VIETNAMGENERALCONFEDERATIONOFLABOURTONDUCTHANG UNIVERSITYFACULTYOFBUSINESSADMINISTRATIONMIDTERMREPORTGLOBALMARKETINGSEMESTERI 2020-2021MARKETINGSTRATEGYTHEMARKET PENETRAION OFUNIQLOINTOV
Internal analysis (Company)
Uniqloisa Japanesecasualweardesigner,manufacturer,and retailer.The companyisa wholly-ownedsubsidiaryofFast RetailingCo., Ltd.The president andalsoCEOofUniqloisTadashiYanai HewasbornonFebruary7,1949. FastRetailingisaglobalcompanythatoperatesmultiplefashionbrands includingUniqlo,GU,and Theory.Thisentrepreneurcontrolsandmanages overallgroupactivitiesasthe ownerandholdingcompany.Asthe world's third-largest manufacturer and retailer of private-label apparel, the Fast RetailingGroupoffershigh-quality,reasonably-pricedclothingbymanaging everythingfromprocurement,design,andproductiontoretailsales Uniqloisa pillar brand, generates approximately ¥1.9 trillion in annual sales from approximately2,200storesin22countriesandregions(FY2019).
Japanwasinthedepthsofa recessionatthe time, andthelow-costgoodsprovedpopular.Uniqlohad begun outsourcing its clothing manufacturing to factoriesinChinawherelaborwas cheap.InNovember 1998,itopenedthefirsturban Uniqlo storeinTokyo's trendyHarajukudistrict,andoutletssoonspreadto majorcitiesthroughoutJapan.And then,Uniqlodecided to expand overseas like China, Canada, Austrsalia, France,Germany,India,Indonesia.Malaysia.Singapore,Taiwan,Thailand, United Kingdom, United States, VietNam, etc The revenues of Uniqlo InternationalindifferentcountriesisexpectedtosurpasstherevenuesofUniqlo Japan,continuingtoexpandits operations,increasingitsnetworkofpartner factoriestobroaden the reachof Uniqlo’sproducts.
Uniqloisabletoproducesuchanamazingnumberofuniqueproducts becausethebusinessmodelunifiestheentireclothes-makingprocess -from planninganddesignthroughproduction,distribution,andretail.Uniqlo's marketshareis expandingworldwideasitdevelopsradical newmaterials togetherwiththeworld'sbestfabric technologyinnovatorsandcreatesbasic designsusingsuperiornatural materials.UniqloLifeWearishigh-quality,innovativeclothingthatisuniversalindesignand comfort.Itismadefor everyone,everywhere.Uniqloleveragestoday'sincreasinglydigitalworldto communicatedirectly withcustomersandquicklytransformtheirdesiresinto actualproducts.
Uniqlo'sR&Dcentersconstantlyresearchthe latest in new materials and global fashions in additiontodevelopingproductstosatisfyfuture customer needs In fact, identifying those very needsisanimportantpart oftheR&Djob. Oneyearbeforea product'sintendedlaunch,the R&Ddepartmentholds aconceptmeetingwith representativesfromthe merchandising,marketing,andmaterialsdevelopmentteamstodeterminethe rightdesignconceptforeachseason.Designersthen preparedesignsandrefine samples.Evenafteradesignisdecided,itscolorandsilhouettecanberefined multipletimesbeforethefinaldesignisapproved.
Merchandisersplayavitalroleintheproductcreationprocess,fromdesign throughproduction.Merchandiserscommunicateclosely withall departments before determining the designs and materials required for each season's products.Merchandisersalsodecide howtomarketourstrategicproduct launchesinclose cooperationwiththeappropriatedepartments.Deciding productlineupsandvolumesthroughouttheyear isanotherimportantpart of themerchandiser'srole.
ManyUniqloproductsaremanufacturedinhugebatchesofapproximately onemillionunits.Closelymonitoringsaleslevelsandadjustingproduction volumesduringanyoneseasonisanotherkey role.
Uniqlocansecurestable,high-volumesuppliesof top-qualitymaterialsat lowcostbynegotiatingdirectlywithmaterialsmanufacturersworldwideand placinglarge-volumeordersto achievethe mostfavorableterms.
Thematerialsusedforourcore itemsareparticularlyimportant.Our in-depth research and experimentation generates improvements in the functionality,feel,silhouette,andtextureofour clothes.
Forexample,weworkcloselywithKaiharaCorporationtosourcedenimto specificspinningstandardsanddyeingspecifications.Wealsopartnerwith Toray Industries, a world-leading synthetic fiber manufacturer, to create innovativematerialsresultinginunprecedentedhigh-functionmaterialssuchas HEATTECH.
Uniqlodoesnotownanyfactories.Weoutsource allproductiontopartnerfactories,many of whichare inChina.
Wehavebuiltrelationshipsofstrongtrustwith our partner factories over many years, and hold annualconventionstopromotedialoguewithfactory managers.
Wemonitorworkingandenvironmentalconditionsattextilemanufacturers andmajorfabric suppliers,andhelp factories implementimprovementsas needed.
AsUniqloexpandsglobally,wehaveformedbusinessrelationshipswith partnerfactoriesnotonlyinChina,butalsoincountriesincludingVietnam, Bangladesh,Indonesia,andIndia.
Uniqlocurrentlyhasproductionteamstaff andtextiletakumi(skilled artisans)inShanghai,HoChiMinh City,Dhaka,Jakarta,Istanbul,and Bengaluru.
Production teams that monitor and resolve quality and management challengesvisitpartnerfactorieseachweek.Theproductiondepartmentalso swiftlyaddressescustomerconcernsregardingquality.
"ByofferinginstructionondyeingtechnologyatUniqlo'spartnerfactories,I canencourageworkerstoembracea newproductionmanagementphilosophy andimprovethe factories theyworkin.
Ourculturesmaybedifferent,butouraimisthesame tomaketrulygood products.IamproudtobepassingonexpertJapanesetechniquestothenext generationoftechnicians."
Theinventorycontroldepartmentmaintainstheoptimumlevelofstore inventory.Itdoesthisbymonitoringsalesandstockonaweeklybasis,andthen dispatchingnecessaryproductsto fulfillorders.
Attheendofeachseason,merchandisersandthemarketingdepartment worktogethertocoordinate thetimingofanypricechangestohelpensurethat inventorysellsout.
Eachseason,Uniqloconductspromotionalcampaignsforcoreproducts suchasHEATTECH,Ultra LightDown,AIRism,andBratops.During the campaigns,Uniqloadvertisestheproducts'uniquequalitiesandnoteworthy featuresonTVandinothermedia.InJapan,weuseemail,socialmedia,and weeklyflyersintheFridayeditionsofnationalnewspaperstonotifycustomers aboutlimited-perioddiscounts,typicallyof20-30%,on keyranges.
UniqloJapanhad817stores(including43franchisestores)attheendof August2019.UniqloInternationalexpandedto1,379stores,including807in GreaterChina(MainlandChina,HongKong,andTaiwan),188inSouthKorea, 231inSoutheastAsia&Oceania, 91in Europe,and62in NorthAmerica.New storeopeningshavebeenespeciallyrapid in GreaterChinaandSoutheast Asia. E-Commerce
Onlinesalesareincreasinglyimportant,accounting forapproximately11%oftotalsalesinFY2019.Inthe geographicallylargemarketsofGreaterChinaandthe U.S.,onlinesalesaccountforapproximately20%and 25%of totalsalesrespectively.In Japan,thatratio is only9.5%(¥83.2billion),butweaimto increaseitby targeting30%annualgrowth in onlinesales.
