Most people get to know Tadashi Yanai because of the wonderful clothing retailer called UNIQLO. The expansion of UNIQLO is growing rapidly as it opened more than 400 overseas stores in countries like China, UK, and US within 20 years.
What are the keys for this fast development?
The way it operates is called the SPA business model(Specialty store retailer of Private label Apparel), which means the whole company will remain the control of the process from designing, producing, and selling. This model is quite similar to DELL’s Direct Business Model as UNIQLO cuts the payment for middle men; it also produces various products based on their research and development for the market trend. A quick reaction to market can help control the inventory level. Furthermore, this model also creates a more direct and easy way for the company’s executives to access to the production line and to ensure clothes being produced are with high quality.
Moreover, UNIQLO builds a good customer relationship by offering online shops and delivery services, consumer service centers vice versa. This brings a large group of loyal customers like me that really enjoy buying and be willing to pay for this brand.
Tadashi Yanai is an ambitious and outstanding businessman. However, UNIQLO is still a young company compared to ZARA or H&M. So Mr. Yanai should figure out ways to help UNIQLO to win the fierce international competitions. Here is my suggestion:
1. To make more Canadians know this brand. The company should develop a marketing strategy like making more advertisements (it will be better if the advertisement is featuring with celebrities) on Canadian media so to attract customers and investors.
2. The company should increase the choices available for customers in both stores and online shops (this can help reflect the company’s value proposition: make everyone access to all kinds of Japanese fast fashion).
In all, I still believe UNIQLO has the potential and ability to achieve Mr. Yanai’s goal. What do you think?
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