HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES –INFORMATION

TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION

CORPORATE MANAGEMENT

FINAL ASSIGNMENT

Presented by

Võ Thị Thùy Dung-21DH123078-Class (Friday Shift 2, 3 or Saturday Shift 1, 2, 3)

Trương Minh Tường Vi-21DH122151-Class (Friday Shift 2, 3 or Saturday Shift 1, 2, 3)
Đặng Ngọc Tuấn Anh-21DH120021-Class (Friday Shift 2, 3 or Saturday Shift 1, 2, 3)

Submitted to Instructor Luan-Thanh Nguyen as the final examination

March 29, 2024

Table of Contents
1.3 Market share .......................................................................................................................................................4

1.4 Non-quantitative considerations should be included in the analysis ..............................................................5

QUESTION2: ...............................................................................................................................................................6

2.1 Reasons for choosing Uniqlo ..............................................................................................................................6

2.2 Target Market & Trade area ............................................................................................................................7

2.2.1 Target Market ..............................................................................................................................................7

2.2.2 Trade area .....................................................................................................................................................8

2.3 Potential Market .................................................................................................................................................8

2.4 Market Share ......................................................................................................................................................9

2.5 Projected Income .............................................................................................................................................. 10

Question 3: ................................................................................................................................................................. 12

3.1 Introduction ...................................................................................................................................................... 12

3.1.1 Overview of Uniqlo and Vietnamese market ........................................................................................... 12

3.1.2 Brief overview of the advantages of franchising in Vietnam .................................................................. 13

3.2 Theoretical framework .................................................................................................................................... 14

3.2.1 Explanation of how franchising can leverage an established brand and business model .................... 14

3.2.2 Importance of local market knowledge and consumer base ................................................................... 15

3.2.3 Risk reduction in entering a new market ................................................................................................. 16

3.3 Practical Insights: ............................................................................................................................................. 18

3.3.1 Partnership with Local Franchisee ........................................................................................................... 18

3.3.2 Maintaining Brand Consistency across Locations................................................................................... 18

3.3.3 Challenges in maintaining brand consistency, complying with regulations, and negotiating fair terms
............................................................................................................................................................................... 19

3.3.4 Importance of due diligence and clear communication channels ........................................................... 19

3.4 Recommendations............................................................................................................................................. 20

3.5 Summary ........................................................................................................................................................... 20

References .................................................................................................................................................................. 22

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QUESTION 1
1.Case study selection

1.1 Choice Rationable

Alice Wood's small boutique business strategy example with the goal of accounting for a
clothing store in British Columbia is the subject of this case study. Petite Shop offers a
unique series of formula blocks and opportunities that highlight the essentials of starting a
clothing business. It involves a business that is facing competition from larger chain stores.
Along with helping them better understand business strategy, the article also explains target
market estimates, market potential analysis, and cost assessments of new ventures. . The
study also identifies potential weaknesses in the company's strategy and offers solutions
based on analysis of the results.
1.2 Estimation of market potential
Be aware of the expected market potential for the intended market that Alice Wood is
targeting. We must know what the potential of the market is.
Market potential calculations are often used to estimate the size of market capabilities, but
they can also be useful for setting standards, distributing resources among existing leads,
and providing information for sales forecasts.
To be clear, this isn't about industry sales; rather, it is about forecasting the overall demand
outlook of the market. Industry sales are calculated based on the number of current
consumers and their utilization rates, indicating the potential market share of the industry
market has been achieved. The percentage of industry revenue your company has achieved
is reflected in your sales.
Market potential is always an arbitrary quantity. In the end, it's impossible to determine the
exact market potential—how do you know if you've realized your full potential?
Determine the market area and its population, collect data on turnover and revenue for the
item or service offered there, and make any necessary adjustments to the market.