Already,thisanalysishashelped improvemanycore rangessuchasUltraLightDown,fleecefull-zipjackets, boafleeceouterwear,warm EZY Pants,andcashmere knitwear.Goingforward,wewill seektoimproveour customerinformationcollectionandanalysiscapabilities.
InFY2019,ourcustomercenterresponsesrosefrom420,000to700,000.This includedanincreasein responsesviatraditionalin-storeroutes,telephone,and onlinechattools.
External analysis (Industry)
Porter’sfiveforcesofanalysisare veryusefultoolstodiscoverwhethera companyhascompetitivepowerintheindustry.Sotheabilityofthatcompany tomakeagoodprofitinthebusinessdependsonthestrengthofitspositionin themarket.
Uniqloistryingtourgeitssuppliersand partners to comply with its chemical managementcodeofconducts(DongguanLuen ThaiGarmentCo.Ltdand PacificTextilesLtd) regardingthesafetyofworkingconditions.Most oftheproductsaremadeinChina(around90%) (FRCoLtd.(Uniqlo), 2014)withcheaplabor and the manufacturers are supported through production and effective technologyprocess.Infact,thisimprovesthebusinessrelationbasedonquality controlandmonitoringduetothestrategyofthecarefulselectionofsuppliers. Doesitaffectthepowerof Uniqlo’ssupplierstodrive up ordownthepricesof inputs?Forthecompanyhavingmorepoweroversuppliersandbeingableto workwithitspartnerswill impact itsflexibility.
Uniqlohasa greatnumberofclothingloversbecauseofitscommitmentto keeppricelow.But howloyalarethesecustomerstoitsproductwill determine whethertheycandrivethepriceupor downwhichwillforsureimpactthe businessprofitability.SoUniqlomay havepoweroveritscustomerbyoffering highqualityin retailapparel, highrangeofproductselectionforbrandloyalty.
So new styles and new fashion trends will create values and customer satisfaction.Butif competitorsare morepowerfulthismayimpactitsgood relationshipwithcustomers.
Thecompanyhasmanycompetitorswhichare worldwidewell-positioned apparelproviderssuchasGap,H&M, ZaraandAmericanApparel,etc Are theirproductsasgoodasUniqlo’s?Withthestrategiesofincreasingtheironline presence,thesecompetitorshaveorganizedsupply chainmanagementandgreat relianceon designs.Can Uniqlo dobetterwhat theothercompetitorscannot?SoUniqloisoffering retailapparel ofspecificengineeringandinnovativeproducts atsensibleandlow prices.Forexample,theHeattechwhich hasenhanced performancefeaturesco-developedbyTorayIndustriesInc.Howcanthe companyestablisha strongeradvantageoverthem?So withintense competition, thesituationmightputstrongdownwardpressureonprices.
HoweasyisUniqlo’scustomersabletofindanotherordifferentwaytoget theproducts?Uniqlois providingtheminnovativeproductsat acheapprice whichpositivelyaddsvalue.But substitutionishighdue toqualitativefactors relatedtocutbackandthepossibilityofcostincreaseintimeofrecession. Threatofnewentry
Thisreferstothe easeof newscompetitorsto enterthe market.Howfacile isitfor otherclothingcompaniestoreachthe qualitywhichmatchestheprice ofUniqlo’sproducts?Isthe companyable togaugeitscostadvantagebasedon marketdevelopmentorprotectitstechnologybyblockingnewentries?Keepup withthecompetition andbringup new strategiesto limit newentriesinorderto keep retain and acquire new customers by increasing globally can be challengingbutpossiblewithstrategicaction.
International SWOT analysis
22tailoringstoresfrom his father,he convertedthem intoaclothingbrandcalledUniqlo Anardent traveler,
YanaisensedopportunitiesinEuropeandtheUSA wherethereweresimilarbrands.Hetook ideasfrom brands like United Colors of Benetton and GAP expandinghisownportfolioaswellasforayinginto foreignmarkets.ItisthisvisionaryleadershipthathashelpedUniqlotranscend boundaries.
Branding:UniqlopositionsitselfasamodernJapanesecompanywhich sellscasualwearat affordablepricestotheoverseasmarket.The designs,as wellasthestylingofthebrand,areconsistentwiththispositioningandthusit hashelpedthebrandtogainpopularityoverseas.
Innovations:Uniqloiscreditedwith significant innovations which have set themapartfromtheir competitors.Some examplesincludetheHeatTechfabric whichturnsmoistureinto heatand then retainstheheatinheatpockets,Airisma stretchedfabric,andLifewearablendof casualandsportswear.TheseinnovationshavehelpedUniqlointroducefeatures intotheirclothinglinetherebysettingcleardifferentiators.
Soundoperationalstrategy:Itsoperationalstrategyissuchthatit offers bothagilityandcostbenefits.Uniqloownsitsvaluechaincompletelyandthus areabletomaintaintheircostsas lowas possible.Theyalsomaintain stable relationshipswiththeirsuppliersandthishelpsthemstreamlineinventory.This helpsthemscaleupordownbasedonthetrendsinthemarket.
Organisationculture:QuiteunlikeotherJapanesecompanieswhichhave goneglobal,Uniqlocontinuestoconductallthe businessesinthefirmin English.Thoughaglobalbrand,UniqlocontinuestoretainallJapaneseideals likefosteringhardwork,teamwork,and goal orientation.Theorganisationis flatandtheleader followsa participativestyleofleadership.
In-storeexperience:Uniqlohasalwaysfocusedonensuringthatthe in-storeexperienceissuperiorandthisisdonebystringenttrackingof employee-customerinteraction.All interactionsareface-to-faceor otherwise arerecordedandreviewedthoroughly.Thefeedbackisusedduringtraining sessions.Thecompanyalsofocusesonchangingthelookandfeelinsidetheir storesinaccordancewithmarkettrends.
Weather sensitive apparel: Though the weather-sensitive apparel of Uniqlo like
HEATTECHwasa hugesuccessinAsiathe samecouldnotbesoldatall intheUS.The apparelwhichwasdesignedforAsianconditions lackedglobaladaptabilitywhichresulted ina failure.
Supplychainissues:ThoughUniqloaspirestobea globalplayer,the companyisfacinghugeissuesinscalingupitssupplychainto reachoutto globalmarkets.Whilemostglobalbrandshaveincreasedtheirpresenceinthe onlineretailingspaceUniqlo’ssharein e retailingisjust4 % ofits total business.
New Segments: Fashion is an evolvingbusinessandnewsegments comeuponaregular basis.Uniqlo primarilyhasa presenceinmen and women wear but is yet to make a storingforayintothe kidssegment.
This is an area which is promising growth in Asia and Uniqlo can capitaliseonthis.
Competition:Intenselyhighcompetitionwithinthefastfashionindustry. Themaincompetitorsof UniqloareGap,TommyHilfiger,ZaraandUnited ColorsofBenetton.
Preliminary assessment
Intoday’scurrentretail arena,fastfashionistheanswerto theconsumers’ demandtoavail of modernclothingat a reasonableprice.In thebattle to dominatethemarket, global retail firms must havea definedcompetitive advantageandstrategy,differentiatedproducts,aswellasstrongsupplychain operations.
