101205033 彭怡華
101205082 林佳欣
101205054 許咨瑩
101205080 王怡方
101205092 許裕欣
101205084 蔡依珊
Managerial Economics Group
Presentation
Topic: UNIQLO Business
Contents
Outline of UNIQLO’s Business
•
Marketing/ Pricing Strategies/SWOT Analysis
•
What are UNIQLO’s 8P, 1S, 1B, 2C
Second line of UNIQLO: GU
Are GU and UNIQLO products substitutes or complements?
Compared to another famous foreign brand-ZARA
Which company is the winner?
Future Strategies we advise…
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Outline of UNIQLO’s Business
UNIQLO Basic Information
source: http://www.uniqlo.com/tw/zh/company/corp_about/index.html
Clothing Industry
source: 行政院主計處
Clothing Industry Supply Chain
source: http://goo.gl/ZJzMvC
UNIQLO Management Ideas
 Manufacture and sell clothes suitable for everyone.
 Emphasis on the pursuit of reflecting personal
features by who they are rather than what they wear.
 Fast Retailing
UNIQLO Management Characteristics
 Environmental Protection: Recycle and manufacture
plastic into polyester fiber as the material of clothes.
 Cheap: Shorten the supply chain and sell products
directly. The average sell price is 60% lower than
costumes of its competitors.
 Quality: Roll out various collections for customers;
provide several colors for fabric; severe supervision
through manufacture process.
 Outlet: Fast selling distribution mode plus Ecommerce via commercial website.
UNIQLO CSR
(Corporate Social Responsibility )
A clip is here! Click right button(按右鍵) and
select “Open the link”(開啟超連結)
https://www.youtube.com/watc
h?v=EwLaKuWJYqc
The topic of clip: “The Power of Clothes”
It takes you only 7 minutes to watch an interesting clip!
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Marketing/ Pricing Strategies
8P
Product
(產品力)
Personal Sales
Pricing
(價格力)
Public Relations
Place
(通路力)
Promotion
(推廣力)
(人員銷售)
(公關力)
Physical
Environment
(實體環境)
Processing
(流程)
Product
(產品力)
• UNIQLO developed the goods that customer wants
and pursue of fashion, innovation, high quality,
additional values, sense of design, which touch the
heart of customers deeply.
• Their commodities has been described as capable of
changing the world in the winter.
Pricing
(價格力)
• Low price but high quality is the pricing strategy UNIQLO
insisted.
• The pricing strength create the biggest competence.
• Discount
– Season discount(per season):UNIQLO will discount when
seasons exchange to reduce products in stock. The products
are often off season. Size doesn’t necessarily fit.
– Sale of clearing stock (per month):The products which is
launch last month will be on sale. It is usually decreasing
NT100 per month。
– Annual Sale(per weekend):it may discount on weekends，
the price of products will discount from 10 to 100 dollars。
Place
(通路力)
• UNIQLO set up at various places in response to
customer needs, different customer groups, and
transform its store style.
• By setting up “large store” to satisfy all kinds of
customers.
• By setting up “small store” to mark off district
property.
• By setting up “mini-store” to meet customers’ in time
needs.
Promotion
(推廣力)
• Advertising is the love letters written by enterprise to
customers, which is the strategy of UNIQLO.
• TV advertising, oral transformation, celebrity
endorsements announced beyond the borders in the
Internet.
• Users like to promote spontaneously to create the
brand image of UNIQLO.
Internet Marketing
Janpan untill September 2010 founded their officail website.
It will often has activities on the website Ex:Buy short and
give selfie stick.
UNIQLO successfully used the power of the Internet
community to promote the brand and local promotional
activities.Ex: Facebook & Twitter
Collective bargaining marketing tactics
UNIQLO LUCKY COUNTER
The Twitter’s activities is “More Tweets ,Lower Price”
Cooperate with Line
• The use of discount will hold in different time by
notification of LINE.
• They will help each other to advertise.
Advertising for each other(UNIQLO &LINE)
• UNIQLO and LINE launched LINE FRIENDS series
of T-shirt.
• If consumers buy the T-shirt on the shop or website of
UNIQLO, they can get LINE sticker(貼圖) .
Public Relations
(公關力)
• UNIQLO makes good use of the news media,
manufacturing-related reports, opportunity for
exposure.
• Weekly reports, related UNIQLO book publishing are
both topics raised fever, caused by UNIQLO
whirlwind.
