E commerce final assignment topic advertising strategies for an e business fashion industry

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION- E-COMMERCE FINAL ASSIGNMENT Topic: Advertising strategies fo

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

- INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION-

E-COMMERCE FINAL ASSIGNMENT Topic: Advertising strategies for an E-business Fashion Industry

Name: ID Students:

Lé Tran Huong Nguyén 21DH123241

Lai Thi Khanh Nhu 21DH123535

Nguyễn Minh Thu 21DH123367

Instructor: Pham Thi Mong Lanh HCMC, 08/2023

Executive Summary This report examines the advertising strategies of one of the most popular garment industry — Uniqlo to indicate how can they obtain the efficiently to raise the brand reputation and spread the satisfaction to people of all ages Uniqlo has participated in Vietnam’ fashion industry since 2019 with the aim to bring high quality life wear in affordable prices The report will analyze how a fashion brand apply advertising strategies to maintain their quality and high coverage all over the world This helps us figure out what strategies they decided to apply in Vietnam market Previous studies have indicated that Uniqlo use many social media to advertise and is one of the searching engines for people The main purpose of Uniqlo is totally not rushing other fashion competitors, they want to spread the campaigns and advertise in their unique way including using alternative spaces in store, finding brand ambassadors, using SEM — search engine marketing or collaborating with famous designers Therefor, this report recommends Uniqlo to have appropriate solutions to fit the customer demand in Vietnam by focusing on what customers prefer most Through the analysis of Uniqlo’s advertising campaigns, it can have a greater impact on their marketing purposes

Table of Contents

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3 Market selecfion cọ HT TH HH nh p0 4 3.1 Justify the country selection through PES'TLUE, « «<< «<< + 4

4 Selection of relevanf seømenfafi0n CTIÍCFTA cá co HH g Ỳ kg vi 8

4.2 Screening of S€ØIN€TÉS «5 sọ ọ HT Họ Họ nọ im si” 8

5 E-commerce strategies for the market ccscccsssssssssssssssccsssssssscsescenssnaesessenes 9

5.2 SpecifÍic e-CommMFC€ SÍT2Í€ĐÏ€S - - 5 sọ HH Họ mì HH nh nh 10

6 Conclusion and recommenAfÏOHS - «<5 5 << xì mm me 10

7 References

1 Introducfion

Before Uniqlo was launched, Mr Tanashi Yanai owned himself 22 branches of clothing shops When he became the company president in 1984, he launched a clothing shop called Unique Clothing Warehouse and now is Uniqlo — a brand of producing casual clothes for Japanese people in Ube, Yamaguchi Prefecture, Japan Uniqlo is one of the fastest development in various market The “ Uniqlo Fleece”, the company’s different product line, was introduced in 2001, marking an important point moment for Uniqlo Because of the fleece’s enormous popularity in Japan, the business swiftly widened its selection of goods to include other casual clothing items like T-shirts, jeans, and sweatshirts Nowadays, Uniqlo has expanded its product line and innovated over the last few years To provide comfortable and useful garments, the company has concentrated on creating new matenals and technology As part of this growth, Uniqlo also offers accessories, outerwear, and activewear

It also holds a significant position in the world and its reputation constantly develops with more than 2,200 stores in 25 countries It eventually becomes one of the top 5 retail fashion brands such as H&M, Zara, Gap, Uniqlo, Pull and Bear Uniqlo is known as producing high quality clothes for all customer segmentations with a motto called :” UNIQLO-MADE FOR ALL” and attach to its basic, functional and affordable The company not only wants to create good quality designs but also suitable for many different styles What the company aims at is the consumers can use it in the most optimal way, not just following trends like the other fast-fashioned brands The business is also well-known for its knit-wear which is made from high quality materials in suitable prices, attracting a great deal of potential customers

Uniqlo started appearing in Vietnam in 2019, and it has widely opened to 9 outlet stores from HCM city to Hanoi but no online store was distributed through online channel since then In order to increase the convenience for customers, Uniqlo decided to conduct sales method through omi-channel in 5/11//2011, which customers can choose home-delivery

or ordering online and receiving items at the store to create a seamless shopping process between the two channels This biggest online store can reach to over 15000 products The diversity of designs and sizes is the big advantage of this fashion brand Uniqlo also builds their own version for mobile phones to widen alternative experiences for customers All in all, Uniqlo online stores will appear m two different versions: website and application Nowadays, online retail is the developing field in Vietnam with a rate of 70% of population

2 The Company

2.1 Analysis of Uniqlo’s strategic position

Strengths:

