Post on 26-Mar-2020
transcript
UNIQLO keep in mind UNIQLO
Porto Business School Team PBS Silvia Duarte Pedro Vilas Boas Rui Rosas Francisco Cudell
Challenge Analysis Recommendations Financials Risks & Plan
Challenge
How to achieve ¥100 billion in 3 years time in the U.S. and
continue the global sustainable growth of
UNIQLO?
Challenge
Challenge Analysis Recommendations Financials Risks & Plan
We identified the following Key Issues
Global fierce competitive market 1
There’s many competitors in the Asian market, as well, in the rest of the world
UNIQLO production is concentrated is Asia
2
Global distribution needs special, this will require new actions to adapt the desirable growth
No Marketing Strategy within the company
3
There’s no major efforts to communicate the market, market needs to know your value preposition
Challenge
Challenge Analysis Recommendations Financials Risks & Plan
Agenda
Analysis
Recommendations
Financial Impacts
Risks
Implementation Plan
Challenge Analysis Recommendations Financials Risks & Plan
Who Are you?
Analysis
Pioneer of the SPA model in Japan
Retail Clothing Company
Asian Based Production and Majority of the Market
Strong Presence in Japan, China and South Korea
Fast growing company with 2870 stores worldwide
Challenge Analysis Recommendations Financials Risks & Plan
Who Are you?
Analysis
UNIQLO is already a player to take in consideration
Pioneer of the SPA model in Japan
Retail Clothing Company
Asian Based Production and Majority of the Market
Strong Presence in Japan, China and South Korea
Fast growing company with 2870 stores worldwide
Challenge Analysis Recommendations Financials Risks & Plan
How can you differentiate from competition?
Analysis
Fashion
Just in time delivery
Price
Industry
Quality
Fashion basic style
Just in time delivery
Price – dynamic prcing
UNIQLO
Innovation Utility and practical Increased Quality
Challenge Analysis Recommendations Financials Risks & Plan
How can you differentiate from competition?
Analysis
How can UNIQLO Capitalize on their extra strengths
Fashion
Just in time delivery
Price
Industry
Quality
Fashion basic style
Just in time delivery
Price – dynamic prcing
UNIQLO
Innovation Utility and practical Increased Quality
Challenge Analysis Recommendations Financials Risks & Plan
And how do you conduct your business?
Analysis
Planning Production Sales
R & D Merchandising Production Partner
Factories Inventory control Online
Japan Int.
Customer
Marketing
Designers Takumi Guidance Kayzen Process
Challenge Analysis Recommendations Financials Risks & Plan
And how do you conduct your business?
Analysis
The process is complete and correct, but is the product promotion enough?
Planning Production Sales
R & D Merchandising Production Partner
Factories Inventory control Online
Japan Int.
Customer
Marketing
Designers Takumi Guidance Kayzen Process
Challenge Analysis Recommendations Financials Risks & Plan
Regarding your sales, how’s your present situation?
Analysis
8 25 176
433
1232
2203
3000
0
500
1000
1500
2000
2500
3000
3500
1985 1990 1995 2000 2005 2010 2015
UNIQLO stores growth
Challenge Analysis Recommendations Financials Risks & Plan
Regarding your sales, how’s your present situation?
Analysis
Your Growth has been constant, but can you take UNIQLO to the next level?
8 25 176
433
1232
2203
3000
0
500
1000
1500
2000
2500
3000
3500
1985 1990 1995 2000 2005 2010 2015
UNIQLO stores growth
Challenge Analysis Recommendations Financials Risks & Plan
Now that we’ve seen your numbers let’s view the industry
Analysis
Economical Increased demand for cheaper clothes
Social Clothes that can be replaced more often
Technological Need for Innovation in the clothing industry
Challenge Analysis Recommendations Financials Risks & Plan
Now that we’ve seen your numbers let’s view the industry
Analysis
There must be a strong connection to these issues I order to succeed
Economical Increased demand for cheaper clothes
Social Clothes that can be replaced more often
Technological Need for Innovation in the clothing industry
Challenge Analysis Recommendations Financials Risks & Plan
Who are your competitors?
Analysis
Inditex Innovator in the Market, number one in the world of retail fashion
H&M Second largest player, that has a different bu also successful of the market
ASOS Online UK store that has shown rapid Asian Growth
GAP Also has a strong presence in China, Player to be aware of
Challenge Analysis Recommendations Financials Risks & Plan
Who are your competitors?