Personal Sales
(人員銷售)
• When you enter the UNIQLO, employees call sound
loud and clear so that the whole store full of vitality.
• “Self-consumption” which let consumers can
comfortably walk into the store, without being
disturbed clerk selection of merchandise on their own.
Employees must figure out the right time, the right to
make services and explain to the customer.
• UNIQLO advantage is in store site, the manager and
the whole store clerks exhibited energetic advantage.
Physical Environment
(實體環境)
• UNIQLO merchandising, store atmosphere, interior
decoration, layout, energetic service staff, providing
consumers with a good shopping environment,
enhance consumer willingness to buy.
Processing
(流程)
• UNIQLO using SPA processes - from design,
production, logistics, sales has been operating, highly
integrated design, production and access all aspects.
1S,1B,2C
Service
(服務)
Branding
(品牌)
Customer
Relations
Management
(顧客關係管
理)
Corporate
Social
Responsibility
(社會責任)
Service
(服務)
• UNIQLO creates added value for customers,
and have the heart that wanted to develop
merchandise customers want.
• In response to customer needs, offering all
kinds of stores, providing better services, and
call center setting up to provide the fastest
service.
Branding
(品牌)
• UNIQLO brand appeal - "cheap, fashionable,
high-quality" three pillars, and to establish a
flagship store brand, widely recognized by
consumers.
• Global business strategy, make UNIQLO to be
the international brand.
Customer Relations Management
(顧客關係管理)
• Be sure to listen to the voice of customers.
• UNIQLO receive from the customer service
center, shops, webmail reflect views average over
1,000 daily. According to internal company
regulations, any clerk, switchboard and customer
service personnel received the customers’
reflection should upload on the system
immediately.
• These complaints need real-time tracking process,
maintaining the best relations with customers at
any time.
Corporate Social Responsibility
(社會責任)
• UNIQLO pursued various CSR activities
actively, which is the law of survival of
enterprises comprehend by the president from
Drucker books.
• Commodity recovery plan, the disabled
employment, environmental protection and
social contribution, UNIQLO hope that
through these activities make the presence of
UNIQLO bringing more happiness to people.
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SWOT分析
Strengths
(優勢)
•
•
•
•
•
•
•
1. Affordable, high-quality
2. Fashion
3. Brand recognition
4. The products are suitable for all ages
5. Innovation and varied styles
6. Diversified products available wild
7. Good service
Weaknesses
(劣勢)
• 1. The price in Taiwan is more expensive than
in other countries.
• 2. There is higher probability of wearing the
same type of clothes as the classmates.
Opportunities
(機會)
• 1. The number of potential customers is high.
• 2. The global market is large. There is
unlimited space for development.
• 3. Can make additional branches in Taiwan
• 4. Television advertising, leaflets increase
consumer brand awareness
Threats
(威脅)
• 1. Compete with homogeneous, cheap and
popular brands, such as H & M and ZARA.
• 2. Competition with other fashion brand in the
Internet
• 3. Low-cost advantage to be tested due to the
higher costs now.
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The second line of UNIQLO
Business concept of GU
• 「Let the fashion be free」
Provide everyone with a friendly price, enjoy the
fun of fashion easily.
• Unlike UNIQLO focus on casual and leisure wear,
GU provides more fashionable products.
• And like ZARA、H&M 、Forever21, which
emphasize「 FAST FASHION」, GU has sped up
its products changing cycle to make the customers
always have the feeling of freshness and always
rush to purchase.
Pricing strategy of GU
• The Japanese homophone of GU「nine（Kyu）」
implies the pricing strategy of 990 yen（Kyu-Kyu）
• The price of stall, but the quality of brands
Pricing strategy of GU
• Strength：
• In contrast, the prices are lower than UNIQLO
for about 30%～50%.
• Weakness：
• But the prices in Taiwan are higher than the
prices in Japan for more than 20%. (￥990 equals around 250NT)
Discount strategy of GU
• Third-degree price discrimination：
Special prices for online members (use it like coupon)
Show this membership card when you settle the bill
You will get the special price！
Discount strategy of GU
• Goal：
The motive that a company provides coupon is to conduct
price discrimination on different groups of consumers.
「Those people who use the coupon will have higher price
elasticity than those who don’t. 」
People who have higher price elasticity are more sensitive
on price changing. So people whose costs on time are lower
will have higher usage on coupon, and which means people
whose usages of coupon are higher will have higher price
elasticity.