« Possess a clear strategic vision: Clear market entry strategy is the foundation for the brand to build success and make it easier for the brand to expand and build new source of revenue by diversifying risks This brand concentrates on designing simple outfit for daily life of people With a commitment to low prices and good fabric quality, Uniqlo clothing is mass-produced and focus on the most simple clothing that everyone needs Not similar to other competitors, they frequently research on fashion market to promptly catch up with the trends but Uniqlo still maintain its simple and improve the quality

¢ Improvement- based communication: Instead of catching up with fashion trend, they keep focusing on researching and developing unstoppably in product innovation What they aim to do is constantly improving on its technology to produce new innovative fabrics When Heat Tech - one of the most popular version

of fabric which is made from a material retaining bioheat, helping to keep warm without being too thick This technology helps convert moisture from the body into heat, keeping consumers comfortable during long winter When it was first produced in 2003, 1.5 million items were sold The advertising strategy at that time was a great success In addition, Uniqlo’ s innovation does not follow the fashion market but try to bring what customers need, which attracts a great deal of customers all the time

¢ Great purchasing experience: Whether it’s the experience of purchasing online or in-store, the company still does its responsibilities well If purchasing online, customers can check the items out by themselves or online staffs will help them search and check the availability status of products at the store Or after ordering products online, customers can choose to receive their items via Click & Collect at

2 stores [ Uniqlo Vincom Landmark 81 ( Ho Chi Minh city) or Uniqlo Vincom Pham Ngoc Thach ( Hanoi) If customers purchase in-store, they will be warmly welcomed and the staffs are willing to support anytime

* Gain success in collaborating with international trademarks: Besides designing clothes for daily lifestyle, this Japanese brand also attracts customers with collections in collaboration with many designers such as: J.W Anderson, Alexander Wang, or youthful UT! me Uniqlo x KAWS is the most successful collaboration of the Japanese popular brand The products quickly sold out after a short time on shelves

Weaknesses:

¢ The company makes apparel that reacts to the weather The fact is that aspect was created exclusively for the Asian market and lacked global adaptability meant that

it was effective in Asia but failed in the US If H&M follows market trends by constantly updating the newest models, the shop always feel new In contrast to Zara, which has a strategy of “copying designs” from high-end fashion businesses from the moment they are launched It seems to be a disadvantage for Uniqlo because it is following what GAP once failed to innovate US customers always want the fastest fashion trends, especially with this extremely harsh fast-fashioned industry

» The corporation is having serious issues growing its supply network Additionally, consider the fact that internet retailers do poorly in comparison to their competitors

Opportunity:

¢ Great potential in Vietnam retailed fashion market, Vietnamese people are becoming more concerned with their appearance and improving it, their spending power for fashion products is rising as well Vietnamese customers continue to be drawn in by the increasing number in global fashion items in various areas

5 Fast development of e-commerce in fashion industry, occupying 8,57% of worldwide population, this area promises to have great consumption for

2

contribution of e-commerce industry In addition, Southeast Asia area attracts many big businesses around the world According to the Department of E- commerce and Digital Economy, Vietnam’s E-commerce grew impressively in

2020 with an increase of 18%, a market size of 11.8 billion USD, and is estimated

to account for 5.5% of the total retail sales of consumer goods and services nationwide

¢ The business may utilize a strong brand image to increase sales The business can sell its brand through viral advertising and digital advertising to reach its target market

Threats:

¢ Intense strong competition with other brands such as: GAP, Zara, H&M

¢ Rebranding is getting easier

* In general, the business has some competitive advantages and some threats Thus, they have to take advantage of the opportunities and focus on removing threats and weaknesses

2.2 Determination of their competitive strategy

ZARA, H&M, and GAP are three of UNIQLO's usual competitors on the market nowadays The three brands mentioned above have been placed in the table of business models below:

ZARA

Strengths: They always

play to their advantage —

what started as an average

copier has turned into a

leading fashion brand in

retail in the world All Zara

products are not only

diverse and readily

H&M

Strengths: Targeting mainly young people, H&M 1s not afraid to use social media marketing as a strategy to bring updated messages and products to young people From Facebook, Instagram, Twitter,

GAP Strengths: ashion brands are focusing on pursuing emotional marketing strategies on digital platforms “Gift the Thought” is a short film about a boy's growing up joumey under the care of a

available, but are also "very

sensitive” to the weather:

as soon as it starts to get

cold, they are ready to have

their coats, while

espadrilles and bikinis

available in time for

summer This is the reason

that many other high-end

brands can't keep up

On the App Store and CH

Play, ZARA is ranked ten

thousandth and ranked 47th

in terms of purchases

According to some

Pinterest to Google, H&M

is everywhere with a very effective level of interaction with customers

H&M has a dedicated care unit to listen to feedback

They are ready to respond

to comments to give more

information or explain when customers want

Thanks to the push in online brand promotion, H&M has risen to be in the top 25 leading fashion brands in the world

single mother For this campaign, Gap collaborates with agency Johannes Leonardo, but unlike the previous two festivals, the ads will not be broadcast

on TV As an increasing number of consumers shop online, meanwhile, digital media can be more cost- effective for marketers than traditional advertising The video was released on November | on Gap's social channels, including Hulu, Vevo, Facebook

comments and personal

experience, this application

is very easy to use, can

shop online at any location

without time, suitable for

all tastes

The "Click & Collect"

concept has brought two

most important benefits in

modern people's lifestyle to

save time and increase

convenience, namely:

