MKTG5007PAULGILLESPIE

UNIQLOMARKETINGANALYSIS
EXPANSION INTO CANADA

AlysandraNoce
ArianaNunes
KellieCavallin
MatthewPaonessa
OliviaOsatchuk
SimranKaur

TableofContents
CompanyOverview

ExecutiveSummary

MarketOverview

StrategicDomainAnalysis

SWOTAnalysis

PEST

TargetMarketandSegmentation

12

ProductandServiceOffering

13

MissionStatementOfUNIQLO

14

MarketingObjectivesandStrategy

15

MarketingMix

17

Financials

21

ContingencyPlan

22

CompanyOverview
UNIQLOwasfoundedinthelate1940sinJapan.Thecompanystartedoutasasmall
divisionofalargeJapanesemensclothingretailer.Duringthelate1980swhenJapanreached
largeeconomicgrowth,thecompanyprogressedintowhatitistoday.Thecompanydecidedon
thenameUNIQLOtobeacombinationofuniqueandcoolclothing.UNIQLOisaglobally
recognizedapparelcompanyestablishedinthe1980swithintheJapanesemarket.Foundedby
TadashiYanai,UNIQLOpositionsitselfasatechnologicalcompany,ratherthanafashion
company.Thisisattributedtotheconstantinnovationoftheirheatretainingsyntheticmaterial
calledHeatTech.Withanemphasisonprovidinguniqueclothing,establishingandinnovating
technologiessuchasHeatTechistheirultimateobjective(FastRetailing,2012).UNIQLOtoday
servesasaunisexclothingbrand,knownforitsmodernstyles,highqualityandfunctionality.
UNIQLOpositionstheirproductsasdailylifewears,suggestingthatinsteadofexpendingallof
theirenergyandresourcestostayontopofcurrenttrends,theyprovidefashionableitemsthatdo
notgooutofstyle.UNIQLOhasaglobalpresenceinfourteencountriescurrently,andplansto
extendtovariousothermetropolitanareasasitexpands(FastRetailing,2012).While
introducingclothesaccordingtothelatestfashiontrends,UNIQLOfocusesontheinnovation
andfunctionalityoftheiritems.Itslowpricesandhighqualityareessentialinprovidingthe
UNIQLOexperiencetoitscustomers.
ExecutiveSummary
UNIQLOisAsiaslargestandmostpopularfashionretailer.Onaglobalscale,UNIQLO
iscatchinguptootherretailerssuchasH&M,TheGapandZara.Sincetheearly2000s,
UNIQLOhasbeenexpandingintotheglobalmarket.WithUNIQLOenteringCanadasalready

congestedandcompetitivemarket,UNIQLOwillneedtostrategizewiththepropermarketing
objectivesinordertohaveleverageabovetheirwellestablishedcompetitors.
UNIQLOsCanadianmarketingobjectivesincludeachieving1.5%ofthemarketshare
by2020,expandwithinvariousCanadiancitieswitheightflagshipstoresby2020,attainhigh
profitabilityandincreasingsaleswithincomparableunits,sell18millionwithinthefirstyear
betweenbothlocationsandtoraisebrandawarenessinordertoachievedominanceintheretail
market.
Themarketingstrategiesutilizedinordertofulfilltheseobjectivesincludevarious
promotionalstrategieswhereUNIQLOwillhighlighttheiraffordable,highqualityproducts.
ThesepromotionalstrategieswillhelptoincreasesalesatbothTorontolocationsandtheironline
store,withthegoaltoexpandfurtherintotheCanadianmarket.Itisestimatedthatwithinthe
fiscalyear,UNIQLOwillgenerate$52,323,390betweenbothstores.UNIQLOisprojectedto
experiencepositivegrowth.
MarketOverview
UNIQLOwillbeenteringtheCanadianunisexclothingretailmarket.Thecurrentmarket
ishighlycompetitiveandalreadycongestedwithwellestablishedbrands.However,thefashion
retailindustryisexpectedtogrowbetween20132018.Withinthenextfiveyears,menswearis
expectedthegrowat10.1%whilewomenswearat8.4%(Passport,2014).AsUNIQLO
continuestorecordconsiderablegrowthwithintheapparelmarket,enteringtheCanadianmarket
willprovideUNIQLOwiththeopportunitytoappealtotheirtargetmarket.

