<h3><strong>Finding a Niche and Perfecting It</strong></h3> Uniqlo’s strength could be summed up as: identify a market niche, focus on developing the very best products for customers in that niche, and maintain consistancy in product quality and retail experience. Uniqlo chose to focus on basic garments with unique functional properties. Customers know that if they want high quality basics, with functional properties and a touch of fashion, and at affordable prices, then Uniqlo is the place to go. This is the brand’s niche – and it’s been vigilant about staying focused on it. Like all retailers, Uniqlo’s sales have suffered during the pandemic. In April, sales fell 56.5% year on year. However May 2020 same-store sales including online sales decreased by only 18.1% year on year while total sales including online sales decreased by 19.7%. Looking beyond the current crisis, Uniqlo is moving ahead with opening new stores. On June 5, Uniqlo opened a new store in Tokyo’s Harajuku district. Another new store will open on June 19 in Tokyo’s Ginza. On June 3 Uniqlo opened its third store in Vietnam. The 2000-sq. ft store is in Ho Chi Minh City’s Landmark 81. <h3><strong>China Strategy </strong> </h3> Uniqlo set its sights on expanding in China, a move that positioned the Japanese retailer for stable long term growth. It’s first store in China opened in 2002, one of the first foreign brands to enter the market with physical stores. Uniqlo studied the Chinese market carefully and is one of the most successful foreign brands – both online and in physical stores. It is now the No. 1 apparel brand in China. Uniqlo now has 745 stores there and plans to open around 100 new stores each year. Currently, Uniqlo has 813 stores in Japan, it largest market. <blockquote> <h4><strong>Financial Snapshot</strong></h4> <strong>Uniqlo in Greater China</strong> ( Mainland China, Hong Kong, and Taiwan) Fiscal Year 2019 <ul> <li><strong>Revenue: </strong> ¥502.5 billion (US$4.57 billion), +14.3% year on year</li> <li><strong>Operating Profit:</strong> ¥89.0 billion (US$811 million) , +20.8%</li> <li><strong> Operating Profit Margin:</strong> 17% (+1.0 point)</li> <li>Uniqlo now has 745 stores there and plans to open around 100 new stores each year. Currently, Uniqlo has 813 stores in Japan, it largest market.</li> </ul> </blockquote> The brand’s e-commerce sales in Greater China grew 30% in fiscal year 2019 to approximately 20% of total sales. That proportion is expected to rise as online-to-offline (O2O) services, such as the pick-up of online purchases from a nearby physical store, extend across Mainland China. “In this geographically vast market, our physical stores also serve as e-commerce warehouses that ensure the quickest possible delivery of online purchases to customers. We are aiming to [have] growth powered equally by stores and online operations for ultimate customer convenience,” the company said in a statement. Uniqlo’s Greater China revenue is expected to surpass that of Uniqlo Japan and top the ¥1 trillion mark (US$9.11 billion), according to the company’s financial statements. Having a strong presence in China has proved to be a key advantage this year. China was reopening from its lockdown, just as other key markets were just entering their own lockdowns. By late February, Uniqlo was already reopening its stores in China. Thus as retail was forced to shut down in Japan, sales were starting to pick up in China. <img src="https://insidefashionlive.net/wp-content/uploads/elementor/thumbs/uniqlo-shanghai-fleece-oqpkk1y7ocy60fh5mczlijbgc4k8u6nyd5ufczcg74.jpg" title="uniqlo-shanghai-fleece" alt="uniqlo-shanghai-fleece"> <h3><strong>The 8 Strategies Behind Uniqlo’s Success</strong></h3> <strong>Materials.</strong> Uniqlo stands out in the market by developing groundbreaking new materials through partnerships with some of the world’s best fabric technology innovators. This enables the brand to turn basic garments into value-added bestsellers. For its bestselling Heattech and Cooltech products, the fabrics were developed with Toray Industries (Japan). Uniqlo has also worked with Kaihara Corporation to source denim to specific spinning standards and dyeing specifications. The styles and colors are not special, but the functional properties that come from the fabric make them retail winners – for season after season. <strong>Future Vision.</strong> Uniqlo’s R&D centers are continually looking to identify the future needs of the brand’s customers. The brand tries to communicate with its customers to better understand their desires and then quickly translate them into products. <strong>Collaboration.</strong> A year before a product launch, Uniqlo’s R&D department holds a concept meeting with represenatives from the merchandising, marketing, and materials development teams to determine the right design concept for each season. Designers then prepare designs and refine samples. Merchandisers communicate closely with all departments before determining the designs and materials required for each season's products. They also decide how to market Uniqlo’s strategic product launches in close cooperation with the appropriate departments. <img src="https://insidefashionlive.net/wp-content/uploads/elementor/thumbs/photolib_uqginza_pants-scaled-e1591609551977-oqpkmrpff4nzjvj5rj8spune476f2pg1elox9rbi80.jpg" title="photolib_uqginza_pants" alt="photolib_uqginza_pants"> <strong>Fewer Styles,</strong> <strong>Bigger Volumes. </strong> Many Uniqlo products are manufactured in huge quantities of approximately one million units, according to the company. Often, a basic style (polo, button down, t-shirt) will be launched in a wide range of colors or prints. Because of the high-volume of its orders, Unqlo is able to achieve both a stable supply of high quality materials and garment production, as well as lower prices. <strong>Keeping It Simple.</strong> Most consumers are not fashionistas. Uniqlo's basic silhouettes have a sense of style but are still easy for any consumer to understand. The garments have the right mix of being practical/functional with a touch of fashion. <strong>Consistency.</strong> Consumers know what to expect from Uniqlo - in terms of style, quality, fit and service. <strong>Size Matters.</strong> Uniqlo sizing is designed to fit the Chinese consumer. Many foreign brands simply don't fit well. <strong>Smart Tech.</strong> Uniqlo’s customer center analyzes huge volumes of requests and comments. This analysis has helped improve many core ranges such as Ultra Light Down, fleece full-zip jackets, boa fleece outerwear, warm EZY Pants, and cashmere knitwear.