1.

Introduction

Founded in 1949 as a Japanese textile manufacturer, UNIQLO has evolved into a

global brand under the Fast-Retailing Group, boasting over 1000 stores worldwide.
With a mission to offer high-quality LifeWear at affordable prices, UNIQLO aims to
enhance everyone's daily life with comfortable and stylish clothing (Uniqlo, 2023). This
report delves into the opportunities and hurdles presented by the digital landscape for
UNIQLO's marketing. A close examination of the company's existing digital platform
is followed by recommendations to enhance its digital marketing performance.

2. Situation Analysis
2.1 Digital Environment Analysis
 Micro digital environment

Market analysis

In the global context, after 18 months of robust growth (from early 2021 to mid-2022),
the fashion industry is once again grappling with hyperinflation and customer fatigue,
leading to a deceleration in growth rates in the latter half of 2022. The fashion market,
excluding the luxury segment, is expected to encounter difficulties in achieving
significant growth rates in 2023. McKinsey's analysis of the fashion industry forecasts
a relatively slow sales growth ranging from -2% to +3%, influenced by market
contraction in Europe (McKinsey, 2022). Domestically, in 2023, the domestic fashion
consumption market continues to grow, reflecting an increase in income and the
fashion awareness of the population.

Moreover, the Vietnamese fashion industry has been earnestly investing in sustainable
development. Companies are actively seeking ways to use less water and energy, while
also incorporating more recycled fabrics into their production processes. Notable
companies such as H&M, Zara, Decathlon, and Uniqlo are leading the way in this
effort. These companies are not only providing clothing repair services in-store but
also introducing collections made from recycled fabrics to support the sustainability
trend.

Customer analysis and Personas

The target customer of Uniqlo is broad Demographic spectrum, spanning different age
groups, professions and lifestyles. Most of them are in middle to upper clasas and have
Income AB. The Age have variety products for children, and aldult but mainly focus on
18-40 all genders. They are living in urban area such as Hanoi and HCMC. Its clothing
caters to individuals who seek a balance between fashion-forward designs and
practicality. Whether it’s a trendy college student looking for the latest streetwear
styles or young professional seeking versatile wardrobe essentials, UNIQLO’s
offerings resonate with those who prioritize both aesthetics and functionality. The
media habit off the using social media such as Facebook, Instagram, Youtube on a
daily basis. They have insight that want to have a balance between fashion-forward
designs and praticality (Pham, 2022).
 Personas

Competitors analysis

Uniqlo ZARA H&M

Style Minimalism Trendy Minimalism and Trendy
Product Long Short Middle
Lifecycle
Strategy “Made for all” Fast fashion with a Open much more physical
Innovate huge number of shops than two others brands
products with products each years Target variety of customer,
high-tech from mass-market fashion to
Sustainable fashion enthusiasts people.
 Price Cheaper than Most expensive Middle
Zara and H&M

Zara
Unlike Uniqlo, Zara is known for its swift response to fashion trends. Producing
around 10,000 new designs in a year, Zara is remarkable for its ability to release a new
batch of products within just 10 to 15 days from design to sale. The brand's primary
mission is to assess trends promptly and quickly adapt. Zara positions itself as a fast
and trendy fashion brand with relatively higher prices, targeting the middle to upper-
class demographic (Lemos, 2013).

H&M
The company occupies a middle ground between Uniqlo and Zara. The brand pursues
long-term styles but does not react as rapidly to trends or turnover products as
frequently as Zara, which releases new items twice a week. H&M offers collections
with both a six-month lifecycle, aligning with a more enduring fashion approach, and
shorter lifecycle collections akin to Zara's fast-fashion model (Thi, 2019). This
approach allows H&M to cater to a diverse consumer base seeking both timeless styles
and more trend-centric, quickly evolving fashion choices.

Intermediaries

The company has pioneered design partnerships with various groups and designers
worldwide, aiming to create products that cater to a diverse audience. Design partners
are chosen based on their shared values with the brand, including a commitment to
making a positive impact on people's lives and contributing to society. Uniqlo has also
collaborated with KOL (Key Opinion Leader) Roger Federer, a top-ranked tennis
player with a contract valued at 300 million USD over a 10-year period, to enhance
brand recognition.
Additionally, Uniqlo has collaborated with the renowned global designer J.W.
Anderson, who also works with the luxury brand Loewe. The collaboration with J.W.
Anderson began in the Fall/Winter season of 2017 and has experienced significant
growth in the following years.