StrategicDomainAnalysis
COMPANY
UNIQLOisenteringtheCanadianretailapparelindustry.Theproductsbeingofferedare
innovative,fashionableandhighquality.ThekeytoUNIQLOssuccesswillbeduetomarketing
efforts,pricingstrategy,superiorserviceandlocation.CanadiansandspecificallyToronto
consumers,areproventobeopentonewanddifferentbrands.UNIQLOscompetitive
advantageisthatinsteadoffocusingonthequickturnoveroffashionabletrends,theyfocuson
highqualityfunctionalproducts.
SWOTAnalysis
Strengths
UNIQLOhasmanystrengths,fromtheirlocationtotheirinnovativeproducts,UNIQLO
isdemonstratingthattheyhavewhatittakestobeasuccessfulcompanyinCanada.Its
geographiclocationinTorontoservesasastrengthforthiscompany.UNIQLOhaspositioned
itselfinoneofthemostmulticulturalareasintheworld.TheEatonCentreMallandYorkdale
MallareidealareastointroducethecompanytoCanada.UNIQLOstrivestosetitsretailstores
apartfromtheircompetitors.Thesetupofthestoreconsistsofstacksofmerchandisethatare
colourcoordinatedandcontainsinstoretechnology.Forexample,therearetelevisionsthat
outlinethedifferentusesofproductsaswellasmonitorsthatcustomerscanread.Havinga
visuallyappealingstorewillresultinahighernumberofvolumeandtrafficthestorewill
receive.
UNIQLOalsohasauniqueproductofferinginmassvolume.Theyownaproprietary
technologyontheirproductsintheformofHeatTechfabric(FastRetailing,2014).Thisconsists

ofclothingthatiscreatedtokeepapersonwarmincoldtemperatures.Thisisastrength
UNIQLOhasoveritscompetitorsinthatconsumerscannotpurchasetheexactHeatTechfabric
fromanyothercompany.UNIQLOalsooffersalargerangeoffashionableandfunctional
products,freefromlogos,thataresoldatreasonableprices.Thisisamainadvantagethat
UNIQLOhasoveritscompetitors.Thelowpricesareastrengthsincecustomersarealways
lookingforthebestpricepossible,butdonotwanttosacrificethequalityoftheproduct.Asa
result,customerswillkeeppurchasingfromUNIQLObasedonthegreatqualityofproducts
provided.
ThestaffatUNIQLOexhibitsexceptionalcustomerservicetoeverycustomer.Thisis
provenbytherigorousemployeetrainingforeverystaffmemberandisevidentlyhelpfulin
retainingnewcustomers.ThelevelofcustomerserviceprovidedbyUNIQLOsetsthemapart
fromtheircompetitors.Theywillbeabletoprovideanswerstocustomerinquiriesandallowthe
retailmerchandisingexperiencemuchmoremeaningful.
UNIQLOhasastrongpresenceglobally.UNIQLOiscurrentlyin16countrieswithover
1400flagshipsstorescurrentlyopen(Uniqlo,2015).Astrongglobalpresenceisastrength
becausetheUNIQLObrandishighlyrecognizedaroundtheworld.UNIQLObeingabletoopen
suchalargeamountofstoresaroundtheworldcreatesastrongcustomerbaseonaglobalscale.
Havingthebrandrecognizedworldwidewillcontinuetodrawcustomerstowardsthebrandsince
itiseasilyaccessibletoconsumers.
Weaknesses
ThebrandslimitedconsumerloyaltyinCanadahasmadeitdifficultforconsumersto
recognizethecompany.Consumershavealreadyestablishedloyaltytootherbrandsinthesame

industryasUNIQLOsincetheyhavehadrootsinCanadaforanumberofyears.SinceUNIQLO
hasyettohaveanypresenceinCanada,theydonotpossessaloyalconsumerbaseinthe
country.ThelackofsocialmediaandadvertisingwithintheCanadianmarketposesasa
weaknessbecausethebrandawarenessislow.AnotherweaknessUNIQLOfacesisthattheyare
onlyoperatinginToronto.Thisisproblematicbecausethecompanysreachtoattractnew
customersislimitedsolelytopeopleintheTorontoregion.
Opportunities
UNIQLOwillbeenteringtheCanadianmarketandhasanopportunitytointroducean
onlinestoreforproductstobedeliveredtoCanadianhouseholds.UNIQLOdoesnotcurrently
delivertoCanadaandbyestablishinganecommercestore,UNIQLOwillbeabletoreach
consumersnationally.Anopportunitytoexpandpresentsitselftoothernationalmarketareas.A
significantstrengthinchoosingTorontoasthelocationtoopenUNIQLOistheAsianpopulation
inToronto.Asof2015,23.4%ofTorontospopulationisthosefromSouthAsiaandChina.
UNIQLOisprojectedtobepopularamongstthisgroupofindividualsduetotheconnectionto
theirroots(Toronto,2015).Followingtheexpansiononlineandnationally,UNIQLOwillbe
abletoexceedsalesandproductionandobtainalargermarketshareinCanada.Thereisalsoan
opportunitytoservenewmarketswiththeirHEATTECHandAIRismproducts.Thesecanbe
offeredtothesportinggoodsmarketandalsototheouterwearapparelmarketduetothecold
wintersinCanada.AcquiringdifferentbrandsinNorthAmericaisanopportunityforUNIQLO
togainfashioncredandmarketshare.

