Chapter 15 - Retailing

When you first step into a Uniqlo retail store in New York, you feel welcome and free. Contrary to other retail stores, Uniqlo offers an independent shopping experience for their customers. By this I mean that, you won't be bombarded by employees asking you if you need any help. This clearly gives the customer a sense of freedom and therefore they perceive a friendly welcome. 

In my visit to the 5th avenue store, I was greeted by an employee who welcomed me with a Hello and friendly smile. I knew that I was there to do the class assignment required for my blog, so I headed straight to business. In my arrival to the women's section I headed towards the Hello Kitty T-shirts display. If you guys can recall from my "Ethics and Social Responsibility" blog, Uniqlo had join forces with the Hellosmile organization to raise awareness regarding cervical cancer. In my arrival, I saw an employee who was re-stocking the hello kitty shirts and so I asked her a few questions.

From my conversation with this particular employee, I can tell that Uniqlo strives high to teach their employees about their products. This particular employee was able to tell me the what's and why's behind the Hello Kitty Shirts. Without any hesitation she was able to tell me that part of the sales would go towards the Hellosmile organization. She also knew what Hellosmile was about and told me that, they're an organization that seeks to raise awareness about cervical cancer.

In this particular day (Friday March 09), the 5th Avenue retail store was holding an event to commemorate the first anniversary of the Japan earthquake and tsunami. Milk bar threats were given out in the third floor, and from my experience these threats were quite tasteful and not too sugary. This experience also allowed me to learn more about the Japanese culture throughout their delicious treats.

Chapter 6 - Consumer Decision Making

Need Recognition- The External Stimuli; Advertisements throughout New York City's public transportation. Big billboards, advertising the grand opening of the 5th Avenue and Herald Square Uniqlo stores were seen all through out the five Boroughs of New York during the fall of 2011. The positive impact was reflected when large amunts of people showed up both openings. Lines of people went all around the block in which the 5th avenue flagship store is located. I know this because I was one of the people waiting to shop in the opening day.

 

Information Search-  Marketing Control Information Source; One of the products that was highly promoted during this period of time, was Uniqlo's HEATTECH shirts. Throughout New York City's public transit, there was a widespread of billboards depicting shirts, that according to Uniqlo' will keep you warm during the fall and upcoming winter. This ad was clearly 'On Point' because we were in fall season and winter was soon approaching.



 

Evaluation of Alternatives and Purchase-  New Yorkers hardly had to do any research or even think twice about purchasing Uniqlo's products. A main reason for this was their price advertisements that covered NYC from early August to early November. In this ads, price listings showed New Yorkers that Uniqlo was literally GIVING AWAY clothes! A clear example of this is the prices that Jeans were being sold for. Jeans that regularly sold for 59.50 were being sold for 9.90 dollars. These clearly showed that the Grand Opening of both stores was something that you couldn't AFFORD TO MISS.

 

Purchase- The low prizes and high quality of clothes from Uniqlo, freed New Yorkers from having to worry about paying methods. New Yorkers knew that this type of offers were rare to find, specifically in high quality clothes. Therefore they were easily persuaded to pay with their credit cards, knowing that they might be at risk of debt or even worse, knowing that they're in debt.

Postpurchase Behavior- To guarantee customers that they had made a wise decision in buying a Uniqlo product,  Uniqlo gave away bags to each customer that exited the store with a shopping bag.

In Depth: Developing A Global Vision

Below are the dates from past to present in which Uniqlo stores have been open overseas.

