COMMENT ON ‘The fast development of UNIQLO’

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The fast development of UNIQLO is written by Xiaoling Xie (the fast development of UNIQLO). The most important reason for me to choose this article is that UNIQLO is one of my favorite brands. This is not only because the clothes they are cheap but also the Japanese fashion style. UNIQLO founded in 1949. It already have 66-year-history. Violin said that UNIQLO use a similar model as DELL which its direct business model. In this way, the cost will decrease and finally benefit consumers as spend less money getting good clothes. Besides, in this way I think UNIQLO manufacture can involve a total control on thier products. I say that this could have some risk during the transportation channel. Another thing I always want to compare UNIQLO to DELL is the inventory control. DELL always hold a small quantity of products, but UNIQLO choice to maintain the optimum level of store inventory by monitoring sales and stock on a weekly basis. I reckon this could be a better action than DELL. Actually, I Don’t think the keep the quantity of inventory as low as possible is the best way. While it is an undeniable fact that maintaining low level of inventory can reduce cost, it’s not the situation that low level of inventory is always a better choice. In my own prospective, if there are some unexpected situations happened, for example, a dramatic increase in demand for one season, in this way consumers could be unsatisfied if they cannot get the products. Another example is that if there is a fire in factory or strike happen, when UNILQLO hold more inventory they can keep their retail store keeps running a period of time.

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The point of Xiaoling I support mostly is the competition for UNIQLO. ZARA and H&M are also the store that I usually attend. And I think both of them have the exact same target group of people. However, I found that UNQLO has different focus compare to others. UNIQLO focus on the material to make clothes, but ZARA and H&M are focus on fashion design. As the development of technology, there are a lot of new materials be produced, but there is still a group of people include me like to wear clothes with comfortable and natural materials such as silk, cotton and wool. In this way, think there UNQLO can improve even faster in the next 10 years, because there are increasing number of people care about materials of clothes.

 

reference:

Business model of UNIQLO

Wikipedia