5 Reasons behind Uniqlo’s success

Retail analyst Edited has put together a break down of Uniqlo’s
strategy for success. According to Edited’s findings, Uniqlo is the
world’s third largest retailer, behind only Zara and H&M. And Uniqlo
doesn’t fit into the typical fast fashion models as Zara and H&M do.
Rather, Uniqlo focuses on sustainability and moderate product
offerings.

The retailer is valued at 7 billion dollars and has ambitious
expansion plans ahead, such as a plan to double its number of stores
in South East Asia and Oceania in the next four years. Uniqlo
currently has about 180 stores in the region. The retailer is also in
the process of opening four new store locations in Canada this
season.

Uniqlo’s emphasis on low-cost, everyday styles might make the
retailer easily confused with a fast fashion chain, but it in fact
operates very differently from retailers like Zara and H&M. Unlike a
fast fashion brand, Uniqlo delivers large orders in consistent
manufacturing batches to achieve maximum value. Its focus on well-made
basics and values rather than quick trends keeps the retailer unique.
According to Edited’s findings, these principles contribute to the
retailer’s success.

In its research, Edited sought to understand Uniqlo’s strategy
better, and broke this strategy down into a few key elements:
technology, inclusivity, price points, moderate selections and
sustainability.

Tech focus

Tadashi Yanai, chief executive officer of Uniqlo’s parent company,
Fast Retailing, has called Uniqlo a “digital consumer retail company”
rather than an apparel company. Uniqlo has invented signature
technological fabrics, such as HeatTech to keep a wearer warm and
Airism to help a wearer cool down. These tech fabrics help to further
Uniqlo’s mission of quality basic items.

Inclusivity

Uniqlo’s slogan, “Made for All,” is clearly represented in its
consumer base. The retailer’s shoppers come from all demographics,
income levels and age ranges. Edited credits this to the simplicity of
Uniqlo’s product offerings—it shows few patterns and trend—as well as
the inclusivity of its size range.

Targeted price point

Edited determined that 35 percent of Uniqlo’s offerings fall into
the under 10 dollar price range, and 7 percent is priced over 50
dollars. This allows almost 25 percent of Uniqlo’s products to fall
between 10 and 40 dollars, emphasizing both quality and
affordability.

Curated offerings

Uniqlo has decreased its assortment by 4.4 percent in the last 12
months, showing that it looks at product design very thoughtfully. By
comparison, Zara expanded its assortment by 4 percent in the last 12
months, and H&M expanded by just over 50 percent. Uniqlo offers a
careful selection of seasonless, essential products so as to not
overwhelm consumers with trends and instead focus on meeting their
needs.

Sustainability

Today’s shoppers make purchasing decisions based on whether a brand
meets their values, so Uniqlo’s concern for sustainability resonates
with its consumer base and works to secure a long term brand-consumer
relationship.

Photo: Uniqlo Facebook