• October 2000 Online store opens for business
• September 2002 First Uniqlo China store opens in Shanghai
• December 2004 Uniqlo Enters a joint venture with South Korea's Lotte Shopping Co Ltd to expand the Uniqlo business in the South Korean Market
• September 2009 -First Uniqlo South Korea store opens in Seoul
  -First Uniqlo U.S store opens in New Jersey (closes in 2006)
• November 2006 Uniqlo New York Soho Store opens
• November 2007 Uniqlo 311 Oxford St Store opens in London
• December 2007 First Uniqlo France Store opens in La Defense, Paris
• August 2008 Unqilo establishes a joint venture with Wing Tai Retail Pte. Ltd. To expand in Singapore
• April 2009 First Uniqlo Singapore store opens in the Tampines 1 Mall
• October 2009 Uniqlo Paris Opera store opens in France
• April 2010 First Uniqlo Russia store opens in Moscow
• May 2010 Uniqlo Shanghai store opens in China
• October 2010 First Uniqlo Taiwan store opens in Taipei
• November 2010 First Uniqlo Malaysia store opens in Kuala Lumpur
• September 2011-First Uniqlo Thailand store opens in Bangkok-Second Uniqlo Taiwan store opens in Mingyao
• October 2011-Second New York Uniqlo store opens in 5th Avenue
  -Third New York Uniqlo store opens in Herald Square
• November 2011 Second Uniqlo store opens in South Korea in city of Myeongdong

In addition, a first Uniqlo store in the Philippines is set to open in June of this year

Ch. 5 - Developing a Global Vision



Uniqlo 5th Avenue store



The opening of the 5th avenue and Herald Square Uniqlo stores, was the main reason why I chose UNIQLO as my blogging company. I knew that two grand consecutive openings in the same City only meant that the company was doing more than great. Furthermore I knew this was a sign that UNIQLO had a great deal of information required for my blog.

By opening their online shopping site, Uniqlo immediately located itself in the international marketplace.

  

One of Uniqlo's strategies to pursue people from buying their products was launching a facebook page. Here, existing and new customers can upload their pictures in which they exhibit their latest Uniqlo clothing trends. Those who do so, have the chances of being selected as the winning "Look Of The Week." This strategy bring brilliant outcomes and profits to Uniqlo because people see this as a chance of getting their 15 minutes of fame. Yet this chance can only come if you purchase Uniqlo clothes. Notice the marketing skill used in here ?

Raching out to their marketing target through the social media of Facebook, Uniqlo has been able establish a relationship with their customers. In addition, Uniqlo has yet once again, establish to  set itself apart from their competitors.

Ch. 4 - The Marketing Environment

In the fall of 2010, Uniqlo had embraced a new slogan, known today as "MADE FOR ALL." This may sound like a relief to those who have trouble finding clothes for their unique bodies. Yet in a recent visit to the Uniqlo in SOHO New York, I've notice that this wasn't the case at all. You would think that because Uniqlo's slogan is "MADE FOR ALL" their target market would be anyone and everyone.

If Uniqlo truly makes clothes for all, then perhaps they would be selling Jeans and Chino Pants in sizes for over weight and petite people. Speaking as an existent and regular customer, I have never found  Chino Pants or Jeans my size at Uniqlo. This may not be the case for other people. Yet if Uniqlo's target market are those between ages 18 to mid 50s then they should start developing bottoms for overweight and petite people.

Despite not ever finding my Jeans size at the Uniqlo Store in SOHO New York, I searched their online shopping site to try and see if I had any luck. In doing so, I found that indeed, Uniqlo does carry Jeans in a small size. However the smallest size they carry is a waist size of 29 and their largest size is 34. In regards to their well known Chino Pants, the only information they provide in regards of sizes is the common categories of small, medium, large and extra large. This leaves the not so average person overwhelmed due to the fact that these categories are to broad and do not specify waste or length sizes. This same problem also occurs within the women department in which a petite or over weight female won't be able to find her exact size.

So, Who is truly Uniqlo's target market?

The answer can be perceive by taking a look at Uniqlo's shopping site. In here you would come across models in their early to mid 20s who are in most cases slim and tall.

Ch. 3 - Ethics & Social Responsibility

According to Uniqlo's Corporate Social Responsibility website, their vision is "to make the world a better place through planning, producing and selling clothing, one of life's basic necessities." To ensure that they fulfill their social responsibilities, "Uniqlo designates priority issues to each category stake holder. We particularly consider corporate governance, compliance and the environment as themes common to all stakeholders, and thus include them as priority issues." Below are the most resent contributions from Uniqlo to our society.