Threats
DuetothecurrentrecessioninCanada,UNIQLOssalescouldbeimpactedbytheeffect
onthepurchasingpowerofconsumersinthecountry.Consumersmaynothaveenough
disposableincometopurchasenonnecessityitemsandwillleadtopotentialbrandswitching.
UNIQLOalsofacestoughcompetitionbetweenZara,H&M,andtheGap.Thesebrandsare
popularandwellestablishedamongCanadianconsumersandaresituatedinthesamelocation
thatUNIQLOwillbeoperating.CanadianconsumersalsovalueaMadeinCanadaapproach
toshoppingandtheyaresteppingawayfromoutsourcing.ThisposesathreattoUNIQLOas
theyoutsourcealloftheirproductsfromAsiancountries.
PEST
Political
CanadahasrecentlyelectedanewPrimeMinister,bringingtheLiberalpartyinto
majority.Withthiselectionhavingtakenplaceasrecentlyas2monthsago,weareassuredthat
therearenoanticipatedshiftsinpower.TheLiberalparty,andtheirleaderJustinTrudeau,are
guaranteedtobeinpowerforatleast2years.Thissuggestsapoliticallystablecountry.The
LiberalplatformaimstomoveCanadaoutofitsrecessionaryperiodbyencouragingeconomic
growthandbyinvestingininnovation.Intermsofpoliticalriskanalysis,thisencouragesCanada
asasafeinvestmentforglobalmarketing.
ManagementresponsibleforrepresentingthestoreswithinNorthAmericanterritoryaresubject
tothecurrencyexchangebetweenCanadianandU.Sdollars.Thismaypreventtheopportunity
foruniformpricing.Theexchangerateiseverchanging,andthusrequiresconstantexchange
control.

Canadianquotasonforeignmadetextileswereessentiallyeliminatedin2005(Grewalet
al.,535).Thisincreasedtheallowanceforimportedapparelproducts,ofwhichUNIQLO
identifiesas.UNIQLOsapparelismanufacturedinvariousAsiancountries,whichsuggeststhat
theseproductsareexportedtoCanada.
Economic
Canadaseconomyiscurrentlyinarecessionaryperiod,whichsuggeststhat
unemploymentrateshaverisenwhilegrossdomesticproduct,householdincome,inflationrates
etc.havefallen.ThecurrentrecessioninCanadamayaffectoverallsaleshoweverUNIQLO
couldbeasubstituteformoreexpensivefashionclothingbecauseofthediscountprices
comparedtootherfashionretailers.
ThemostrecentCanadianpopulationestimationof35,851,800wasconductedonJuly1,
2015.Thisrepresentsa0.9%populationgrowthoverthe2014/2015calendaryear.
(StatisticsCanada,2015)Asaresultofeconomicactivity,Canadaiscurrentlyinanincome
recession.Theaveragehouseholdrealincomeismeasuredat$44,700.Thissuggeststhereality
thatamajorityoftheCanadianpopulationfallswithinthecategoryofmiddleclass.The
Canadianapparelindustryhasseenmoderategrowthoverall.
Sociocultural
Ashouseholdsage,ahigherproportionofconsumptionisattributedtoresidencesand
properties,leavingalowerproportiontobeattributedtofood,clothingandcare(Statistics
Canada,2011)Canadasdemographiciscurrentlyaging.AccordingtoStatsCanada,oneintwo
Canadiansisovertheageof40(StatisticsCanada,2014)SincethetargetmarketofUNIQLOis
ages1834,thiscouldaffecttheamountofindividualsinterestedinbuyingtheproduct.

