumers, and respond to competition (Grundey, 2008).

Digital marketing is increasingly established and popularized worldwide in all commercial disciplines
throughout the 4.0 digital transformation period, as social networking tools and internet platforms
grow in popularity. Digital marketing is defined as "the use of digital technology to produce an
integrated, targeted, and quantifiable communication that helps attract and keep clients while
creating a deep relationship with them," according to the Digital Marketing Institute. Direct
marketing, which treats clients as individuals, as well as the way they behave and marketing
interactions, which may address an individual and potentially reward that individual, are all covered
by digital marketing (Deighton, 1996). In the omnichannel purchasing and customer life cycle, digital
marketing also includes the use of digital technologies such as websites, e-mail, databases, mobile
devices, and digital television to assist interactive marketing operations in order to achieve
profitability and client retention (Chaffey, 2011).

External digital environment audit


Micro environment
Consumer analysis
Demand study shows that people's attitudes about fashion have changed as a consequence of the
rapid fashion phenomenon. Fast fashion is a word used to describe clothing items that are popular
in a short period of time. They are inspired by products from fashion shows and are manufactured
in a short period of time in order to be transported to retailers. Fast fashion enables buyers to get
fashionable clothing at a reasonable price. Brands like Zara, H&M, and UNIQLO are among the well-
known fast fashion retailers. The quality of life for the people of Vietnam has been steadily
increasing. As a result, their requirements in terms of fashion are growing more sophisticated.
Consumers' buying requirements have skyrocketed in recent years, as seen by the rise in online
shopping. According to Zara fashion brand's financial performance, Vietnam's fashion market has
the potential to be very appealing to international fashion companies. As reported by the Vietnam
Industry Research and Consulting Company (VIRAC), Zara Vietnam generated revenue of 321 billion
VND in its first four months of operation in Vietnam (2016), an average of 2,8 billion VND each day.
This represents a revenue of 321 billion VND every day. When it comes to the fashion sector, the
current trend of "instant apparel" is still very much in evidence. According to consumer market
research data, individuals increase their expenditure on clothes by 10% on average every year for a
period of one year. Furthermore, Vietnam is considered to be a fertile ground for international firms
(An, 2021).

Customer needs and behavior have changed substantially in the year after the Covid-19 debacle. The
bulk of buyers prioritize critical commodities, health care items, resistance, etc. Consumers are less
inclined to visit supermarkets, retailers, or traditional marketplaces; instead, they are more likely to
expand and focus on spending done from home (Nhi, 2021).
Nearly 70 million Southeast Asians over the age of 15 have used digital devices since the epidemic
began, and that figure is predicted to reach 350 million by the end of 2021. 7 out of 10 Vietnamese
consumers have internet connection, and the nation will have 53 million digital users by 2021. The
rapid growth of digital customers is expected to double the value of online purchasing by 2026. In
this sense, Vietnam's e-commerce is expected to develop at the quickest rate in Southeast Asia,
reaching $56 billion in 2026, a 4.5-fold increase over the value forecast for 2021 (Guu.vn, 2021).

Compared to 2020, Vietnamese consumers bought 50% more things online, and 40% more online
shops, resulting in a 1.5x rise in total online retail spending throughout the country. In Vietnam,
internet shopping has almost doubled for each product category, with Personal Care and Beauty
having three successful online market entries (Guu.vn, 2021).

On-line channels are more important at each stage of the shopping journey, including Discover,
Review, and Purchase, as seen by the percentage of corresponding online channel use reaching 81%,
84%, and 56%, respectively (Guu.vn, 2021).

According to an iPrice insights report on the top e-commerce businesses in Vietnam, which was
updated in the last quarter of 2021, Shopee Vietnam has maintained its lead in website traffic in all
four quarters of 2021, reaching an average of 90 million visits/month. Shopee Vietnam is followed
by Thegioididong with 59 million visits/month, Dien May Xanh with 24 million visits/month, Lazada
with 20 million visits/month, and Tiki with 17 million visits (iPrice, 2022).
Figure 1. The map of E-commerce in Viet Nam (iPrice, 2022).