Buyers can fully enjoy the

joy of online shopping,

they do not have to wait for

the package to arrive at

home, but still can actively

arrange the time to go to

the store to receive the

goods; If you're not

satisfied, no longer have to

go through the hassle of re-

packing clothes, contact the

store and notify the return,

call a delivery service and

wait for a refund With the

new concept, all they need

to do is return the clothes at

the FMCG hire email

counter

Compared to ZARA's application, H&M's application has less than 2.2 thousand downloads and is rated 4.8 out of 5 stars In terms of shopping rankings, it's higher than ZARA, H&M is ranked 27th

About H&M's vision "Our vision is to lead the change towards circular and renewable fashion while being a fair and equal company”; As for the mission "Our mission is to drive long-lasting positive change and improve living conditions by investing in people, communities and innovative ideas"

Watch, Youtube Launching the campaign after Halloween is a strategic move for Gap to reach consumers right before Black Friday At this time, the brand is also under a lot

of pressure when its potential subsidiary, Old Navy, will "take off" in the upcoming 2020

Compared to the application of ZARA and H&M, the popularity of GAP is less GAP is an international fashion brand from the US with diverse fashion products for both men, women and children GAP is one of the pioneering brands pursuing sustainable development goals

3 Market selection

3.1 Justify the country selection through PESTLE

The external macro-environmental substances that could be having an effect on a business or market are explored employing the strategic management framework defined

as a PESTEL investigation PESTEL is an acronym for:

¢ Political factors: These consist of legislation, the laws of the nation, political stability, and other political forces that might have an influence on the business economy

¢ Economic factors: Handle the present condition of the marketplace and its habits as they apply to an organization's operations, profitability, and future

¢ Sociocultural factors: Include social and cultural features that might affect buyer decision-making, standard of life, population growth; and market trends

Technological factors: Emphasize on developing and utilizing new ideas, technologies, and trends that may exert a positive effect on an arena within the market or a particular business

Environmental parts: Explain environmental and ecological issues that may have

an influence on how an organization functions along with its decision

Legal factors to consider: Take a mention of regulations and statutes that govern to companies and industries

Political Factors Affecting Uniqlo

Trade Policies: Fast Retailing Co., Ltd., whose runs Uniqlo, is an international corporation has operation beyond several nations The company's operations could get dependent on the political relationship between Japan, where its corporate headquarters include, and the other countries wherever it do business For example, business should adjust to tariffs, import/export laws, or trade policies that might have an immediate impact on Uniqlo's supply chain, expenditures, and costs Political Stability: The political atmosphere in each country where Uniqlo performs organizations receives an immediate effect on the company's reputation Politically unstable setting can cause issues with supply chains, give up limits to market access, and even invested regional authorities brands and colleagues in chance

Inflation Rates: As one consequence of escalating labor and raw material costs are borne, Uniqlo's clothing will eventually cost greater It can have a direct effect on Uniqlo's profit margins if these higher costs aren't passed on on to purchasers High unemployment rates could affect the power of customers to spend and customer appetite for Uniqlo's items in question On the other side by side an enormous swimming area of potential workers might be made available by high levels of unemployment, leading to down labor costs

Interest Rates: If Uniqlo necessitate money it borrowed for operations or expansion, interest rates might be given a chill on the price it pays Higher interest rates can make borrowing costs higher and have an undesirable effect on profitability

Economic Factors

Economic Growth: Consumers spending capacity may be impacted by the rate of economic growth in nations where Uniqlo run business Contrary to this, during conditions of economic recession, shoppers may limit what they bought, which might affect Uniqlo's sales

Exchange Rates: As a globally operating company, Uniqlo works in a broad spectrum of currencies Exchange rate fluctuations have a big influence on salary levels, costs, and revenue For instance, the cost of contents sold outside of Japan can grow if the yen enhances versus other currencies, which could provide a hold according to Uniqlo's profitability

Inflation Rates: As caused by of high labor and raw material the costs, Uniqlo's product might eventually cost additional It could make a direct effect on Uniqlo's profit margins if these increases in costs aren't passed on on to clientele