Canadiancitizensbelievethataccesstoforeignculturalgoodsisimportant,howevera
strongimportanceisplacedontheneedforCanadatohaveitsownvoice,asCanadasculture
defineswhothenationis(GlobalAffairsCanada,2015).Thus,importingforeignproductsmay
notbeaswelcomed,incomparisontoabrandthatismadeinCanada.
Technological
Canadahasaneffectivetechnicalinfrastructure.Thisaccesstoinformationallowsfor
constantinnovationintechnologies.Throughthisaccesstoinformation,productionand
distributionchannelscanbemademoresuccessfully.
ThetargetmarketforUNIQLOispeopleaged1834,includingteenagers.Thisagegroup
isoftensavvywithtechnology,andabletoaccessinformationandproductspresentedonthe
Internet.Thisallowsanopportunityforecommerce.
TheTorontoTransitCommissionisawellestablishedpublictransitsystemservicingthe
cityofTorontoaswellastheGreaterTorontoArea.Thesystemconsistsoffoursubwaylines,
11streetcarroutes,andover140busroutes(TorontoTransitCommission,2014).TheTTCisthe
mostcommonmethodoftransportationinthecityofToronto,andthuswouldbethemost
commontransportationsystemforthepotentialcustomersofUNIQLO.AswellastheTTC,
YorkdaleandEatonsCentreshoppingcentreareaccessiblebycar.Thiscontributestotheflow
oftraffictosaidshoppingcentres,andthusUNIQLO.

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COMPETITION
PrimaryCompetitor:H&M
Product
Forthemostpart,H&MofferssimilarproductsthatUNIQLOoffers.Theybothoffer
fashionproductsandaccessoriesformen,womenandchildren.Thisputsthecompanyindirect
competitionwithUNIQLO.H&Mcontinuallyintroducesnewproductlinesasawayof
deliveringalowpriceincombinationwiththelatestfashion(h&m.ca).Indoingso,H&Mplaces
theirmainfocusonstayingontopoffashiontrends(h&m.ca)whereasUNIQLOaimstoproduce
itemsthatareuniqueandfunctional,withlittleemphasisoncurrentfashiontrends.
Price
AstrategyinmaintaininglowpricesthatH&Memploysisoutsourcingtheirlabourto
countrieswhereproductioncostsaremuchlower.Bythecompanyutilizingastrictcostcontrol
planregardingnonnecessityluxuriesforemployees,aswellasoutsourcingtransportation
accordingtoeachproduct,H&Misabletocutcostsandthereforeselltheirproductatacheaper
price.ThewayH&Mattractsnewcustomersishighlyattributabletothelowpricestheyoffer.
InCanada,H&MacceptsSPC(studentpricecards).UponpresentingtheSPCatthepoint
ofpurchase,withcertainrestrictionsapplying,thecostofapurchaseof$40ormoreisreduced
by10%(StudentPriceCard,2015).Atthepointofpurchase,avalidstudentIDisrequiredfor
proofofstudentstatus,andthenonregularpricedmerchandise,thediscountmaybeapplied
(StudentPriceCard,2015).

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Place
Asof2014,H&Moperatesin72locationsacrossCanadalocatedineveryprovince
whereasUNIQLOisonlyoperatingin2locationsinToronto,Ontario.H&Mstorescanbefound
inbigcitieswithbigmalls.TheclosestmostdirectcompetingstoretoUNIQLOhappenstobein
theEatonCentreandYorkdalelocations.
Promotion
H&MchosestoputforthmoreeffortintoadvertisingthanUNIQLOintheCanadian
market.ThisisbecausetheywellestablishedintheCanadianmarketcurrentlyandisalarger
companyoperatingacrossCanada.Inordertoincreaseexposure,H&Mhasadopteda
multichannelstrategyincluding,butnotlimitedto,internetpromotion,advertising,andsales
promotion.
TargetMarketandSegmentation
ThetargetmarketforUNIQLOismenandwomenbetweentheagesof18and34.With
clothingmadeforchildrenandinfants,familiesarealsoabletopurchasehighqualityclothesfor
childrenforlowprices.Thedifferentproductofferingscatertomanydifferentsegments.From
thehighlytailoredcollections,forthefashionforwardshopper,tothecasualstylesand
sportswearfortheminimalistshoppers.
ThisisincloserangewiththetargetmarketofUNIQLOscompetitors(Zara,H&M,The
Gap).UNIQLOsmissionstatementistodevelopclothesthatanybodycanwearwheneverand
wherever.Thoughthisishighlyambitious,thetargetmarketselectedwillremain1834.Toronto
hasthelargestpopulationinanyCanadiancityalongwiththemostcomprehensiveretailoptions.