According to a Shopee poll, there are four distinct kinds of consumers that consistently engage in
online shopping in Vietnam, as well as the variables that influence their purchasing choices (Duong,
2021).

Figure 2. 4 groups of online shopping consumers by Shopee (Duong, 2021).


57% of consumers polled are classified as "Good Deals" users, with 75% of them being female. Other
distinguishing traits of this group include the following: 87 percent of consumers purchase online at
least twice a month; Consider the following product reviews: 57% of people in this demographic
believe that if a product gets a large number of favorable reviews, it must be a good product (Duong,
2021).

The group "Surf - Buy Randomly," which accounts for 16% of people polled, refers to individuals who
randomly browse a range of things. 51% of customers in the "Surf - Buy Randomly" category often
look through ten different products before making a purchase. Additionally, up to 70% of consumers
purchase an item just because they feel like it at the moment (Duong, 2021).

The group "Convenience First" accounted for 13% of poll respondents, who opted to purchase online
due to its ease of use and quick home delivery. Indeed, these individuals are among the most
frequent online buyers, with 83% purchasing more than once a week. This is understandable given
their preference for the comfort and convenience of internet buying. 51% will purchase a product
based on favorable reviews from prior consumers. Additionally, 1 in 10 respondents said that they
would purchase a product if it included free shipping or quick delivery. One-third of this group is
made up of individuals who often purchase straight from companies' online booths. When buying
online is more convenient, consumers have easier access to brand promotions (Duong, 2021).

For some Vietnamese consumers, internet shopping provides a greater sense of enthusiasm when it
comes to purchasing presents. One in ten respondents said that they often seek for prizes and free
presents. Almost a third of users in this demographic are under the age of 18, demonstrating how
enthusiastic youngsters are about exploring things, clicking, and obtaining fortunate presents
(Duong, 2021).

About fashion market, the whole industry revenue declined by more than 10% in 2020 compared to
2019 owing to the epidemic's influence. In which apparel continues to provide a significant amount
of income, accounting for more than half of the total revenue generated by the sector. When
individuals developed the habit of buying online through E-commerce sites like as Shopee, Lazada,
Tiki, and Sendo, communication channels and online shopping grew significantly (Virac, 2021).

Figure 3. Revenue from Vietnam's fashion market and Revenue structure of Vietnamese fashion products
(Virac, 2021).

Young adults aged 25-34 spend the most on fashion. This is natural, since young people are always
concerned about their image and spend much in maintaining it. Additionally, this is the age group
that swiftly adopts new trends and is greatly impacted by the media and celebrities. Which means
that women's fashion spending in Vietnam is somewhat larger than men's, and is expected to surpass
50% by 2020 (Virac, 2021).
Figure 4. Consumption structure of fashion products by gender and distribution channel and Consumption
structure of fashion products by age group (Virac, 2021).

The average revenue per product decreased significantly in 2020 as customers tightened their belts.
According to an Asia Plus. Inc study of Vietnamese people's fashion purchase behavior, the pricing
criteria is always based on the brand's popularity, and combined with the epidemic's effect, luxury
goods sales have decreased significantly (Virac, 2021).

Figure 5. Average revenue per customer of Vietnamese fashion products (Virac, 2021).

Using Google Trends, it is possible to observe that the search volume for UNIQLO has averaged 25
queries per month over the previous 12 months. Looking at the peak, it can be seen that while Zara
has the most search (53) during this peak, UNIQLO has 39 and H&M has 14. In comparison to its
competitors, H&M and Zara, Zara has the highest search volume, while H&M has the lowest (Google
Trends, 2022). This may be explained by Vietnamese customers' boycott of H&M over a political
issue.

Some of the common key words related to UNIQLO that consumers pay attention to are: Slim-fit
pants, Jujutsu Kaisen T-shirt, etc. (Google Trends, 2022).
Figure 6. Comparison between UNIQLO, Zara and H&M (Google Trends, 2022).

Figure 7. UNIQLO’s famous technologies (Sang, 2021).

Instead of following fashion trends, UNIQLO focuses on research and development, constantly
improving its brand. UNIQLO’s famous technologies including: HeatTech, AIRism, Lifewear... are
always loved and sought after by the young generation every year. When HeatTeach was launched
in 2003, 1.5 million products had been sold. With continuous improvements, in 2012, 130 million
HeatTeach products were sold, with much higher appeal than at launch (Sang, 2021).

