When saying “Thank You” becomes a signature of a Japanese brand. NOVEMBER 26, 2025 REFLECTIVE ASSIGNMENT Lecture: Mrs. Hien Tran (Lucie Tran) Class: MKTG1205 Marketing Principles Prepared by: Ding Dang Bao Duy – s4208581 Table of Contents 01. Introduction • • • • About the business About the current market About market offerings About the value proposition 02. Customer analysis and brand response • • • Target Customers Needs, Wants, Demands Value delivery 03. Marketing orientation analysis and suggestions • • Marketing concept Societal marketing oncept 04. Marketing environment and SWOT analysis • Macro environment • Micro environment SWOT analysis • 05. Reflection: Environment influence & decision making Environment impact Making decisions Introduction About business & market. Entering Vietnam in 2019, there are 29 stores until now (Fast Retailing Co., Ltd., 2025a) that have expanded its LifeWear concept focused on everyday clothing. Dr. Sakulkijkarn & Meechukhun (2023) illustrate that ‘UNIQLO, a global fashion retailer, has embarked on a significant journey towards sustainability’. Minimal and functional items like AIRIsm and HEATTECH gained recognition from 36% of under-25 consumers who are highly interested in fashion (Asia Plus Inc. 2017) and ‘39% of Vietnamese consumers try to lead a minimalist lifestyle’ (Euromonitor International 2025b). Uniqlo is recognized by 55% Vietnamese consumers and is considered a dominant “Good Quality ” image (Asia Plus Inc. 2018). Parietti (2025) illustrated that Uniqlo is one of the world’s three leading clothing retailers along with Zara and H&M. A Japan-based company began as Ogori Shōji Co., Ltd, which sold men’s clothing in Ube, Yamaguchi Prefecture, Japan (Uniqlo - The Strategy Behind The Japanese Fast Fashion Retail Brand 2021). Fast Retailing Company Limited is the owner of Uniqlo today (Fast Retailing Co., Ltd., n.d.), is a well-known name in apparel retailer and casual wear industry. Introduction About product uniqlo.com Women Men Kids Baby Introduction About market offerings. About product Uniqlo focuses on high-functionality products and new fibers instead of chasing trend-driven fashion. This product line is released to adapt to demand for air-drying fabrics and value-for-money basics (Euromonitor International 2025a). UNIQLO VIETNAM About service & experience HEATTECH technology. AIRism material. AIRism is designed to keep the air cool, dry, and comfortable in hot and humid climates. HEATTECH is technologically thermal fabrics that retains heat to keep warm inside in cold situations. PUFFTECH is lightweight application technology designed to provide warmth and comfort in cold weather. Pick-up policies to satisfy 66% willing to spend money to save time “Thank you” culture enhances UNIQLO’s service offering and Japanese-style customer experience. Introduction About value proposition. Product: What makes UNIQLO unique? While other brands focus on trend-driven fashion, UNIQLO focuses on functional items supported by proprietary textile technology, which is difficult for competitors to replicate. ● High-functionality products include HEATTECH, AIRism, and Ultra Light Down, promoted in seasonal campaigns (Fast Retailing Co., Ltd., 2024). ● Developing new fibers and fabrics with innovation partners such as Toray Industries (Fast Retailing Co., Ltd., 2020). Value to customers: comfort, durability, trust. In-store Service: What does UNIQLO do during the shopping experience? While UNIQLO is superior in controlling inventory and developing multi-channel integration, a lot of Vietnamese brands are short of them. ● Highly effective Production- Sales- Inventory (PSI) and merchandising control systems (Fast Retailing Co., Ltd., 2020). ● Seasonal promotion for those core items (Fast Retailing Co., Ltd., 2024). Value to customers: availability, convenience, consistent pricing. After-sales Service: How does UNIQLO take care of its customers after purchasing? A small number of Vietnamese retailers run a closed-loop system: customer feedback, product improvement, and public communication. This is a competitive