• UNIQLO to Donate 3,500 Fleece Products for the 2012 Special Olympics

Uniqlo has demonstrated its ongoing commitment to support the Special Olympics since August 2002. The Special Olympics is an international sports organization that provides opportunities to athletes with intellectual disabilities. Back in 2002 when Uniqlo was first starting to be recognized by the public, it donated more than 37,000 articles of clothing in support of the Special Olympics. By doing so, Uniqlo gain the public respect do to the fact that not many starting companies donate their products. As for this year, Uniqlo will once again donate approximately 3,500 articles of clothing such  as; Fleece Hoodies, Fleece Full Zip Jackets, Fleece Reversible Jackets, official uniforms, Airtech jackets, windbreakers, zip-up hoodies, caps and T-shirts.  In addition of donating a wide variety of its clothing, Uniqlo would also be sending 36 fast retailing group employees to assist in this competitive athletic event as volunteers.

• Hello Kitty T-Shirts To Hit UNIQLO Stores In March For Collaborative Project

This past week on February 7, Uniqlo released a statement through their CSR website, that it had join forces with Hellosmile. Hellosmile is a global organization that seeks to raise awareness about the prevention of cervical cancer. This organization has chosen the internationally adored feline character of Hello Kitty to be their mascot. To help this organization, Uniqlo would start selling exclusive Hello Kitty T-shirts for woman and children. A portion of the proceeds from all Hello Kitty T-shirt sales would be donated to support such organization. This exclusive Hello Kitty shirts will start hitting UNIQLO stores in Japan and 11 other overseas markets from early March 2012.

• UNIQLO Launches Scholarship Program in China

After signing an agreement in December 12, 2011 with the China Education Association for International Exchange, Uniqlo is pleased to announce that it would offer scholarships to university students in China. This Uniqlo Scholarship Program (TBD) as it is called, would "help the next generation of talented young chinese individuals to play active roles in the global economy and contribute to China's future growth by offsetting tuition fees." It would also provide scholarship recipients with opportunities to participate in exchanges with globally active business managers and other people who work internationally. To be eligible to apply to this scholarship, students must be undergraduate. Students must also be enrolled at selected universities in China. According to Uniqlo's CSR website the duration of grants would be of five years. The scholarship program is set to start in September 2012.

Ch. 2 - Strategic Planning for Competitive Advantage

Uniqlo's sound reputation for simple, basic designs and top quality materials has set the flagship store aside from their competition. Their main theory aims to respond to the needs of contemporary customers with versatile yet demanding lifestyles. By developing this ideology, Uniqlo establishes once again that their products are MADE FOR ALL.

Tadashi Yanai, President and CEO of Uniqlo has also established a business model name SPA, which embraces all stages of the business, from  design and production to the final sale. By referring to this model Uniqlo successfully differentiates itself from their competition aside from developing unique products. One key factor that has helped Uniqlo maintain its high sales is their well organized meetings. At these meetings the board of directors  decide when to increase or reduce production during a season. Doing so guarantees that there won't be a surplus nor a shortage in merchandise.

This method is crucial when it comes to making a profit because if there's a surplus of merchandise the listing prize of products would have to go down. In the case of a shortage, the clientele would be face to purchase similar products from Uniqlo's competition.

You might be asking yourself why Uniqlo doesn't pushes their brand logo like store flagships such as, American Eagle, Hollister or Abercombrie and Fitch. Why not further promote their brand? Might be another question. The answer might be narcissistic, yet Uniqlo believes that their products speak for themselves. Their denim jeans are develop from a specific spinning and dyeing methods from the world-renowned Kaihara Corp. They have also develop new functional materials such as HEATTECH, which is a synthetic fiber maker in collaboration with Toray Industries Inc.

In the graph below you can see the that Uniqlo's strategic method to develop casual clothes using high quality methods has paid off. This places Uniqlo in fourth place world wide within the Apparel Industry.