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Thesegmentisworthpursuingbecauseitisreachablethroughdigitalmedia.By
incorporatingastrongeronlinepresenceintheCanadianmarket,UNIQLOwillbesuccessfulin
reachingitstargetmarket.Abroad,UNIQLOhasbeenabletoreachitstargetmarketsthrough
socialmedia,suchasFacebook,Twitter,Google+andInstagram.Instagramisapopularsocial
mediaoutletusedbythetargetmarketinToronto.UNIQLOhasofficialInstagramaccountsfor
theirUKandAsianmarkets.BycreatinganInstagramaccountforUNIQLOCanada,thetarget
marketwillbeabletoviewnewmerchandise,promotionsandnewsonadailybasis.Thistarget
marketisprofitableduetotheirageandlocation.Ages1834includeyoungprofessionalsor
soontobeprofessionalswhoarewillingtoinvestintotheirwardrobes.
Thegeographiclocationoftheflagshipstoresareinregionsthatwillsatisfyallproducts
UNIQLOoffers.UNIQLOsproductsrangefromsummerclothingtowinterapparel,Torontos
fourseasonclimaterequiresvaryingoptionsforgarmentsandaccessories.Basedonthelocation
alone,UNIQLOwillbeabletoofferalloftheirproductstothetargetmarketinToronto,
Canada.
ProductandServiceOffering
UNIQLOstrivestobethelargestclothingcompanyintheworld.Theyaimtoaccomplish
thisbycreatinghighqualityproductswithlowprices.UNIQLOdevelopsalargevolumeof
clothingthatservefunctionalitywhileincorporatingatimelessdesigninawiderangeofcolours.
UNIQLOseparatesthemselvesfromotherclothingretailersbyofferingalargeamountof
productsofthesamestyleandfitinseveralcolours.
UNIQLOalsoseparatesitselffromitsmaincompetitorsbyshorteningpants,alteringthe
fitandmodifyingotherclothingtomeettheneedsofindividuals.Thisprocesswillbefreeof

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chargeandwillbedonebytheendoftheday.Thisgivesconsumersanincentivetopurchase
moreofthesamevaluedproductinordertocustomizetheirwardrobes.Moreover,by
manufacturingproductsthatdonotfollowaparticulartrendUNIQLOreducestheriskoflosses
throughfashiontrends.
Regardingserviceoffering,UNIQLOemphasizesahighimportancetowardsthetraining
oftheiremployees.Eachemployeethatishired,whetheritisinthecorporateofficeorataretail
store,goesthroughrigoroustraining.Employeesgettrainedsothattheyareinthemindsetthat
theyaretheownerofthestore.Forexample,theygettrainedinaspectssuchasfoldingclothes,
workingthecash,fittingrooms,andalterations.UNIQLOcreatesafunatmosphere,astheystart
offeverymorningwithacheerandmotivationspeechestogeteachemployeereadytointeract
withtheircustomers(FastCompany,2012).Offeringcustomerspremiumserviceisanadvantage
UNIQLOhasoveritscompetitors.Placingahighlevelofemphasisonemployeetrainingand
interactionwithcustomersisbeneficialasitcreatesapositiveshoppingexperienceforits
customers.EverytechniquethatisdemonstratedbyasalesassociateatUNIQLO,fromfolding
techniquestogreetingtechniques,isnotedandassessedtoassureeachemployeeisaddingahigh
amountofvaluetoeachcustomerexperience.Customersgetthebenefitofreceivingquality
servicewhilepurchasinginnovativeproductsatalowprice.
MissionStatementOfUNIQLO
Wehavemademoderatechangestotheexistingmissionstatementandhavecreateda
newmissionstatementtoappealtotheCanadianmarket.Themodifiedmissionstatementis:

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Tocreateunique,functional,fashionableclothesthatwillsatisfyourindividualcustomers
needs.Wewillcreateabrandrecognitionacrosstheglobeasafresh,modern,comfortable
clothingbrandwhileofferinglowpricesandsupportingcustomerspersonalgrowth
Ourmarketingteamdecidedtocreateamissionstatementthatdirectlyappealsto
Canadianconsumers.Oneoftheproblemswiththeoldmissionstatementisthatitwastoo
vague.Theoldmissionstatementhighlightedthecompanyseffortstocreatetrulygreat
clothing.Oneoftheproblemswiththatisthatitdoesntclearlystatewhattrulygreatclothing
is.Everyonehasadifferentopiniononwhatconsistsoftrulygreatclothing.Clearlystatingthe
brandseffortstocreateunique,innovative,fashionableclothesdirectlystateswhatthecompany
doesbest.
Anotherreasonwecreatedthisspecificmissionstatementistodifferentiatethecompany
fromcompetitors.Highlightingthecompanyslowpricesandinnovativetechnologyusedto
createclothesoutlinesthecompanyscompetitiveadvantage.Alsohighlightingthatthecompany
willsatisfyindividualneedsmeansthatthecompanyiswillingtocustomizeclothesforeach
individualconsumer.Thisisdonebyofferingfreealterationsandfittingsinstore.Customersare
abletoshortenpantsandalterjacketstomeettheirspecificmeasurements.Furthermore,itwas
importanttoincorporateafewofthecompanyscorevaluesinordertoappealtoconsumers.
MarketingObjectivesandStrategy