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The calculation of market potential involves taking into account important variables of total
potential to calculate the market potential affecting a product or service. Among these
important players are:

Market Capacity
When estimating market potential, market size is the most important factor to consider. Its
scope is very wide and needs to be evaluated to identify potential markets first. The
assessment of the total potential consumer base of a product or service is called market
size.
Calculation of demand in the market
The estimation of its market demand will be the next stage. Determining the number of
customers or audiences who can buy from you is called market demand.
Distribution channels
Distribution channel is another factor that reduces the size of your target audience. When
estimating the size of your market, keep this in mind. Select your preferred distribution
channel. Do you want to sell directly to customers through retailers, wholesalers or retailers
on the Internet.
Market expansion
Industry growth is another aspect to consider when estimating the industry's potential. It is
important to consider not only current demand but also the potential expansion of the
market in the future. The development of the market is an important consideration. Use
surveys and research to give approximate market information for the sector your product
enters. Check the expected future growth of the industry to see if your product is still in
demand.
To be able to estimate the market potential for the target market that Alice Wood is aiming
for, we must know the total market size for the women's clothing line with two indicators:
each family's spending on women's clothing and women's clothing, Prince George's
spending number of households, Based on the given data sheet, it can be seen that each
family's expenditure on women's clothing is 1,000 and the number of families is 29,200.

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With the formula for calculating the total women's clothing market size range, we would
take 1,000 times 29,200 to get $29,200,000.
1.3 Market share
Market share is the percentage of the total revenue of an industry that a given business
generates. Market share is calculated by dividing a company's sales during that period by
the industry's total revenue for that same period. The measure aims to provide a broad
understanding of the company's size compared to the industry and its competitors. The
company with the largest market share is the market leader in that industry.
Market share advantages:
The growth and decline in market share are closely watched by analysts and investors, they
can indicate how competitive the company's goods and services are in comparison. A
business that is holding its market share is expanding its revenue at the same rate as the
entire market for goods or services. Any business that increases market share will also
increase revenue faster than competitors.
Gaining more market share can help businesses expand operations and increase profits. A
business may try to increase its market share by offering new or different items, using
promotional offers or discounts. It can also increase its market share numbers by appealing
to different demographic groups or audiences.
Calculate market share
Estimate the total sales space in the marketplace for the merchandise that the new business
will sell. Estimate the size of the proposed store. Calculate market share based on selling
space. Make adjustments to reflect any competitor strengths and weaknesses related to the
proposed store. Multiply the revised market share percentage by the estimate calculate the
market potential obtained in question 1. According to that assumption and the information
provided in the case, the total square area of the target market, including clothing stores, is
180,000 square feet,
Multiplying that amount by 10% of the stock in clothing stores — which range in sizes
3 through 9 — would result in 18,000 square feet. Retail stores allocate only about 6,500
square feet. Subtract 18000 clothing retailers from 6500 department stores, and you have

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an existing 24,500 square foot market for sales space. According to the case study.
Alice's business should have 1000 retail spaces. The formula for calculating market share
will be obtained here. It is based on the market share formula above and will get the
following result: the proposed selling space is 1000 square feet divided by the semi-
market space of 24,500 square feet. The proposed semi-space is 1000 square feet. 39
percent. Multiplying 3.9% by a possible market size of 5,840,000 yields a USD market
share of 227,760.
1.4 Non-quantitative considerations should be included in the analysis
The above analysis depends on several factors. For example, the above-mentioned
statistics are only true in a perfect market (perfect competition). In an imperfect market,
Alice may have a significantly lower (or higher) market share than the one described
above. Advertisers are another important issue to consider in this analysis. It often
affects sales and market share. In other words, companies that engage in aggressive
marketing campaigns gain a higher market share than those that don't. Therefore, if
Alice's competitors have more aggressive advertising than her, she can capture a small
market share. Likewise, if she does more aggressive marketing, compared to her
competitors, she is likely to capture a larger market share than the 109% mentioned in
this article. Likewise, she is likely to capture a larger market share than the 10% outlined
in this article if she implements a more aggressive marketing effort than her rivals.
Eventually, Alice's market share will be affected by demand and product quality just like
competition and advertising. There are a number of favorable and unfavorable reasons
that could cause Alice to change her estimated revenue.
Negative:
Since Petite Shop is new, it will take some time to set up this proposal that shares the
marker. The website of the existing business can be much more advantageous; therefore,
it is important to assess the proximity of competitors to her intended store. Because they
have established supplier networks and bulk purchases, reputable retailers and
department stores can offer more competitive rates.
Positive:

