Table of Contents
3.0 Analyse the retail mix in the business perspective of Uniqlo.
3.1 Merchandise (products) range and assortment planning.
3.2 Retail communication and promotion.
3.3 Store layout, design, and visual merchandising.
3.4 Customer service and facilitating services.
3.5 Format and location of the store (Place).
3.5 Pricing strategy and tactics.
4.0 Assess the extent to which the retail mix provides a basis for sustainable competitive advantage.
5.0 Evaluate the challenges to continued international growth that will be faced by Uniqlo.
5.1 Situational analysis.
5.1.1 Competitive context.
5.1.3 Growth Objectives.
5.1.4 Growth Strategy.
5.2 Evaluate the challenges to the continued international growth of the retailer.
5.2.1 Competition in international markets.
5.2.2 Economic conditions.
5.2.3 Challenges posed by the political environment.
5.2.4 Challenges posed by the technological environment.
5.2.5 Cultural compatibility with international markets.
5.2.6 Establishing good relationships with local partners, franchisees, suppliers.
In the competitive marketplaces, the non-domestic retailers must consider the retail mix deeply to propel the business into prosperity. In addition, for gaining sustainable competitive advantages non-domestic retailers need to be careful about their retail marketing planning and strategies. The retail mix refers to the 6 Ps, which are products, promotions, place, price, presentation, and personal (Koening, 2013). As a result, non-domestic retailers must focus on these six aspects with their organizational goals and objectives to gain sustainable competitive advantages.
Uniqlo (a non-domestic retailer in the UK) is a Japanese retailer that originated in 1949. It deals with casual clothing and wears and operates as manufacturers, designers and retailers. It is now operating in 16 international markets (including the US, UK, EU, Australia and Canada), where it is serving millions of consumers every week with its thousands of dedicated and devoted employees in more than 1400 stores. Uniqlo entered the UK market in 2001 opening its flagship store in London Oxford Street. Then, the success of Uniqlo encouraged opening more than four stores in London and three in Manchester city by 2007. Later, the huge success of this non-domestic retailer promoted itself to open two more stores in the largest shopping malls in the UK, called Westfield. By 2015, as a non-domestic retailer, Uniqlo has a total of 10 stores in the UK and planning to open more than 100 stores in different cities of the UK by 2020 (Uniqlo Annual Report, 2014).
The key products of Uniqlo are clothing, where Uniqlo designs, manufacture, and retails these clothing to the end-users. The key market of Uniqlo in the UK is London. However, as it is planning to open more than 100 stores in different cities of the UK by 2020, its target market would be the whole UK. The target customers of Uniqlo are all aged people across the UK including men and women, children, young and old aged people. The key competitors of Uniqlo in the UK are shown in the following table:
|Competitors||Origin||Sales revenue as 2013|
Table: Key competitors of Uniqlo in UK market Source: Bagaria (2015)
The key competitive strategies are: a) product development based on customer feedback; b) developing the exceptional quality of products; c) material procurement from the global market; d) expert technical guidance for emphasizing quality; e) boost market share mainly in urban areas; e) expanding its presence in the global market, and f) building brand through flagships (Uniqlo Annual Report, 2014).
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This study firstly analyses the retail mix in the business perspective of Uniqlo. Then, the study evaluates how the retail mix can provide sustainable competitive advantages to a non-domestic retailer like Uniqlo. Finally, the study outlines the challenges which non-domestic retailers including Uniqlo can face in the future in their operations.
3.0 Analyse the retail mix in the business perspective of Uniqlo
3.1 Merchandise (products) range and assortment planning
Merchandise range and assortment planning focus on what kind of products and services the company offers. It also outlines the level of quality of goods and services including the depth and breadth of the offering. In addition, the stock levels, anticipated vendor relationship, order and re-order policy, and expected inventory turnover needs to be considered in this planning (Kotler et al., 2014).
Uniqlo has developed private-label brands and able to offers unique and differentiated products to address the target market. Uniqlo’s product is mainly categorized into four sub-groups: a) Unique clothing; b) UT collection; c) UJ collection; d) Fleece collection. Uniqlo’s product ranges are described with the sample as the following table:
|Product ranges||Descriptions||Products sample|
|Unique clothing||Uniqlo offers clothes for all aged people to wear anywhere and anytime. Its key goal is to provide high-quality and fashionable casual wear at reasonable prices. Consequently, every consumer can enjoy Uniqlo’s quality, colorful, and stylish clothing.|
|UT collection||The UT collection is T-shirt designs focusing on distinctive cultures of global comics, music, and art, where every T-shirt bears a global message. The key aim of this products line is to infuses emotional expression, personality, and cultural identity, and to discover the real beliefs and feelings of Uniqlo|
|UJ collection||The UJ collection is high-quality jeans with refined details including fine fit, color variations and comforts.|
|Fleece collection||Uniqlo’s fleece collection is jacketed in unique colors, designs, and styles for all aged people.|
Table: Uniqlo’s products range Source: Uniqlo Annual Report (2014)
The key characteristics of Uniqlo’s products are described in the following table………