Sold out product count when Uniqlo collaboration with JW

Furthermore, Uniqlo develops, supplies, and sells raw materials on their own. They do
not have any other retail firms or intermediaries, and they manufacture and sell their
own items. Uniqlo's retail outlets are thus limited to original storefronts and online
sales. This type of consistent business scenario is known as SPA (Specialty store
retailer of Private label Apparel). Uniqlo can regulate all services provided to
customers since the system exists (Wang, 2021). Therefore, it links the increase in
selling price. Uniqlo prioritizes the SPA system.
 The SPA system of Uniqlo

 Macro digital environment

Political and Legal

Uniqlo receives governmental support for its business operations in Vietnam through
the approved Industrial Development Strategy for the textile, garment, and footwear
industry. This strategy was endorsed by the Prime Minister in Decision No. 1643/QD-
TTg on December 29, 2022 (Ministry of Industry and Trade, 2023). This backing from
the state aligns with the increasing legal frameworks, encompassing antitrust laws,
intellectual property rights, and patent laws. These frameworks foster a landscape of
fair competition within the industry, encouraging companies to compete by adhering to
regulations and upholding high standards for quality and innovation. Additionally, the
emerging influence of consumer advocacy groups presents a potential challenge for
companies like Uniqlo, as it shifts the balance in favor of consumers, compelling
companies to assume greater responsibility for product safety, honest advertising, and
cultural considerations.

Economic

The Yen has depreciated by approximately 12% against the USD at the moment,
serving as an incentive for Japanese companies, including Uniqlo, to strengthen their
overseas sales. Besides, since Vietnam became a member of the WTO in 2015 and
participated in the TTP trade agreement, these practices have fostered increased
competition and offered various entry modes for new firms entering the Vietnamese
market (KPMG, 2019). Particularly in the third quarter of 2023, the average income of
workers has increased across all economic and social regions nationwide. This upward
trend is expected to boost shopping demand, with more individuals able to afford
Uniqlo products, typically targeted at the middle to upper-class demographic. This
economic context is a significant factor influencing Uniqlo's operations.

Social

The growing awareness among consumers regarding the negative impact of the
traditional fashion industry on the environment and society is a significant social factor
influencing Uniqlo. Consumers now demand that fashion brands take responsibility for
environmental and social protection by implementing sustainable standards in
production. The concept of "sustainable fashion" has gradually become a trend adopted
by many brands to mitigate the consequences caused by the fashion industry and retain
customer loyalty. Uniqlo is positioned as a sustainable fashion company, aligning with
this trend. Moreover, the younger generation, a key target audience for Uniqlo, is
transitioning towards the trend of minimalism in fashion. This shift is positive for
Uniqlo as the company has consistently adhered to the principles of minimalism in its
designs (Mirza et al.,2020). This social factor underscores the importance of Uniqlo's
sustainable practices and its alignment with evolving consumer preferences.

Technology

The Technology factor plays a pivotal role in Uniqlo's business strategy, as the
company demonstrates remarkable agility in adapting to technological advancements.
Uniqlo integrates technology into its production and product research strategies,
leveraging new applications to streamline processes, reduce costs, enhance service
quality, and improve employee efficiency.

Uniqlo is renowned for incorporating technological elements into its product lineup,
exemplified by innovative offerings such as Airism and Heattech. These products
showcase the company's ability to differentiate itself from competitors by infusing
technology into its designs. Furthermore, Uniqlo has implemented self-checkout
systems, allowing customers to independently complete their transactions with
exceptional speed and accuracy. The entire process, from initiating payment to exiting
the store, typically takes less than two minutes (News, 2023). This not only accelerates
Uniqlo's sales pace but also introduces a novel and efficient experience for customers
while reducing labor costs. The Technology factor is evidently a cornerstone of
Uniqlo's operational success and customer engagement strategy.
 Uniqlo Self Check Out Payment System

Opportunities

Uniqlo's commitment to sustainability and ethical practices positions it competitively

amid growing demand for responsible fashion. The Yen's depreciation lowers product
prices, potentially boosting revenue and increasing consumer appeal. Government
support in Vietnam offers Uniqlo an opportunity to expand, enhancing growth
prospects. The integration of modern technology keeps Uniqlo agile in adapting to fast-
changing fashion trends, elevating customer experiences. Overall, Uniqlo's focus on
sustainability, exchange rate advantage, government support, and technological
innovation solidify its position as an innovative and competitive player in the market.