Personas of customer
The personas of UNIQLO’s consumers are presented below:

Customer A: Trinh Khanh Vi – 23 years old – Female – Unmarried - Saigon

- Online purchasing frequency: 4 - 5 times/month


- Style: Youthful, trendy
- Usually buy clothes by herself
- Frequently visited brands: Local brand, H&M, Zara
- Surfing time: 4 - 5 hours/day
- Budget per purchase: < 1 million VND
- Favorite social media: Facebook, Instagram
- Preference: Attracted by discount activities

Customer B: Dinh Tue Sa – 27 years old – Female – Unmarried - Hanoi

- Online purchasing frequency: 2 - 3 times/month


- Style: Elegant, glamorous
- Usually buy clothes by herself
- Frequently visited brands: Local brand, Charles & Keith, Calvin Klein
- Surfing time: 2 - 3 hours/day
- Budget per purchase: 1.2 - 1.5 million VND
- Favorite social media: Facebook, Zalo
- Preference: Attracted by discount activities

Customer C: Ho Tuyet Nhung – 30 years old – Female – Married - Saigon

- Online purchasing frequency: 1 times/month


- Style: Girly
- Usually buy clothes by herself for each family’s member
- Frequently visited brands: Charles & Keith, Calvin Klein, Uniqlo
- Surfing time: 1 - 2 hours/day
- Budget per purchase: 2.5 - 4 million VND
- Favorite social media: Facebook, Zalo
- Preference: Attracted by discount activities

Customer D: Ly Phuong Hang – 37 years old – Female – Married - Hanoi

- Online purchasing frequency: 1 - 2 times/month


- Style: Formal, elegant
- Usually buy clothes by herself for each family’s member
- Frequently visited brands: Chanel, Mango, Topshop, UNIQLO, Sports brands
- Surfing time: Less than 1 hour/day
- Budget per purchase: 5 - 6 million VND
- Favorite social media: Facebook, Zalo
- Preference: Attracted by discount activities

Customer E: Nguyen Gia Hung – 25 years old – Male – Unmarried - Hanoi

- Online purchasing frequency: 2 - 3 times/month


- Style: Basic, minimalist
- Usually buy clothes by himself
- Frequently visited brands: Local brand, Uniqlo
- Surfing time: 3-4 hours/day
- Budget per purchase: 1.2 - 1.5 million VND
- Favorite social media: Facebook, Instagram
- Preference: Attracted by new styles and discounted activities

Customer F: Tran Van Dung – 33 years old – Male – Married – Saigon

- Online purchasing frequency: 1 time/2 months


- Style: Sporty, simple
- Usually clothes are bought by his wife
- Frequently visited brands: UNIQLO, Calvin Klein, Sports brands, VietTien, Pierre Cardin
- Surfing time: Less than 1 hour/day
- Budget per purchase: 3 - 4 million VND
- Favorite social media: Facebook, Zalo
- Preference: Attracted by simple styles

Competitive analysis
Porter's five forces are one of the most well-known and widely tool for analyzing risks from rivals
(Scott, 2020). In this part, Porter's five forces model will be applied to analyze the influence of
competitive factors on the Vietnamese fashion industry in general and UNIQLO in particular.

Competition in the industry

At the moment, the Vietnamese fashion market is dominated by a number of large fashion
companies that control the bulk of the market share, such as Canifa, Zara, H&M, UNIQLO, and others.
Therefore, in order to maintain a competitive advantage over their competitors, brands must
constantly have unique business strategies. H&M generated a net profit of $453 million in 2020,
representing an increase of about 4.37 percent over the previous year (H&M Group, 2020). Apart
from that, Adidas is a well-known athletic brand, even in the midst of the Covid-19 epidemic. Adidas'
net revenue, on the other hand, reached $23,376 million, representing a roughly 15 percent increase
over the previous year (Adidas, 2021). Therefore, the threat from rival businesses in the fashion
industry in Vietnam can have a very high impact on UNIQLO.