Beingtheworld’sthird-largestmanufacturerandretailerofprivatelabel apparelthattoprovidehigh-quality,performance-enhanced,basiccasualwear atthelowestprices,Uniqloispreparingtoincreaseits presence.After successfullyopeningstoresinseveralcountries,Uniqlo’snextmoveisto penetratethemarketwhichhasaneconomicoutlook,ahighdensityof population,stablepoliticalconditions,andinexpensivelaborbut goodquality products Inrecentyears,theeconomyhasincreasedsignificantlywhich resultedin theincrease incustomers'demand, especiallyfor thefashion industry.
Concentration and diversification
Uniqloadoptsthefocus strategyboth intermsof lowcostandofferingthe bestvalue.Thelow-costfocusstrategyisadoptedbyservingtheneedsofa nichemarketsegmentat thelowestpossibleprice.While, bestvaluefocus strategyisadoptedbyemphasizingthe taste,size,anddesignoftheproductthat couldbestmatchthecustomers’needsandrequirements.
Byfocusingonproductattributes,Uniqlorevisesitsbrandingstrategiesand bringscontinuouschangesinthe productdesigningand packagingto satisfy the customers’psychologicalexpectationsandmaximizevalueformoney. 2.1.2.Diversification
TheUniqlo'sportfoliodiversificationissupportedbyitscostleadership genericgrowthstrategyas cost minimizationability,and existinginfrastructure makesitpossible fortheorganizationtoexplorenewproduct opportunitiesin newmarkets.
Thestrategicobjectivelinkedwithdiversificationintensivegrowthstrategy istoexpandthe portfoliothrougheffective acquisitionstrategies Dueto risk factors,thecompanyfocusesonthe relateddiversificationandavoids risky experiencesinto unknownregions.Rather, thecompanyutilizesthebrand awarenessandstrengthtolaunchrelatedproductsintheglobaldrinkindustry. However,someexamplesofUniqlo’sunrelateddiversificationareoffering merchandisefromfridges,shirts,glassestopens.
The related diversification strategy is applied by acquiring profitable businessesafteranalyzingmarkettrendsandchangingcustomerexpectations. Forexample,inresponsetothe growingcriticismbyenvironmentprotection groups,thecompanyattemptedto offsetthelossfromdeclining salesby investingingreenbusinesspracticesandmaking businesspartnerswiththe positivebrandimage.
Strategicallywiseapplicationoftherelateddiversificationgrowthstrategy enhancesbusinesssustainabilityandhelpstheorganizationachievelong-term growthobjectivesdespitehighmarket turbulence.Awell-managedproduct portfoliowithrelateddiversificationalsooffersriskhedgingabilityasdeclining trendsinsomeproductareascanbe balancedbyemergingtrendsinrelated productareas.
Besttradeareas
Thesizeofthemiddle-incomepopulationinChina,SoutheastAsiaand Indiaispredictedto explodeoverthenext10 years Asa result,therearemany attractivemarketsinAsia,andIwanttoacceleratethepaceofnew store openingsthroughouttheregion.Wemaywellsee inAsiaarepeatofJapan’s periodofrapideconomicgrowth,whenconsumerdemandsoaredalongwith thedesiretoshopfor clothes.We believeAsia islikely toexperience a similar boomindemandforclothes.TheAsianmarketcouldexpandbeyondevenour expectationsand,ifUniqloistobecomethenumberonebrandinAsia,wefeel itisvitaltosecureashareinit.Uniqlo’sreachandpopularitynowextendto Singapore,Malaysia,Thailandandthe Philippines.Eachnewstoreinthese marketshasenjoyedstrongsalesfromtheoutsetandeveryoperationquickly becameprofitable.WeplantoexpandintoIndonesiaand Australiain2013,and wearealsoconsideringtheIndianmarket.
Ouraimisto securepriceleadershipworldwide.Inorderto develop fullfledgednationwidenetworksinChinaandotherparts ofAsia,wewillopen storesoutsideof majorcities,which willentailreducingthe standardpriceofUniqloproducts.Oneof ourstrategiesto meetdemandforlowerpriced garmentsisopeningjointUniqlo/g.u.stores.
Target market identification
Beingtheworld’sthirdlargestmanufacturerand retailerofprivatelabel apparelthatoffershigh-qualityandreasonablypricedclothing,Uniqlois preparingtoincreaseitspresenceintheSoutheastAsianandOceaniamarket. Thecompanyhasagoalofdoublingitsstorestoaround400storesby2022 (InsideRetailAsia,2017).
In2019, we expandedour networkinSouthAsia andSoutheast Asiaby openingourfirstUniqlostoreinIndia(October)andinVietnam (December). Owingtodiffering climates,cultures,and religions,wecompiled productmixes thatmetlocalcustomerneedswhilemaintainingUniqlo'suniversalbrand image.
WithSouthandSoutheastAsiaenjoyingyear-roundsummerweather, consumerslove coreUniqloitemssuchaspoloshirts,shortpants, andUT graphicT-shirts,butfall/winteritemssuchas flannelshirts,softtouchT-shirts, UltraLightDown,andrayonblousesalsosellwell.We puttogetherproduct rangesthatmeetspecificlocal needs,offeringclothesforpeopleridingbicycles oncoolerdays,peoplewhofeel coldin air-conditionedoffices,andsoon.To keepourstoredisplayslookingfresh,weintroduceitemsthatemphasizeour newproductandcolorranges.
OurbiggestchallengeinSouth andSoutheastAsiaistraininghigh-quality personnel.Ifwe successfullynurturefutureCEOs andseniormanagersin each market,webelievewewillenjoya consistentandstableexpansionsimilartoUniqloGreaterChina.Weare committedto solvingissuesdecisivelyand expandingoperationsinourquesttobecomethe No.1apparelbrandineach market.
Selection of target market
TheVietnam fashionmarkethas had considerablechangesovertherecent years.SinceVietnamjoinedtheWTO or WorldTradeOrganizationin 2007, theapparelindustrybeganthenewperiodandbecamemoreprofessional.A lot offamousandbiggestbrandsbegantopenetratetheVietnammarket,suchas CalvinKlein,LouisVuitton,Valentino,SalvatoreFerragamo,Zara,H&M,etc. Aftersuccessfullyopeningstoresin severalcountriesinSoutheastAsia, Uniqlo’snextmoveistopenetrateVietnam’sretailmarketby2019,since Vietnam’seconomic outlookprovestobe a viablechoiceforUniqlotoinvestin. Vietnamischosenasthetargetmarketbecauseof itsgoodrelationshipwith Japan;oneof itsbiggestinvestors,highdensityofpopulation,stablepolitical condition,andinexpensivelaborbutgood qualityproduction.Moreover,inthe recentyears,Vietnam’seconomyhasincreasedsignificantly,whichresulted in theincreaseofcustomer’sdemand,especiallyforthefashionindustry. Uniqlo’smainmarketingobjectiveisto opentwofirstretailstoresinHo ChiMinhandHanoi,twobig citiesinVietnam.Ourmaintargetcustomersare themiddleincomeclass,mainlythe younggeneration.
Besidethat,Vietnamhasgoodqualitylabor withstablepoliticalconditions.SinceJapanisoneof thebiggestinvestorsof Vietnam,Vietnamisaviable optionforJapanto makeinvestmentsin.The importandexportvaluehavealso increasedsteadilyovertheyears.Vietnamis alsooneofthefastestdeveloping countriesintheSoutheastAsia,andisincreasinginafastrate.
