Question
This section is about the Japanese fast-fashion company Uniqlo. Although they are the biggest apparel chain in Asia with about 800 retail sites, they have
This section is about the Japanese fast-fashion company Uniqlo. Although they are the biggest apparel chain in Asia with about 800 retail sites, they have struggled in the U.S. market with two unsuccessful attempts and a small presence today. They first tried to enter the U.S. market in 2005 with stores in three different suburban New Jersey shopping malls, but those stores were closed two years later. Then they tried a store in New Yorks trendy SoHo district with several more that soon followed. But they ended up closing most of those stores. Some of the challenges of Uniqlos products include concerns that the clothing is designed for Asian body types and that the styles do not appeal to Americans. There is also competition from other fast-fashion retailers like H&M, Zara, and Forever 21, as well as from online retailers like Amazon. Uniqlo clothing is generally of higher quality than these competitors, but they are having trouble getting consumers to know that. At the end of 2018, Uniqlo had 53 stores in the U.S., but the brand is still relatively unknown outside of major urban areas.
- What should Uniqlos strategy be for the U.S. market?
- If Uniqlo were to design products specifically for the U.S. market, it would reduce their economies of scale and harm their profitability.
- How should Uniqlo overcome this?
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