advantage. ● Fast Retailing states that collecting feedback to enhance their products and services through Customer Service (Fast Retailing Co., Ltd., 2024). ● Utilizing AI, chatbots, and voice recognition to meet the inquiries (Fast Retailing Co., Ltd., 2024). ● Fast Retailing shows that products are improved based on collective customer feedback (Fast Retailing Co., Ltd., 2024). Value to customers: responsive service and ongoing improvement. CUSTOMER ANALYSIS & BRAND RESPONSE. About main target customers: UNIQLO primarily targets young adults aged roughly 18-40 (Bhasin, 2024). This demographic spread covers two types of customers based on generation: Gen Z (15-29 years old) and Millennials (30-34) (Euromonitor International 2025b). Non-negotiable needs: Consumers are actively seeking products that provide "air, and sun protection" to combat "hotter weather" (Euromonitor International 2025a). Physical need: clothing. Wants: 39% of Gen Z and 37% of Millennials "feel good" when "buying eco-conscious/ethicallyconscious products" (Euromonitor International 2025b). Specially, Gen Z has higher environmental awareness to prioritise sustainable clothing (Ngo et al. 2024). Demands: Gen Z demand a relationship: 57% "enjoy being actively engaged with brands” and 54% of Millennials (Euromonitor International 2025b). Delteil, Francois, Mai and Seong (2021) indicate that Millennials and Gen Z, those born between 1980 and 2012, are predicted to make up about 40% of Vietnam's total consumer spending in 2030. Bui and Le (2023) found that 70.7% of Vietnamese Gen Z respondents identify as fashion enthusiasts. CUSTOMER ANALYSIS & BRAND RESPONSE. About value delivery: Uniqlo’s strategy is extremely effective at meeting most of the Vietnamese customers’ demands: Serving the Need/Want (Product): The brand's focus on high-performance materials like AIRism (Fast Retailing Co., Ltd., 2024) is a direct response to the need for clothing that is suitable for the climate (Euromonitor International 2025a). 63% The of consumers who “only buy from brands that they trust completely” are well served by this product-first strategy, which also fosters tangible trust (Euromonitor International 2025b). Serving the Demand (Trust & Engagement): UNIQLO builds a strongly trusting relationship that 63% of consumers demand (Euromonitor International 2025b) through its local incorporation. Key solutions include: "60% Made in Vietnam" production strategy (Viet Nam News 2024) and its commitment to local talent, with 74% of managerial roles held by Vietnamese nationals (The Star 2024). It meets the demand for engagement through its UTme! platform, which allows customization and features collaborations with local Vietnamese artists. Analysis follows 5A technique: A1- AWARE The AIRism TVC uses catchy transitions and minimal clean visuals, capture among 37% Gen Z who are interested in fashion (Asia Plus Inc. 2017) This matches with UNIQLO’s market-oriented motto on customer lifestyles. A2 - APPEAL The tagline “Use up! Wash out!” emphasises breathability and easywash functionality, which directly addresses Vietnam’s hotter climate conditions (Euromonitor International 2025a). This reinforces UNIQLO’s strength in functional clothing (Fast Retailing 2020). 3 - ASK The TVC hooks curiosity through highlighting AIRism fabric in dailyuse scenarios, aligning with the behaviour of 66% of Vietnamese consumers who extensively research before purchasing (Euromonitor International 2025b). A4 - ACT The campaign directs viewers to stores and online channels. With 63% of Vietnamese consumers having purchased fashion online (Asia Plus Inc. 2017), the TVC effectively supports UNIQLO’s O2O strategy. A5 ADVOCATE The picture of AIRism’s function encourages word-of-mouth among 53% of Gen Z who prefer branded goods (Euromonitor International 2025b), and are more likely to share brand content. Marketing orientation analysis and suggestions Uniqlo chases marketing orientation. Marketing Concept: 5A ANALYSIS OF UNIQLO AIRism TVC “Use up! Wash out!” A screenshot of the AIRism advertising video. Source: UNIQLO Vietnam 2023. Marketing