Uniqlo

OBJECTIVES UNIQLO at the core of Fast Retailing’s strategy

FAST RETAILING, Uniqlo’s parent company, aims at becoming the

world’s No 1 apparel retailer group by 2020

With Uniqlo as the No 1 apparel brand in Japan

Target of quadrupling annual sales to Y2,000 billion by 2020

Ensure profitability, with the SPA business model

Ensure top level of growth, with an increasing presence abroad

Win customers by responding to their demand Sticking to Uniqlo’s core positioning ‘quality at reasonable price’

Launch of hit products : basic design combined with high

performance

Focus on big scale stores in Japan and major global cities overseas

Objectives

UNIQLO has established a SPA (Specialty store retailer of

Private label Apparel) business model encompassing all stages of

the business--from design and production to final sale. By

continuously refining this SPA model, UNIQLO successfully

differentiates itself from the competition by developing unique

products. They quickly make adjustments to production to reflect

the latest sales environment and minimize store-operation costs,

such as personnel costs and rent. This is how UNIQLO provide

such high-quality clothing at such reasonable prices.

The SPA (Specialty store retailer of Private label Apparel) business model incorporates the entire clothes-making process from procurement of materials, product planning,

development and manufacture through distribution and retail to inventory management.

SWOT ANALYSIS

• Thanks to the SPA model pricing gives a competitive advantage against a backdrop of tightening budgets.

• Capacity to output hit products such as Heattech (28 million Heattech garments sold in F/W 2008, including 1 million oversea)

• Among top five Japanese apparel retailers.

Strengths

• Risk of reliance on certain regions for production (about 80% of Uniqlo products are manufactured in China).

• High reliance on Japan exaggerated by comparative weaker performance overseas (88.5% of the total revenues in FY 2009 made in Japan).

Weaknesses

• Popularity of large format stores• Increase in demand• Uniqlo perceived as a good quality, with

stylish design brand

Opportunities

• Stiff competition from Global operators like H&M, Gap, Topshop…

• Lower spending capacity in Japanese households.

• Unfavorable demographic trend in Japan.

Threats

SWOT ANALYSIS

INDUSTRY TREND AND OPPORTUNITY

New Entrant: moderateSmall stores: easy

Global stores: difficult Low switching cost

Supplier Power: low Many suppliers and cheap labor

(Uniqlo has long-term relations with suppliers)

Buyer Power : highMany choices and low switching

cost, but possible to establish brand loyalty

Substitute : high Cheaper fashion: cosmetics,

accessories, or cutback due to recession

Industry Rivalry: high Matured market, substitutes and

global players : intense competition

Attributes

• Good quality clothes• Well designed Japanese fashion

Functional Benef

its

• Variety of lines, style• Design for wide range of customers.

Emotional Benef

its

• Differentiating oneself from the crowd• Increase self- confidence

Values

• Everyday unique fashion to express yourself

BRAND LADDER

Brand PropositionUNIQLO is the unique clothing

experience among international

retailers because we are the

only one who provides vogue

Japanese fast fashion.