Strategic Brand Group 1

Business Overview

Brand
Current Marketing
communication
Strategy
strategies

Evaluation
Brand Strategy

Recommendation
Marketing mix
1. Business Overview
About Uniqlo
● UNIQLO is a clothing apparel company, which was originally
founded in Yamaguchi, Japan
● The company originally called itself "Unique Clothing
Warehouse."
● The business is to provide high quality casual wear at
remarkably affordable prices for men, women and kids.

Lifewear
● Apparel that comes from the Japanese values of simplicity,
quality and longevity. Designed to be of the time and for the
time.
● Clothing that UNIQLO constantly innovating, bringing
more warmth, more lightness, better design, and better
comfort to your life
● Simple apparel with a not-so-simple purpose: to make your
life better
1. Business Overview
Business model
● UNIQLO business model unifies the entire clothes-making
process--from planning and design through production,
distribution, and retail.

● The common threads:

○ Technological innovation (e.g., use of fabric technology
during the design stage for developing new fabric),
○ Minimizing cost
○ Adherence to high quality standards (e.g., deployment of
skilled artisans in partner factories in Shanghai, Dhaka,
Jakarta, Ho Chi Minh City, Istanbul, and Bengaluru)
○ Forging strategic partnerships throughout the design,
production and sales processes
1. Business Overview
Business strategy
1. Developing products of exceptionally high quality
● Product development based on customer feedback
● Material procurement from around the world
● Expert technical guidance at factories emphasizes quality

HEATTECH fabric is a unique highly

functional line of innerwear that offers Lifewear (a blend between casual and
AIRism (a stretchy fabric) technologies sportswear) technologies
amazing comfort, which has won over a
multitude of customers
1. Business Overview
Business strategy
3. Further Growth, a Stronger Brand: Increase the number 4. UNIQLO International: Profitability on the Rise
of flagship stores worldwide.
 2. Review of marketing strategy
SWOT analysis

Strengths Weakness
● Innovative, high quality products W ● Simple, basic styles
● Reasonable prices world wide ● Limited market
● Strong technology system to advance in e- ● Poor working conditions
commerce and digital marketing
● Large number of stores/flagship stores

S O

Threats
● Covid Zero in China (affect the Opportunities
supply chain and profit) ● Expand internationally (to
● Global recession America, EU, China,
● High competition
T South East Asia, India)
● Going online
● Increase product line
2. Review of marketing strategy
Current market analysis
Target market
The main target market Uniqlo is
the male and female adults that are
ranging from the age 18 to 40 and
are looking for affordable and
high-quality clothing that fits their
lifestyles.
Segmentation
Under geographic segmentation, it
targets the urban and suburban
population.
Under demographic segmentation,
it targets all the age categories and
both the genders.
Under psychographic
segmentation, targets the social
class who are working, middle and
upper middle class
Positioning
Uniqlo has positioned itself as a
modern Japanese company and
aims to inspire people to dress
casually. The brand has a “made for
all” positioning strategy and is a
brand that sells apparels that are
essential, simple and helps wearers
find their individualistic styles.
Basically, if people are looking to
find, good quality, trendy and
affordable clothes, the destination is
Uniqlo
3. The Brand strategy of Uniqlo (1/5)
Brand Vision, Brand Mission and Core Values
Vision statement Mission statement Core Values

“To become the number 1 clothes “We provide high quality, trendy and basic Fast Retailing
retailer in the world.” casual wear at the lowest prices – a casual
wear that anybody can wear whenever and Startup Mind
Sustainability : “To aspire to a wherever.”
better society where we all thrive.” Customer First
Sustainability : “Unlocking the Power of
Clothing.”

WHY : A better society for all to

More focused on DOING (customer- thrive.
centric and product-centric). Lately,
shift towards a BEING approach HOW : Providing sustainable clothing
through the sustainability statements, in for whenever and wherever.
order to even the balance.
WHAT : High quality, trendy, casual,
affordable wear.
3. The Brand strategy of Uniqlo (2/5)
Brand Positioning Personality: Daring (Trending), Spirited (Cool), Up-to-date (Contemporary),
Intelligent (Technical and Corporate).
Main competitors: H&M, Gap Inc., Zara, Forever 21,
Target customer: American Eagle Outfitters and MUJI.
Carpe diems in Gen-Z : They
value enjoyable life, take
risks, career, freedom. Value
quality over quantity. Value
luxury and loyal to their
favorite companies.
Interested in
everything.

