-The Japanese Internationalization-
Marketing 2 – General Management Program
Fast Retailing Group 3
The Japanese Brand: UNIQLO 3
Market Selection 4
Internationalization Pace (speed) 5
International Strategy 5
Historical growth and expansion analysis 6
Market entry 7
Entry mode: Partnership ?? Ownstore ? 7
Store description, différents boutiques dans les différents pays 7
Les prix mis en place 7
La communication pour entrer sur les marchés 7
Avantages et risques des systèmes mis en place 7
Appendix 0 8
Appendix 1 8
Appendix 2 9
Appendix 3 9
In the end of 2009, Fast Retailing Group is the fifth clothing industry in the worldthanks to its quick progress.
Created in Japan in 1963 by Tadashi Yanai who is still the CEO of the company, Fast Retailing owns Uniqlo. This brand made the success of the company but today Foot Park, Comptoir des cotonniers, Princesse Tam-Tam belongs also to the group.
The Japanese Giant wants to become the number 1 of the clothing industry in 2020 and should rely on the international expansionto achieve its goal.
This study will try to show the situation of the UNIQLO Brand and to explain its international strategy.
Fast Retailing Group
“Continuing the trend from last year, we again saw a dramatic increase in revenue and profit in the first half of the year ending August 2010 (the period between September 2009 and February 2010). The main reason for this success is theexpansion of the UNIQLO business, especially the solid sales of our global flagship stores in New York, London and Paris. We were able to report a profit in all of the countries in which we operate for the first half of the 2010 fiscal year.
We view this as evidence of the enthusiastic support that UNIQLO is receiving from customers worldwide. We now have the ability to compete as equals with otherleading global retailers, such as H&M, ZARA and GAP. I am now starting to feel that we will even be able to surpass them. “
Tadashi Yanai, Chairman, President & Chief Executive Officer
FAST RETAILING CO.,LTD.
This extract of the message of Tadashi Yanai summarize very well a company which is creating more and more profit. Its operational profit increased more than 20% (132,9billion yens - 1,15 billion euro) in the last exercise but need to get an international expansion due to the saturation of the Japanese market with a 25% decrease of sales (the crisis affected a lot the Japanese market).
The appendix 1 and 2 shows how big the company is and mainly how quick it is developing.
Fast Retailing Group owns 862 stores in the world but 770 are geographically positioned inJapan. The revenue of the international stores represents now only 10% of total sales. The internationalization is its strategic priority to be a better competitor of major brands of the clothing industry. Its acquisitions would help them to create synergies within the group and to facilitate the international growth regarding to the fact that all companies acquired can help them to achieve newcustomers in a global strategy (appendix 0).
The Japanese Brand: UNIQLO
“Think of UNIQLO as higher quality than Gap with more flair but similar prices. I look for basics and they have excellent t-shirts, jeans, skirts, and sweaters. They are also known for affordable cashmere” Madeline San Francisco – yelp.com
“Best quality you can get for that price” sweede,http://www.thestudentroom.co.uk
UNIQLO is a very different brand which sells at low price with good quality and important choice of colors. UNIQLO has a deep and wide range of basic clothes products. UNIQLO is also very different in their flashy design and modern.
Its most famous products are: heattech products (heat generating clothing) and its low price cashmere.
UNIQLO emphasizes its difference (important...