marketing strategy the market penetraion of uniqlo in to vietnam

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VIETNAMGENERALCONFEDERATIONOFLABOURTONDUCTHANG UNIVERSITYFACULTYOFBUSINESSADMINISTRATION

MIDTERMREPORTGLOBALMARKETINGSEMESTERI 2020-2021

MARKETINGSTRATEGYTHEMARKET PENETRAION OFUNIQLOINTOVIETNAM

Instructor:Ph.DTranThiThanhVanGlobalMarketing(group5)

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VIETNAMGENERALCONFEDERATIONOFLABOURTONDUCTHANG UNIVERSITYFACULTYOFBUSINESSADMINISTRATION

MIDTERMREPORTGLOBALMARKETINGSEMESTERI 2020-2021

MARKETINGSTRATEGYTHEMARKET PENETRAION OFUNIQLOINTOVIETNAM

Instructor:Ph.DTranThiThanhVanGlobalMarketing(group5)

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1.1. Internal analysis (Company)...7

1.2. External analysis (Industry)...11

1.3. International SWOT analysis...12

1.4. Preliminary assessment...14

2.1. Concentration and diversification...15

2.3. Target market identification...16

2.4. Selection of target market...17

3.1. Market entry strategies...18

3.2.Choosinga method ofmarket entry...20

3.4. Negotiating conditions...23

4.1.Product andservice selectionfor target market...25

4.2. StandardizationvsAdaptationof Uniqlo in Viet Nam...27

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NGUYENDUYTIEN(Leader)

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Uniqloisa Japanesecasualweardesigner,manufacturer,and retailer.Thecompanyisa wholly-ownedsubsidiaryofFast RetailingCo., Ltd.The presidentandalsoCEOofUniqloisTadashiYanai. HewasbornonFebruary7,1949.

FastRetailingisaglobalcompanythatoperatesmultiplefashionbrandsincludingUniqlo,GU,and Theory.Thisentrepreneurcontrolsandmanagesoverallgroupactivitiesasthe ownerandholdingcompany.Asthe world'sthird-largest manufacturer and retailer of private-label apparel, the FastRetailingGroupoffershigh-quality,reasonably-pricedclothingbymanagingeverythingfromprocurement,design,andproductiontoretailsales. Uniqloisapillar brand, generates approximately ¥1.9 trillion in annual sales fromapproximately2,200storesin22countriesandregions(FY2019).

Japanwasinthedepthsofa recessionatthe time,andthelow-costgoodsprovedpopular.Uniqlohadbegun outsourcing its clothing manufacturing tofactoriesinChinawherelaborwas cheap.InNovember1998,itopenedthefirsturban Uniqlo storeinTokyo'strendyHarajukudistrict,andoutletssoonspreadtomajorcitiesthroughoutJapan.And then,Uniqlodecidedto expand overseas like China, Canada, Austrsalia,France,Germany,India,Indonesia.Malaysia.Singapore,Taiwan,Thailand,United Kingdom, United States, VietNam, etc. The revenues of UniqloInternationalindifferentcountriesisexpectedtosurpasstherevenuesofUniqloJapan,continuingtoexpandits operations,increasingitsnetworkofpartnerfactoriestobroaden the reachof Uniqlo’sproducts.

Uniqloisabletoproducesuchanamazingnumberofuniqueproductsbecausethebusinessmodelunifiestheentireclothes-makingprocess -fromplanninganddesignthroughproduction,distribution,andretail.Uniqlo'smarketshareis expandingworldwideasitdevelopsradical newmaterialstogetherwiththeworld'sbestfabric technologyinnovatorsandcreatesbasicdesignsusingsuperiornatural materials.UniqloLifeWearishigh-quality,innovativeclothingthatisuniversalindesignand comfort.Itismadeforeveryone,everywhere.Uniqloleveragestoday'sincreasinglydigitalworldtocommunicatedirectly withcustomersandquicklytransformtheirdesiresintoactualproducts.