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Alice is planning to specialize in clothing for this target market – which will give her
store some "competitive edge" in terms of service, expertise... Prince George is the heart
of the commercial area so the market potential figures need to be adjusted to reflect who
living outside Prince George will make a purchase.

QUESTION2:
2.1 Reasons for choosing Uniqlo
Uniqlo is a symbol of minimalist and casual design, manufacturing as well as it is Japan's
global fast fashion retail group. Since November 2005, Uniqlo is a subsidiary of Fast
Retailing Co., Ltd (Ogori Shoji). Founded in May 1984, its president is Tadashi Yanai and
its senior vice president is Takahiro Wakabayashi. With the remarkable growth to more
than 500 domestic stores present in Japan, in 2001, Uniqlo decided to move into the
international market, starting with a store in London, then approaching the country of
billions of people in Shanghai, China,... Currently, Uniqlo has developed and operates in
16 global markets including Japan, Hong Kong, Taiwan, South Korea, Singapore, China,
Malaysia, Thailand, Philippines, Indonesia, Australia, USA, UK, France, Germany and
Russia.
At the present time, Uniqlo has a number of stores in Ho Chi Minh, Hanoi, Binh Duong
and Da Nang. With the combination of modern simple designs, high-end product quality
and focus on creating long-term, affordable sustainable products in line with consumers'
daily needs, Uniqlo has become a an iconic fashion brand for the Vietnamese people. This
brand not only attracts a diverse number of customers, but the fashion of its products is
always guaranteed by quality as well as focusing on the comfort and convenience of
customers. Because of that, Uniqlo will bring to locals as well as tourists in Long Thanh,
Dong Nai a comfortable and special shopping space.
In Long Thanh district, the population here is growing rapidly with the preparations here
(Long Thanh International Airport, Long Thanh Industrial Park, Ho Chi Minh City 3rd
Ring Road,..) will attract a large number of tourists as well as migrants. This is the ideal

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place to open more branches in the center of Long Thanh town. The population in Long
Thanh district, Dong Nai is 356,051 people (2023) with a population density of 826
people/km², this is a place with great consumption potential. With the economy tending to
grow, especially industries, logistics, public investment and infrastructure development,
attracting a large number of migrants, foreign customers, as well as tourists, highlights the
shopping potential and creates a strong fashion consumption market. Product quality along
with reasonable prices, this combination will help Uniqlo succeed in exploiting the market
here. In addition, Dong Nai province (2023) province has welcomed 3,840,000 tourists, an
increase of 12.8% compared to 2022. In which, domestic tourists reached 3,520,000,
international tourists reached 320,000, this is a prerequisite to help Uniqlo receive the
number of domestic customers and foreign visitors from neighboring areas to improve
revenue. The opening of Uniqlo's branch in Long Thanh district will greatly promote
opportunities to enhance brand and reputation with local as well as global brands.
2.2 Target Market & Trade area
2.2.1 Target Market
With a global reach, Uniqlo is a Japanese fashion brand and a household name in the
international market with a simple but powerful mission: focusing on high-quality fashion
clothing products (advanced fabric technologies such as Heattech and AIRism, helps keep
warm and breathable), flexible, lifewear. Although this brand is coming to basic designs,
sustainable fashion, they are constantly receiving new trends, innovation but still have the
core special point of the brand. Along with the growing economy and the increasingly
widespread fashion wave in Vietnam, Uniqlo has quickly become one of the popular
fashion brands, having stores in big cities such as Ho Chi Minh, Hanoi, Da Nang, Binh
Duong. Uniqlo reaches young people and adults in urban areas with busy lives, Give
priority to products with high quality products and simple yet fashionable design. At the
same time, Uniqlo's strong message about LifeWear lifestyle – the combination of quality,
utility and style in everyday wear – to Vietnamese consumers was quickly strongly
accessible, enhancing their brand awareness. The fact that Uniqlo always maintains prices
and smart marketing strategies and promotions, has created a comfortable and attractive