Market entry strategies
Intherecentyears,Vietnam’seconomyhasdevelopedstrongly Thisledto asharpincreaseinthedemandedgoods ofconsumers,especiallyfor thefashion industry.Moreover,thisisthe periodoftechnologyexpansion.Thankstothe dynamicdevelopmentoftheonlineretailersand theimprovementinconsumer perception,Vietnamesepeoplearewillingtospendmoreonfamousand expensivebrands.
Intermsofrecognition,Uniqlo’s recognitionis4thhighestafterZara,H&M andMango.Thisisquite highconsideringthatthestoreisnot yetopenedin Vietnam.Thosewhorecognizethebrandcame toknowit throughFacebook, wordofmouthandsportambassadorsuchas NovakDjokovic,RogerFederer andKeiNishikori.Also,therearenota small numberofpeoplewhohas alreadyhadUniqlothroughthepurchasefromthedirect-import(hand-carry) stores.
Inparticular,thewomenspendmoretimeandmoneytobuytheclothes thanthemen.Thisisarelativelyhighfigurecomparedtotheconsumptionand savingsofVietnameseconsumers.Theconsumershavethehighestpurchasing habitfrom2to 3timesamonth,and thenonceamonth.Thelevelofconsumer shoppingdoesnot differso much.
Thebrandimageof Uniqloishighlyfederated with“goodqualityimage, althoughitislesslinkedwithsuch keywordsas“fashionable”or“foryouth”. TherearetwobigimagedifferencesbetweenVietnamand Japan,wherethe brandcomesfrom.One isthatithasless “affordable”imageinVietnam,while Vietnamhadsufferedcheapimagesuntilrecently.Theotheristhelack of“innovative”images,wherethe brandiswellknownasinnovationthrough theirclothessuchasAIRismor HEATTECH.Theseimplythatthe namecame toberecognizedbutthedetailhasnotbeenpenetratedyet.
Currently,therearefourmain competitorsin themarket Forlocal brands, thereareCanifaandViettien,andforglobalbrands, thereareZaraandH&M. Basedontheperceptualmap,Uniqloiscurrentlytheleaderofthefunctional casualclothingbrand,withpriceasaffordableas the localbrands.
Bytheendof2019,UniqloDongKhoiwasthefirstUniqlostorein Vietnam.Here,manyproductsare displayedforsaleexclusivelyforthe Vietnamesemarket,withthehighlightofT-shirtprintingservicesaccordingto designs.Outofmorethan2,000Uniqlostoresaroundtheworld, UniqloDong Khoiisoneofthebestin-storedesign,displayart,productlayout,andoperating system,thecompanyrepresentativesaid.Thisisthe standardmodelforother Uniqlostores.
AftertheinitialsuccessinHoChiMinhCity,UniqlomovedtoHanoiand openedUniqloVincomPhamNgocThachonMarch6,2020.Thisisoneofthe largestUniqlostoresinSoutheastAsia.
ThehighlightofUniqloVincomPhamNgocThachistodisplayallofthe productsinthefamousUT(UniqloT-shirt) lineinaspecialareawherenot everyUniqlostorein theworld hasthisspecialshowcase.Inparticular,theUTMickeyStandsVietnamCollectioncombinesexclusiveandexclusivemotifsfor theVietnamesemarketwithiconicimagessuchasconicalhats,lotusflowers,andmotorcycles.
Thestoreoffersa UTmeexperience!sothatcustomerscanfreely create theirownUTshirtsbyselectingandprintingunique Uniqlomotifs,including patternsspeciallydesignedbypainterVuTuanAnh.Alongwiththatisa collectionofmotifshonoringthelifestyleandlifestyleofthepeopleofthe capitalthrough20intimateimagesofHanoi suchaswalkingaroundthe street ona cyclo,dancinginthe mountains AoDaior manyotheractivitiesaroundHoanKiemLakepedestrianstreet.Personalizationisthegoal thatUniqloaims for.
Choosinga method ofmarket entry
UniqloissettoopenitsfirstlocationinVietnaminHoChiMinhin2019as partofits plantoincreasestorecountin SoutheastAsiaand Oceaniatoabout400 by2022.
"VietnamwillbethefourthcountryinwhichFast RetailingandMitsubishi haveestablisheda jointventurecompany,following Thailandin2011,Indonesiain 2013andRussiain2017,"aUniqlorepresentativereportedlytoldVietnam EconomicTimes.
WhencomingtoVietnam,Uniqlo is always inspiredbythelong historyanduniqueculture ofHanoiCapitalinparticular,andaboutthe countryandpeopleofVietnamin general.That inspirationisacreativepremiseforUniqloto create a world-class shopping space, harmonized with Vietnamese indigenous culture.Thisspacenotonlyprovidesa unique shoppingexperiencebutalsomakesconsumersfeelthe respectforthelocal culturethatUniqloofferstotheVietnamesemarket.Itcanbesaidthatcreating andhonoringthelocal cultureisa remarkableeffortofUniqloin thejourney of conqueringcustomers.Togainitsglobalrankingaswell asa large marketshare inVietnam, Uniqlohas takenculturally appropriatestepsasstatedearlierbythe brand:customer-centric.
Withthemottoofalwaysapproachingissuesfromthecustomerperspective,Uniqlo asks employees to evaluate everything from the perspective of consumers,always considerwhattheydotobenefitcustomers,doesitmeet customerrequirements?AllUniqloparts must adheretothiscorevalue Uniqlo isaglobalbrand, sowhenreturningtoVietnam,thisbrandnotonlyabsorbsand promotesvaluesrelatedtonationalidentity,butalsointegrateswithtrendsin theworld.Thisintersectionbrings new anduniquevaluestoconsumers,this is alsothehighlightofUniqlointheVietnamesemarket,which islovedbymany customers.
Uniqloinvestsindigitalmarketingcampaigns,beforetheopeningofthe store,thisbrandhas promotedadvertisingonsocialnetworkingplatformsand othermassmedia.
Uniqlo'sopeningstoresinVietnamattractedthepressbytheparticipation ofaseriesofKOLs, Influencers.Thispresencemadethe domesticfashion followerspaymoreattentiontoUniqlo.
UniqlostepbystepenteredtheVietnamesefashionmarket.Bringingbrand advantages,butUniqlois alsoabrand thatisquitecautiouswhen bringing elementsoflocalcultureandthe mottooftakingthecustomerfirst.Thiswillbe abigchallengeforLocalBrandsintheracetowinmarketshare.
Selectionofclients,distributors,andpartners
Targetcustomer:ThemiddlelevelincomeVietnamesepeople wholive in thetwobigcities,HanoiandHoChiMinh,andothermiddlelevelincome peoplewholiveacrossthecountryanddoonlineshopping.
Thebusinessexpectsits customers,whoseannualaverageincomeperyear morethan$3,500,tovisititsstoresatleastonceamonth.
Foryounggeneration aged18to24,whoare motivatedbyadeepdesire for trendy stuff and apparel forattractive looks, theentrepreneurwillshow them the image of an affordablebrand,whichis well-knownandprovides wideandgoodqualityof product lines up These peoplewouldfollowthe casual, active and free lifestyle.
Fromtheperspectiveofwhiteandbluecollar-workers(aged25-35),they recognizeUniqloasa topcasualwearbrandand believethatclothingis importantelementtowardpleasant appearance,therebyoptingforcasual wear thatensureshighqualityandnicedesign.