Points-of-parity
associations (POPs):
Casual wear market.
Collaborations with
designers.
Comfort at affordable
prices.
Points-of-difference (PODs):
Innovative Technology: HeatTech,
LifeWear, AIRism, UV Cut.
Varied yet Simple: basic design
but variety in offerings.
Non-fashion: focus on the
functionality of its products rather
than style.
Japanese origin and minimalistic
aesthetics.
 3. The Brand strategy of Uniqlo (3/5)
Brand Values

Values

Approaching issues from the customer

perspective

Embracing innovation & challenge

Respecting and supporting individuals to

foster both corporate and personal growth

Committing to ethical standards and

correctness
3. The Brand strategy of Uniqlo (4/5)
Brand’s Value Propositions

● “Quality comes first, then price” – Tadashi

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● Stocks: product planning, design,

Affordable and ● manufacturing,
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● Casual basics rather than trendy garments

● 100% sustainability
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● Collaborations: Kaws, Undercover…

04 Fashionable
● Renowned ambassadors

● HeatTech

05 Innovative ●
●
●
LifeWear
AIRism
UV Cut
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●
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● Collaborations: Kaws, Undercover…

04 Fashionable
● Renowned ambassadors

● HeatTech

05 Innovative ●
●
●
LifeWear
AIRism
UV Cut
3. The Brand strategy of Uniqlo (5/5)
Brand Identity
4. Marketing Mix (4Ps)
Product Strategy

Wide product portfolio

Men / Women collection

Boys / Girls collection

Babies / newborn collection

Unique modern look

4. Marketing Mix (4Ps)
Price / Pricing Strategy
4. Marketing Mix (4Ps)
Place and Distribution Strategy

1920 stores

35 Countries

20% online sales

4. Marketing Mix (4Ps)
Promotion and Advertising Strategy
4. Marketing Mix, Let's go further
7Ps

People / Employee
Diversity and inclusion

Process
148 factorys

Physical Evidence
Friendly web site
5. Branding communication strategies
(1/6)
- Brand story: The Beginnings of Uniqlo and how it be loved

In 1984, Tadashi Yanai opened a shop in Hiroshima, Japan called

‘Unique Clothing Warehouse’ which was later shortened to Uniqlo.

Inspired by casual apparel chains during his travels to Europe and

the US.
Successfully changed perception of consumers from “cheap and low
quantity” to “affordable but high-quality”.
Great strategy of innovation and its very customer-centric culture
5. Branding communication strategies
(2/6)
- Communication strategies:
● Offer excellent shopping experience via in-store environment: main
communication methods conveying ideal of simplicity and essential basics

=> Outstanding and comfortable shopping services

5. Branding communication strategies
(3/6)
- Pioneer in Digital Marketing:
● Uniqlo uses both Web tool and Online app as their online communication channels
with the consumers.
5. Branding communication strategies
(4/6)
- Communication strategies:
● Celebrity endorsement and Collaboration with global designers:
Uniqlo looks for global ambassador with “great resilience and strong
character to overcome adversity” image.
Collab with global designers to highlight individual’s unique styles
-> gain quicker access into markets where it has a weaker brand awareness,
like the US and European markets
5. Branding communication Strategies
(5/6)
- Communication strategies:
● Global brand campaigns:
In 2016, Uniqlo launched its first global brand
campaign titled “The Science of LifeWear”
“Why do we get dressed?
“There is no one answer. But to make clothes for
life, we’ll keep asking.”
https://www.youtube.com/watch?v=dFD4mnfz3zI
Help solidify Uniqlo’s relentless commitment to
quality, functionality and style through LifeWear.
5. Branding communication strategies
(6/6)
- Communication strategies:
●Global brand campaigns:
In 2022, Uniqlo continue to announced “JOIN:
THE POWER OF CLOTHING”
Encourage UNIQLO customers to be a part of the
environmental sustainability activities with 2
initiatives:
Buy and JOIN – support donation with purchases
Learn and JOIN - Find out more about ocean
pollution through special content
 6. Branding success or failures of the company (1/5)

“Uniqlo is a modern Japanese company that inspires the world to dress casual”

- Uniqlo has the n°3 place fast fashion retailer in the recent years : with sales of USD 22 billion, just
behind Spain’s ZARA (sales of USD 33.7 billion) and Sweden’s H&M (sales of USD 24.3 billion).