orientation analysis and suggestions Sustainability Evaluation: Win-win: It directly addresses discomfort caused by the hotter climate in Vietnam (Euromonitor International 2025a) and strongly aligns with 39% of Vietnamese consumers following a minimalist lifestyle (Euromonitor International 2025b). Trade-off: This marketing approach does not attract more newly promising customers other digital platforms and lacks localization. “Use up! Wash out!” Recommendation: Launching a TikTok challenge with the slogan: “ USE UP! WASH OUT! 7 days of AIRism comfort” and collaborating with KOL/KOC as a brand ambassador in the Vietnamese market, according to the current Social Proof effect among Vietnamese consumers. Localise the AIRism version for Vietnam to build strong trust, with 63% only buying from brands they trust completely (Euromonitor International 2025b). Marketing environment SWOT analysis. 1. Macro environment: PESTLE model Factors Key Analysis Political The Foreign Direct Investment (FDI) policy from the Vietnamese government creates new opportunities for retailer expansion. High inflation and a “hampered” economy (Euromonitor Economic International 2025a) are a major concern for 68% of consumers (Euromonitor International 2025b) Social Increasing demand for sustainability causes consumers to "feel good" buying from eco-conscious brands (Euromonitor International 2025b). Technological "Livestreaming" is a popular digital tool for brands, including UNIQLO, to reach customers (Euromonitor International 2025a). Legal Weak intellectual property (IP) enforcement causes a high rate of fake clothing market. Environmental "Hotter weather" in Vietnam directly fuels consumer demand for functional apparel (Euromonitor International 2025a). Marketing environment SWOT analysis. 2. Micro environment: 2.1. The company: Segment Content UNIQLO business model The SPA models the integrated value chain planning, production, logistics, sales - revolving around customers. (Fast Retailing Co., Ltd., 2024). Local production & workforce 60% of UNIQLO’s production in Vietnam (Viet Nam News 2024) and 74% store managers are Vietnamese (The Star 2024) → Ensures agility, cost efficiency, and strong local relevance. Marketing environment SWOT analysis. 2. Micro environment: 2.2. Competitors: Segment Content Direct Competing with local brands (Yody, Canifa, Coolmate) due to competitive pricing and strong online presence. Yody reached a 2.7% share in 2024 (Euromonitor International 2025a). Shein – rapid growth (1.0% in 2021 → 3.3% in 2024) driven by low prices and livestreaming commerce (Euromonitor International 2025a). Indirect Sportswear brands (Adidas, Nike). Online marketplaces offering low-cost apparel (Shopee, TikTok Shop). → UNIQLO must differentiate via functional, durable essentials. Marketing environment SWOT analysis. S 1. SWOT Analysis: Strengths: Make UNIQLO more “Unique”: Superior Product Technology (Technology- Macro Environment): UNIQLO's proprietary R&D-led fabrics are a distinctive factor. They are perfectly suited to the environmental need to "protect them from the sun" (Euromonitor International 2025a) and the consumers’ want for "higherquality items" (Euromonitor International 2025b). O High Brand Trust (Customers- Micro Environment): W Under-Leveraged E-commerce Channel (TechnologyMacro Environment): E-commerce accounts for 21.7% of all apparel sales in Vietnam. However, UNIQLO's online sales in the Southeast Asia region are only "approximately 10% of total sales" (Fast Retailing Co., Ltd., 2024), creating a gap and under-leveraged distribution channels. High-level Price Point in a Price-Sensitive Market (Customers- Micro Environment): The brand’s focus on the core quality brand and minimal promotion has led to a higher price compared to other rivals. Thriving on the sustainability trend (EnvironmentalMacro Environment): The "sustainable fashion using green and recycled materials" trend (Euromonitor International 2025a) is a promising opportunity. UNIQLO's durable "LifeWear" model and RE.UNIQLO’s (repair/recycle) services are suitable for appealing to the 