QualityControl&ProductionProcessManagement(Takumi Team) WedispatchourTakumi(veteranJapaneseexpertengineers)toourChinese officesinShanghai,ShenzhenandourVietnameseofficeinHoChi Minhto helpimproveproductqualityandproductionprocessatourcontractfactories. Wetransfer Japanesetextile expertiseinapparel andfactory managementtoour partnerfactoriesandtechniciansinChina.
NinetypercentofUniqloproductsare manufacturedinChina.Wehave businessdealingswithapproximately70companies,mostofwhichare located in China Because we view the factories that we deal with as long-termpartners,wecontinueto offer positive technical support while insisting on very thorough qualitymanagement.Thatiswhy we areabletomaintainhighquality evenonmassproduceditemsof1 millionunits.
MaterialsManufacturers Uniqlohasmanagedtobringdownmaterialcostsduetoourlarge-scale800 storeworldwidenetwork,andthefact thatwecommittobuyup100% of the rawmaterialsthat aparticularsuppliercanprovide.Again thanksto thelarge scaleofour operations,we areabletonegotiatedirectlywithleadingglobal textilemanufacturersincludingTORAYINDUSTRIES,and we are keen participantsinthejointdevelopmentofnewmaterials.
UniqloGlobalAmbassadors.Similartomanyglobalbrands,Uniqloalso usestheimageof adominantpersontoexpandthebrand'simageandconnect withthemasses.ForUniqlo,themostimportanttraitsitlooksforinitsbrand ambassadorsaregreatresilienceandastrongpersonalityto overcomeadversity. UniqlocurrentlyhassixGlobalAmbassadors,allof whomare championsinthe fieldofsportssuchastennis,skiing,andgolf.PartnershipswithUniqloGlobal Ambassadorsusuallylastfor5 yearswiththe aimof helpingambassadors promotetheUniqlobrandandclothingworldwide,aswellascollaboratein futureproductlines.
Collaboratewiththedesigners.Tohighlight eachindividual'suniquestyle,Uniqlocollaboratedwithdesignersto createuniquestyles.In 2008Uniqlo shookhandswithdesigner AlexanderWangtocreate afive-piecedress collection.Bypartneringwithglobaldesigners,Uniqlocanalsogainfaster accessto marketswhere Uniqlo's brandawarenessisweaker,such as those in theUSandEurope.
Negotiating conditions
Uniqlo'sdistributionchannelismainlyconcentratedinJapan,withmore than700Uniqlostoreslocatedin thecountryofsunrise.Uniqlo'sdistribution strategyfocusesonthetimetoputproductsontheshelves,withmeetingthe existingneedsofconsumersasthegoal.Thecompanyfocusesonresponding to changingtrendsinJapanesefashion,emphasizingdesignssuitableforthe minimaliststylethattheJapaneseprefer.
ForUniqlo,initsbrandstrategy,emphasizingadvertisingandconveying brandvalue Uniqloapplies is positioningits brand asa "private"fashion brand (private-labelapparel) ThismeansthatUniqlocreatesitsownproductsatall stagesandonly sellsthose productsin itsstoresand websites.The company alsousessportingeventstoattractpublicattention.Uniqlo'sdesignsareoften simplerandmorepracticalthanZaraandH&M's,andthusappealstoother customers.
UniqlomainlyproducesgoodsinJapan.However,itstarted usingcheap laborinChinawhenJapanfellintoa recessioninthe1990s.Uniqlocurrently hascontractswith70manufacturersandhasalsopartneredwithdenimfashion makers.NhatKaihara.
Landmark81, SuperLargeStore:UniqloDongKhoi)and3storesinHaNoi (UniqloAEONMALLLong Bien,UniqloVincomMetropolis,Super Large Store:UniqloVincomPhamNgocThach).
ThefirststoreinVietnam,UniqloDong KhoilaunchedinDecember2019, thisisthesecondlargestUniqlostoreinSoutheastAsia,Accordingtostatistics fromColliersInternationalVietnaminthesecondquarterof2019,therental priceatVincom DongKhoioppositeParkson SaigontouristPlazais102USD/ m2,theareathatthisstoreis3000 m2,estimatedbyfloorareaandannounced pricepermonth,thecostofpremisesatthestoreisabout3,600USD/month.
No Store Average rental rate(USD/sqm /month)
Table1: UniqloStore'sAcreage andRentcost(Accordingtostatisticsfrom ColliersInternationalVietnaminthesecondquarterof 2019)
Product andservice selectionfor target market
Uniqlocatersappareltomainly3customersegments:Women,Menand Kids&Babies.Thebrand isdividedintofivesub-brandsseparatedbystylebut housedunderthe sameUniqlostore,withinwhichUniqloshowcasesits collections:
+ Outerwear:Uniqlo’souterwearcomprisesofjackets andcoatsof differentstylesandmaterials,hoodiesand parkastosuitdifferentweatherconditionsandoccasions, andthefamousUltra-LightDownjacketthatisextremely thin, light, and comfortable but yet provides excellent insulationandwarmth.
+ Tops:Thiscategoryincludesfunctionalandcomfortabledresses,shirts, wrinkle-resistantblouses,T-shirtsandUT(graphicT-shirts)forwomenmade fromavarietyofmaterials.Sweatersandcardigansarealsoincluded,withmost stylesmadewiththebrand’ssignatureUVCutmaterialoritssoftandluxurious CottonCashmere.Formen, itincludesformalandcasualshirts ina varietyof fits,t-shirts,UT,sweatersandcardigans,andflannel.Itsrangeofpolot-shirts aremadein4differentmaterials:AIRism,DryEx(extrabreathable meshina seamlessconstruction),DryPiqueandDryShirt Collar(featuringasturdydress shirtstylecollar).
+ Bottoms: This category for women includesshorts and skirtstosuit all lifestyle needs, jeansthatcomein avarietyofcuts,leggings (includingmaternityleggings), smartpants,ankle pants,casualpantsandloungebottoms.Itsmen’s bottomsincludesmart pants,shorts, jeans,ankle pants,casualpants,loungebottomsanditsmost recent innovation – the Kando pants, a new lightweight,stretchableandfast-dryingmaterial with Airdots pockets In line with its brand missiontocelebrateindividuality,Uniqlooffers freealterationservicesforpantsthatcost abovea certainamount.
+ Inner-wear:Uniqlohasdesigneditsinner-wear withcomfort asa predominantfocus.Forwomen,thisincludesbras,bratops,innertops,shape wear,shortsandunderwear,socksandleg-wear,andHeatTech(Regular,Extra Warm, andUltraWarm).Formen,thisincludesinnertops,trunks,boxerbriefs andbriefs,socksandleg-wear,andHeatTech.
+ Homewear&accessories:Uniqlo’shomewear&accessoriescategory includesloungewear(pajamas,loungepants,drape pantsandroomshoes),shoes(sneakers,flatsandheels),beltsandotheraccessoriesincludinghats,caps,scarves,sunglasses,bags,towelsand blankets.
Currently,environmentalissuesare ofgreatconcernin Vietnam.Uniqlo alsoquicklycaught the psychologyofVietnamesepeople andconstantlysent messagesabouttheenvironment.Ifyouhaveevervisitedthe UniqloVietnam store,youwill probablyseesignsonthe wallhangingon theUniqlo's
MostofUniqlo's productsusea lotofcotton, howeverthecotton manufacturingprocesscanseriouslyaffecttheenvironmentbecause of theuse ofpesticidesandlotsofwater.Todealwiththis,Uniqlohascooperatedwith theBetterCottonInitiative(BCI),anon-governmentalorganizationspecialized insustainablecottonproduction-theBetter CottonInitiative (BCI),strivingto 2025thatallUniqloproductswill useentirelycotton.
