SUBMITTED BY:

NAME - MONICA
ROLL NO.-19097
SECTION - D
COMPANY NAME - UNIQLO

MINOR PROJECT
PGDM Batch (2019-20)
 TABLE OF CONTENT

▪ Company overview
▪ Market overview
▪ Competitors
▪ Target Market
▪ Mission, Vision and Values
▪ SWOT Analysis
▪ PEST Analysis
▪ Marketing Strategy
▪ Market Analysis Market share ,Market share
 COMPANY OVERVIEW
Founded by Tadashi Yanai, the first Uniqlo retail store opened in Hiroshima,
Japan in 1984 (Uniqlo, 2014). Initially, Uniqlo started off as a “suburban road-
side clothing store network” but in 1998 the compa-ny opened its first urban
store in the super trendy Harajuku area, Shibuya ward and became very pop-
ular in major downtown cities such as Tokyo and Osaka (Uniqlo, 2014). By
2005, the company had over 700 stores in Japan. The success of Uniqlo’s ability
to provide superior quality at low prices is due to their “creative” control of the
planning, design, manufac-turing, distribution and sales (Uniqlo, 2014).

In 2001, Uniqlo opened their first store in London En-gland. In 2002, they
opened their first store in China. And in 2005, they opened their first store in
South Korea partnering in a joint venture with Korea’s larg-est distributor Lotte
Shopping Co. LTD. Also in 2005, the company launches in the United States,
opening 3 stores in New Jersey shopping malls (Uniqlo, 2014).

In 2006, the company was forced to rebrand their American stores due to
dwindling sales (Urstadt, 2010). The stores in the New Jersey shopping malls
were not profitable, and as a result, Uniqlo decided to shift their target from
the suburban to the urban market. Thus, a flagship store was placed in the
heart of the Soho district in Manhattan, but, once again, sales were not up to
standard. Through communi-cation with employees and customers, mid-
manage-ment discovered that the low sales were due to the unpopularity of the
loose fitting apparel. Typically at the time, apparel brands like The Gap, J-
Crew and Ba-nana Republic catered to a universal fit, “with a loos-er, relaxed-
in-the-middle fit” (Urstadt, 2010). Uniqlo decided to experiment by
introducing slimmer Jap-anese sizes. As a result, brand equity and location
sales rose. Downtown consumers quickly converted into loyal Uniqlo
customers (Urstadt, 2010). Usually the company is not concerned with
changing their brand line for fads or short-term trends, but the de-mand for
skinnier and slimmer fits in apparel has now become a new universal fashion
norm.

Market Overview
Uniqlo will be entering the Canadian menswear and womenswear markets,
markets within an industry which contain extensive competition. However, both
the womenswear and menswear markets in Canada are projected to experience
growth between 2013 and 2018.

As far as the menswear category is concerned, it is projected that it will grow

6.5% in volume and 10.1% in value in the next 5 years (Passport, 2014).
Moreover, it is projected that the womenswear category will have a 6.2%
growth in volume and a 8.4% growth in value within the same time period
(Passport, 2014).

Next five years

Menswear
growing at 10.1%

Womenswea

growing at 8.4%

Competitors
Uniqlo’s primary competitors in the United States are H&M & Zara (Fast
Retailing, 2011). Each of these businesses posted sales increases in Cana-da
during 2013 (Passport, 2014). Furthermore, both are large players in the
Canadian menswear and womenswear categories. In regards to womens-wear,
H&M and Zara hold 1.8% and 0.6% of the market, respectively, with H&M
having the largest market share of any brand (Passport, 2014). In the menswear
category, on the other hand H&M and Zara hold 1.1% and 0.6% of the market,
respectively, with Nike having the largest share of the market at 3.2%
(Passport, 2014).

Although the competitive landscape is vast, Uniqlo is the largest clothing

retailer in Asia and commands a certain brand awareness that has created
demand for the clothing in countries in which Uniqlo has not typically ser-
viced. The growth of the Canadian menswear and womenswear markets
signifies an opportunity for an established brand to enter the landscape with the
ability to gain a profitable share of the market.hare of Market in C

Share of Market in Canada

Menswear
1.8%
Womenswear
1.1%

56 Stores

Menswear
0.6%
Womenswear
0.6%
25 Stores
1.8%

Target Market

A vital aspect of Uniqlo’s corporate mission statement focuses on providing

clothing that, “anybody can wear whenever and wherever,” however, when
expanding into Canada, it is essential that a segment of the market is se-lected
as a target (Uniqlo, 2014). Moreover, as per the lifestyle and attitude data sheets
available from Print Measurement Bureau, the individuals who have the largest
purchasing index of Uniqlo’s direct competitors’ products are men and women
between 18 and 34 (PMB, 2014). In addition, within this target, the largest
buying index typically correlates to professionals and individuals with some
form of post-secondary education (PMB, 2014). There-fore, the target market
for expansion into the Canadian market, particularly in Toronto, will be the
same target market as those of its competitors. The preparation of marketing
communications for the expansion will focus on men and women between the
ages of 18 and 34 who are professionals and have attained or are seeking a post-
secondary education.