- Delivery system supporting a clear brand promise → high quality, performance-enhanced,

universal, basic casual wear at affordable prices + great delivery system → totally ignore fashion

- Product development approach and efficient supply chain → “Uniqlo is not a fashion company,
it’s a technology company.” → plan production of its wardrobe essentials up to a year in advance :
few styles of urban practical basics. Same for the supply chain

- Company culture and visionary leadership → flat organizational structure : encouragement,

transparency, Staff training (3 months), Record & Analyze
Ex : Tokyo Uniqlo University : 1500 managers trained every year
 6. Branding success or failures of the
company (2/5)
- Innovation : HeatTech
- turns moisture into heat and has air pockets in the fabric to retain that
heat
- Thin, comfortable but stylish designs → very different from the
standard traditional warmth clothing segment.
- Each year new fiber technology → different collections of thermal
clothing.
- Ex : Since its launch in 2003, → 1bn pieces of HeatTech sold
- + 3 others technologies :
AIRism (soft fabric with quick-drying inner fabric),
LifeWear (casual & sportswear blend),
UV Cut (prevent 90% of ultraviolet)

FUN FACT : Tadashi Yanai said “Apple is our largest competitor because of the company’s
desire to be the most innovative company in the world.”
6. Branding success or failures of the company (3/5)

- Digital Marketing

- 2007 : “Uniqlock” clock with spliced clips of well-choreographed

dancing and catchy lounge music all timed to match the ticking (summer :
polo / winter : cashmere)
- By January 2008, the campaign had been viewed 68 million times in 209
different countries.
- Uniqlock won the brand a multitude of major advertising awards,
including a Grand Prix at Cannes Lions Festival

https://www.youtube.com/watch?v=C_SKZKWZUS8

- 2019: #UTPlayYourWorld : partnering with short-form video giant

TikTok to encourage customers to show off their Uniqlo UT range outfits
in short videos, which are screened on in-store monitors.
6. Branding success or failures of the company (4/5)

- COLLABORATIONS WITH DESIGNERS

- Clearly the best SUCCESS of the brand → By collaborating with global designers, Uniqlo is also able to
gain quicker access into markets where it has a weaker brand awareness, like the US and European
markets.
- Ex : Alexander Wang in 2008 : essence of Uniqlo

Uniqlo x League of Uniqlo x Animal Crossing Undercover’s “uu” NIGO’s “UT”

Legends
6. Branding success or failures of the company (5/5)

- The Failure : The Uyghur scandal

- Uniqlo in the sights of justice.

- Targeted by a recently opened investigation in France in early 2021 for "concealment of
crimes against humanity" for having been able to profit from the forced labor of Uyghurs in
Xinjiang in northwest China.
- This predominantly Muslim minority has reportedly been persecuted by Beijing since 2017.
- The Japanese ready-to-wear brand Uniqlo affirmed in July that there was no forced labor in its
supply chains and that the accusations against it have not been notified.

- BUT : in April 2021 the Japanese group raised its annual operating profit forecast after a 23%
jump in the first half of the year. In the first six months of its fiscal year ending at the end of
February, the group's operating profit reached 168 billion yen (1.3 billion euros) compared to
136.7 billion a year earlier.
 7. Recommendations from our team to Uniqlo (1/2)

- FIRST : Clean their image and their providers

- Uniqlo should find a solution to preserve their brand personality and identity to correspond to the customer because
→ Uniqlo has a strong global sustainability approach → Present a press release to reaffirm their value and cut
their relationships with the problematic retailers

- Differentiation through innovation

- → even if the brand image is strong if Uniqlo wants to catch up with its two main competitors (Zara and H&M) it
must be more innovative, have more collections or be able to match more different styles

- Focus more on quality, OR on price

- → Uniqlo has to choose between these two items, because for some markets Uniqlo is now an expensive brand (SE
Asia) but for some people it is also not qualitative enough to turn their heads from others brands (Carhartt,
Patagonia..) → so choose to level up quality or down price

- Leveraging on digital: some unfavorable reviews on its post-purchase experience

- → Uniqlo needs to consider the entire online customer journey from pre- to post-purchase → to make mobile
shopping delightful experience + needs to gather retail analytics in order to analyze digital consumer patterns and
devise strategies to improve its sales. → develop after sales service + prime delivery service + fidelity and reward Only a mobile app (2014) + website
service
7. Recommendations from our team to Uniqlo (2/2)
Next generation ownership :

Change in the Leadership in the 21st century → Tadashi Yanai at the age of 70 still is the chief
executive of the company

→ Uniqlo needs to devise a succession plan + instill a next generation leadership team : find
new ways to serve local fashion needs and preferences of its consumers across the globe

→ Hire a new young team and divide the leadership into the different countries to listen
better to consumers

International expansion:

2014 : Fail of the merger with J Crew Group in 2014

→ The deal would have given Uniqlo access to 400 stores in the US → most important
challenge is to conquer the US market which is yet fragile.

→ Create an international expansion strategy with clear and achievable plans tailored to
each market. Build a marketing 360° campaign taking place in the USA, ex : clothes to
explore USA national parks…