Analyzing UNIQLO'S Opening The US Market

Global

TadashiYanai, the founder of retailer Uniqlo, regards American minimalist Steve Jobs as an icon of another amazing entrepreneur who has unlimited confidence and understands simplicity.

In terms of Liu's well being, UNIQLO is different from other clothing companies, but more like Jobs's high-tech Empire Apple, pursuing innovation with comprehensive foresight and sagacity.

Can this spirit help UNIQLO to open up the US market?

From his office in Tokyo, Ryui Masa enthusiastically talked about the new fabric of UNIQLO.

He said, "Americans think cotton is the best, but we have invented new fabrics that change people's way of life."

First, Ryui Masa gave Heattech a miracle.

Heattech is the exclusive heating fabric of UNIQLO.

This fabric is co developed with Japanese companies supplying carbon fiber cloth for Boeing 787.

Ryui Masa praised UNIQLO's cooling fabric Airism "so frivolous that you can't even feel it is wearing it."

It is the number one product that must be bought in summer.

When the media asked him if he wore Airism on wet working days in Tokyo, he laughed heartily, and the richest Japanese man undid his shirt buttons to reveal UNIQLO underwear.

There is no need to define target customers.

A few days ago, Ryui Masa talked openly about the refreshing goal of making UNIQLO the best fashion retailer in the world.

Its goal is to earn $50 billion a year before 2020, which requires the company to increase revenue and exceed the current annual income of $12 billion, pushing the company to the leading Inditex group (Zara owners), H&M and gaip.

As one of the fashion industry experts, if Ryui Masa did not turn the direction of development, his male ambition could become empty talk.

Ryui Masa has been based in the US market, and has opened 3 notable stores in New York, including the huge flagship store in Fifth Avenue, which is the second gate store of UNIQLO.

He has been heavily employed by designer Jill Sander (JilSander), which has been a great success in many quarters.

Then, the retail environment. Before expanding to the global market, UNIQLO managers in Japan have studied the sales skills and orderly spatial layout skills of Liu well.

This autumn, UNIQLO will open 2 new stores in the United States, located in San Francisco and New Jersey, and launch an e-commerce website.

The company hopes to add hundreds of stores across the United States at speeds of 20 to 30 a year.

In short, UNIQLO vows to defeat GAAP with one's own power, so that all Americans can wear their reasonable prices.

Can the brand that is rooted in Japan and advocate minimalism aesthetics become the main force of the US retail business and enter the central and western suburbs of the United States?

Ryui Masa thinks that the ability of UNIQLO is mainly because he feels that the shoppers in Manhattan and Milwaukee are not very different.

In this sense, his inspiration comes from a famous American minimalist: Steve Jobs, another entrepreneur who has unlimited confidence and understands simplicity as a magic retail entrepreneur.

Comparing the successful emerging brands with Apple, this business leader who breaks the old habits and Jobs is almost a cliche.

However, this is exactly the way Ryui Masa looks at his mission and his own way.

For him, UNIQLO is different from other clothing companies, but more like Jobs's high-tech Empire: pursuing innovation with comprehensive foresight, instead of merely moving goods.

Takizawa Naoki, the creative director of UNIQLO, is the predecessor of Lssey Miyake.

He shared the story of his first meeting with Ryui Masa: "I train myself to imagine a particular customer in designing a clothing, their demographic factors, income levels and lifestyle.

But Ryui Masa said he did not need a fashion designer to define target customers.

"Let your power influence the masses!" he told me.

That is why he defines the slogan of UNIQLO as "the installation for the public".

He asked me to think about Apple phones, which are not for specific consumers, but on the contrary, in order to create a perfect product.

It's for everyone.

It is effective and reliable.

However, its design still strongly supports its brand positioning.

He wanted me to achieve the same results in clothing.

Expanding overseas markets requires entrepreneurial culture. The family industry built on pajamas has existed since 1949. Liu well is the first Youiku in Hiroshima in 1984 (Unique Clothing Warehouse).

Storefront shop.

After more than 10 years of steady expansion, he launched roadside stores and suburban independent stores in all of Japan, and eventually walked out of Tokyo, and opened a flagship store in Harajuku on 1998.