So, the company imperceptibly charges lower price on
people whose price elasticity are higher, and charges
higher price on people whose price elasticity are lower,
which forms the price discrimination.
GU
VS.
UNIQLO
GU
UNIQLO
Emphasize the low price of stall
Emphasize the image of the
brand and the high quality,
exuberant function products
Short products changing cycle,
create the brand’s survival
strength under the cycle of
changing the products quickly
Focus on the group of younger
Focus on the group of customers
customers who consider the
who are loyal to the brand, and
popularities more important, and have lower price elasticity
have higher price elasticity
GU
VS.
UNIQLO
• Will the substitute goods relation and the
complement goods relation crowd out the profit?
No, because they are neither substitute goods nor complement
goods , and the reasons are：
-different price orientation
-focus on different groups of customers
-differentiation strategy on products:
GU launches thematic
products, like products only
on Christmas, and UNIQLO
is more like basic and
classical products.
GU
VS.
UNIQLO
• Why create GU as the second line of
UNIQLO?
• To take down the profit from those potential
buyers which are not included earlier
$
$
Profit of UNIQLO
Price of UNIQLO
P*
Total profit
Price of UNIQLO
Potential buyers
Price of GU
mc
mc
Q*
if just UNIQLO
Q
Q
UNIQLO & GU
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Comparison with ZARA
UNIQLO v.s ZARA
-ProductUNIQLO
ZARA
Position
Casual, artistic design.
(UT--Cooperate with
artists)
• Modern, fashion design.
• Masstiage (平價奢華)
Strategy
• Focus on basic style
• Mass production
• Guaranteed quality
• Various style
• Fast fashion--small stock in
stores.
Price
Fair price
Higher price
Analysis in Product
• Economic of scope------>ZARA(various products,
including shoes, accessories, bags)
• Economics of scale------>UNIQLO(mass production)
• Demand elasticity------>if products of ZARA are
considered to be luxuries(奢侈財), demand elasticity will
be negative. If considered to be common goods(一般財),
the demand elasticity will be lower because the substitutes
are relatively fewer.( emphasis on design)
UNIQLO v.s ZARA
-PromotionUNIQLO
ZARA
Advertisement
• Billboard
Very few ad. (0.3~0.4% of total
• Print media (ex. Magazine, expenses)
newspaper..)
• Online media
• Network(Facebook,Line…)
• Celebrity representative
Promotion
activities
•
•
•
•
Anniversary sale
Price-off promotion
UNIQLO lucky counter
UNIQLO lucky machine
End-of-season sale
Analysis in Promotion
• Advertisements have a critical function: increase market
share------>UNIQLO
Notes: The cost of advertising should be evaluated.
• In general, clothes are necessities to most of customers, so
the demand elasticity will be negative. More discounts
will keep more loyal customers------>UNIQLO
UNIQLO v.s ZARA
-PlaceUNIQLO
Special
ZARA
Stores open in…
• Department stores
• Suburban districts
Stores opens in …
• popular shopping district
Online shopping
Online shopping
• SPA:
SPA means that UNIQLO
produces their own clothing
and sell it exclusively (Vertical
integration)
• Logistics Integration ---200 km long
conveyor belt underground
connecting with logistic center and
factory which produces the clothes.
Analysis in Place
• It is more convenience for consumers to access (more
selling locations) ------>UNIQLO
• Vertical integration can reduce costs and increase the
supply elasticity(adjust more quickly)
------>UNIQLO & ZARA
UNIQLO vs ZARA
-Performance in 2014-
Resources :
Results and presentations from INDITEX
Resources : Annual report from Fast Retailing
The most famous brand of casual clothes in Taiwan
Ranking
Brand name
scores
網路聲量
1
H&M
2.3
46,892
2
UNIQLO
1.9
16,208
3
GAP
2.1
8,916
4
ZARA
1.7
8,445
Resources: Dailyview
• According to the data in two pages above, UNIQLO
has a higher rate of growth in 2014, and they even
predict higher rate in the coming years.
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Future Strategies We Advise…
We think…
UNIQLO can vary its clothes style, not
focusing only on basic style.
◆
Because the profit from $1 advertising depends
partly on (P-MC), with comparatively higher cost
on advertisements and lower price, UNIQLO
should do more detailed cost-benefit analysis.
◆
The reason UNIQLO dominates other fair
price brands is that it has higher quality, so it
has to maintain its good control on the quality
of products.
◆