Threats

However, the declining income of Vietnamese consumers since late 2023 poses a
threat. The prevailing trend of personalization contrasts with Uniqlo's focus on basics
and simple designs. To address this, the company should consider expanding its
product range to include personalized designs, aligning with evolving consumer
preferences.

2.2 Tools and Platforms Audit

FACEBOOK

- Having 1,1 million followers in Vietnam.

Uniqlo strategically leverages Facebook due to its alignment with the significant usage
of the platform by the targeted age group in Vietnam. Through this extensive presence,
Uniqlo effectively communicates updates on new products, discount promotions, and
brand events, ensuring a broad audience reach. This consistent engagement on
Facebook serves the purpose of enhancing awareness and fostering brand recall. In
tandem, Uniqlo upholds a dedicated customer care department that actively listens to
and promptly responds to customer feedback. The brand consistently addresses
comments by providing additional information or explanations, reinforcing its
accessible and friendly image within the affordable fashion market.

INSTAGRAM

- Having 147k followers and 3,189 posts in Vietnam.

Uniqlo Vietnam strategically employs Instagram as a visual storytelling platform to

instantly convey key brand messages. Focusing on visually captivating content, the
brand prioritizes Instagram Stories, sharing 4-5 stories daily to maintain continuous
customer engagement and reinforce the brand image. The deliberate emphasis on the
platform's visual appeal enables Uniqlo to maximize the impact of its content, creating
a dynamic and immersive experience for its audience. This strategic approach reflects
the brand's commitment to effective communication, utilizing Instagram as a powerful
tool to stay top-of-mind among its audience. By consistently delivering compelling and
visually appealing narratives, Uniqlo aims to foster a strong connection with its
Instagram followers, reinforcing brand loyalty and positioning itself as a trendsetter in
the fashion landscape.
 COST

Facebook ads offer precise targeting, allowing businesses to set specific demographic
goals. With a vast reach across diverse customer segments, ads can be displayed on
various channels like Stories, Messenger, Videos, and Newsfeed. On Instagram,
Stories Ads prove more effective than Feed Ads, with significantly higher click-
through rates, as indicated survey reporting up to a 78% increase in clicks. However,
Instagram Ads tend to be more expensive than Facebook Ads, and they are limited to
appearing on Stories and the Newsfeed. Instagram's user base predominantly
comprises a younger demographic (90%), and there are challenges with algorithm
refinement affecting ad accuracy (Haldborg,Voorveld and van Noort, 2023).

REACH

Facebook takes the lead as the primary platform for Uniqlo, boasting a higher overall
reach and more followers than all other platforms combined. However, Instagram
offers a unique advantage through its effective use of hashtags. Leveraging these
hashtags allows Uniqlo to expand its post reach to a broader audience interested in
specific topics. Instagram's algorithm plays a pivotal role by suggesting posts with
similar hashtags based on user interactions like likes, comments, shares, or saves. This
dynamic engagement enhances content discovery and promotes active participation
within a community that shares a common interest, providing Uniqlo with a valuable
avenue for targeted audience outreach.

Assessment

Strengths: Uniqlo has successfully harnessed the power of Facebook in Vietnam,

amassing an impressive follower count exceeding 1 million. Each post on the platform
consistently generates a commendable level of engagement, ranging from 300 to 1,000
likes. This signifies a noteworthy interaction rate, particularly commendable for a retail
brand. Uniqlo's effective utilization of Facebook not only demonstrates its significant
online presence but also highlights the brand's ability to connect with and captivate its
audience, fostering a strong and engaged community in the vibrant landscape of social
media in Vietnam.