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shopping environment, meeting the shopping needs of consumers in Vietnam. In addition,
Uniqlo also has a strong presence in Vietnam's online shopping community creating a
strong connection with consumers through retail stores and online shopping channels.
2.2.2 Trade area
Geographically, Uniqlo's trade area in Long Thanh town, Dong Nai province offers a great
opportunity to develop business as well as expand markets. Long Thanh town is 45km
southwest of Ho Chi Minh City, 15km southwest of Bien Hoa City, 15km east of Long
Khanh city, 70km southeast of Vung Tau city. Dong Nai province is one of the most
developed industrial provinces in Vietnam with large industrial parks, a large and diverse
population creating a dynamic economy with a large consumption market, traffic location
and developed infrastructure to facilitate mobility and business. So this is the ideal place
to bring Uniqlo stores here. In terms of economy, Dong Nai province ranks 10th in terms
of national GDP (2023), GRDP in the first quarter of 2023: VND 58,845 billion, up 7.1%
over the same period in 2022, focusing on the fields of Industry - Construction, Services
and Agriculture. In terms of tourism, Dong Nai province has GRDP in 2023: VND 262,630
billion, up 5.3% compared to 2022. Total number of tourists (2023): 4.8 million (reaching
87% of the year plan). In which, domestic tourists: 4.45 million, international tourists:
350,000. Therefore, it contributes to meeting the shopping needs and daily activities of
local residents and tourists in Dong Nai province. The market strategy of opening Uniqlo
stores in a shopping center in the center of Long Thanh town, Dong Nai province, strongly
exploiting the resources of the strong commercial sector and the contribution of economic
and geographical factors helps to better guide the strategy of this location for Uniqlo.
2.3 Potential Market
Table 2-1 Population estimates for several districts and cities within Dong Nai
province.
Name of District/Cities Population (people)
Long Thanh District 534,370
Bien Hoa City 1,055,414
Long Khanh City 245,280
Nhon Trach District 352,452

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In terms of total income per capita in Dong Nai province in 2023, it will reach 139.75
million VND/person/year. The proportion of spending on clothes and accessories of people
in Dong Nai province accounted for 5.6%, about 7,826 million VND.

• Long Thanh is located in Dong Nai province, and also where there is a fast growing
rate, there are large cities nearby and densely populated. So the number of people
in Long Thanh neighborhoods who can be willing to spend on clothes and
accessories in Long Thanh is 40%, which also means that 4,132,865 people will be
willing to come here to buy clothes and accessories. The total number of people
willing to buy clothes in Long Thanh is:
534,370 + 4,132,865 = 4,667,235 people.
• Based on the shopping demand of the people of Long Thanh and surrounding areas
about buying clothes and accessories in Long Thanh, we can estimate that the
percentage of people who will come to Uniqlo to shop is 6%. Based on this ratio,
we can calculate the average number of times people buy clothes and accessories at
Uniqlo in 2024 as:
7,826 * 0.06 = 469.56 million VND
From the above data, we can see that the amount of spending on clothes and
accessories in Long Thanh district in 2024 is VND 469.56 million. From there, we
can deduce that Uniqlo's potential market growth in 2024 can be calculated as
follows:
469,56 * 4,667,235 ≈ 219,154,686,660 VND
2.4 Market Share
Based on the size of Uniqlo stores present in Vietnam, and the area in Long Thanh town.
In Long Thanh town, we can estimate the proposed area to be 1000 square meters.
Referring to the above figures, we can estimate Uniqlo's market share as follows:
1000
= 3.84%
25000 + 1000