Toachieve1.5%ofthemarketshareby2020.
ExpandwithinvariouslargeCanadiancitieswith20flagshipstoresinoperationby2020
Salesof$53millioninthefirstyearofbusinessbetweenthetwostores
BecomeCanadasmostpopularretailerforcasualwearbyemphasizinglowpricesfor
highqualityproducts
Raisebrandawarenessinordertoachievedominanceintheretailmarket

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UNIQLOwillachievetheirshorttermandlongtermobjectivesbyfocusingondifferent
aspectsofthebusiness.First,byfocusingonthelocationofthestores,UNIQLOwillobtain
strongercustomerrecognitionwithincities.UNIQLOwillfocusonopeningstoresonlyinthe
largestcitiesinCanada.Theywillthenbeabletoopeninmoreruralareasaftertheyhave
establishedalastingpresenceinCanada.UNIQLOwillalsobuildbrandawarenesspriortothe
openingofflagshipstoresinlargecities.ThroughmarketingandadvertisingUNIQLOwill
spreadthewordabouttheirhighqualityandfashionablepiecesthataresoldatreasonableprices.
UNIQLOwillpayattentiontobrandcollaborationswithhighlyrecognizabledesignernamesin
NorthAmerica.Thiswillhelpthemwithincreasingsaleswhilebeingrecognizedfortheirtrend
settingandstapleitems.UNIQLOwillstandapartfromtheirmaincompetitorsbyperfecting
theirproductanddevelopingauniquetypeofmerchandise.Byperfectingtheproducttomeetthe
needsoftheCanadianmarket,UNIQLOwillbeabletocreateproductsthatwillsatisfythe
Canadianconsumer.Bycustomizingproductsforindividualshoppers,UNIQLOwillstandapart
fromthecompetitionbyaddingtheserviceofshorteningpantsandalteringthefitandlengthof
clothingfreeofcharge.BylisteningtotheCanadianconsumer,UNIQLOcandeterminethe
needsandwantsofshoppers.TheywillalsoacquiredifferentbrandswithinNorthAmericain
ordertoexpandthecompanyquickly.
Moreover,anestablishedwebpresencewithanecommercewebsiteandsocialmedia
presencewouldcreateaplatformforfurtherawareness.Awellestablishedwebpresencewould
notonlyhelpmarketUNIQLOsgoods,butwouldserveasanoutletforpotentialtoincrease
salesandthusfunctionsasanalternativedistributionchanneltominimizepotentialrisk.

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MarketingMix
Product
ThemainfeaturedproductsthatUNIQLOoffersarebasiccasualclothesandaccessories
formen,women,childrenandinfants.ThemainproductsarelistedinTable1.
Table1:UNIQLOProductOfferings
Men

Women

Children

Infants

Outerwear
Blazers
Dressshirts
Tshirts
Fleece
Loungewear
Polos
GraphicTees
Jeans
Pants&Chinos
Shorts
Underwear&Socks
Sleep&undershirts
Accessories(hats,
belts,sneakers,toys)

Outerwear
Blazers
Sweaters
Knitwear
Tshirts&Blouses
Jeans
Pants&Leggings
Dresses
Skirts
Loungewear
Intimates
Socks&Hosiery
Accessories(belts,
sunglasses,slippers,
hats,bags)

Outerwear
Sweaters
GraphicTees
Fleece
Bottoms
Loungewear
Sleepwear
Underwear&Socks
Accessories&Toys

Outerwear
Tops
Pants&Leggings
Sleepwear
Accessories

UNIQLOalsosellsinnovativeproductssuchasHEATTECHandAIRism.These
productsaremadespecificallyforUNIQLO.HEATTECHisfunctionalinnerwearsuchas
tshirts,pants,jeansandsweaters.Itismadefrommoisturewickingfabricwhichretainsheat
andalsofeaturesantiodorpropertiesandcamelliaoilwhichmoisturizesdryskin.(Fast
Retailing,2014).HEATTECHisavailabletomen,women,childrenandinfants.AIRismisalso
aninnerwearproductandincludestshirtsforwomenandmenandalsounderwear.Itismade
fromultrafinefibresandquicklydriesanysweatonthebodytopreventchillandmaintain