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Uniqlo'sR&Dcentersconstantlyresearchthelatest in new materials and global fashions inadditiontodevelopingproductstosatisfyfuturecustomer needs. In fact, identifying those veryneedsisanimportantpart oftheR&Djob.

Oneyearbeforea product'sintendedlaunch,theR&Ddepartmentholds aconceptmeetingwith representativesfromthemerchandising,marketing,andmaterialsdevelopmentteamstodeterminetherightdesignconceptforeachseason.Designersthen preparedesignsandrefinesamples.Evenafteradesignisdecided,itscolorandsilhouettecanberefinedmultipletimesbeforethefinaldesignisapproved.

Merchandisersplayavitalroleintheproductcreationprocess,fromdesignthroughproduction.Merchandiserscommunicateclosely withall departmentsbefore determining the designs and materials required for each season'sproducts.Merchandisersalsodecide howtomarketourstrategicproductlaunchesinclose cooperationwiththeappropriatedepartments.Decidingproductlineupsandvolumesthroughouttheyear isanotherimportantpart ofthemerchandiser'srole.

ManyUniqloproductsaremanufacturedinhugebatchesofapproximatelyonemillionunits.Closelymonitoringsaleslevelsandadjustingproductionvolumesduringanyoneseasonisanotherkey role.

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Uniqlocansecurestable,high-volumesuppliesof top-qualitymaterialsatlowcostbynegotiatingdirectlywithmaterialsmanufacturersworldwideandplacinglarge-volumeordersto achievethe mostfavorableterms.

Thematerialsusedforourcore itemsareparticularlyimportant.Ourin-depth research and experimentation generates improvements in thefunctionality,feel,silhouette,andtextureofour clothes.

Forexample,weworkcloselywithKaiharaCorporationtosourcedenimtospecificspinningstandardsanddyeingspecifications.WealsopartnerwithToray Industries, a world-leading synthetic fiber manufacturer, to createinnovativematerialsresultinginunprecedentedhigh-functionmaterialssuchasHEATTECH.

Uniqlodoesnotownanyfactories.Weoutsourceallproductiontopartnerfactories,many of whichareinChina.

Wehavebuiltrelationshipsofstrongtrustwithour partner factories over many years, and holdannualconventionstopromotedialoguewithfactorymanagers.

Wemonitorworkingandenvironmentalconditionsattextilemanufacturersandmajorfabric suppliers,andhelp factories implementimprovementsasneeded.

Uniqlocurrentlyhasproductionteamstaff andtextiletakumi(skilledartisans)inShanghai,HoChiMinh City,Dhaka,Jakarta,Istanbul,andBengaluru.

Production teams that monitor and resolve quality and managementchallengesvisitpartnerfactorieseachweek.Theproductiondepartmentalsoswiftlyaddressescustomerconcernsregardingquality.

"ByofferinginstructionondyeingtechnologyatUniqlo'spartnerfactories,Icanencourageworkerstoembracea newproductionmanagementphilosophyandimprovethe factories theyworkin.

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Theinventorycontroldepartmentmaintainstheoptimumlevelofstoreinventory.Itdoesthisbymonitoringsalesandstockonaweeklybasis,andthendispatchingnecessaryproductsto fulfillorders.

Attheendofeachseason,merchandisersandthemarketingdepartmentworktogethertocoordinate thetimingofanypricechangestohelpensurethatinventorysellsout.

Eachseason,UniqloconductspromotionalcampaignsforcoreproductssuchasHEATTECH,Ultra LightDown,AIRism,andBratops.During thecampaigns,Uniqloadvertisestheproducts'uniquequalitiesandnoteworthyfeaturesonTVandinothermedia.InJapan,weuseemail,socialmedia,andweeklyflyersintheFridayeditionsofnationalnewspaperstonotifycustomersaboutlimited-perioddiscounts,typicallyof20-30%,on keyranges.