Analysis
Clearly the markets have an in season approach, that should become also the concern of UNIQLO Clothes
39% 61%
Zara
Seasonal "In Season"
80%
20% H&M
Seasonal "In Season"
Challenge Analysis Recommendations Financials Risks & Plan
Let’s take a deeper look into the industry
Analysis
Rivalry Very High – Fierce competitors with worldwide power
Suppliers High – UNIQLO needs successful partnerships
Customers Very high – Massive choice
Challenge Analysis Recommendations Financials Risks & Plan
Let’s take a deeper look into the industry
Analysis
There is the need to be aware of the strong rivalry and customer preferences
Rivalry Very High – Fierce competitors with worldwide power
Suppliers High – UNIQLO needs successful partnerships
Customers Very high – Massive choice
Challenge Analysis Recommendations Financials Risks & Plan
Let’s see what the future look like
Analysis
Blogs People rely on opinion makers
Technological Paradigm shift in wearables – innovation with integrated fabric technology with sensory and odor control
Omni-channel approach
ROPO – Research online purchase offline, and vice versa Need to be available in all channels
Challenge Analysis Recommendations Financials Risks & Plan
Let’s see what the future look like
Analysis
In order to succeed in this fierce market the new trends are the way forward
Blogs People rely on opinion makers
Technological Paradigm shift in wearables – innovation with integrated fabric technology with sensory and odor control
Omni-channel approach
ROPO – Research online purchase offline, and vice versa Need to be available in all channels
Challenge Analysis Recommendations Financials Risks & Plan
And what is the customer searching for?
Analysis
Let’s try and answer directly to what the client is searching for
Value for the money Pricing
High tech fabrics
Fast delivery
Fashion – always connected with latest fashion trends
Challenge Analysis Recommendations Financials Risks & Plan
Summing Up
S Innovation and reliable business model Dynamic pricing Quality
W Lack of marketing Production is Asian based only
O New technological trends Omni-channel approach
T Big Players Low international brand perception Real estate costs in US
Analysis
Challenge Analysis Recommendations Financials Risks & Plan
Challenge
How to achieve ¥100 billion in 3 years time in the U.S. and
continue the global sustainable growth of
UNIQLO?
Challenge
Challenge Analysis Recommendations Financials Risks & Plan
We identified the following Key Issues
Global fierce competitive market 1
There’s many competitors in the Asian market, as well, in the rest of the world
UNIQLO production is concentrated is Asia
2
Global distribution needs special, this will require new actions to adapt the desirable growth
No Marketing Strategy within the company
3
There’s no major efforts to communicate the market, market needs to know your value preposition
Challenge
Challenge Analysis Recommendations Financials Risks & Plan
Where and how to Expand?
Recommendations
UNIQLO
New Market Existing Market
New product Existing Product
New product
Existing Product
ASIA USA
Challenge Analysis Recommendations Financials Risks & Plan
Where and how to Expand?
Recommendations
UNIQLO
New Market Existing Market
New product Existing Product
New product
Existing Product
ASIA USA
Challenge Analysis Recommendations Financials Risks & Plan
Where and how to Expand?
Recommendations
UNIQLO
New Market Existing Market
New product Existing Product
New product
Existing Product
ASIA USA
UNIQLO to expand USA not forgetting ASIA
Challenge Analysis Recommendations Financials Risks & Plan
Entering USA market
Recommendations
Apparel Production Labor Force
Logistic Costs
TAXES RESULT
USA - - - + + + + 1
Mexico + + + + + 5
Brazil + + + - - - - -1
UNIQLO production is currently concentrated in Asia High logistic costs Slow delivery time Alternatives:
Challenge Analysis Recommendations Financials Risks & Plan
Where and how to Expand?
Recommendations
New product
Existing product
Existing market
New market
Asia USA
Asia
New products shall be launched first in Asia (Less Risky) Accordingly to its acceptance they can be re-launched in USA
Challenge Analysis Recommendations Financials Risks & Plan
Where and how to Expand?