Weaknesses: Uniqlo faces a weakness in its underdeveloped video marketing strategy,

notably on YouTube, where it holds a modest following of 3.32K subscribers and
comparatively low engagement, despite a substantial library of 130 posted videos. The
brand has yet to explore the potential of TikTok, a platform with considerable user
overlap within its target audience. Uniqlo's presence and interactions on TikTok remain
largely untapped, presenting an opportunity for the brand to expand its reach and
engage with its audience in innovative ways on this dynamic and rapidly growing
video-centric platform.

SWOT

Strengths
 Have a huge followers on Facebook
 Have a strong brand identity in
Vietnam
 Advanced SPA (Specialty store retailer
of Private label Apparel) model for
end-to-end control from planning and
design to material procurement and
sales.
 Celebrity collaboration and famous
designers
 It is a Japanese brand and Vietnamese
like Made in Japan products
Opportunities
 The sustainbility trend is the advatange
of Uniqlo since this is also the USP of
the company.
 The GDP of Vietnam is increase,
Weaknesses
 Have high price in Vietnam
 Although this factor is successful in
Asia, it is not successful in the United
States because it is only designed for the
Asian market and lacks global
adaptability.
 Online retailing of Uniqlo is far behind
compared to other companies in the
market.
Threats
 Have many competitors which have the
lower price and big companies such as
Zara and H&M which these days also
have basic clothes.
 therefore, the clothes of Uniqlo will  Uniqlo operates in the fast-paced fashion
much more apportable for Vietnamese industry, where trends evolve rapidly,
people. should emphase the need for continuous
innovation.

Level of integration with other platforms

Uniqlo has a seamless channels and platforms. The company maintains strong SEO for
its website and Facebook channel. When customers are directed to these platforms,
they receive detailed product information and guidance on suitable choices, sparking
interest in the products. The website and Facebook often provide discount codes, some
of which require downloading the brand's app for use. This strategy encourages
customers to download the app, facilitating service utilization. Uniqlo also leverages
other social media platforms like Instagram and TikTok for increased brand
recognition, utilizing paid Bumper ads that appear while users are on these platforms.
Additionally, targeted audiences receive brand reminders through posts and stories
after following Uniqlo on these platforms.

By effectively utilizing omnichannel strategies and coordinating across various

platforms, Uniqlo has increased its customer conversion rates, transforming interested
individuals into active buyers. Additionally, the integration with other platforms allows
the brand to gather data from diverse sources, providing deeper insights into customer
behaviors, preferences, and pain points. This enables the brand to refine its strategies
and deliver more personalized experiences. Furthermore, leveraging omnichannel
approaches maximizes brand exposure to its target audience, swiftly delivering
information about products and the brand, ultimately enhancing customer experience
and loyalty.

Recommendation

With good SEO, an attractive landing page, and a high brand reputation in Vietnam,
Uniqlo has a competitive advantage in the fashion industry, earning more trust from
consumers. Moreover, being a well-known brand for high-quality clothes with basic
designs, purchasing Uniqlo products online is likely easier compared to other trendy
fashion brands like Zara. This is due to the versatile and easy-to-style nature of
Uniqlo's basic clothing, as well as its reputation for consistently good-quality
materials. Therefore, it is suggested that Uniqlo improves its brand's app, as reviews by
users indicate that it is currently challenging to use and somewhat slow. Given the
current trend of online shopping, such improvements are crucial.

Additionally, Uniqlo should enhance its advertising efforts on popular channels such as
YouTube and TV ads, as these platforms have significant potential in Vietnam. These
are two of the most widely used channels, along with Facebook, making them essential
for reaching the target audience effectively.

3. Conclusion

Uniqlo is a globally successful fashion brand, not only in Vietnam but worldwide,
owing to its Unique Selling Proposition (USP) of combining basic designs with high-
quality fabrics and innovative technology in product development. Currently, the
company has been effective in digital marketing, utilizing omnichannel strategies that
include popular social media platforms, with a notable presence on Facebook boasting
more than 1 million subscribers.

To further enhance its success, Uniqlo should leverage its high brand reputation and
the "Made in Japan" label to promote its products across diverse channels, both offline
and online. By capitalizing on its positive brand image and the association with
Japanese craftsmanship, Uniqlo can maximize its marketing efforts to yield the best
possible results. This may involve exploring new avenues beyond social media, such as
traditional advertising channels, partnerships, and events to reach a broader audience
and strengthen its brand presence in the market.
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