Not long after, UNIQLO accidentally discovered the pformation of the retailer from a tedious chain store to a household name brand in Japan: a $20 colorful woolen coat that captures the "sweet spot" of the Japanese middle class.

Wool is no longer an expensive industrial fabric for mountaineering equipment. It can be made into high street or office clothing.

UNIQLO woolen sweaters were popular in Japan, and sold only 26 million pieces in 2000 alone.

At the same time, it lets Ryui Masa experience the feeling that the whole society is branded itself.

But Ryui Manami was not very satisfied.

In the mid 90s, when UNIQLO was a small regional brand, he began writing memorandums to plan detailed global expansion plans.

After about 2000, convinced that the brand had conquered Japan, he began to turn overseas and focus on the European and East Asian markets.

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Ryui Masa has an unswerving ambition and a brave and fearless declaration of expansion, breaking the traditional and prudent image model of Japanese leaders.

Last year, he wrote a short essay for McKinsey Quarterly, complaining that "Japan's biggest problem is conservative and timid" and "Japanese business people and companies lack individuality".

He demanded: "Japanese leaders must speak freely.

We have experienced 22 years of economic stagnation and recession.

I tell people that we must have the courage to share our feelings, but no one follows me.

The Japanese business leaders whom he admired mainly came from the technology industry, self reliant entrepreneurs, such as Softbank Sun Zhengyi and Japanese electric producers.

However, in general, he said: "Japan lacks entrepreneurial culture."

His real idol is Sam Walton and Jobs, so he is eager to occupy a place in the United States - the place of entrepreneurship.

In 2005, uniqo landed in the American market and opened its store in the New Jersey shopping center.

They did not perform well, and soon they were closed.

"No one knows who we are, and when you don't have brand awareness, you can't rely on a casual clothing store to succeed," said new DIN Yue, the chief executive of the US market. "You're in a small, 10 thousand square foot small, ordinary store.

People need reasons for your interest. "

Ryui Masa persevered and restarted the UNIQLO project in the United States a year later. He opened a 36 thousand square foot store in SOHO, a fashionable Mecca in lower Manhattan.

In just a few years, two stores have been opened in New York: one is located on 34 street, 64 thousand square feet of bright and pparent storefront, and the other is located in Fifth Avenue, with 89 thousand square feet.

The space of Fifth Avenue store was expanded to the site of Brooks brothers. The rental of the store was $300 million, with a term of 15 years.

New high Yue said: "opening flagship stores in high-end commercial streets is very important for the expansion of the brand outside Japan.

They represent a declaration.

They inspire good public praise.

We can attract high-level talents.

I am not sure whether Jill Sander will cooperate with us before returning to the stores in 2005.

When UNIQLO announced its cooperation with Sander in 2009 (after several quarters of the +Jline series designed by Sander, they broke up in 2011), the minimalist aesthetics of the German designer matched well with the Japanese chain retailer and was highly praised and liked by fashion experts.

UNIQLO's way of making a living is genuine, new basic cut: Oxford shirt, polo shirt, V collar sweater, and simple denim.

As the brand grew stronger in the US, people compared it with Zara and H&M.

However, in fact, UNIQLO does not belong to "fast fashion".

Brands like Zara try to chase the trend every quarter and react quickly.

When a small demand for a purple Crochet jacket swept across the unexpected demand, Zara would take about two weeks to move the new product from the workshop to the shelf.

UNIQLO employs a nearly opposite supply chain strategy: pre orders a large order for a year, making it the lowest cost for high quality products.

Then, let these savings cost profits to consumers.

Because the company sells wardrobe essential products, there is a fairly stable demand for it.

"Our forecast planning is very precise, so we seldom do big sale activities," said Xin Da Yue.

We don't open any discount stores in Japan. "

This non fashionable basic sales method is especially suitable for the current economic recession in the United States.

An independent retail fashion analyst said: "women are willing to pay designers only for a few clothing categories.

They are handbags, the most fitting work pants, JimmyChoo or Louboutin shoes.

No one wants to spend a lot of money on basic funds.

But you want to buy these cheap goods, so you can save some budget and buy some more expensive fashions.

UNIQLO is moderately priced, yet it doesn't feel cheap.