Threat of new entrants

The prospect of new entrants is not a major concern for the fashion industry as a whole. There seem
to be a plethora of fashion companies available today, ranging from local to worldwide, offering a
diverse range of models, designs, and kinds of items. With the arrival of major competitors in the
industry such as Zara, H&M, UNIQLO, and others, it has become increasingly difficult for new fashion
firms to establish a footing in the market without offering items that are distinguished by their style
and customer service. Furthermore, when it comes to the Vietnamese market, clients frequently
choose to purchase from well-known and famous companies in order to be able to assure product
quality. Therefore, the threat from new entrants is low for the fashion industry and also for the
UNIQLO brand.

Threat of substitutions

In today's fashion industry sector, there are several local and international brands that can cater to
the demands of clients ranging from the lower to the upper classes. As a result, it is reasonable to
conclude that garment items are not at risk of being substituted. With fashion brands, on the other
hand, this is entirely possible. For example, the major style that UNIQLO is going for is basic, with
prices that are in the middle of the market. People with limited financial resources, on the other
hand, will find it difficult to obtain access to the brand's items. As a result, they will look for
alternative brands that are similar in style but provide a lower price to utilize. Consequently, it can
be seen that the level of threat of substitution to the fashion industry in general and UNIQLO in
particular is high and this may cause UNIQLO’s revenue to decline.

Macro environment
To have the most overview of the fashion industry market in Vietnam. The article will be analyzed
more specifically through the macro-environment factor. However, there are 4 factors contributing
the most influence through the PESTLE model including economic, social, technology, and
development factors.

Economic
First of all, the economic factor, due to the prolonged effects of the epidemic, caused the economic
sector to shrink. In the nine months of 2021, the Covid-19 epidemic negatively affected the
Vietnamese economy. GDP in the third quarter of 2021 had the deepest decline since quarterly GDP
was calculated and announced in Vietnam, specifically a decrease of 6.17% compared to the same
period last year (Tong cuc thong ke, 2021). Since then, the unemployment rate and
underemployment in Vietnam have increased. The national unemployment rate in the 9 months of
2021 is 2.67% (Hang, 2021). The average monthly income of employees in the third quarter of 2021
is 5.2 million VND, significantly lower than in the second quarter of 2020. According to the General
Statistics Office (2021), the government has made a decision to ensure the welfare of the people,
over 12.1 million employees, and more than 363 thousand units have been supported by the
unemployment insurance fund. This creates conditions for local workers to make ends meet.
However, it only helps workers cover the cost of essential items. It can be seen that, in the face of
the company's reduction of human resources, employees' spending becomes difficult, 17.4% of
employees said that they have an abundance and savings; 43.7% just enough to cover living
expenses; 26.5% have to spend frugally and be miserable; 12.5% income is not enough to live, have
to work overtime. This led to a sharp drop in spending on fashion items.

Specifically, about the fashion industry in Vietnam, according to Virac's report, the revenue of the
Vietnamese fashion market in 2020 will decrease due to a decrease in spending demand, but the
decrease stops at 10% compared to the previous year 2019. In which, clothing still contributes a
large amount of revenue with more than 50% of the total revenue of the whole industry. The fashion
industry's economy has also since been reduced by the pandemic. However, the government is
controlling the pandemic well compared to other countries in the region. This is evidenced by GDP
growth, in the last 3 months of the year being prosperous, GDP in the fourth quarter is estimated to
increase by 5.22% over the same period last year, higher than the growth rate of 4.61% in 2020. This
is an opportunity for businesses to quickly increase market share. In particular, the rising trend of
O2O (online-to-offline) is creating new opportunities for the entire industry. Especially in the fashion
industry. Large international brands such as H&M, Zara, UNIQLO, etc. are dominating (An, 2021).
With the excellent direction of the government, the economy has been well managed and restored
in Vietnam. Therefore, the fashion market in Vietnam will be a good opportunity for UNIQLO to
develop better.