High unemployment rates may decrease the ability of consumers to spend and the demand for Uniqlo's items On the other side, an enormous array of job candidates

could potentially be become open by a high unemployment rate, leading to lowering labor costs

Interest Rates: If Uniqlo needs money which it borrows for operations or expansion, interest rates could be having a direct effect on its costs Higher interest rates could render borrowing costs greater and have an adverse impact of profitability

Consumer Confidence: Retail sales could have significantly influenced by consumer confidence, an important metric for the economy Consumers are more likely to spend when consumer confidence is brave, which could improve Uniqlo's sales Consumers are likely to cut down on spending when consumer confidence is low, these might impact sales

Social Factor

Consumer Attitudes and Behaviors: The manner in which of Uniqlo's customers may have a big impact on how well it does If people mn a certain area select cheap, and high-quality apparel, it may does well However, alterations in patron preferences or fashion trends may have disadvantages

Demographics: Defects in the population's age, gender, income, and other characteristics may have an affect on the demand for Uniqlo's wares For mstance,

an older population might have different dress habits than the younger one Conduct and social task: Customers are more aware of ethical matters and social responsibility in the products they choose Consumer decisions are often determined due to variables including fair trade, ethical sourcing, working conditions, and product into force To retain a favorable brand image, Uniqlo needs

to ensure to keep up with these objectives

Cultural differences: Uniqlo produces goods in quite a few of economies, and such variations in culture might affect fashion patterns What succeeds well in Japan might not always do well in the United States, Europe, or different areas of Asia For the marketing and product development schedules of Uniqlo, an understanding

of these exceptions is necessary

Health and Well-Being Statistics: As the relevance of health and wellbeing is becoming more widely recognized, there has been an extensive action in the market toward commodities that support this way of life For instance, this societal change is directly responsible for the growth of sportswear and the athleisure

movements

Lifestyle alterations: The decisions people make is clothes may vary as the result

of shifting lifestyle patterns, such as the rise in remote work brought on by the COVID-19 pandemic In order to meet consumer demands, Uniqlo needs to adjust tthese changes

Technological Factors

E-commerce as well as online shopping: retailing has been severely affected by the emergence of e-commerce Uniqlo has opportunity to expand its online sales, which could expand its base of customers and boost its market share However, it must make sure to provide a fluid and user-friendly buying experience considering

it participates with several other online merchants

6

Supply Chain Management Technology: Logistics, inventory control, and supply chain management technologies may make Uniqlo's operations more valuable and cheaper as well The organization can more effectively track its inventory and cut expenses with the use of intricate forecasting and demand estimation new technologies

Technology in Manufacturing: the fabrication of Uniqlos products may be impacted by new technology Innovations in fabric technology or manufacturing processes may result in higher-quality goods, more environmentally friendly manufacturing procedures, or decreased costs

Mobile Technology: The rise of mobile technology has influenced consumer behavior For website that attracts clients who prefer to purchase via smartphones

or tablets, mobile applications are essential In order to meet these client demands, Uniqlo would need to make investment in mobile technologies

Artificial intellect and data analytics: both of these mnovations can throw light on consumer behavior, market trends, and company activity Via the identification of new fashion patterns and the customization of the shopping experience for specific prospects, this can help Uniqlo in making smarter business choices

Social media and digital marketing: Technology is also essential to marketing and communication with prospects To interact with customers and advertise its products, Uniqlo has to be abundantly represented on social media and employ digital advertising strategies

Virtual and augmented reality are starting to play a larger role in the retail sector through the provision of simulated changing rooms and shop experiences The integration of these technologies might offer Uniqlo a competitive edge

Environmental Factor

Climate Change: There’s various manners in which climate change impacts the fashion sector Purchase choices by customers and apparel preferences might be impacted by changing weather patterns Also, it could cause issues with Uniqlo's transportation routes, particularly if storms evolve in incidence

Sustainability: Assistance with companies that are practicing sustainable production is a growing consumer trend Uniqlo, like other retailers, is under pressure to expand the environmental health of its operations by hindering waste, increases in recycling, and exploiting environmentally friendly substances m all of its products

Carbon Footprint: To slow pace climate change, governments all around the globe are enacting severer regulations on emissions of carbon If Uniqlo is seeking to decrease its carbon footprint and fulfill by all of these rules, it could need to make funds invested throughout more eco-friendly, renewable energy sources ineffective instructions

Supply Chain: This Uniqlo supply chain entails a number of environmental considerations, from sourcing raw materials through production, transport, and product disposal Such behaviors may have a detrimental effect on Uniqlo's operations and reputation given environmental problems such as water pollution, deforestation, and habitat assault