Inadditiontocotton,theUniqlofeatherproductsalsomake many people questionabouttheoriginoffeathers.However,Uniqloalsohascommitmentsto purchasefeathersandhasarecyclingpolicyfor usedfeatherstoassure customersthattheproductstheyarewearingarecompletelymadefrom sustainableandhumanitarianrawmaterials.
Moreover,toaccompanytheenvironment,minimizingplasticisoneof themostbasic things.Uniqlois also joiningthe"plasticreductionsquad"when itannounceditwill reducethenumberofdisposableplasticbagsby85% by 2020.AndUniqloisdoingwellas mostbagsuse paperbags Thisisa right andnecessarystepofUniqlowhen"attacking"theVietnamesemarket.Uniqlo isconstantlystriving tobuild a sustainableandenvironmentallyfriendly business.Thisisalsothe reasonthat helps Uniqlo gain a certainfootholdinthe growingfashionmarkettoday.
Notably,inordertoraisesocialawarenessabouttheuseofplastic, Uniqlo cooperates with Tohe, a Vietnamese social enterprise, regularly organizesfreeartplaygroundswithcreativeactivities.for childrenwithspecial circumstances.
Inthechildren'ssectionofthestore, Tohe has created a special area for sustainable development, with a unique installation called "Garden" Inspired by
"PlasticTree"byartistPascaleMarthine Tayou,theGardenis made upofused plastic materials, collected and cleaned, showingafreshperspectiveontheeffects ofdisposableplastic materialforhumanlife.
In addition, the exhibition corner also introducesanumberofworkscreatedbasedonthemotifsinthedrawingsof childrenwithautismfromToheFunArt Playground.
StandardizationvsAdaptationof Uniqlo in Viet Nam
Overthepastdecade,Uniqlohasgrownrapidly andbecomeAsia'slargest fashionretailer.However,notstoppingthere,Uniqlo'sambitionis even bigger thanthat,whichistobecomealeadingbrandinfashionretailaroundthe world.
Uniqlofocusesonthe massproductionoffashionproductswithbasic designsandcolors,suitableformanycustomers ofallagesandstrataofsociety. Just20years ago,from modestfashionboutiquesonthebusystreetsofJapan, nowthisbrandtakesitsplaceonfashionstreetsaroundtheworld.
Thefashionstyle thatUniqlo hasbeenaimingforisLifeWear.LifeWear is afashionstyle designedwith theaim ofmakinglifebetter for everyone.It is clothedwithsimple style,highquality, dailyconvenience,sophisticationin everydetail,basedon thepractical needsof life,andalwaysinnovative development.ItwasLifeWearthathelpedUniqlowintheheartsoffashionista ontheracebetweenbrands.
Referringtotheclothesof Uniqlo,peoplewillthinkofsimplicitybutquality andversatility.Whentheminimalistlifestyleisbeingpursuedbymanyyoung people,theproductsofUniqlohavehitthepsychologyofmostpeople.Each personalwayspursuesacertainstyleforalong time,some peoplefocuson simplicity,somepeoplelike modernity,etc.Onethingiseasytosee,thestyle willnotdisappearquicklywhilethetrendisconstantlychanging.Insteadof following the latest trends, a new style is the essence of Uniqlo's standardization.
Focusontechnologyandinvestinalong-termvisionbelievingthatthe customerstheytargetarethosewhocareaboutqualityandvalueratherthan trendydesigns.Totapthemarketfollowingthisstrategy,Uniqlodedicates effortandtimeto testingrawmaterials fromlong-termsuppliersanddesigning (thisdesignfollowsa long-termstyle,not atrend).Thebusinessalwayslooks forstylesthat arenotquicklylost,categorizesthese styles,andsets upthe supplychaintobringallofthese stylesto theclient "Uniqlo-Madeforall"is createdforthispurpose.Morethanthat,hedirectscustomerstoupdatetheir wardrobebythestylesthatUniqlobrings,notthewardrobewithaseriesof unconventional trendsorstyles.Inshort,insteadofpursuingfashiontrends, Uniqlofocusesonresearchanddevelopmentofthebestproducts,suchas HeatTech,AIRism,Lifewear.
Uniqloproductsarenotonlyaimedat youngpeoplebutalsofor children,middle-aged andelderly.ThefabricofUniqloismainlythin, light and airy, suitable for the climate in
Forexample,theanti-UVjacketisdesignedwiththin andlight AIRism, equippedwithanti-UVtechnology, suitableforcountrieswithhotandhumid climatesandUV raysin thehighsun.Thisisoneof the productsthathas made Uniqlo'sname.
Typically, the highlight of Uniqlo VincomPhamNgocThachstoreis todisplay allthe productsin thefamousUT (Uniqlo T-shirt)productlineina specialarea without anyUniqloshopsinthe world.Theworld alsohasthisdisplaycorner.Inparticular,the
UT Mickey Stands Vietnam Collection combinesexclusiveandexclusivemotifsfor theVietnamesemarketwithiconic images such as conical hats, lotus flowers, and motorcycles.ThestoreoffersaUTme experience!sothatclientscanfreely createtheirownUTshirtsbyselectingandprintinguniquepatternsofUniqlo,includingpatternsspeciallydesigned by painterVu TuanAnh Alongwith that isa collectionofmotifs honoringthe lifestyleandlifestyleofthepeople ofthe capitalthrough20intimateimagesofHanoi,suchaswalkingaroundthestreet onacyclo,thewomeninaodaiormanyotheractivitiesaroundHoanKiemLakepedestrianstreet ItcanbesaidthatthepersonalizationisthegoalthatUniqloaimsfor.
Pricing Strategy
Uniqloisa mid-rangeproductandthe pricerangesfrom $ 25to$ 100.Uniqlo's productsarealways towardsthelowestpriceand affordableforall consumers.Whenenteringanewmarket,Uniqlostillkeepsthepriceequalor onlyslightlyhigherthantheJapanesemarket.Thesoftersellingpriceisalso thankstoUniqlo'soperationalstrategythatallowsthecompanytoenjoythe advantageofcostandsensitivity.Uniqloonceshockedthe Japanesefashion marketwhenitlaunchedjeansat only25Euro,causing otherfirmsto immediatelylowertheirpricestobecompetitive.Insteadofoutsourcingsome stages,Uniqlohasteamsinchargeofallstagesfromproductplanning,design toproductionanddistribution.Andat the endofeachfashionseason,Uniqlo goodswillbeputintosale offprogramsfrom20-30%to ensurethereleaseof allinventories.Theprices arecompetitiveandtheysetthem apartfromtheir competitorsthroughtheiruniquesimpledesignsandbrightcolors.Thequality oftheproductsisverygoodandappealstoaffordableshoppersaswellassavvy shoppers.Themainpricingstrategyin the marketingmixistocompetewith competitorsandbuildastrongpresence.Theysellselectedproductsata discounted pricethatisusuallybetween$5-$10lessthan theretailprice.Uniqloalsooffersfreeshippingonallorders.