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The data calculated above shows that the market share of Long Thanh town is about 3.84%.
In Long Thanh town, we can identify the highlights and opportunities for Uniqlo, the young
population and strategic location, Long Thanh town is located near Long Thanh
International Airport, which is extremely convenient for attracting tourist customers, as
well as convenient transportation, easy connection to neighboring areas in Dong Nai
province and Ho Chi Minh City. This place also attracts many investors, the development
of the economy will lead to the demand for high-end costumes, especially currently Long
Thanh town does not have many international fashion brands, the appearance of Uniqlo
can hit the clothes shopping here.
In terms of Uniqlo's competition in Long Thanh town. Based on the price, they can be
considered quite high here, competitors must be wary of retail stores distributing clothes
and accessories here in casual, low-cost clothing, and local brands will have an advantage
in terms of price as well as the demand of local customers. And importantly, the cost of
premises, qualified personnel, the transportation of goods in Long Thanh town can be
higher than in other areas.
2.5 Projected Income
Projected income is calculated based on potential market and market share:
219,154,686,660 * 3.84% ≈ 8,415,539,967.74 VND
Since this is a retail business, Cost of goods sold (COGS) and Selling General &
Administrative Expense (SG&A) will account for high percentages. Land rental in Long
Thanh town with 1000 square meters: 50,000,000VND/month. A total of 40 employees
were hired to work at the Uniqlo store in Long Thanh town. Including 25 full-time
employees and 15 part-time employees, each working 4 days/week and 4 hours/day. In
terms of employee benefits, we will have a 13th month's salary after each end of the year,
20 eligible people will be selected, and additional bonuses (in terms of benefits and related
insurance). Interest expense is also shown in the following detail:
(Unit: VND)

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Table 2-2 Interest Expense

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Table 2-3 Provide a forecast of the value statement over a five-year period.

Question 3:
Option: Franchising a business in Viet Nam
3.1 Introduction
3.1.1 Overview of Uniqlo and Vietnamese market
Uniqlo:
Uniqlo is a Japanese casual wear designer, manufacturer, and retailer known for its high-
quality and affordable clothing. The brand was founded in Yamaguchi, Japan, in 1984 and
has since expanded globally, with stores in over 20 countries. Uniqlo is known for its
minimalist and functional designs, as well as its commitment to innovation and

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sustainability in the fashion industry. The brand offers a wide range of apparel for men,
women, and children, including basics like t-shirts, jeans, and outerwear, as well as
collaborations with designers and artists. Uniqlo's parent company is Fast Retailing Co.,
Ltd.
Vietnamese market:
In recent years, Vietnam's economy has developed promisingly. This leads to a high
increase in customer demand for goods, especially in the fashion industry. Furthermore,
this was a period of information technology expansion. Thanks to the dynamic popularity
of online retail and the uptake in consumer awareness, Vietnamese people are willing to
spend more on famous and expensive brands. According to 2015-2016 survey data,
Vietnamese people's spending on clothing ranked third, accounting for 14%, only after
spending on food (32%) and savings (14%). In particular, women spend more time and
money buying clothes than men. This is a quite high number for consumption and savings
of Vietnamese customers. They have the highest purchasing habits of 2 to 3 times a month,
then once a month. Consumers' shopping levels are not much different.
3.1.2 Brief overview of the advantages of franchising in Vietnam
Franchising has gained significant attention in Vietnam and is bringing hope of profitability
to foreign businesses and investors. Franchising is becoming more and more popular across
many sectors, such as education, health and wellness, food and beverage, business services,
hospitality, beauty and skin care, fashion, entertainment, children's services and
convenience stores. Therefore, the Vietnamese market is offering many prospects for both
franchisors and franchisees.
World-famous brands such as McDonald's, Baskin Robbins, Pizza Hut, Kentucky Fried
Chicken, Burger King, Lotteria, Tous Les Jours and BBQ Chicken in the food and beverage
sector, as well as Swensen's, Warehouse, Topshop and Coast London , are all known to
Vietnamese users.
With a user base of nearly 100 million people served by 8,475 markets, 1,009 supermarkets
and 210 shopping centers, Vietnam has the basis to become a promising gift market.