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smooth,dryskin.AIRismisavailabletomen,womenandchildren.Thisisagoodproducttobe
broughttoCanadabecauseofthecoldmonthsthatCanadianconsumersface.UNIQLOalsosells
manydifferentcollectionsmadewithspecificdesignerswhocollaboratewithUNIQLOandsell
specificallyinstore.CurrentlyUNIQLOiscollaboratingwithCarineRoitfeld,Princesse
tamtam,Lemaire,Disney,andYukatawhichallofferdifferentcollectionsandinspirationsto
theclothing.
Price
WeproposethatUNIQLOsetthepricetocompetewithitstopcompetitors,H&M,the
GAPandZara.Thelowpricingstrategyforhighqualityproductswillpositionproductstobe
pricedlowertoslightlyhigherdependingonthequalityofthegarment.UNIQLOwillusethe
priceliningpricingtacticaimedatcustomers.ByusingthistacticUNIQLOwillestablishaprice
floorof$10andapriceceilingof$130forcertainproducts.UNIQLOwillthensetafewother
pricepointsinbetweentorepresentdistinctdifferencesinthequalityoftheproducts.Outlined
belowarethepricerangesfordifferentproducts.
Outerwearandblazers$10$130
Sweaters$10$80
Shirtsandblouses$10$40
Loungewear$10$60
Jeans$20$60
Dresses$10$80
Accessories$5$20
Pants$10$40
HEATTECH$10$40
AIRism$10to$40

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Place
UNIQLOwillopentwophysicalflagshipstoreslocatedindowntownToronto.Onestore
willbelocatedintheEatonCentreMallandoneenteringYorkdaleMall.ThestoreinEaton
centerwillbelocatedinthenorthendofthemallandhasatotalof28,000squarefeet.The
flagshipstorelocatedinYorkdalewillbelocatedinthenewwingthatiscurrentlybeing
renovatedandwillhaveatotalof24,000squarefootage.Thiswingwillhave28newstoresthat
arenewtotheCanadianmarket.ThetwomallsarelocatedintheheartofdowntownTorontoand
areeasilyaccessiblethroughsubwayandTTC.Theconvenienceofbothretailcenterswillbe
keytoUNIQLOssuccessintheretailindustry.ThephysicallocationandalsoanEcommerce
retailstorewillmeettheneedsofthetargetmarketinCanada.
Promotion
UNIQLOwillprovideavarietyofpromotionsinordertogenerateexcitementaboutthe
brand.WeproposethatUNIQLOfollowthepromotionalcampaignsthattheyusegloballybut
tailorittotheCanadianmarket.Differentpushandpullstrategieswillbeemployedinorderto
catertotheCanadianmarket.Inregardstoadvertising,UNIQLOhasbeensuccessfulglobally
andhasgrabbedtheattentionofseveralmarketsusingvirtualmarketingcampaigns.These
campaignswillgenerateawarenessfromCanadianswhomaynothaveheardaboutthebrand
beforeandwillbuildapositivedigitalpresenceinCanada.Withthetargetmarketbetweenthe
agesof1835themajorityofthesepeoplerelyontheInternetforinformationregardingdifferent
productsandbrands.AvirtualmarketingcampaignthatwillplayontheInternetwillbeableto
generatebuzz.ThesechannelsincludeUNIQLO.ca,advertisementcommercialsonlineand

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YouTubechannels.ByengagingwiththeirtargetmarketinCanada,theywillbeableto
effectivelybuildabrandrelationshipwithconsumers.
Also,wesuggestUNIQLOhaveadvertisementsinlocalandCanadianmagazinesand
advertisementsonTTCandinEatonCentreandYorkdaleMall.Thekeytotheadvertisements
withinlocalmagazinesarenotonlytopromotethebrandbutitisalsoawaytodistribute
discountcouponstobeusedinstoreoronlinebyCanadianconsumers.Thepurposeofthenew
promotionstreamistodifferentiateUNIQLOsproductsbyofferingdealsyearroundbecause
majorityoftheclothingofferingisnotsubjecttoseasonalchanges.
Intermsofcommunication,wewilluseanintegratedcommunicationmixthatwill
featuresocialmedia,onlineads,andpublicrelations.WesuggestthatUNIQLOhaveaCanadian
celebrityendorsementwhowillbeabletopromotethebrandandcommunicatedirectlywith
consumers.Byendorsingasportscelebrity,UNIQLOwillbeabletousethemtocommunicate
theirHEATTechandAIRismapparelandthebenefitsofthisclothing.Thiswillbeableto
segmentthetargetandpossiblyopenanewmarketforsportswear.Also,onthehomepageofthe
ecommercewebsite,itwillofferdirectaccesstolocalsocialmediapresencesuchasTwitter,
Facebook,InstagramandGoogle+.Thiswillbebeneficialforthecompanytocommunicate
directlywithconsumersandinteractivelyengageconsumersbypostingpicturesandinformation
online.ThestrengthoftheirsocialmediapresenceinCanadawillbebeneficialtotheirsuccess
inreachingthetargetmarket.Thehashtag#UNIQLOCanadawillpromotethecompanyand
connectitsconsumersthroughoutthecountry.Consumerswillbeabletocommunicatewithone
anotherandviewwhatistrending.