31% of consumers seeking "purpose-driven brands.” Boosting Consumer Co-creation (Customers- Micro Environment): In a market where 63% of consumers "only buy from brands that they trust completely" (Euromonitor International 2025b), this integration builds a level of trust that competitors cannot easily claim. Weaknesses: Make UNIQLO less “Unique”: Opportunities: Make UNIQLO more competitive: T Above 40% Vietnamese customers who “want to engage with brands to influence product innovation” (Euromonitor International 2025b) represent an abundant market. Threats: make UNIQLO less competitive: Intensive Competition (Competitors- Micro Environment): UNIQLO competes with both global giants (like Zara) and strong local competitors (like Yody), who are growing fast (2.9% market share) and are now directly competing on sustainability, not just price (Euromonitor International 2025a). Economic Headwind (Economic- Macro Environment): Inflation and a "hampered" economy (Euromonitor International 2025a) pose a direct threat. This would decrease the purchasing power of UNIQLO's middle-class base and increase the attraction of lower-priced competitors, threatening UNIQLO's high-quality model. Reflection: Environment influence and decision making. Caring for environmental impact: A company does not exist in a vacuum. Kotler and Armstrong (2022) stated that companies are influenced by external factors that shape how businesses develop and maintain successful customer relationships. This helps me realize that “caring” about the environment is not optional and theoretical; it is a survival logic. For UNIQLO, the environment presents an opportunity to tap into a consumer base that seeks "higher-quality items" (Euromonitor International 2025b), while also posing a threat in the form of "inflation" that makes them hesitant to spend (Euromonitor International 2025a). Therefore, a successful strategy leverages its strength (quality) to grasp the chance (demand for quality) and ease the threat (price sensitivity) through its long-term value. One insight I did not expect is that the environment does not just “affect” merely businesses - it silently shapes their identity. UNIQLO strongly focuses on functional, minimal, and durable clothes is not only its brand philosophy but also follows Vietnam’s climate, culture, and spending habits. The prerequisite to creating a successful marketing campaign is market insights in a real environment, not assumptions. Analysing the environment actually predicts the future direction of the brand itself. I can know where the demand is changing, how consumers are feeling, and what constraints cannot control but must adapt to. That is where competitive advantage starts. Reflection: Environment influence and decision making. Making decision (DIEP technique): Factor Describe Interpret (Influence) Evaluate Plan 2.1 Physical Environment (Climate) The "hotter weather" in Vietnam (Euromonitor International 2025a) is the physical factor. UNIQLO's products with AIRism and UV-cut parkas, which (Fast Retailing Co., Ltd., 2020) illustrated, were "especially popular." UNIQLO’s Lifewear and AIRism collection is a strategic advantage. However, the warm weather reduces demand for winter items: HEATTECH, meaning that the brand must boost summer items for annual revenue. UNIQLO should enhance the quality of AIRism and year-round cotton basic clothes. Seasonal campaigns can be organised through geography and climate factors - more HEATTECH in Hanoi, less in Ho Chi Minh City. 2.2 Social & Cultural Trend (Trust) The fact that 63% of consumers "only buy from brands that they trust completely" (Euromonitor International 2025b) is a dominant social factor. Advertising and operational decisions to build trust through tangible, local commitments like "60% Made in Vietnam" (Viet Nam News 2024) and local artist collaborations. This alignment makes the brand more relatable to Vietnamese customers, but also pressures the brand to maintain the product quality and local relevance. Launch loyalty programs or community events to strengthen trust and engagement in the long term. Adapting offerings to local tastes through non-stop collecting of customer feedback. 