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Franchising allows a business to benefit from the franchisor's established brand
recognition. With lower risk than starting a new business from scratch, because the
business model and processes are proven to be successful. Additionally, franchisors receive
ongoing support and training from the franchisor, which can help them navigate the
complexities of running a business and ensure success. Franchisees have access to
established systems, processes and resources provided by the franchisor, saving time and
effort in developing their own systems. Franchising also helps businesses be flexible in
choosing locations based on the franchisor's instructions, increasing their chances of
success in the market.
In addition, Vietnam's growing imports, high standard rates and market automation create
suitable conditions for foreign businesses to base here and expand the information market
through commercial rights.
3.2 Theoretical framework
3.2.1 Explanation of how franchising can leverage an established brand and
business model
Franchising is a business strategy that allows an individual to own and operate a business
using the brand name, products, and business model of an established company. This
arrangement can be highly beneficial for both the franchisor (the established company)
and the franchisee (the individual or entity owning and operating the franchise).
One of the key advantages of franchising is the leverage it provides for an established
brand. By choosing to franchise their business, the franchisor can expand their brand
presence and reach in new markets without having to invest heavily in new locations and
operations. This is because the franchisee is responsible for setting up and operating the
new business under the franchisor's established brand name, thereby leveraging the
existing brand recognition and customer loyalty.
Additionally, franchising allows for the rapid expansion of the business by leveraging the
resources and capital of individual franchisees. Since the franchisee is responsible for
investing in and operating the franchise, the franchisor can grow their business without
assuming all the financial risk associated with opening new locations. This can lead to

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faster and more cost-effective expansion, as the franchisor can focus on providing
support, training, and marketing resources to help franchisees succeed.
Furthermore, franchising can also leverage an established business model. Franchisors
typically provide franchisees with a proven business model, including policies,
procedures, and operational guidelines that have already been tested and proven
successful. This can help franchisees minimize the risks associated with starting a new
business, as they can rely on the franchisor's expertise and experience to guide them in
running their franchise effectively.
Overall, franchising can be a powerful strategy for leveraging an established brand and
business model to achieve rapid expansion and growth. By partnering with franchisees, a
franchisor can extend their brand presence, reach new markets, and drive business
success while providing opportunities for individuals to own and operate their own
businesses under a recognized and respected brand name.
3.2.2 Importance of local market knowledge and consumer base
Local market knowledge and understanding the consumer base are crucial for businesses
looking to succeed in the region.
1. Cultural nuances: It has its own cultural characteristics and values that may differ from
other regions. Understanding these nuances is essential for businesses to tailor their
products or services to meet the needs and preferences of the local consumers.
2. Consumer behavior: The buying behavior and preferences of consumers may vary
significantly from those in other regions. By having a deep understanding of the local
consumer base, businesses can create targeted marketing strategies that resonate with the
target audience, leading to higher conversion rates.
3. Competitive landscape: Knowing the local market well allows businesses to assess the
competition accurately. Understanding what competitors are offering and how they are
positioning themselves in the market can help businesses differentiate themselves and
identify gaps that they can capitalize on.