UniqloJapanhad817stores(including43franchisestores)attheendofAugust2019.UniqloInternationalexpandedto1,379stores,including807inGreaterChina(MainlandChina,HongKong,andTaiwan),188inSouthKorea,231inSoutheastAsia&Oceania, 91in Europe,and62in NorthAmerica.Newstoreopeningshavebeenespeciallyrapid in GreaterChinaandSoutheast Asia.

Onlinesalesareincreasinglyimportant,accountingforapproximately11%oftotalsalesinFY2019.InthegeographicallylargemarketsofGreaterChinaandtheU.S.,onlinesalesaccountforapproximately20%and25%of totalsalesrespectively.In Japan,thatratio isonly9.5%(¥83.2billion),butweaimto increaseitbytargeting30%annualgrowth in onlinesales.

Already,thisanalysishashelped improvemanycorerangessuchasUltraLightDown,fleecefull-zipjackets,boafleeceouterwear,warm EZY Pants,andcashmereknitwear.Goingforward,wewill seektoimproveourcustomerinformationcollectionandanalysiscapabilities.

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InFY2019,ourcustomercenterresponsesrosefrom420,000to700,000.Thisincludedanincreasein responsesviatraditionalin-storeroutes,telephone,andonlinechattools.

Porter’sfiveforcesofanalysisare veryusefultoolstodiscoverwhetheracompanyhascompetitivepowerintheindustry.Sotheabilityofthatcompanytomakeagoodprofitinthebusinessdependsonthestrengthofitspositioninthemarket.

Uniqloistryingtourgeitssuppliersandpartners to comply with its chemicalmanagementcodeofconducts(DongguanLuenThaiGarmentCo.Ltdand PacificTextilesLtd)regardingthesafetyofworkingconditions.MostoftheproductsaremadeinChina(around90%)(FRCoLtd.(Uniqlo), 2014)withcheaplaborand the manufacturers are supported through production and effectivetechnologyprocess.Infact,thisimprovesthebusinessrelationbasedonqualitycontrolandmonitoringduetothestrategyofthecarefulselectionofsuppliers.Doesitaffectthepowerof Uniqlo’ssupplierstodrive up ordownthepricesofinputs?Forthecompanyhavingmorepoweroversuppliersandbeingabletoworkwithitspartnerswill impact itsflexibility.

Uniqlohasa greatnumberofclothingloversbecauseofitscommitmenttokeeppricelow.But howloyalarethesecustomerstoitsproductwill determinewhethertheycandrivethepriceupor downwhichwillforsureimpactthebusinessprofitability.SoUniqlomay havepoweroveritscustomerbyofferinghighqualityin retailapparel, highrangeofproductselectionforbrandloyalty.So new styles and new fashion trends will create values and customersatisfaction.Butif competitorsare morepowerfulthismayimpactitsgoodrelationshipwithcustomers.

Thecompanyhasmanycompetitorswhichare worldwidewell-positionedapparelproviderssuchasGap,H&M, ZaraandAmericanApparel,etc... AretheirproductsasgoodasUniqlo’s?Withthestrategiesofincreasingtheironlinepresence,thesecompetitorshaveorganizedsupply chainmanagementandgreatrelianceon designs.Can Uniqlo dobetterwhat theothercompetitorscannot?SoUniqloisoffering retailapparel ofspecificengineeringandinnovativeproductsatsensibleandlow prices.Forexample,theHeattechwhich hasenhancedperformancefeaturesco-developedbyTorayIndustriesInc.Howcanthe

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companyestablisha strongeradvantageoverthem?So withintense competition,thesituationmightputstrongdownwardpressureonprices.

HoweasyisUniqlo’scustomersabletofindanotherordifferentwaytogettheproducts?Uniqlois providingtheminnovativeproductsat acheappricewhichpositivelyaddsvalue.But substitutionishighdue toqualitativefactorsrelatedtocutbackandthepossibilityofcostincreaseintimeofrecession.