The location of Canada’s first flagship location will be in Toronto, Ontario.

Toronto has the largest population of any Canadian city, and the most
comprehensive retail options in the country (Retail Insider, 2014). Fur-
thermore, as per Stats Canada’s 2011 Census, 25% of Toronto’s population
are of Asian descent (Statistics Canada, 2013). It is documented that those of
Asian descent in the United States possess a higher likelihood of brand
awareness (Retail Insider, 2014). Toronto is, therefore, an ideal geographic
and demographic location to place Canada’s first Uniqlo flagship location.at
the lowest prices in

this f pure functionality woven with innovative

Japanese

technology, refined by stylish

 Occasion

MISSION STATEMENT

“To continuously provide fashionable ,high quality life wear at the lowest prices
in the market .Uniqlo’s essence is of pure functionality woven with innovative
Japanese technology ,refined by culture .Uniqlo is stylish apparel for everyone
,for every occasion.”

NEW MARKETING OBJECTIVE

▪ Raise brand awareness in step to dominate apparel market.

▪ Position Uniqlo as the number one Canadian retailer for casual wear
,emphasizing high quality products and low prices
▪ Increase uniqlo’s market share in the Canadian apparel market to 1.0%in
Canadian by 2022.
Position as the number one Canadian retailer
for casualwear, emphasizing hind low prices

I market share in the Canadian apparel market

to 1.0% in Canada by 2022
 SWOT ANALYSIS

• STRENGHTS

High –end Quality at low cost

Mass volume retail
Highly specialized in fabric technology and quality
Innovative fabric technology :HEATTECH & AIRism
Japanese Identity
Excellent relations with manufactures to “secure stable high volume
supply of top quality materials”.
Largest Apparel –retail market share in Asia.

• WEAKNESS
No logo on clothing –unrecognizable.
Smaller selection of fabrics and clothing styles than competitors.
There is very little brand awareness in Canada to the general public.
Not a lifestyle Brand .Purposely non-referential.
Sizes and fit do not cater universally to the clothing retail market (due to
slim fits).

• OPPORTUNITIES
Large Asian population in the GTA

Positive brand awareness among conscious fashion –heads

Huge winter market .HeatTech line perfect for Canadian winter.

• THREAT

Already established competitors in the Canadian Market including

Zara,H&M and America Apparel.

Cnadian consumers are stepping away from outsourcing and favoring “made
in Canada”.

Lack of trend adaptability.

 PEST ANALYSIS

POLITICAL

Canada and Japan continue to grow and share their political, economic and
cultural values which has re-sulted in continual and positive bilateral relations.
In-ternational groups and organizations that include the G8, Youth 8 summit,
G20, APEC and ASEAN Regional Forum, provide space for negotiations where
both na-tions partner in opportunities to share their common goals (Government
of Canada, 2012).

Economic

Japan and Canada share strong trade and economic relations that have been
“steadily expanding” (Ur-stadt, 2010). For one, Japan is Canada’s largest bilat-
eral direct investment partner in Asia. Furthermore, both countries have strong
export and import rela-tions. According to Canada International, “Canada is
deeply committed to pursuing new opportunities to deepen trade and economic
cooperation with Japan” (Urstadt, 2010). In two-way merchandise trade, Japan
is the fifth largest partner with Canada. To illustrate the strength of Canada and
Japan’s export-import re-lations, Canada’s export of goods reached $10.7
Billion Canadian dollars while Japanese imports reached $13 billion Canadian
in 2011 (Urstadt, 2010).

In March of 2012, both Prime Ministers met in Japan to deepen trade and
economic cooperation by launch-ing negotiations toward a bilateral free trade
agree-ment. A study was released afterwards known as the “Report of the
Joint Study on the Possibility of a Canada-Japan Economic Partnership
Agreement”. According to the report, estimated GDP gains from a bilateral
free trade agreement would reach bil-lions in U.S. dollars (Urstadt, 2010).

