In Japan, everybody knows about Uniqlo. It is natural for people to look for cheap clothing during times of economic crises such as the one we are in today, and Uniqlo provides just that.
Contrary to Zara’s supply chain operations, Uniqlo does not change its merchandise plans based on the latest fashion fad. Instead, they book factory capacity well in advance, allowing to get their retail price to be low. Although they do not rush to produce trendy items like Zara does, they produce well-fabricated, well-designed, basic clothes at a steady year-round pace. Uniqlo’s success comes from a style of supply chain management that is the opposite of Zara, and their success has led them to expand their stores into major cities around the world like New York, Paris, and London.
I believe that it’s important to know that there is always more than one way to operate a business. Uniqlo was able to find a strategy that fit their company, products, and marketplace.
Reference
- “How Zara Gets Fresh Styles to Stores Insanely Fast-within Weeks.”Slate Magazine. Slate Magazine, n.d. Web. 19 Nov. 2012. <http://www.slate.com/articles/arts/operations/2012/06/zara_s_fast_fashion_how_the_company_gets_new_styles_to_stores_so_quickly_.html>.