Social
According to the population of Vietnam, the proportion of young people aged 15-65 year accounts
for 69.3%. Of which 37.7% of the population is urban. The migration factor contributed to an increase
of 1.2 million people in urban areas, accounting for 3.5% of the urban population; The
"transformation" from communes towards/towns of many localities across the country contributed
to the transformation of 4.1 million people who are currently rural residents into urban residents,
equivalent to 12.3% of the urban population of the whole country in 2019 (Tong cuc thong ke, 2021).
These factors can be considered as opportunities to help businesses plan new customer segments,
potential customers, as well as expand many areas. With the unique cultural quintessence of
costumes, this is also a potential land for foreign businesses to develop in Vietnam. The entry of
major fashion brands such as Zara, H&M, and UNIQLO can be seen in Vietnam.
Facing the epidemic situation, Vietnamese consumer culture is gradually changing the way of
shopping to respond to the crisis from the Covid-19 epidemic. On the other hand, witness some
tectonic changes in shopping behavior and trends on social networks led by Generation Z and
Millennial (Gen Y) consumers (Julia, 2022). So technology is driving fashion through media and e-
commerce sites. Information about products and services being transformed is posted on social
networking sites, e-commerce specifically Facebook, Tiktok, Instagram, Shoppe, Lazada, etc.,
customers will directly buy necessities, clothes, without spending much time going out. The use of
social media is gradually changing the way consumers shop. This has helped companies promote
their products to more people. And consumers are gradually becoming more secure with e-
commerce and new ways of interacting with brands through streaming and online environments
(Julia, 2022).

Technology
It can be seen that today, the new wave of digital technologies - artificial intelligence, block-chain,
Internet of Things and cloud-based services has opened up a new digital economy future. in Vietnam
(Cameron, et al., 2019). This is considered to be one of the biggest impacts of the macro environment
factor. According to a report of the mobile application market (2021), the proportion of internet
users also accounts for 70%, with an average of 6.5 hours/day. Therefore, the Internet has become
an essential part of Vietnamese life. Even in the Vietnamese market, it is also catching and
developing new technological inventions. Financial services are taking advantage of the digital trend,
and Vietnamese banks are pursuing digital development strategies (NK, 2021).
For the fashion industry, the trend of digital fashion is gradually developing as big brands are taking
advantage of the support of 3D design technology, artificial intelligence and augmented reality
technology, many brands World-famous fashion brands like Gucci design clothes for the game "The
Sims" or Louis Vuitton launch the game "League of Legends". However, in the Vietnamese market,
technology has not been widely applied in the fashion industry. Because there are some barriers
about the Vietnamese fashion industry that always needs a lot of workers, applying technology to
the cycles will cause many workers to lose their jobs (Lisa, 2019). However, many textile companies
are turning to machines to manage things like weave density and fabric quality uniformity. According
to Cameron et al (2019), the future digital economy of Vietnam is on the rise of digital skills, and
entrepreneurs and the country are rapidly developing new digital technologies (Cameron, et al.,
2019). Along with new inventions in the world and in Vietnam market, as well as support from digital
companies in Vietnam, UNIQLO has launched products that apply Heat Tech and Dance Ultra Light
Down technologies, to keep clothes warm and light compared to big and thick winter coats. This is
also one of UNIQLO’s outstanding technologies (An, 2021).

Legal
Finally, Legal is very important to consider, companies need to be careful and understand the laws
and policies about when choosing content, protecting customer information, legal issues or
advertising content. violated the content law in Vietnam. In addition, the government is
implementing a proposal on tax administration for e-commerce business. According to Clause 4,
Article 42 of the Law on Tax Administration No. 38/2019/QH14 stipulates: “4. For e-commerce,
digital-based business and other services performed by an overseas supplier without a permanent
establishment in Vietnam, the overseas supplier may the obligation to directly or authorize the
implementation of tax registration, tax declaration and tax payment in Vietnam according to the
regulations of the Minister of Finance.” In addition, overseas suppliers register for electronic tax
transactions along with tax registration through the website of the General Department of Taxation
(Tong cuc thong ke, 2021). In addition, the law on network security protection is also strictly enforced
by the state. Including network security protection measures such as Network Security Assessment,
Network Security Condition Assessment; Network security check; Monitoring network security (Thu
vien luat phap, 2018).
Digital tools and platform audit
Hardware and software
To begin with, there are three different sorts of hardware platforms that can be used to
communicate with customers.