Socio-Cultural
 SOCIO-CULTURAL

The Japan culture is highly valued and it is a re-spected source of media and
pop-culture. North Americans are well aware of Japan providing ex-cellent
brands and products from Sony and Pana-sonic electronics to Honda and
Toyota vehicles. Japan and Canada cultures have enjoyed each other through
arts, films, music, literature and comic books/manga (Government of Canada,
2012). Furthermore, not only is Toronto Canada’s largest city but it also
possesses the country’s most com-prehensive retail (Retail Insider, 2014). As
a highly urbanized city, Toronto is populated with fashion conscious
individuals who are well aware of high end international brands such as
Uniqlo.

Technology

The research and development department of Uniqlo heightens their focus on

research and experimentation of materials to continuously im-prove the
quality and functionality of their clothes. Uniqlo also collaborates with
companies like Toray Industries to develop technological innovations in fabric
such as HEATTECH, an advanced combina-tion of threading that creates a
“renowned soft, silky feel” (Fast Retailing, 2013, p. 32).
 MARKETING STRATEGY

PRODUCT

Uniiqlo is a brand that focuses on casual wear with an influence of Japanese

fashion. Their primary products are for men, women, kids, and infants. Uniqlo’s
prod-uct lineup consists of t-shirts, sweaters and pants and other clothing in a
wide variety of colours. They are truly representing their products to the masses
giving them the option to customize their wardrobes.
•
For Uniqlo’s expansion into Canada, a focus will be placed on the
HEATTECH lineup, adapting to the needs and wants of the Canadian
consumer by producing sweaters, fleeces and winter outerwear using the in-
novative technology. HEATTECH uses rayon and milk proteins to trap the
moisture of the body to generate and retain heat (Fast Retailing, 2014). The
Canadian cli-mate allows Uniqlo to increase its utilize of the HEAT-TECH
line and technology in Canada. Therefore, we will introduce a brand new
product line of parka jackets made specifically to withstand the Canadian
winter. The Jackets will be exclusively sold in Canada and will be the
frontier product for the new HeatTech lineup for Canada. The jacket will
utilize HEATTECH technology to infuse a comfortable, warm liner with
Uniqlo’s down jacket technology to provide layers of warmth during the cold
months. The Parka Jacket is a new development for Uniqlo’s product line.
The introduction of the product will allow Canadian consumers to feel
entitled to the product that identify with their needs and wants. The Parka
Jacket will be priced low, at $150.00, which will be positioned competitively
alongside other parka jackets in the market.

Uniqlo chooses functionality over fashion as their selling point, which has
excelled their success in expand-ing with low-cost products. Uniqlo’s
minimalist design retains high quality standards without following fads and
trends of its competitors. Uniqlo places its importance on craftsmanship for
the masses, which includes specializing in textile, sewing and dyeing
(Urstadt, 2010). An example of Uniqlo’s craftsmanship is their premium
jeans that are made of Japanese selvedge denim. The jeans are made from a
weave, that continuously stitches a thread from the top to the bottom of the
jeans, ending with a red stitching on the cuff (Urstadt, 2010). Uniqlo’s
emphasis on quality will allow them to differentiate its products from the
com-petition. The unique approach of emphasizing quality and low cost is an
opportunity that can allow Uniqlo to reach its market share goal of 1% in
apparel by 2022.
Price

One of the key contributors to Uniqlo’s success is their low pricing strategy.
This strategy makes their high quality products affordable and widely accessible
to the general public. Customers can purchase t-shirts for $6 US and cashmere
sweaters for $30 with the guarantee of a high quality product (Bhasin, 2014).

It is crucial that the low prices Uniqlo is known for are reflected in the Canadian
market, ensuring consum-ers develop trust towards the brand and its brand
equity. Prices will not be marked up strategically to increase profits, but will be
priced according to the market ensuring consistent profit margins per unit of
clothing to Uniqlo locations globally. This sort of pricing strategy and product
offering allows Uniqlo the opportunity to compete with and absorb market share
from its major Canadian competitors.

When introducing the flagship store at Yonge-Dundas Square, selective

discounts will be utilized to attract prospects to test-drive specific products,
such as a cashmere sweater, with the goal that they will enjoy the product,
promote it through word-of-mouth and ultimately convert into a loyal
customer.

Offering high quality clothing products at subsantially lower prices is a

core differentiator of Uniqlo’s positioning

Price lower than Price lower

than
Competitor

High quality
uncompromised
Examples of Pricing

HAATTECH High Quality Denim AIRism breathable

athletic shirt:$12
JACKET:$150 Jeans:$29-49

Place

The Uniqlo flagship store will be opened at Yonge and Dundas Square in
Toronto on the first weekend of December, 2015. We have decided not to
open Uniqlo stores in shopping malls due to initial limited exposure. The
objective is to visibly expose Uniqlo to as many Torontonians as possible.
Like the overwhelming lights, billboards and giant screens that pervade
downtown Tokyo, Yonge and Dundas Square is similarly situated as a high
traffic spot that attracts attention through its billboards, lights, street
performances and other attractions. Furthermore, by placing our flagship
store in the heart of Yonge And Dundas Square we are approaching a frontal
attack against our competitor H&M which is also situated in the area.