Thisreferstothe easeof newscompetitorsto enterthe market.Howfacileisitfor otherclothingcompaniestoreachthe qualitywhichmatchesthepriceofUniqlo’sproducts?Isthe companyable togaugeitscostadvantagebasedonmarketdevelopmentorprotectitstechnologybyblockingnewentries?Keepupwiththecompetition andbringup new strategiesto limit newentriesinordertokeep retain and acquire new customers by increasing globally can bechallengingbutpossiblewithstrategicaction.

VisionaryLeader:WhenTadashiYanaiinherited22tailoringstoresfrom his father,he convertedthemintoaclothingbrandcalledUniqlo. Anardent traveler,YanaisensedopportunitiesinEuropeandtheUSAwherethereweresimilarbrands.Hetook ideasfrombrands like United Colors of Benetton and GAPexpandinghisownportfolioaswellasforayinginto

Branding:UniqlopositionsitselfasamodernJapanesecompanywhichsellscasualwearat affordablepricestotheoverseasmarket.The designs,aswellasthestylingofthebrand,areconsistentwiththispositioningandthusithashelpedthebrandtogainpopularityoverseas.

Innovations:Uniqloiscreditedwithsignificant innovations which have setthemapartfromtheir competitors.SomeexamplesincludetheHeatTechfabricwhichturnsmoistureinto heatand thenretainstheheatinheatpockets,Airismastretchedfabric,andLifewearablendofcasualandsportswear.TheseinnovationshavehelpedUniqlointroducefeaturesintotheirclothinglinetherebysettingcleardifferentiators.

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Soundoperationalstrategy:Itsoperationalstrategyissuchthatit offersbothagilityandcostbenefits.Uniqloownsitsvaluechaincompletelyandthusareabletomaintaintheircostsas lowas possible.Theyalsomaintain stablerelationshipswiththeirsuppliersandthishelpsthemstreamlineinventory.Thishelpsthemscaleupordownbasedonthetrendsinthemarket.

Organisationculture:QuiteunlikeotherJapanesecompanieswhichhavegoneglobal,Uniqlocontinuestoconductallthe businessesinthefirminEnglish.Thoughaglobalbrand,UniqlocontinuestoretainallJapaneseidealslikefosteringhardwork,teamwork,and goal orientation.Theorganisationisflatandtheleader followsa participativestyleofleadership.

In-storeexperience:Uniqlohasalwaysfocusedonensuringthatthein-storeexperienceissuperiorandthisisdonebystringenttrackingofemployee-customerinteraction.All interactionsareface-to-faceor otherwisearerecordedandreviewedthoroughly.Thefeedbackisusedduringtrainingsessions.Thecompanyalsofocusesonchangingthelookandfeelinsidetheirstoresinaccordancewithmarkettrends.

Weather sensitive apparel: Though theweather-sensitive apparel of Uniqlo likeHEATTECHwasa hugesuccessinAsiathesamecouldnotbesoldatall intheUS.TheapparelwhichwasdesignedforAsianconditionslackedglobaladaptabilitywhichresulted inafailure.

Supplychainissues:ThoughUniqloaspirestobea globalplayer,thecompanyisfacinghugeissuesinscalingupitssupplychainto reachouttoglobalmarkets.WhilemostglobalbrandshaveincreasedtheirpresenceintheonlineretailingspaceUniqlo’ssharein e retailingisjust4 % ofits totalbusiness.

New Segments: Fashion is anevolvingbusinessandnewsegmentscomeuponaregular basis.Uniqloprimarilyhasa presenceinmen andwomen wear but is yet to make astoringforayintothe kidssegment.This is an area which is promisinggrowth in Asia and Uniqlo cancapitaliseonthis.

Contentcreation:Focusonsocialmediacontentcreationandpromotion.

