UNIQLO:  

A  Supply  Chain  Going  Global

AUB  Consul+ng:  
Mneimneh,  Mira  
Abdelahad,  Faten  
Jawhar,  Abd  
Samaha,  Elissar  
Agenda:  
•  Overview  
•  Analysis      
•  Recommenda<ons  
•  Implementa<on    
 

 
 Overview   Analysis   Recommenda<on   Implementa<on    

4th  largest  fashion  retailer  aBer  

1,550  Stores  Across  the  globe    
inditex  and  H&M  

Need  to  grow  and  

expand    

In  20  years     Provide  affordable  casual  wear    

 Overview   Analysis   Recommenda<on   Implementa<on    

Industry  Highlights

Highly  affected    by  

Facing  Fast  fashion  
consumer  spending  
trend    
paNerns    

Affected  by  
Mature,  with  High   digi<za<on  (e-­‐
Compe<<on     commerce  and  m-­‐
commerce)    
 Overview   Analysis   Recommenda<on   Implementa<on    

Strengths

•  Fourth  largest  fashion  retailer  in  the  world  à  Strong  brand  name  
•  SPA  model  and  direct  control  over  supply  chain  à  highly  responsive  supply  chain  
•  Growing  sales  and  fewer  suppliers  à  Economies  of  scale  advantage  
•  Advanced  IT  system  to  connect  supplier  factories,  stores  and  head  office  à  
improved  inventory  management  and  forecas<ng  processes  (with  POS  data)  
•  Takumi  team  (composed  of  experienced  technicians  in  the  garment  industry)  à  
enhanced  produc<on  processes  that  meet  Uniqlo’s  quality  and  efficiency  
standards  
•  Kaizen  philosophy  of  con<nuous  improvement    
 Overview   Analysis   Recommenda<on   Implementa<on    

Compe<<ve  Advantage

Ability  to  sustain  

Uniqlo’s  level  of  
quality  at  compe<<ve   Takumi  team  
cost  

Quality  control  
demanding  
procedures   Product  strategy  of  
func<onalism  
inspec<ng  every  
single  SKU  produced  
Compe<<ve  
Advantage  
 Overview   Analysis   Recommenda<on   Implementa<on    

Opportuni<es  

•  ABer  expanding  regionally,  there  lies  a  big  opportunity  of  growth  into  
interna<onal  markets,  specifically  the  US  and  Europe  
•  E-­‐commerce  offering  a  brisk  growth  rate  and  becoming  an  
interna<onal  trend  
 Overview   Analysis   Recommenda<on   Implementa<on    

Key  Success  Factors  

Innova<ve  

•  Fashionable    
•  Trendy    
•  Variety  

Affordable  Prices    

Good  Quality  

Efficiency:  Responsive  supply  chain    

 Overview   Analysis   Recommenda<on   Implementa<on    

Going  Global  

A  successful  local   A  Successful   A  Successful  

brand     Regional  Brand   Global  Brand??  

Where?  
 
How?  
 
 Overview   Analysis   Recommenda<on   Implementa<on    

Where  to  go  first  ?

Europe     US  

Far  geographic  loca<on   Far  geographic  loca<on  

High  popula<on     High  popula<on    

High  cultural  difference  

Same  na<onality  
between  country  
 Overview   Analysis   Recommenda<on   Implementa<on    

How?

Planning     Produc<on     Sales    

 Overview   Analysis   Recommenda<on   Implementa<on    

Planning  

Procurement  of    material     Centralize  R&D:  

•  Keep  suppliers     •  Keep  in  mind  the  size  
•  Use  hedge  strategies   •  The  specific  need  of  each  
country    

Invest  in  informa+on  system:  

•  On  <me    
•  Low  inventory  level    
•  Improve  forecas<ng  and  have    
•  Pull  supply  chain    
 Overview   Analysis   Recommenda<on   Implementa<on    

Produc<on  

Planning     Produc<on     Sales    

 Overview   Analysis   Recommenda<on   Implementa<on    

Produc<on

Grey  Goods:   Ver<cal  integrate  produc<on  

in  La<n  America  (Mexico  –
delayed  Customiza<on   Panama)   Shorter  Lead  
Time  and  
constant  
u<liza<on  of  
Tight  control:   Capacity    
•  Kaizem-­‐  Takimi  team    
•  One  table  Mee<ng-­‐  Toyota  
•  Partnership  with  suppliers    
 Overview   Analysis   Recommenda<on   Implementa<on    

How?

Planning     Produc<on     Sales    

 Overview   Analysis   Recommenda<on   Implementa<on    

Sales  

•  Target  Market:  Middle  Class  

•  Customer  oriented:  seeking  customer  feedback    
•  Flexible  prices    
 Overview   Analysis   Recommenda<on   Implementa<on    

Sales  

Omnipresence  
 

Online:  
*  Distribu<on  channels  
needed  
Retail  Stores:   Social  Media  
*  Pay-­‐pal   Mobile  Applica<on  
*  Franchising    
*  Plahorms:  Amazon  in  
Us  (like  JD.com  in  
China)  
 Overview   Analysis   Recommenda<on   Implementa<on    
 
Time  Line

Year  1     Year  2   Year  3  

Opera<on     Sejng  up  factory  &  team  

Developing  legal  contracts  
Partnerships  

Marke<ng  
Amazon  /  Paypal  

Social  Media  

IT  system    
Installa<on  

Collec<on  of  data  on  <me  

 Overview   Analysis   Recommenda<on   Implementa<on    

Long-­‐term

•  Expand  into  Europe  aBer  two  years  

•  Same  model  and  strategy  if  proved  to  be  efficient  in  US  
 
•  Con<ngency:  
•  Venture  capital  with  US  big  players  
•  Outsource  manufacturing  while  audi<ng  using  our  Takumi  Team