Terms and procedures
TheHEATTECHproductlineofUniqloincludesmanymodelssuchas two-wireshirt,9/10sleevelessshirt,tights,jeans,socksandmanyotheritems Madeupoffourdistinctfibers,HEATTECHis awarm clothesbyconverting thesteamreleasedfromthe bodyinto heat,giving thewearer awarmer feeling withjustonecoat,reducingthe wearer'sheavyandcumbersome.Inaddition, theslimandlight designhelpsyou workcomfortablyduring theday. Besides, HEATTECH also has high elasticity,ensuringeachpartofthe bodydoes notloseshape.This groundbreakingfabricalso dries quickly by absorbing and releasing moistureinthe skin.Currently,thereare 3lines ofHEATTECHproductswithdifferentlevels of keepingwarm:
AIRism is the solution to the humidity and discomfort caused by perspirationcausedbychangingweather,thestuffinessinmany layersof clothes.Inspiredbythebody'sself-coolingmechanismassweatevaporates, AIRismadjuststheairflowinsideclothes.AIRismhelpsthebodytoalwaysdry, helpingthewearerfeel comfortableandcooler Thistypeof lingerieis suitable foralmostallseasonsof theyear.
Itisknown thatAIRism formen has outstandingmoistureabsorption,fast drying,preventingunpleasantodors AndAIRismforwomenfocuseson moistureabsorptionandmoisturerelease, limitingcoldfeelings,easyto absorb, evaporates moisture under clothes, helps to regulate and cool the body temperature.
ThisproductlineincludespopularitemssuchasV-neckshirts,turtleneck t-shirts,tanktops,camisole
UltraLightDowns arelightweight,easy-to-carrycoats thatmake a big differencetoafeathercoatstyle.Premiumfluffisusedin conjunctionwith proprietarytechnology, creatinglightweightclothingwith excellentthermal insulationandeffectivewarmth.The shirts canbe wornin all weather,easyto coordinate.Thisproductisfullof convenientfeaturesforeverydayusesuch as waterproof,compact,easyto foldandeasytocarry.With2styles:vestand long sleeveshirt,youcanwearUltraLightDownindoorsoronthestreet.With designssuitableforbothmenandwomen,thisproductlinewillbesuitablefor travelwhetherfarornear.
BRATOPisa combinationofbra (bra)andtop(innerbras),creating comfortandfeelingsupported.WithBRATOP,styleandfunctionalityareall wrappedupinonepackage.
-Madewith100%supima cotton,thiscottonoffersacomfortableandlight feelingtowear.
-Using100%carefullyselectedCashmerewool,cashmereisalsoknownas the"jade offabric", ensuringsweaters are wovenwithutmost care andattention. UNILQOisproudtobringwool productswith delicatecut, elegantandnoble designs,fullyexpressingthe typical beautyandluxuryof cashmere.
UniqlohasadoptedindependentGlobalQualityandSafetyStandardsunder whichthecompanyensuresqualityandsafetyinitsproducts.TheUniqlo QualityAssuranceCommittee, ledbytheofficer inchargeofproduction, determinesthesestandards,whichareevenstricterthanthose requiredbythe countriesorregionsinwhichthecompanyoperates.Productiondepartments workwithpartnerfactoriestoensurestandardsareenforcedforallproducts. Third-PartyQualityandSafety
+InspectionsUniqlorelieson third-partyentitiestoconductsampletestsof allmaterials,confirmingqualityandsafety.Sampletests includetestsforcolor fastness*1andformalin*2.Third-partiesarealsocalledintoinspectmaterial qualityandsafetypriortomassproduction.
*1Colorfastnesstests:Tests designedtomeasurethe durabilityofdyed products.
*2Formalin:Formalin(orformaldehyde)isused byclothingmanufacturersin smallandsafe amountsasa shrink-proofingagent,anti-wrinkleagent,and softenerduringtheprocessingof naturalfiber.However,thischemicalisknown tocause eczema,rashes, orskinallergiesincertainindividuals.
+Uniqloalso requirespre-shippinginspectionsbeforefinishedproductsare shippedfromthefactory.Inspectionsincludecheckingforthepresenceof needlesorotherdangerousconditions.Athird-partyentityconductsauditsto ensurepre-shippinginspectionsareperformedeverytime.
+Thesesamethird-partyquality and safetyinspectionsareconductedatG.U.Co.,Ltd.
Source:Unilqo-Fastretailing CO.,LTD
• Technical support of partner factories through Takumi (Textile Artisan)
UniqloowesmuchofthequalityofitsproductstotheTakumiTeam, individualswhoareleadersin Japan'soutstandingtextileindustryexpertise. Takumiconsistsofbothtextiletakumiandsewingtakumi.The TakumiTeams arestationedinUniqlo productionofficesinChina,Vietnam,andother locations,lendingtheirexpertiseintextilesandsewingtopartnerfactoriesin thesecountries.Forexample,TakumiTeam memberssharedyeingandsewing techniquestohelppartnerfactoriesmaintainhighqualitystandards.The TakumiTeamalsoprovidesguidanceonoccupationalsafety,workingwith partnerfactoriesto ensuresafeworkingenvironments.This inturn leadsto greatercapacityandimprovedorganizationalinfrastructureamongourpartners. Asneeded,TakumiTeammembersprovidesupporttopartnersintheir transactionswithGUandotherFastRetailingGroupbusinesses.
SOURCE:https://www.unilqo.com
Tariff regime Applicable taxschedule AVE Note
NAME:EPA,ASEAN-Japan EFFECTIVE:2008-12-01 TYPE:Free tradeagreement SCOPE:Multilateral, National Group MEMBERSHIPCOUNTRIES:Brunei Darussalam, Cambodia, Indonesia,Japan,Laos, People's Democratic Republic,Malaysia, Myanmar,Philippines, Singapore, Thailand, Vietnam
NAME:EPA,Japan-Vietnam EFFECTIVE:2009-10-01 TYPE:Free tradeagreement SCOPE:Bilateral,National-National MEMBERSHIPCOUNTRIES: Japan, Vietnam
NAME:CPTPPEFFECT:2019-01-14TYPE:Free tradeagreementSCOPE:Multilateral, National-NationalMEMBERSHIPCOUNTRIES: Australia,BruneiDarussalam, Canada,Chile, Japan,Malaysia,Mexico,New Zealand, Peru,Singapore,Vietnam
CurrentMarketPositioning
TheVietnamesemarketisanemergingmarketwherepeoplefindmore casualandconvenientandaffordableclothesforwork,everydaylife,sportsand manyotheroccasions.Intermsofpricing,Uniqlooffersanaffordableprice pointforeveryone Therefore,segmentationismiddle income class Basedonthe perceptionsmapabove,hereisananalysiswithother competitors:
1.Priceposition:Uniqlo is affordable,its competitorsCanifa and Viettienalso have.
2.Function:Uniqloisthe world'sleadingpopularandconvenientclothing brand.
Marketingcommunications
UniqlohadplannedtoentertheVietnammarketintheendof2019withthe firststorelocatedinHo ChiMinhCity.However,thereismuch pressurefora successfullaunchofUniqloinVietnam forboth theclientandagencyteams,notonlyintermsoffinancialindexes,but alsoa must-winbattleforbrandshare ofvoice,social buzzandpublicawareness,giventhe aggressivecompetition fromotherwell-establishedclothingbrandssuchas ZARA or H&M which alreadyhaveapresence.