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Competition:Intenselyhighcompetitionwithinthefastfashionindustry.Themaincompetitorsof UniqloareGap,TommyHilfiger,ZaraandUnitedColorsofBenetton.

Substitution:Highthreatsofsubstitutionwithotherbrands.Legalandeconomic regulationsin newcountries.1.4.Preliminaryassessment

Intoday’scurrentretail arena,fastfashionistheanswerto theconsumers’demandtoavail of modernclothingat a reasonableprice.In thebattle todominatethemarket, global retail firms must havea definedcompetitiveadvantageandstrategy,differentiatedproducts,aswellasstrongsupplychainoperations.

Beingtheworld’sthird-largestmanufacturerandretailerofprivatelabelapparelthattoprovidehigh-quality,performance-enhanced,basiccasualwearatthelowestprices,Uniqloispreparingtoincreaseits presence.Aftersuccessfullyopeningstoresinseveralcountries,Uniqlo’snextmoveistopenetratethemarketwhichhasaneconomicoutlook,ahighdensityofpopulation,stablepoliticalconditions,andinexpensivelaborbut goodqualityproducts. Inrecentyears,theeconomyhasincreasedsignificantlywhichresultedin theincrease incustomers'demand, especiallyfor thefashionindustry.

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Uniqloadoptsthefocus strategyboth intermsof lowcostandofferingthebestvalue.Thelow-costfocusstrategyisadoptedbyservingtheneedsofanichemarketsegmentat thelowestpossibleprice.While, bestvaluefocusstrategyisadoptedbyemphasizingthe taste,size,anddesignoftheproductthatcouldbestmatchthecustomers’needsandrequirements.

Byfocusingonproductattributes,Uniqlorevisesitsbrandingstrategiesandbringscontinuouschangesinthe productdesigningand packagingto satisfy thecustomers’psychologicalexpectationsandmaximizevalueformoney.

TheUniqlo'sportfoliodiversificationissupportedbyitscostleadershipgenericgrowthstrategyas cost minimizationability,and existinginfrastructuremakesitpossible fortheorganizationtoexplorenewproduct opportunitiesinnewmarkets.

Thestrategicobjectivelinkedwithdiversificationintensivegrowthstrategyistoexpandthe portfoliothrougheffective acquisitionstrategies. Dueto riskfactors,thecompanyfocusesonthe relateddiversificationandavoids riskyexperiencesinto unknownregions.Rather, thecompanyutilizesthebrandawarenessandstrengthtolaunchrelatedproductsintheglobaldrinkindustry.However,someexamplesofUniqlo’sunrelateddiversificationareofferingmerchandisefromfridges,shirts,glassestopens.

The related diversification strategy is applied by acquiring profitablebusinessesafteranalyzingmarkettrendsandchangingcustomerexpectations.Forexample,inresponsetothe growingcriticismbyenvironmentprotectiongroups,thecompanyattemptedto offsetthelossfromdeclining salesbyinvestingingreenbusinesspracticesandmaking businesspartnerswiththepositivebrandimage.

Strategicallywiseapplicationoftherelateddiversificationgrowthstrategyenhancesbusinesssustainabilityandhelpstheorganizationachievelong-termgrowthobjectivesdespitehighmarket turbulence.Awell-managedproductportfoliowithrelateddiversificationalsooffersriskhedgingabilityasdecliningtrendsinsomeproductareascanbe balancedbyemergingtrendsinrelatedproductareas.