2.3 Despite Technological Environment (Digital) The rise of e-commerce as a "key growth driver" (Euromonitor International 2025a) is a significant technological factor. Integrating digital tools into its marketing. Reinforcing e-commercial and online platforms: To meet customer needs, UNIQLO intend to expand services that create a variety of purchasing and deepen integration of online and store (Fast Retailing Co., Ltd., 2024). Within the Vietnamese apparel market context, livestreaming and social-commerce are noted as growing engagement tools (Euromonitor International 2025a). Increasing in-store digital experiences. Despite implementing modern technology can boost customers' convenience and the global brand position, it requires collective efforts for seamless coordination between online and offline systems. Further improve O2O services and update easy-to-understand product contents on the website. 2.4 Competitive Landscape (Competitors) Vietnam’s apparel market is highly competitive, with strong global brands and rapidly expanding local players (Euromonitor International 2025a). Be unique by focusing on functional basics rather than fast-fashion trends. Creating a strong competitivene ss in quality, but may reduce attraction for fashionable shoppers influenced by trend-driven brands. Releasing more limited collections and localised marketing while maintaining the core of Lifewear. REFERENCE LIST: • Asia Plus Inc. (2017) Vietnam fashion behaviors survey, SlideShare website, accessed 21 November 2025. https://www.slideshare.net/slideshow/survey-about-vietnamese-behaviors-about-fashion/7795 6808 • Asia Plus Inc. (2018) Fast fashion recognition and Uniqlo images, SlideShare website, accessed 21 November 2025. https://www.slideshare.net/slideshow/fast-fashion-and-uniqlo-recognitionconverted/1130876 91 • Bhasin, H. (2024) Marketing Strategy of Uniqlo – Uniqlo Marketing Strategy, Marketing91 website, accessed 20 November 2025. https://www.marketing91.com/marketing-strategy-of-uniqlo/ • Bui T H and Le V D (2023) ‘Survey on fashion consumption trends of Vietnamese young people’, Business Management GPH International Journal, 06(10):165–184, doi:10.5281/zenodo.8427975. • Delteil B, Francois M, Mai D & Seong J (2021) The new faces of the Vietnamese consumer, McKinsey & Company website, accessed 21 November 2025. https://www.mckinsey.com/featuredinsights/future-of-asia/the-new-faces-of-the-vietnamese consumer • Euromonitor International (2025a) Apparel and footwear in Vietnam, accessed 20 November 2025, Euromonitor Passport. • Euromonitor International (2025b) Consumer Lifestyles in Vietnam, accessed 20 November 2025, Euromonitor Passport. • Fast Retailing Co., Ltd. (2020) Annual Report 2020: LifeWear, Changing the World, Fast Retailing website, accessed 20 November 2025. https://www.fastretailing.com/eng/ir/library/pdf/ar2020_en_05.pdf • Fast Retailing Co., Ltd. (2024) Integrated Report 2024, Fast Retailing website, accessed 10 November 2025. https://www.fastretailing.com/eng/ir/library/pdf/ar2024_en_sp.pdf • Fast Retailing Co., Ltd. (2025a) Group Outlets – Vietnam Number of Stores, Fast Retailing website, accessed 18 November 2025. https://www.fastretailing.com/eng/group/shoplist/ • Fast Retailing Co., Ltd. (2025b) UNIQLO Vietnam – Store Staff Recruitment, Fast Retailing website, accessed 20 November 2025. https://www.fastretailing.com/employment/en/uniqlo/vn/storestaff/ • Fast Retailing Co., Ltd. (n.d.) Homepage, Fast Retailing website, accessed 21 November 2025. https://www.fastretailing.com/eng/ • Kotler, P. and Armstrong, G. (2022) Principles of marketing: 18th edn, Pearson Education, Harlow. • Ngo TTA, Vo CH, Tran NL, Nguyen KV, Tran TD & Trinh YN (2024) Factors influencing Generation Z’s intention to purchase sustainable clothing products in Vietnam, PLOS ONE, THE END. THANK YOU FOR YOUR READING Lecture: Mrs. Hien Tran (Lucie Tran) Class: MKTG1205 Marketing Principles Prepared by: Ding Dang Bao Duy – s4208581
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