Case1 Uniqlo

Page 1: Introduction

  • Course Structure

    • Extra credit details can be found in the course syllabus.

    • Case overview briefly mentioned regarding the Uniqlo session.

    • Slides provided do not encompass the entire case; students should prepare for possible exam questions on unmentioned parts.

Page 2: Fast Fashion Brands

  • List of Fast Fashion Brands (Non-Exhaustive)

    • boohoo, ARKET, COS, Bershka, ZARA, GAP, ESPRIT, H&M, FASHIONNOVA, FOREVER 21, MANGO, MONKI, & Other Stories, OYSHO, Massimo Dutti, NEWLOOK, MISSGUIDED, NASTYGAL, NEWYORKER, SHEIN, PRIMARK, ASOS, PRETTYLITTLETHING, RIVER ISLAND, Stradivarius, TOPSHOP, UNIQLO, URBAN OUTFITTERS, ZAFUL, ROMWE, WEEKDAY.

Page 3: Competitive Analysis

  • Comparison Across Inditex, H&M, and Uniqlo

    • Focus on Product & Design, Production methods.

    • Additional resources are available on the Canvas assignment page.

Page 4: Make or Buy Decisions

  • High-level Summary of Strategies

    • Advantages of the Buy Option:

      • Greater flexibility in managing demand fluctuations.

      • Effective scaling of supplier contracts.

      • Negotiating advantages with multiple suppliers.

      • Access to external capabilities, avoiding in-house development.

      • Less managerial strain; focus on core competencies.

    • Advantages of the Make Option:

      • Enhanced control over production activities.

      • Quality control assurances.

      • Reliability of supply and coordination with adjacent processes.

      • Increased adaptation speed without renegotiation.

      • Investment in specialized assets, protection of IP, and in-house learning retention.

Page 5: Stock Age and Offerings

  • Age of Stock Analysis

    • Comparison of stock ages across the largest apparel retailers as of Apr 15, 2021:

      • H&M: 0-3 months, 3-6 months, etc.

      • Zara: 18 items in 6-9 months, 20,860 products overall.

      • Uniqlo’s offerings also compared based on product age and quantity.

  • New Arrivals Comparison

    • Monthly new product arrivals from Jan 2018 onwards:

      • H&M leading with 5,000+ items, followed by Uniqlo and Zara.

Page 6: Market Decision Structures

  • Types of Market Decisions

    • Arm’s length market transactions vs. integrated arrangements:

      • Short term contracts, long-term contracts, equity alliances, parent-subsidiary relationships, in-house activities, joint ventures.

    • Case Examples:

      • Foxconn-Apple partnership for specific investments.

      • Toyota's equity alliances and joint ventures to secure supply chains.

Page 8: Uniqlo's Challenges in America

  • Retail and Expansion Strategy

    • Overview of Uniqlo’s challenge to establish a significant presence in the U.S. market.

    • Commentary from Uniqlo's US CEO and CMO on future strategies for growth and engagement in America.

  • Key Challenges:

    • Competition with established brands.

    • Adapting marketing strategies to U.S. consumer preferences.