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4. Regulatory environment: Each region may have its unique regulations and policies that
businesses need to comply with. Having a good grasp of the local regulatory environment
can help businesses avoid potential pitfalls and ensure compliance with relevant laws.
5. Supply chain optimization: Local market knowledge can also help businesses optimize
their supply chain by identifying local suppliers, distributors, or partners that can help
streamline operations and reduce costs.
Overall, having a deep understanding of the local market and consumer base is crucial for
businesses to thrive and succeed in the region.
3.2.3 Risk reduction in entering a new market
Market research:
1.Identify Uniqlo’s target customers: High level income Vietnamese people
Middle level income Vietnamese people which is growing fast, with annual average
income per year more than $3,500 (The World Bank Group, 2018).
 Target customer should be the people in two big cities ( Ha Noi and Ho Chi Minh
city)
2. Competitors
Based on our marketing research, we will consider mainly two local competitors and two
global competitors that already exists in the market.
Local: Viettien and Canifa
Global: ZARA and H&M

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Uniqlo is one of the leaders in casual and functional clothes in Japan and in the world.
We try to differentiate ourselves by this feature. The Vietnamese market is an emerging
market where people find simple and functional clothes more helpful and inexpensive for
work, daily life, sport and many other occasions.
3. Pricing method
We will depend on two strategies for pricing our products in Vietnam market.
1. Targeting price: Leveraging economies of scale from local factories and suppliers, the
company can set competitive prices for its products by targeting total cost reduction. This
allows Uniqlo to offer prices that match or beat competitors in the market.
2. Reducing total supply chain cost: By optimizing partner facilities for product storage
and implementing a Just-in-Time restocking system, the company can eliminate high fixed
costs associated with warehousing. Additionally, launching online shopping and direct
shipping to customers helps reduce inventory carrying costs.
3. Markup pricing: after targeting our cost, we will add 15% of total cost as a profit margin.
Final Prices: Affordable
P= Fixed cost + Variable cost + Overhead cost + 15% ( F+V+OH)
Average selling price for the products in stores is: $25
Table 3-1:Our estimated initial investment

Personal costs
Salaries, Insurance, and other benefits
for about 10 emloyees

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3.3 Practical Insights:
3.3.1 Partnership with Local Franchisee
Partnering with local franchisors in Vietnam can be a great opportunity to expand your
business. By collaborating with local franchisees, we can leverage their knowledge of the
market, consumer preferences and legal requirements. This can help us navigate the
business landscape in Vietnam more effectively and build a strong foothold in the market.
Additionally, working with local franchisees can also provide insight into cultural nuances
and local customs that may affect your business. This can help businesses tailor their
products or services to better suit the needs and preferences of Vietnamese consumers,
ultimately leading to more successful results.
Furthermore, partnering with local franchisors can also help minimize the risks of entering
new markets. By leveraging local expertise and the network of franchise partners, we can
reduce uncertainties and improve our chances of success in Vietnam.
3.3.2 Maintaining Brand Consistency across Locations
Maintaining brand consistency across locations is essential to establishing a strong and
recognizable brand identity. Develop a comprehensive brand style guide that outlines the
visual identity , your brand's voice, tone, and messaging. Make sure this guide is easily
accessible in all locations. Also, train employees at each location on the importance of
brand consistency and how to implement it in their daily operations. Next comes using
technology to your advantage by providing templates and tools to create marketing
materials that adhere to your brand's guidelines. Conduct regular audits to ensure that all
locations are accurately following brand guidelines. Finally, encourage open
communication between locations to share best practices and ensure alignment with overall
brand goals.

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3.3.3 Challenges in maintaining brand consistency, complying with regulations, and
negotiating fair terms
Franchising Uniqlo presents several challenges that require careful consideration and
management to maintain consistency, comply with regulations, and negotiate fair terms.
1. Consistency: One of the main challenges in maintaining a franchised business like
Uniqlo is ensuring consistency in brand image, product quality, and customer experience
across all stores. Franchisees may have their own ideas and ways of doing things, which
can sometimes lead to deviations from the standard set by the franchisor. It is essential to
have clear communication channels and regular training programs to educate franchisees
on the brand standards and guidelines.
2. Compliance with regulations: Franchising Uniqlo also involves complying with various
regulatory requirements and legal obligations in different markets. Each country has its
own laws and regulations governing franchising, employment, taxation, and intellectual
property rights, among other things. It is crucial for both the franchisor and the franchisee
to understand and adhere to these regulations to avoid potential legal issues and penalties.
3. Negotiating fair terms: Negotiating fair terms with franchisees is another challenge that
franchisors like Uniqlo face. Franchise agreements typically cover various aspects such as
fees, royalties, territory rights, marketing contributions, training and support, and renewal
terms. It is important to strike a balance between protecting the brand's interests and
providing a reasonable return on investment for the franchisee. Fair and transparent
negotiations can help build trust and maintain a mutually beneficial relationship.
In conclusion, maintaining franchising Uniqlo consistency, complying with regulations,
and negotiating fair terms require careful planning, effective communication, and a strong
commitment to upholding brand standards and values. By addressing these challenges
proactively and collaboratively, both the franchisor and the franchisee can work together
to achieve long-term success and profitability.
3.3.4 Importance of due diligence and clear communication channels
Due diligence is important because it helps identify potential risks and opportunities before
making important decisions, such as investing in a company or entering into a partnership.