20

AlongsidepromotingUNIQLOthroughdigitalmedia,advertisements,celebrity
endorsementsandsocialmedia,UNIQLOwilldesignapresskittocommunicatewithconsumers
directly.Thepresskitwillbedistributedtoblogsourcesandnewsoutlets.Thepresskitwill
includeinformationregardingUNIQLOsproductswithanemphasisontheirhighqualityand
lowprices.ThepresskitwillprovideCanadianswithUNIQLOshistoryandmissionstatement
inorderforthemtofamiliarizethemselveswiththebrandbeforetheopeningdates.
Financials

980,000yen/squaremeter=$10,833Canadianper
squaremeter.EatonCenter(28,000squarefoot=
2,601squaremeters).YorkdaleMall(24,000square
feet=2,229squaremeters).

Therefore:
SalespersquaremeterattheEatonCenter,bestcasescenariowillequal:
2,601X$10,833=$28,176,633
SalespersquaremeteratYorkdaleMall,bestcasescenariowillequal:

2,229X$10,833=$24,146,757

(FastRetailing,2013)

21

Wecanestimatethatwithbothlocationsoperatingin2016,thetotalsalesfortheyearendwill
generate$52,323,390.Ourobjectiveistoreach$53millionin2016.Thesalesforecastfor2016
2020isprojectedfromthe5.8%increaseinretailclothingstoresalesforthecurrentcalendar
year,asstatedbyStatisticsCanada(2015).
Year

AnnualSalesForecast

20162017

$52,323,390

20172018

$55,358,147

20182019

$58,568,919

20192020

$61,965,916

MarketAnalysis:
Theunisexapparelmarketisahighlycongestedmarket.WithinNorthAmerica,
companiessuchastheGap,ZaraandH&Mholdconsiderablemarketshare.Enteringanalready
extremelycompetitivemarketisapotentialriskforUNIQLO.ByenteringtheCanadianmarket
inMetropolitanlocations,UNIQLOincreasesitsfoottrafficandvisibility.
ContingencyPlan:
Inordertominimizerisk,UNIQLOwillplantoexpandtoothermajorcitiesinCanada,
suchasCalgary,Vancouver,Montreal.Thiswillalsoincreasedistributionchannelsandallow
foranincreaseinrevenuewithintheCanadianmarket.Ifaspecificlocationunderperforms,
merchandisecouldbetransferredtoanalternatelocation.Alternatively,iftheflagshipstorewas
notsuccessful,UNIQLOcouldrelocatetoasmallerspace,sellingtheirspecializedgearsuchas
HeatTechandAIRism.

22

IfunderperformanceofaUNIQLOretailstorewasattributedtoserviceinefficiency,
UNIQLOcouldprovidetheincentiveofcommission.Ifthecurrentserviceobjectiveswerenot
successfulinCanada,UNIQLOhastheopportunitytocreateasalesdrivenworkplace.The
potentialforcareeropportunitieswouldserveasanincentivetoperformexceptionally.
UNIQLOstrainingstrategyistestedanddevelopedprimarilywithintheAsianmarket.Western
culturedoesnotnecessarilyrespondinthesamewaytotheseobjectives.Thisstrategywould
accountforapotentialvarianceinserviceperformance.
IfenteringtheCanadianmarketduringaneconomicrecessionhasanegativeimpacton
sales,UNIQLOcoulddevelopaSPCpromotion.AStudentPriceCardwouldprovidediscount
onoverallpurchase.UNIQLOstargetmarketisforindividualsbetween18and34,suggesting
thatmanyoftheirpotentialcustomersarestudentaged,andwouldbenefitfromaStudentPrice
Cardpromotion.

23

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(n.d.).Retrieved122,2015,fromhttp://www.forbes.com:
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Aaker,David.(2014,October21)ReasonsWhyUNIQLOisWinning
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FastRetailing.(2013).AnnualReport:Uniqlo.
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FastRetailing.(2012,June18).Cheap,Chic,AndMadeforAll:HowUniqloPlansToTake
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FastRetailing.(2014,July11).HEATTECH.
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GlobalAffairsCanada(2015,November27th)CanadianCultureinaGlobalWorld
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Grewal,D.,Levy,M.,Lichti,S.,Persaud,A.(2015).Marketing(3rdCanadianEdition).
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24

StatisticsCanada(2011,March25)ConsumptionPatternsAmongAgingCanadians.
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