Intermsof PRand communications,itis critical thatUniqloto becomea brandthatresonateswiththepeopleinVietnamand,inthelong-termfuture, becomesmeaningfulinthe everydaylifeofthe customersacrossthecountry.It isparticularlyimportantforUniqlotoshowclearly howitsuniqueconcept, LifeWear,cansitnaturallywithinVietnamesestyleandcultureto becomea complementaryandessentialpartofanywardrobe.However,theapparel retailing market in Vietnam has been mostly influenced by the young millennialswhoarealwaysinthesearchfortrendyfashion.Theyarefascinated bystylishdesign,latestglobaltrendandcelebrities’glamourousendorsement. 5.2.2.Strategy
Uniqlo then tapped on Galaxy Communicationstodeviseastrategic communicationsplanthatcan bring theLifeWearconcepttocustomersin themosteffectiveandnewsworthy way,whileeducatingandredirecting themarketattentiontothiswholenew conceptinclothing.It wascriticalfor Uniqlotostep outfromthe perception offastfashionand toestablishasolidunderstandingaboutthebrandwith simplicity,qualityandlongevityinVietnammarket.
Creatingnoiseandarousingexcitementamongmediaandpublicaudience inordertodrivetraffictoUniqlo’snew storeopeningis also achallengingtask forcommunicationsteamtoaccomplish.
Intheseven-monthcampaign,UniqloandGalaxyCommunicationsranthe campaignonthreekeychannels:PR/mediarelations,socialengagementwith influencers,andeventmanagement.
1.EstablishfirstconcretefoundationofmediarelationforUniqloin Vietnam,createandmaintainstrongrelationshipswithkeyjournalists, influencersandkeyopinionleaders across varioussegments,briefthem aboutthe brandand itsrepresentative values.
2.BuildunderstandingofUniqloasanapparelbrandwithatotallynew concept,knownas LifeWearto Vietnamesemedia andcustomers.
Observingthecurrentfashionshoppinghabitsanddressingstylesof Vietnamesepeople,whichdoesnotplaceimportanceonclothes’comfortand its functional values of quality and longevity, Uniqlo and Galaxy Communicationsdecidedtoapproachthemarketwithasingle-mindeddirection: toelevateVietnamesedressingstyle withamind-changingperspectiveto practicalfashionwithLifeWearfromUniqlo,whichis itsbrandofessential clothingwovenfrominnovativetechnologyinfabric,bestfitwithsimpleyet elegancedesignandmadetobeaccessibletoall.
Todeliverthismessageto publicaudienceand targetcustomers,thebrand andagencymappedallrelevantcommunicationschannelstofindoutthemost effectivetouch-pointstocommunicateandinfluencethem,inwhichmedia relationsandInfluencerengagementonsocialmediawouldbethekeystrikes. Thecampaignstartedin May andledup to thestore openingdayofUniqloin thefirstweekof December2019.
Intermsofmediarelations,UniqloandGalaxyCommunicationsstartedits firstoutreachactivitieswithtargetedjournalistsandreporterssevenmonths priortothe launchwithsmallselectedandelitegroups, whilecontinuingto widenandstrengthenits networkwithmore local mediauntil the openingday.
In terms of Influencer engagement, aligningwithUniqlo’sambassadorstrategy, UniqloandGalaxyCommunicationscreated anddevelopedaconcreteplantoidentify, collaborateandleveragesuitableinfluencers onsocialmediawhoshare thesamevalues withUniqloandthe LifeWearphilosophy,inordertocollectivelycontributeto raisingandmaintainingbrandvisibilityamonga wide-rangingaudiencestarting inpre-openingand throughto post-openingphases.
Additionally,with theaimtocreate newsworthymaterialsandassetsforthe campaign, offline events in different formats such as exhibition, press conference,cocktailpartywereputintotheintegratedplanasthekeyhooksand milestonestomark Uniqlo’sjourney toenter Vietnam.
Thebrandand agencycreatedinitial engagementwithtwo top-notchmedia in Vietnam, both print and online media, by impressing them with the company’sheadquarter.Thetoursucceededinenrichingmediaunderstanding aboutUniqlo’sbrandstoriesandgeneratein-depthcontentfromtheirown interesttowardthebrand.
Fourfashioneditorsfromtopkeymediawereinvitedto oneofthe biggest annualglobaleventsofUniqlo,where thecollectionsofLifeWearwere brought ontotherunway TheywereimpressedbythephilosophyofLifeWearwhich hadresultedinseveneditorialsaboutUniqloandLifeWear.
OrganisedbyGalaxyCommunications,aspecialexhibitionwassetup as thefirstofficialmediaoutreachactivityofUniqlowithlocalmediainVietnam. ThroughpresentationsfromseniorUniqlorepresentativesanda seriesof engaging installations across themed zones, the brand successfully demonstrated how LifeWear is its constantpursuitofinnovation,quality, value and sustainability for Uniqlo customers.Thisexpoattractedover65 localmediaandmore than90influencers tocomeandspreadingouttheLifeWear spiritontheir ownchannels.
ThefirstengagingactivityfromUniqlowithtargetaudienceonsocialmedia wasanonlinecontestwherefanswereencouragedtopostand sharetheir photos,experiencewithUniqloandtogethermappingamosaicofVietnam.The activitywaskickedofffromagroupofmorethan30influencersandhadspread outtomorethan300 participantsfromthesocialfans.
Product sampling with influencers in November
Inorderto graduallyblend theLifeWear dressingstyletoVietnameseaudiencedaily life,Uniqlohadmorethan30Influencers helpedto showcasehow theycanmixand matchtheperfect outfitwithUniqlo,which intotal generatedthousandsofinteractions and comments, sharing their love for LifeWearphilosophyandtheiranticipationtowardUniqlo’sstoreopeningday. Pre-openingpressconferenceon6December
Thepressconferencewastheofficial introductionofthevery first Uniqlo’ storein Vietnam.Itsawtheparticipation ofTadashiYanai,Uniqlofounder,withmorethan90localreporters,20 internationalmedia,over 100celebrities andinfluencersjoiningtheevent,whichresultedin massivemediacoverageon diversifiedcontentangles,fromfashiontobusiness.
Theendingnote ofthe campaignwasmarked bythe grandopeningevent at Uniqlo’sDongKhoiStoreinHCMC,whichsawa hugeamountofpeople queuingupinfrontofthestoreinjustthe firstday.Thestunningnewswas massivelycoveredandsharedon60 pluslocal media,includingnational broadcastingchannels,printandonlinemedia.
ThelaunchofUNIQLOinVietnambecamethetalkofthetownwhenit wasabletogeneratemassivemediacoverage,endlesssocialdiscussionsfrom notonlyInfluencersbutalsofromthecustomers,attractpeople comingto the storeinthefirstoneday.
Through the campaign, UNIQLO managed to get 435 news, which exceededitssetKPIsby310%,and177editorials,whichexceededitssetKPIs by221%.Italsomanagedtoengageoverahundredinfluencers.
Marketingexpensebudget (Suggested)
1 Promotionalcoupons $300,000 Heavy amount of promotional coupons distributed for the grand openingmonth.
Brand and product promotional through various search engines advertising such as Google, Facebook,Instagram,…
3 Billboards $100,000 Billboardadvertisingonthecenters ofmajorcities(especiallyinHoChi MinhandHa Noi).
4 Brandambassador $100,000 Famous celebrity of Vietnam is appointedasbrandambassador.
5 Magazine&newspaper advertising $20,000 Advertisingthroughtopnewspapers andmagazinesofVietnam.
BREAK-EVENPOINT (Dec 2019)=2,620,100/(25-8) 4,124ROI(Dec2019) =(1,530,000/2,620,100)*100%= 58.39%