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It involves carefully researching and analyzing all relevant information to make informed
choices.
Clear communication channels are essential for effective collaboration and understanding
between team members. When there is open and transparent communication, it minimizes
misunderstandings, enhances productivity, and fosters a positive working environment.

Incorporating due diligence and maintaining clear communication channels are vital for
success in any business or project. They help to mitigate risks, build trust, and ensure that
all stakeholders are on the same page.
3.4 Recommendations
We highly recommend franchise businesses to prioritize key elements such as conducting
thorough due diligence on potential franchisees, establishing clear communication
channels, adapting the business model to the local market, and prioritizing ongoing support
and training for franchisees. When it comes to due diligence, it is crucial for franchisors to
thoroughly vet potential franchisees to ensure they have the necessary skills, experience,
and financial stability to successfully run the franchise. Clear communication channels are
essential for fostering a strong relationship between the franchisor and franchisee, ensuring
that both parties are on the same page regarding expectations, goals, and challenges.
Adapting the business model to the local market is vital for the success of a franchise, as it
allows the business to cater to the unique needs and preferences of customers in that
specific area. Lastly, providing ongoing support and training for franchisees is key to
helping them navigate challenges, stay updated on industry trends, and maximize the
potential of their businesses. By focusing on these key recommendations, franchise
businesses can set themselves up for long-term success and growth in the market.
3.5 Summary
Vietnam's retail market has been experiencing rapid growth over the years, driven by
the country's strong economic performance and increasing consumer spending. In
recent years, international fashion brands have been looking to enter the Vietnamese
market, attracted by its young and fashion-conscious population. Uniqlo's success in

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other Southeast Asian markets, such as Thailand and Malaysia, could serve as a
blueprint for its expansion into Vietnam. By leveraging its existing regional presence
and brand recognition, Uniqlo could differentiate itself in Vietnam's competitive retail
landscape. However, there are also challenges to consider when franchising Uniqlo in
Vietnam. The country's retail market is diverse and competitive, with both local and
international brands vying for consumer attention. Understanding the local preferences
and shopping habits of Vietnamese consumers will be crucial for Uniqlo's success in
the market. In conclusion, the success of Uniqlo in Vietnam will also depend on factors
such as effective marketing strategies, location selection, and pricing strategies tailored
to the local market. Building strong relationships with local partners and suppliers will
also be essential for ensuring a smooth supply chain and operational efficiency.

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xu-huong-thoi-trang-2021/
Cổng Thông Tin Điện Tử Tỉnh Đồng Nai. (2024, March). Retrieved from
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(n.d.). Đồng Nai Online. Biên Hòa: Đào Văn Tuấn.
Ryall, J. (2019, September 22). South China Morning Post. Retrieved from
https://www.scmp.com/lifestyle/fashion-beauty/article/3029602/uniqlo-story-
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Tổng Cục Thống Kê. (n.d.). Retrieved from https://www.gso.gov.vn/
Trang Thông Tin Điện Tử Sở Kế Hoạch Đầu từ Đồng Nai. (n.d.). Retrieved from
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