Recommendations
New product
Existing product
Existing market
New market
Asia USA
Asia
New products shall be launched first in Asia (Less Risky) Accordingly to its acceptance they can be re-launched in USA
Market Penetration and Product Development in Asia Market Development in USA
Challenge Analysis Recommendations Financials Risks & Plan
Entering USA market
Recommendations
Apparel Production Labor Force
Logistic Costs
TAXES RESULT
USA - - - + + + + 1
Mexico + + + + + 5
Brazil + + + - - - - -1
UNIQLO production is currently concentrated in Asia High logistic costs Slow delivery time Alternatives:
UNIQLO to open a new factory in Mexico
Challenge Analysis Recommendations Financials Risks & Plan
How to get the results
Recommendations
USA Expansion
1
Dressing Uncle Sam
Capitalize Asian Market
2
Be the 1st
Marketing 3
Catwalk channels
Challenge Analysis Recommendations Financials Risks & Plan
How to get the results
Recommendations
USA Expansion
1
Dressing Uncle Sam
Capitalize Asian Market
2
Be the 1st
Marketing 3
Catwalk channels
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
New Factory in Mexico
Open a new factory in Mexico to produce SKUs WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
New Factory in Mexico
Open a new factory in Mexico to produce SKUs WHAT
HOW Joint venture with local textile industries – Reduce risks and increase commitment with local industries Takumi team to be present fulltime – Quality Control and process efficiency Kaizen process to be adopted – Continuous improvement
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
New Factory in Mexico
Open a new factory in Mexico to produce SKUs WHAT
HOW Joint venture with local textile industries – Reduce risks and increase commitment with local industries Takumi team to be present fulltime – Quality Control and process efficiency Kaizen process to be adopted – Continuous improvement
2 Stage plan implementation ( 1st fabrics produced in Asia and clothes in Mexico; 2nd fabrics and clothes produced in Mexico)
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
One Table Meeting Event
Turn One table meeting event into a systematic event – twice a year
WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
One Table Meeting Event
Turn One table meeting event into a systematic event – twice a year
WHAT
Close relationship between Stakeholders (suppliers, stores, designers) to improve customer service
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
UNIQLO by Marc Jacobs
Launch a special clothes line with Marc Jacobs signature WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
UNIQLO by Marc Jacobs
Launch a special clothes line with Marc Jacobs signature WHAT
HOW Partner with Marc Jacobs
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
UNIQLO by Marc Jacobs
Launch a special clothes line with Marc Jacobs signature WHAT
American Fashion Style to foster brand penetration
HOW Partner with Marc Jacobs
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
4 Stores Opening
Open 4 flagship stores in USA (New York, Los Angeles, Chicago and Austin)
WHAT
American Fashion Style to foster brand penetration
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
4 Stores Opening
Open 4 flagship stores in USA (New York, Los Angeles, Chicago and Austin)
WHAT
HOW This stores will work as warehouse to support online sales Stores chosen accordingly to geographic location and population
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
4 Stores Opening
Open 4 flagship stores in USA (New York, Los Angeles, Chicago and Austin)
WHAT
Brick & Click strategy for USA to foster sales
HOW This stores will work as warehouse to support online sales Stores chosen accordingly to geographic location and population
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
Partnership with Amazon
Partnership with Amazon for online sales WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Dressing Uncle Sam
Recommendations
Partnership with Amazon
Partnership with Amazon for online sales WHAT
Foster online Sales
Challenge Analysis Recommendations Financials Risks & Plan
How to get the results
Recommendations
USA Expansion
1
Dressing Uncle Sam
Capitalize Asian Market
2
Be the 1st
Marketing 3
Catwalk channels
Challenge Analysis Recommendations Financials Risks & Plan
Be the 1st
Recommendations
Partnership with Alibaba
Partnership with Alibaba WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Be the 1st
Recommendations
Partnership with Alibaba
Partnership with Alibaba WHAT
Foster online sales all over ASIA
Challenge Analysis Recommendations Financials Risks & Plan
Be the 1st
Recommendations
Contact less payment in Stores
Implement contact less payment in stores WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Be the 1st
Recommendations
Contact less payment in Stores
Implement contact less payment in stores WHAT
Improve customer convenience
Challenge Analysis Recommendations Financials Risks & Plan
How to get the results
Recommendations
USA Expansion
1
Dressing Uncle Sam
Capitalize Asian Market
2
Be the 1st
Marketing 3
Catwalk channels
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Innovative Fabrics with integrated sensors (biometric info and well being features)
WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Innovative Fabrics with integrated sensors (biometric info and well being features)
WHAT
HOW R&D with Toray