Anticipating the success of the Toronto flagship store, the next phase will
focus on store expansion through-out other major Canadian cities to increase
Uniqlo’s market share. The outdoor presence of Uniqlo’s brand is crucial as
logos are absent on the actual clothing. The the location is also ideal for
having easy subway accessibility as the square is directly above Dundas
station. The flagship store will have multiple levels with different categories
of products on each floor. The universal layout organization of Uniqlo stores
will continue in the Toronto flagship store.

Proposed Location: Yonge-Dundas Square Area

Promotion

Uniqlo’s promotional strategies for Canadian expansion will be catered to the

masses - deploying extensive advertisements through billboards, posters,
digital and social media campaigns. Through our promotional push and pull
strategies, the goal is to contribute to an increase of our market share to 1%
by 2022.

Some promotional tactics that will be utilized are placing a pop-up store as a
teaser before opening the grand opening of the flagship. This tactic is
designed to create buzz and awareness towards Uniqlo as a brand. Out of
home advertising such as billboards and TTC media buys will be utilized in
order to showcase Uniqlo to the people of Toronto.

Identifying the brand with secondary sources such as celebrities is a valuable

strategy to appeal to our target market. Our target market consists of men and
women between 18 and 34, we will plan and execute a free concert with the
Grammy Award winning artist Pharrell to coincide with the opening day of
the Uniqlo flagship store.

By placing advertisements at TTC subway stations, Uniqlo’s brand will

gain a large amount of exposure by daily commuters and passengers.
This proposed media buy at Dundas station would be seen by over 60,000
people daily. (Statistics from 2012-2013 ridership,TTC)

Market Analysis

The strategy of Uniqlo starting the Canada expansion by opening a single

flagship store in downtown Toronto, the company’s share of the market
will be low until further expansion is implemented. It can be expected that
H&M and Zara will remain important retailers in the Canadian market and
most likely grow their current apparel market shares of 1.1% and 0.4%,
respectively (Passport, 2014). Furthermore, it can be projected that Nike
will retain and possibly grow their 3.2% share of the menswear market
(Passport, 2014).
In addition, successful department stores such as Nordstrom and Saks
Fifth Avenue, are expected to enter the Canadian market by 2016 (Kopun,
2014). The entry of these two companies will further add competition to
an already congested market.

Sales Forecast
 In the Uniqlo Annual Report, the average sales per square metre of each
location was approximately 933,000 yen during the 2013 fiscal year (Fast
Retailing, 2013, pg. 45). To apply these figures to the Canadian market, we
must convert the value of 933,000 yen per square metre to the equivalent
dollar amount per square foot. Therefore, annual sales per square foot would
be 86,710 yen, or $830 per square foot per year. For example, if the flagship
location measures 40,000 square feet, we can estimate that the ideal base case
scenario is $33,200,000 (40,000 x 830) in sales.
According to Statscan, Canadian apparel retailers saw an average increase of
4.1% in net sales in 2014 (Sta-tistics Canada, 2014). Therefore, we can
forecast that the sales of our flagship location will increase at an average rate
of 4.1% year-on-year. Below is a chart that displays the sales forecast for 5
years based on the average sales of global Uniqlo locations
.

Year Amount Increased Yearly Sales Forecast

2016-2017 $30,200,000
2017-2018 $1,361,200 $34,561,200
2018-2019 $1,417,009 $35,978,209
2019-2020 $1,475,106 $37,453,315
2021-2022 $1,535,585 $38,988,900

Market Share

Uniqlo sets ambitious growth objectives, planning to aggressively expand

locations to increase their global apparel market share (Fast Retailing, 2013,
pg. 45). Currently, Uniqlo is growing at a global rate of 23% per year (Fast
Retailing, 2011). To apply the growth rate of 23% to Uniqlo in the Canadian
market, it is not realistic as the flagship in Toronto will be the first expansion
location in the country.
Figures for the market share growth of specific locations are not available and
could not be used as a benchmark. However, Due to Uniqlo’s aggressive
expansion model and with profitable sales figures and the addition of flagship
stores in Vancouver, Montreal, and other powerful retail markets in Canada
will help to grow Uniqlo’s market share at a greater rate than .1% per year.
As Uniqlo expands further into the market, meeting the objective of 1%
market share by 2022 will become increasingly attainable