Improving brand image in many ways

For many industry observers, it is easy for people to think of GAAP.

Not today's GAAP, a slow moving giant, but the heyday of GAAP, the late 80 and the late 90s, its short sleeved, compassionate and folded khakis became popular all over the world.

Ryui Masa said: "GAAP is rooted in the American way of life, and people have loved it.

I bought a lot of GAAP clothes.

However, nothing attracts me to this day.

You think it's lifeless.

So, what does he say about the Banana Republic of GAAP's subsidiary? "It looks like a European luxury brand, and it is reinterpreted and affordable for the American market.

But you have no sense of luxury, and at the same time, it becomes more expensive.

As for the Old Navy, the low-priced brand in the trinity of GAAP makes people feel that its design is unconcerned.

Creative director Takizawa: "if UNIQLO can steal from GAPP's" dust laden "business history, it is gifted former CEO Mickey Drexler (now J.Crew) has brought the brand's genius marketing strategy.

"It's just a simple dress, a compassionate.

But he called it "big pocket T-shirt" and made it a dream product.

Just show the white big pocket T-shirt for a week in the window, then display all the different colors of the big pocket T-shirt next week.

This is where the store is interesting. "

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UNIQLO has managed to bring excitement back to the fashion shop.

Despite its basic clothing, the retail store is novel and avant-garde, with a soft, wide and open line, equipped with a flickering video monitor.

UNIQLO painstakingly arranged directly to accept the instructions from Tokyo.

Stacking and stacking the goods in a fan-shaped arrangement gives people a colorful feeling.

The shelves are soft, clean, spotless, orderly and orderly.

Service mimics Japan's more formal attitude towards retail deals and is more focused.

Return your customer's credit card with both hands.

The central headquarters's oral greetings are repeated like prayer.

Storefront managers from all over the world fly to Tokyo for a few months' instruction at UNIQLO Global Training Institute.

Analysts say: "the result is that it is almost like a Apple store. In that high-tech environment, you may associate with a more prestigious product.

The way they treat low and middle income consumers may make these consumers feel unaccustomed.

Currently, UNIQLO is satisfied with a place in the New York market.

The price is right and clothing is slightly fashionable, but due to the Japanese roots of the brand, it lacks the practicability of the United States and the splendor of Manhattan.

If there is still a challenge, the brand will swear to let all Americans wear their clothes and eventually expand the company from the center of the city.

In Japan, although UNIQLO has covered more than 800 stores in rural areas, the location and monotonous atmosphere of roadside shops have worn away some of the brand's shine.

The Japanese slang "Unibare" is full of derision and ridicule that someone is embarrassed to find himself wearing the ubiquitous core commodity of UNIQLO.

Whether clothes fit well may be another obstacle.

UNIQLO's tailoring is suitable for Japanese stature, but the brand may need to improve its design to match the wider body of the American public.

This is an obstacle that can be overcome: tailoring and sewing are the last steps of the company's garment manufacturing process.

UNIQLO can still pre order those high-quality fabrics and adjust their sizes to fit the average American shoppers' stature.

Currently, UNIQLO's plans to expand to the US market are proceeding normally.

The shop opened in San Francisco this autumn will be divided into three storehouses with an area of 29 thousand square feet.

New Jersey Garden Island Plaza Store (UNIQLO's first entry to the first mall in the US mall since its failure to enter the US market in 2005) will reach 43 thousand square feet, which is impressive.

New chief executive of the US has hinted that UNIQLO may operate its global e-commerce platform in the United States, and that there are a lot of scientific and technological personnel in the United States.

He also hinted publicly that he would give way to an American official in the management of the US business.

Earlier this year, Ryui Masa announced that English was the official language of UNIQLO.

This is a symbolic move.

In May, UNIQLO appointed Novak Dyokovic as ambassador for brand promotion.

At first glance, it seems that the tennis player becomes a sports brand (such as Nike or Adidas) better than a spokesperson for a casual wear brand, such as UNIQLO.

But he provided the global popularity Ryui Masa longed for.

Moreover, when Djokovic has been competing with other strong competitors for the dominance of the tennis world, Ryui Masa has noticed Djokovic's achievements that he envied: he has become the number one player in the world.