Uniqlo Retail Stores in Japan: Turning Challenges into Opportunities



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Code : COM0045

Year :
2004

Industry : Retailing

Region : Japan

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Fast Retailing Co., owner of Uniqlo apparel stores has revolutionised the Japanese retailing market through its low price strategy. It kept costs low by bypassing Japan's archaic distribution system and effectively making use of the low-cost manufacturing facilities in China. However with competitors replicating its low-cost strategy it was time for Uniqlo to devise ways to remain at the top. The focus began to shift from 'high quality low price' to 'high quality, low price and more variety'. The company also had to deal with resistance from Japanese textile industry associations against cheap imports from Japan.

Pedagogical Objectives:

  • To discuss the complexities of retailing in Japan, how Uniqlo tasted success by deviating from the traditional way of distribution, and how the company employed a low cost strategy to succeed in the price sensitive market, during the economic downturn
  • To discuss the major challenges that are ahead for Uniqlo and how the company is turning challenges into opportunities for its business.

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    Keywords : Fast Retailing Co; Uniqlo; Retailing in Japan; Managing in Troubled Times Case Study; Distribution system in Japan; Outsourcing to China; Speciality retailer of private label apparel; Merchandising; Transitional safeguard; Victim of its own success

    Contents :
    Traditional retailing in Japan: Byzantine Distribution
    Uniqlo's Business model: Fast Retailing, the Fast Food Way!
    Implications for the Retail Industry and the Economy


    Case Introduction >>


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