The first are the platforms for desktops, laptops, and notebooks. There are five key platforms to
approach the customer in this manner: Desktop browser-based platforms, desktop apps, email
platforms, data exchange platforms based on feeds and APIs, and video-marketing platforms
Second, while mobile phone and tablet platforms are similar to browsers, they may be utilized by
customers at any time and from any location. They are made up of a mobile operating system, a
browser, and mobile apps. Gaming platforms (advertise through games); Indoor and outdoor kiosk-
type apps; Interactive signs (promote engagement through Bluetooth, QR code); Wearables (gadgets
that can bring such as Apple watch) are the third sort of hardware platform (Chaffey & Ellis-
Chadwick, 2016).

Second, six different software platforms are available to manage modern marketing. There are a
variety of services and systems available today for marketing management. Marketing experiences,
marketing operations, marketing middleware, marketing backbone platforms, infrastructure, and
internet services are among the six types identified by Scott Brinker.

To clarify, marketing experiences are more specialized tools that directly effect target customers,
such as email, advertising, email, A/B testing, social media, content marketing, SEO, marketing
applications, and the front office (Chaffey & Ellis-Chadwick, 2016). The marketing operations
department comes next. Marketing resource management, Agile marketing management, and
digital asset management are examples of solutions that support the 'back-office' of marketing. The
third category is marketing middleware. Platforms for data administration, API services, tag
management, user management, and cloud connections are just a few examples. Next is marketing
backbone platforms. Customer relationship management, e-commerce engines, content
management, and marketing automation are just a few examples. Infrastructure services, such as
databases, software development tools, cloud computing, and big data management, are the third
type of software (Chaffey & Ellis-Chadwick, 2016). Finally, there are the well-known Internet services
such as Facebook, Twitter, and Google.

Application of UNIQLO
The technological improvement in recent years has fundamentally changing the way businesses
executing their marketing activities. Being a big corporation in fashion market, UNIQLO embraces
these new technologies and applies them in the company marketing activities

Software
Being one of the big corporations in fashion industries, UNIQLO is competitive in the market,
especially in casual wears. However, contrary to the common expectation of a fashion brand,
UNIQLO does not capitalize on trend or fast changing fashion designs in their marketing strategy,
but heavily relies on experiences of the customers, which is quite similar to the marketing strategy
of technology companies (Shah, 2021).

As a natural result, the digital marketing plan of UNIQLO is modified so the company can engage
with the customers as much as possible, from launching online campaign to using digital platform
for e – commerce. Here are some of the examples:

Social media

Consider that target customers of UNIQLO are normal people who look for every day clothes that
easy to mix and affordable, it is obvious that UNIQLO would be active on popular social platforms
such as Facebook, Twitter or Instagram; where these people are usually active. In contrast to Zara
which is not too focus in marketing through these channels, UNIQLO makes offers and introduces
their newest products through the social networks. Along with promoting the products, they also
interact a lot with the customers; always answer in a few hours or instantly after a customer shows
desire to know more about their clothes.
Figure 8. UNIQLO social media pages.

Website

Like every other brands, UNIQLO Website is where the company mainly doing their e – commerce
activities. For casual fashion company, UNIQLO uses a variety amount of colors in their main online
pages, with red and white are the most notable. Other pigment such as the shade of pant, or the
black letters contain the information of the product was made to stick out by these two colors. On
the user interface, the company website was designed for the customer to navigate between pages
with ease (UNIQLO, 2022).

The main page would have a small menu on the upper part divided into two basic functions:
cataloguing and shopping. The cataloguing part on the left lists out four main categories of
customers: males, females, kids and babies. Each of them would linked with pages that have
products for their respective types of customers. Once a product chosen, customer can either
continue choosing another clothes or directed to the purchasing page where they can pay for the
clothes and have those shipped. Aside this small menu on top, the middle part of the main page is
where UNIQLO introduce their newest technological application on clothes or their latest designs.
And finally the bottom part consist of the company policies as well as their business legal information
(UNIQLO, 2022).

Figure 9. UNIQLO’s website (UNIQLO, 2022).

