CASE 6

UNIQLO: Apparel and Segmentation

Members:
Nguyễn Minh Nhật
Lê Nguyễn Quỳnh Như
Đặng Ngọc Uyển Nhi
Nguyễn Thị Diễm Hương
Nguyễn Hoàng Hải Anh

1. Discuss how issues of culture, language, climate, and religion

would affect marketing programs for UNIQLO clothes in
international markets.

● Culture
Countries around the world have diverse cultures, which are influenced by various
factors such as location, habits, preferences, and more. These cultural differences
also reflect in painting styles, emphasizing the uniqueness of each place. This
distinction is one of the key factors why Uniqlo, as a brand, has successfully
expanded in the global market.
Moreover, the texts of fashion, style, and color in different regions differ as well. For
example, Korean culture is reflected in the traditional attire, the hanbok, while
Japanese culture has the kimono. This shows that even the standards of fine dining
vary across cultures. Consequently, Uniqlo faces numerous challenges and
obstacles when implementing its marketing activities due to these cultural variations.
However, rather than following the current trends, Uniqlo focuses on a minimalist
fashion style that offers essential items such as t-shirts, trousers, belts, and more. By
doing so, they aim to appeal to a wider audience. It is crucial to understand that in
diverse countries with different cultural backgrounds, an unattractive design will not
attract a significant market share.
● Language
Language acts as a significant obstacle for businesses looking to expand globally,
including in the recipe creation process. Even experienced companies encounter
challenges stemming from language discrepancies, such as miscommunication and
potential risks while venturing into international markets. Prior to promoting or
communicating a product, entities like Uniqlo should familiarize themselves with the
native language to prevent linguistic errors during their communication efforts. Apart
from language, businesses should also be mindful of non-verbal cues and body
language.
 ● Climate
Uniqlo should consider the climatic conditions of each country and select the
appropriate production materials for each climate. Additionally, customers in each
country tend to choose clothing that is suitable for their environment. If Uniqlo wants
to expand its products into different countries, it is important for them to diversify
their materials and create clothing models that are suitable for the weather and
environment of their target market. For instance, Shanghai has a humid subtropical
climate, which differs from Vietnam's four-season climate. People in Shanghai prefer
pullovers during the spring and t-shirts during the summer. In the UK, lightweight and
comfortable materials are commonly chosen for outdoor temperatures, including
simple pants and t-shirts.
● Religion
Religious consortiums generally do not heavily influence product promotion.
However, in certain countries, there are strong religious beliefs or taboos associated
with certain creeds. Therefore, when targeting markets with significant religious
beliefs, companies like Uniqlo should carefully analyze and avoid content or
messaging that may offend or create negative sentiments, so as to avoid any
potential backlash or regrets regarding their marketing campaigns.

2. Which segments should UNIQLO target to avoid failure in

newmarkets?

The main reason for UNIQLO's initial failure in the international market was its
lack of recognition and comparison with other brands like Zara and Gap. To
avoid similar failures, UNIQLO should focus on targeting a consumer segment
that values the relationship between products and customers. This segment
should consist of mass-market consumers who prioritize good quality clothing
at affordable prices. Additionally, UNIQLO should adhere to its "Made for All"
concept, offering a wide range of colors, high-quality products, and the ability
to customize logos based on customer preferences. By doing so, UNIQLO can
enhance brand recognition and appeal to customers effectively.

3. How could UNIQLO market its clothes to local and global

consumers?

● Uniqlo employs very rigorous marketing techniques in order to greatly

contribute to the brand's global expansion under the slogan "Made for all".
● Sponsor world-class athletes to raise brand recognition and get attention from
consumers on a global scale.
● UNIQLO has encouraged people to participate in its communication strategy
by using digital marketing to assist items and brands become more visible and
popular.
 ● An approach that links brands and customers on a personal level. Uniqlo
recognizes that local cultures and living conditions fluctuate between markets.
With each of its specific social media methods, Uniqlo has effectively
expanded into several regional Uniqlo target markets. Uniqlo sales, for
example, are advertised through social networking platforms widely utilized by
consumers in the country.
● Providing basic things as "components" that buyers can combine with
additional components, while yet providing high-quality items at a reasonable
price.
● UNIQLO's designs are bright and free of logos, making them appealing to a
wide spectrum of customers.
● The goal of the brand is to provide low-cost clothing with a high-fashion
sensibility, resulting in outfits that can be worn with both a faded pair of jeans
and a fancy coat.

4. What potential market segments can you identify from the

information provided in this case?

● A target market is a demographic that a business wishes to sell its goods to.
Both males and females between the ages of 18 and 40 make up Uniqlo's
target demographic. It caters to those looking for fashionable yet relaxed and
casual attire.
● Clothing from Uniqlo is not just for the wealthy. high value for consumers is
indicated by the high quality and affordability. The target market has expanded
thanks to this strategy because everyone is looking for reasonably priced,
high-quality clothing.
● Uniqlo focuses on the population in cities and suburban areas under
geographic division. Target groups for demographic segmentation include
both genders and all age groups. The majority of the targets are low- and
middle-income individuals. In order to grow its customer base, Uniqlo also
uses psychographic segmentation to target people in the working class,
middle class, and upper class.

5. Would there be a market for bottom-of-the-pyramid customers?

Why or why not?

The bottom-of-the-pyramid customers are the main customers of every business.

They take up ⅔ of the population, making them the most powerful class of customers
for business. With their price sensitive behavior, more and more businesses come up
with ways to reduce their cost and scale down the price tag. Uniqlo is a perfect
example for this, they constantly find ways to make quality products with a
reasonable price. Making them the brand for customers on a budget. Uniqlo is
currently going with the strategy of optimizing the usage of their products by going
for more colors not more style, satisfying more customers. With the character of the
bottom of the pyramid customer of value conscious, Uniqlo focuses more on the
quality of the fabric. However, we cannot say that the bottom of the pyramid
customers are the market that Uniqlo focuses on, because their “Made for all”
strategy is aiming for a wide range of customers, not just the bottom of the pyramid
customers.