Uniqlo Assessment Presentation and Project Report Environmental Analysis
As international brand, UNIQLO set up their design studio for own products development next year. As of August 2011, UNIQLO international had 181 stores including China, Taiwan, Hong Kong, Korea, Singapore, Malaysia, UK, USA, France and Russia, Japan had 843 stores, totally 1,024 stores in worldwide. There are at least 5 major factors of macro-environment that will impact the apparel brand management of UNIQLO. Political / Legal
Previously most of the UNIQLO’s products were made in China but in year 2008, China had set up a new Labor law to protect the labors against wage default, forced labor and also strengthen China’s economic, the new law also requires employers to contribute to employee’s social account and sets standard wages for employees on probation or overtime. If any employers fail to conclude a contract against the law, the employers need to pay the workers double amount of his monthly salary back dated the first working day of the worker.
In a result the labor law of 2008 would have meant bigger redundancy payment and higher operation cost for production. Introduction to Marketing @ SCOPE (CityU) Social Demographic – Focus on Women’s clothing Market “LOVE BEAUTY” is women’s nature. Women are willing to spend their whole life and money in pursuit of beauty. Absolutely, women’s clothing is a key account in apparel market. However, UNIQLO’s market share of women’s clothing (47. 6%) is nearly close with men’s clothing (41. 3%).
Therefore, UNIQLO aims to win female customers of all ages by offering a reasonably rice, product development. Corporate Culture: Consumer orientation UNIQLO concerns about consumers’ satisfaction with setting up a Customer Center to receive customer opinions and requests, making use of all relevant data on improvement of production, stores and service. UNIQLO also provides the assistance dog seals service to the persons who rely on the dogs. Furthermore, UNIQLO conducts promotional campaigns for core products seasonally to get closer with consumers. Japanese National Culture Japanese possess a sense of high quality and safety requirements on products.
UNIQLO has taken measures to maintain and control the products quality and safety, such as controlling the whole business process, inspection by 3rd parties. Shopping patterns (Japanese) Online shopping is a mature and popular means in Japan. Besides, the price of UNIQLO’s products is middle and low which is cater for customers’ need and taste in the economy recession since 2000. Introduction to Marketing @ SCOPE (CityU) Economic ?Consumers’ Disposable Income: UNIQLO Japan reported a fall in both sales and income in the year to August 2011.
Collected items are separated into wearable and unwearable clothing. About 10% unwearable clothing are converted into fuel for generating electricity or recycled into industrial fiber. Wearable items about 90% separated into categories. UNIQLO’s staffs directly participate in distributing clothing & deliver to refuges camps. In the past 5 years, UNIQLO has delivered 4. 3 million pieces of clothing to refugees, and others people in need in 22 countries around the world. This initiative starting in Japan, the program has spread to South Korea, France, the UK & the USA.
Plan to roll out in all countries where UNIQLO stores are present. Conclusion UNIQLO aims to be a biggest SPA (Specialty store retailer of Private label Apparel), Acceleration in new store openings mainly in Asian region and enhance the promotion. They expand the women line of apparel in business and continue for “MADE FOR ALL” apparel policy to develop and produce high quality and speciality products. For pricing, UNIQLO will expand the production in other Asian countries (e. g. Bangladesh, Vietnam etc…) instead of China because of the cost growth. Also reduce the risk of excessive reliance on China.