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Innovative Fabrics with integrated sensors (biometric info and well being features)
WHAT
HOW R&D with Toray
Differentiate from Competitors being Innovative
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Special line of products customization WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Special line of products customization WHAT
HOW Co-Creation with customers through web site or APP
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Special line of products customization WHAT
HOW Co-Creation with customers through web site or APP
Customer Centric approach and brand engagement
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Adopt same pricing strategy already implement WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Adopt same pricing strategy already implement WHAT
Good results No need to change
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
APP where people could see themselves wearing UNIQLO clothes Loyalty card included Customization features
WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
APP where people could see themselves wearing UNIQLO clothes Loyalty card included Customization features
WHAT
Improve Customer Experience
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Partnership with The Blond Salad fashion blogger (top 1 fashion blogger in USA)
WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Partnership with The Blond Salad fashion blogger (top 1 fashion blogger in USA)
WHAT
Brand Awareness
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Use of Ambassador (top one Japanese tennis player) WHAT
Brand Awareness
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Use of Beacons within stores to communicate promotions and attract new customers
WHAT
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Use of Beacons within stores to communicate promotions and attract new customers
WHAT
Improve Customers Experience and Raise sales
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Adopt omni-channel approach WHAT
Improve Customers Experience and Raise sales
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk channels
Recommendations
Product Price Promotion Place
Adopt Omni-channel approach WHAT
HOW Brick & Click strategy between physical stores and online channels
Challenge Analysis Recommendations Financials Risks & Plan
Catwalk
Recommendations
Product Price Promotion Place
Adopt Omni-channel approach WHAT
Improve Customers Experience and Raise sales
HOW Brick & Click strategy between physical stores and online channels
Challenge Analysis Recommendations Financials Risks & Plan
Challenge
How to achieve ¥100 billion in 3 years time in the U.S. and
continue the global sustainable growth of
UNIQLO?
Challenge
Challenge Analysis Recommendations Financials Risks & Plan
We identified the following Key Issues
Global fierce competitive market 1
There’s many competitors in the Asian market, as well, in the rest of the world
UNIQLO production is concentrated is Asia
2
Global distribution needs special, this will require new actions to adapt the desirable growth
No Marketing Strategy within the company
3
There’s no major efforts to communicate the market, market needs to know your value preposition
Challenge
Challenge Analysis Recommendations Financials Risks & Plan
How to get the results
Recommendations
USA Expansion
1
Dressing Uncle Sam
Capitalize Asian Market
2
Be the 1st
Marketing 3
Catwalk channels
Challenge Analysis Recommendations Financials Risks & Plan
NPV
Financials
Goal of $833 mn Interesting NPV
Pay Back Period: 2,4 years
Challenge Analysis Recommendations Financials Risks & Plan
We identified the following risks
Risks & Plan
Risk Mitigation
1
23
probability
impa
ct
Failure Joint Venture with local Partners ; Mexico new factory
1
Value added to partners and all stakeholders by training, provide technology knowledge, continues improvement in all processes and provide quality
Dynamic pricing can mislead costumers
Assume this issue and keep quality and create value to customers
2
3Mark Jacobs can not accept the partnership
List of different American fashion designers
Challenge Analysis Recommendations Financials Risks & Plan
Implementation Plan - Gant Chart
Risks & Plan
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Dressing Uncle SAM
joint venture with local textile produces negotiationmexico new fatory
constructiondistribuition
Meeting Eventswith StakeholdersColection with Mark Jacobs
negotiantionplansalles
4 stores openningAmazon partnership
Be the firstALLIBABA PARNERSHIP
negotiantionplansalles
contactless payments in storesCatwalk channelsteaEMBASSADOR
2016 2017 2018
Challenge Analysis Recommendations Financials Risks & Plan
Challenge
How to achieve ¥100 billion in 3 years time in the U.S. and
continue the global sustainable growth of
UNIQLO?
Challenge
Challenge Analysis Recommendations Financials Risks & Plan
We identified the following Key Issues
Global fierce competitive market 1
There’s many competitors in the Asian market, as well, in the rest of the world
UNIQLO production is concentrated is Asia
2
Global distribution needs special, this will require new actions to adapt the desirable growth
No Marketing Strategy within the company
3
There’s no major efforts to communicate the market, market needs to know your value preposition
Challenge