UNIQLO

A SUPPLY CHAIN
GOING GLOBAL
 CONTENT
INTRODUCTION
PROBLEM STATEMENT

MARKETING STRATEGY
OPERATIONS STRATEGY
RECOMMENDATIONS
PERFORMANCE EVALUATION
UNIQLO /Unique Clothing Warehouse/

FASHIONABL COMFORTABL
ECounter-current
approach E Functional
fashion

HIGH
QUALITY AFFORDABLE
Centralized
Takumi manufacturing
team In China
UNIQLO /Unique Clothing Warehouse/

Strong
presence Europe
in Asia

U.S.
Possible mismatch
with consumer preferences
 PROBLEM STATEMENT

Despite its plans of being a global

brand, Uniqlo is being held back from
its expansion plans in the West.

VALUE-
CHAIN
ANALYSI
MARKETING OPERATIONS
S
FOCUS
MARKETING STRATEGY
LOWER PRICE AND FUNCTIONALITY

COMPANY PERCEPTION MARKET PERCEPTION

Inferior
because
it is an Asian
brand

PRICE
PRODUCT
LEADERSHIP
DIFFERENTIATION
OPERATIONS STRATEGY
Retain factories and Establish new
Increase capacity factories
around the region
Europe
Asia vs.

U.S.
CENTRALIZED ASIAN OPERATIONS

Expand production capacity

Acquiring Maximize Build

more current additional
workers operations factories

Kaizen philosophy as center of gravity

ADVANTAGES DISADVANTAGES
Takumi teams short visits High transport costs
Lower realizable margins
EXTEND PARTNERSHIPS TO WEST

Coordinate with R&D centers for culture-

specific productions
Trends Sizes Weather-suitability

Landscape assessment
OPPORTUNITIES THREATS
Low transport costs Unfamiliarity with partners
Low cost of wages May compromise Kaizen philosophy
Availability of resources Cultural differences
Viable investments High cost of relocating
Political and social climate uncertainty
RECOMMENDATIONS
IMPLEMENTATION TIMELINE
Y0 Y1 Y2 Y3 Y4 onwards

R&D
market analysis

DESIGN & MARKETING

introductory and seasonal installations

OPERATIO
NS
look for suppliers trial phase establish contact manufacturing arrangement

Kaizen mentorship

DISTRIBUTION

establish warehouses/distribution e-commerce

centers
MARKETING RECOMMENDATIONS
DESIGN & MARKETING

introductory and seasonal installations

Main Marketing Message:

Hot or cold
Fast-paced or chill
Basic or trendy
COMFORT
FLAGSHIP PRODUCTS

everything in between
hot cold
WEST IMPLEMENTATIONS
Larger shelf space for products currently in season
to highlight functionality

Partner with sports organizers to promote active wear

line
U.S. IMPLEMENTATIONS Fast-paced lifestyle

No-ironing quality
of Uniqlo

Places with heavy foot

traffic to parallel the
brands message of
comfort amidst busy life
EUROPE IMPLEMENTATIONS Fashion center
Capsule
Wardrobe
concept

Mixing and matching its wide array of unique colors

and articles of clothing that go together
RECOMMENDATIONS
IMPLEMENTATION TIMELINE
Y0 Y1 Y2 Y3 Y4 onwards

R&D
market analysis

DESIGN & MARKETING

introductory and seasonal installations

OPERATIO
NS
look for suppliers trial phase establish contact manufacturing arrangement

Kaizen mentorship

DISTRIBUTION

establish warehouses/distribution e-commerce

centers
OPERATIONS RECOMMENDATIONS
OPERATIO
NS
look for suppliers trial phase establish contact manufacturing arrangement

Kaizen mentorship

Situate manufacturing centers near US and Europe to

accommodate the aimed increase in demand in the West.

CRITERIA FOR CHOOSING SHORTLISTED

P SITE costs
low transport COUNTRIES

P low labor costs

P established textile industry

P stable political envt

1) PRODUCT
INNOVATION UNIQLO
JV CONTRACTO
PROCESS
INNOVATION
2) R
MARKETING
OPERATIONS RECOMMENDATIONS
OPERATIO
NS
look for suppliers trial phase establish contact manufacturing arrangement

Kaizen mentorship

KAIZEN MENTORSHIP
1 Earlier Phase: Japan Kaizen Team will
oversea Western operations

2 Middle Phase: Japan Kaizen Team on the

West will train proteges

3 Latter Phase: Independent West Kaizen

team
RECOMMENDATIONS
IMPLEMENTATION TIMELINE
Y0 Y1 Y2 Y3 Y4 onwards

R&D
market analysis

DESIGN & MARKETING

introductory and seasonal installations

OPERATIO
NS
look for suppliers trial phase establish contact manufacturing arrangement

Kaizen mentorship

DISTRIBUTION

establish warehouses/distribution e-commerce

centers
OPERATIONS RECOMMENDATIONS
DISTRIBUTION

establish warehouses/distribution e-commerce

centers

ESTABLISH DISTRIBUTION CENTERS NEARER TO CITY

STORES
P More organized way of managing inventory
traffic from production plant to store

LAUNCH E-COMMERCE PLATFORM

P Sustains UNIQLOs brand building after ads and

in-store installations
MINOR RECOMMENDATIONS

IMPROVE CHINA & JAPANS

E-COMMERCE OPERATIONS

P Additional distribution centers to

further shorten delivery time

P Partner with a company with fast

deliver services
PERFORMANCE EVALUATION

No stores in the US must

be closed down

Increase stores in the US New urban cities in the US.

by 50% per year More countries in Europe
PERFORMANCE EVALUATION

MARKETING PRODUCTION

Market Share Lead Time

Reworks &
Sales Spoilage

Effectivity of the Efficiency of the production

EVERYWEAR. campaign & quality control