Digital boards

Aiming to a wide range of market segment, it is natural that UNIQLO would utilize tools like billboards
as well as other types of sign boards for maximum advertising effect. By placing them at high traffic
areas, the company is able to promote their product to a huge number of people, thus increase their
customer base. However, aside being an advertising format, UNIQLO also exploits them as part of
online campaign, recorded back in 2016, when the company want to introduce their HEATTECH
technology, a type of fabric that developed to generate heat and warm the wearer (The Stable,
2016).

UNIQLO ran an online campaign which involved their billboards displaying fast moving images that
contain unique code can be deciphered through taking the picture of the display unit. The
deciphered code then can be used to direct the customers to a website where they can redeem the
code for a sample of HEATTECH. It was on this website that the HEATTECH technology was
introduced to the customer, along with its benefits. The customer then would be gifted a shirt or a
voucher for the next shopping item after finish reading the new technology introduction (The Stable,
2016).

That is one unique way UNIQLO has done with digital board to interact with the customer, but it was
not that time only. Another application of digital board in this company’s marketing activities is the
magic mirror. First time introduced in San Francisco back in 2012, the Magic Mirror is a digital board
with augmented reality program to change the costumes of the customer’s reflected image, gave
them an idea of how would they look like in certain clothes without actually wearing them. This is
somewhat revolutionary at the time it was first introduced but by now other brands are also apply
augmented reality in their marketing (Holition, 2021).

Figure 10. UNIQLO Magic Mirror (Holition, 2021).


Figure 11. UNIQLO Billboard (The Stable, 2016).

Mobile Applications

On the surface UNIQLO mobile application is not too different from their online counterpart, the
UNIQLO main website. However, being a compact mobile application, UNIQLO has added more
features into it, make the application become more and more convenient for the users (Gilliland,
2018).
One of the unique features were added in was the personalized recommendations, which was able
through data collected from the customers past accesses to certain products. Furthermore, when
the customer allowed it, the app can even make a full tailored advice for that person style life as well
as preferences. Another feature that UNIQLO app has is the offline shopping assistant which can
locate and display the nearest UNIQLO store with a specific product that the customers desired still
have in stock. While the online shopping is much encouraged by the company, but this feature
revoked the shopping desire from the online window shoppers, push them to come in the offline
store (Gilliland, 2018).

Through these digital programs, UNIQLO can interact even more with the customers, despite the
pandemic and hold their position as the giant of casual fashion market.

Figure 12. UNIQLO’s mobile application


Evaluation on company’s application of digital tools
It can be seen clearly that the UNIQLO uses a lot of online tools to assist their marketing operations.
Their integration level of digital tools in marketing activities is high, which demonstrated through
their usual online campaigns in recent years, both as a result of the company adopt the digital
marketing approach and their effort in boosting the sale of the corporation

The growth of E-commerce in Viet Nam


The industrial revolution 4.0 has created many achievements for the specific economy of the e-
commerce industry in the world as well as in Vietnam. Along with that development, e-commerce in
Vietnam is rapidly becoming a core element of the economy and is playing a role in the distribution
of goods. Currently, on e-commerce platforms, there are countless prominent websites such as
Shopee, Lazada, Shein, Tiki, Sendo, etc. Thanks to the presence of commerce sites, buying and selling
activities have become popular vibrant.

According to a report by the Vietnam E-commerce Association (VECOM), the average growth rate of
e-commerce in the period 2016-2019 is about 30%. The scale of e-commerce retailing consumer
goods and services increased from 4 billion USD in 2015 to about 11.5 billion USD in 2019. B2C e-
commerce (businesses and customers) has a growth rate of about 30%/year, reaching US$ 8.06
billion in 2018, accounting for 4.2% of the total retail sales of consumer goods and services
nationwide. Also in the past year, the number of people participating in online shopping reached
about 39.9 million people (CV, 2020). In addition, the impact of the Covid-19 epidemic has had a
great impact on many industries. On the other hand, it is a new avenue for e-commerce to develop.
Vietnam's e-commerce has seen strong acceleration steps, becoming one of the fastest growing e-
commerce markets in Southeast Asia. According to the Vietnam E-commerce White Paper, in 2020,
the growth rate of e-commerce will reach 18%, the scale will reach 11.8 billion USD and is the only
country in Southeast Asia (An, 2021). New users in Vietnam account for 41%, which is the country
with the highest percentage of new Internet users in the region. Up to 94% of these new users plan
to continue using those services even after the pandemic.

