Radhika (Radhi) Sharma's Blog

I recently learned that Uniqlo, a Japanese clothing brand, had set up shop in Metrotown here in Vancouver. I wasn’t actually shocked – I knew that Uniqlo was extremely popular in Asia and wasn’t surprised that they reached out to North America too. Uniqlo was founded in 1984 in Hiroshima, and now has more than 1,900 stores around the world. It’s owner, Fast Retailing, earned 176.4 billion yen at the end of their year in August, indicating that Uniqlo’s global growth was worth the expansion (Fortune).  

Uniqlo has a value proposition of being fashionable, technologically made, and functional clothing for everyone. The clothing is accessible and relatively inexpensive for anyone regardless of age, gender, ethnicity, etc. As well as that, they engage in a partnership with the UNHCR which delivers 20.3 million clothing items to refugees and others in need (Fortune).

Their recent opening in Vancouver was preceded by two in Toronto. Sales during this opening were said to be “way above expectations”. Yasu Hayashi, chief operating officer for Uniqlo Canada, emphasized the importance for a store in the Uniqlo brand.

He states,  “However much you do on a smartphone, it’s a phone. In a store, you hear the music, feel the customer service, the way we fold — the Japanese-ness cannot be displayed on a phone.” (Bloomberg)

To Hayashi, the “brick-and-mortar” store is key (Bloomberg). With the rise of e-commerce represented by Amazon or Asos, businesses are being pushed out of the market. The outdated value propositions of companies such as Sears, who recently filed for liquidation for their stores in Canada, is being replaced with the convenience and efficiency of online shopping.

How can Uniqlo compete in this market? According to the head of Fast Retailing, Tadashi Yanai, every business faces the challenges of “globalization and digitalization”. Right now, we see that Uniqlo is definitely conquering the challenge of globalization, with 798 international stores (CNBC). However, digitalization doesn’t seem to be a priority at the moment. Yanai comments that the ultimate goal would be achieving what seems to be the Amazon standard of purchasing and delivering in one day (CNBC).

Uniqlo’s value proposition is relatively unseen in the Canadian market. However, the level of convenience and comfort that this type of market is used to comes from having different ways of purchasing. Stores can be very important within the Japanese culture, but preferably sooner than later, in order to stay afloat, Uniqlo should reach towards the digital market. Their value proposition even allows more of a reason to shop online. Going out to Metrotown for the basics or the necessities, in which they offer, is possibly the last resort that customers may want to go for.

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