According to the chart below, it can be seen that the Covid-19 pandemic has contributed to changing
the consumption habits of many Vietnamese people when switching to online shopping. In which,
essential items such as food and household appliances account for an increasing proportion. Survey
data shows that 53% of users shop for food online, accounting for the highest percentage; followed
by footwear, clothing, cosmetics with 43% and household appliances with 33% (Vu, 2021). One point
of change in consumer shopping behavior in the past year is the shift in online shopping channels
(Vu, 2021). Accordingly, statistics from the Department of E-commerce and Digital Economy show
that customers in Vietnam are shifting to shopping mainly on websites and e-commerce trading
floors. From that, it can be seen that e-commerce is making an important contribution to increasing
the proportion of the economy, and is an essential thing for consumers.

Figure 14. Items mainly purchased online (Vu, 2021).

Figure 15. Vietnamese customers shop online on e-commerce platforms (Vu, 2021).
The impact of E-commerce and online shopping platforms
development on UNIQLO’s business
E-commerce plays a role in the management activities of all organizations, businesses and
individuals. For organizations and enterprises, e-commerce contributes to the formation of new
activities, new markets, and new business models that help businesses improve business
management efficiency.

More specifically on the impact of e-commerce and online shopping platform development on
UNIQLO’s business. Firstly, UNIQLO is a well-known enterprise in applying the retail model and ranks
fourth in the world in terms of retail and 84th in the list of “World's Most Valuable Brands (Sang,
2021). In addition, UNIQLO’s customer segments are children, women, and men between the ages
of 10 and 40. Therefore, the use of technology has opened up many new opportunities for
businesses. More specifically, UNIQLO opened online sales on November 5, the online store will have
a website and smartphone application, selling nationwide (Dang, 2021). This makes it easier for
customers to choose models, quickly and update a lot of product information. Moreover, the
application of e-commerce sites and the combination with UNIQLO’s official online websites will
create a stimulus for consumers' purchases and increase profits for UNIQLO.

Second, other online shopping channels such as Facebook and Instagram have a favorable impact on
UNIQLO. Customers can quickly reach companies to inquire about product details by posting
websites on social media. On the other hand, having a fan page on social networking sites enhances
the brand's reputation. UNIQLO will be ready to market the items and attract new buyers, especially
on Instagram (as most users on Instagram have the habit of surfing, viewing and buying).
Furthermore, the majority of visitors on this site—nearly two out of three adults aged 18-29—use
Instagram. This ratio has increased from 59% to 64%, has a stable average income and good taste
(ideal for UNIQLO’s target customers) (Hanh, 2021). Moreover, UNIQLO also through indirect
websites such as Shopee, Lazada, etc. to reach more customers. It is similar to FB, Instagram, there
are some other points that customers can read previous buyers' feedback, product reviews. What is
more important is convenience for users.
On the other hand, the rapid growth of these platforms is prompting UNIQLO to shift its business
strategy from offline to online. Once complaining about the burden that e-commerce places on fast
fashion chains, but now UNIQLO is shifting logistics and stepping up investment to expand online
shopping (Manh, 2020). It can be seen that when the e-commerce application has helped UNIQLO,
it can save a lot of money by enhancing online shopping activities for customers and renting space
in low-cost areas in shopping centers. buy big. Moreover, the expansion of the company's online
sales creates excellent conditions for the development and expansion of the chain of clothing
brands. Of course, once the brand has won the hearts of customers through experience on the online
shopping site, then this is one of the most successful methods for UNIQLO to expand its market
further and enhance its brand strength.

Conclusion
UNIQLO’s digital marketing tactics were analyzed and clarified in the aforementioned report, which
included an overview analysis of the digital marketing environment and an evaluation of digital
marketing channels and tools. From and then, it is valuable to make suggestions to help UNIQLO
improve its marketing efforts in the future.
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