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Thesizeofthemiddle-incomepopulationinChina,SoutheastAsiaandIndiaispredictedto explodeoverthenext10 years. Asa result,therearemanyattractivemarketsinAsia,andIwanttoacceleratethepaceofnew storeopeningsthroughouttheregion.Wemaywellsee inAsiaarepeatofJapan’speriodofrapideconomicgrowth,whenconsumerdemandsoaredalongwiththedesiretoshopfor clothes.We believeAsia islikely toexperience a similarboomindemandforclothes.TheAsianmarketcouldexpandbeyondevenourexpectationsand,ifUniqloistobecomethenumberonebrandinAsia,wefeelitisvitaltosecureashareinit.Uniqlo’sreachandpopularitynowextendtoSingapore,Malaysia,Thailandandthe Philippines.Eachnewstoreinthesemarketshasenjoyedstrongsalesfromtheoutsetandeveryoperationquicklybecameprofitable.WeplantoexpandintoIndonesiaand Australiain2013,andwearealsoconsideringtheIndianmarket.

Ouraimisto securepriceleadershipworldwide.Inorderto developfullfledgednationwidenetworksinChinaandotherparts ofAsia,wewillopenstoresoutsideof majorcities,which willentailreducingthe standardpriceofUniqloproducts.Oneof ourstrategiesto meetdemandforlowerpricedgarmentsisopeningjointUniqlo/g.u.stores.

Beingtheworld’sthirdlargestmanufacturerand retailerofprivatelabelapparelthatoffershigh-qualityandreasonablypricedclothing,UniqloispreparingtoincreaseitspresenceintheSoutheastAsianandOceaniamarket.Thecompanyhasagoalofdoublingitsstorestoaround400storesby2022(InsideRetailAsia,2017).

In2019, we expandedour networkinSouthAsia andSoutheast AsiabyopeningourfirstUniqlostoreinIndia(October)andinVietnam (December).Owingtodiffering climates,cultures,and religions,wecompiled productmixesthatmetlocalcustomerneedswhilemaintainingUniqlo'suniversalbrandimage.

WithSouthandSoutheastAsiaenjoyingyear-roundsummerweather,consumerslove coreUniqloitemssuchaspoloshirts,shortpants, andUTgraphicT-shirts,butfall/winteritemssuchas flannelshirts,softtouchT-shirts,UltraLightDown,andrayonblousesalsosellwell.We puttogetherproductrangesthatmeetspecificlocal needs,offeringclothesforpeopleridingbicyclesoncoolerdays,peoplewhofeel coldin air-conditionedoffices,andsoon.Tokeepourstoredisplayslookingfresh,weintroduceitemsthatemphasizeournewproductandcolorranges.

OurbiggestchallengeinSouth andSoutheastAsiaistraininghigh-qualitypersonnel.Ifwe successfullynurturefutureCEOs andseniormanagersin eachmarket,webelievewewillenjoya consistentandstableexpansionsimilartoUniqloGreaterChina.Weare committedto solvingissuesdecisivelyandexpandingoperationsinourquesttobecomethe No.1apparelbrandineachmarket.

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TheVietnam fashionmarkethas had considerablechangesovertherecentyears.SinceVietnamjoinedtheWTO or WorldTradeOrganizationin 2007,theapparelindustrybeganthenewperiodandbecamemoreprofessional.A lotoffamousandbiggestbrandsbegantopenetratetheVietnammarket,suchasCalvinKlein,LouisVuitton,Valentino,SalvatoreFerragamo,Zara,H&M,etc.

Aftersuccessfullyopeningstoresin severalcountriesinSoutheastAsia,Uniqlo’snextmoveistopenetrateVietnam’sretailmarketby2019,sinceVietnam’seconomic outlookprovestobe a viablechoiceforUniqlotoinvestin.Vietnamischosenasthetargetmarketbecauseof itsgoodrelationshipwithJapan;oneof itsbiggestinvestors,highdensityofpopulation,stablepoliticalcondition,andinexpensivelaborbutgood qualityproduction.Moreover,intherecentyears,Vietnam’seconomyhasincreasedsignificantly,whichresulted intheincreaseofcustomer’sdemand,especiallyforthefashionindustry.

Uniqlo’smainmarketingobjectiveisto opentwofirstretailstoresinHoChiMinhandHanoi,twobig citiesinVietnam.Ourmaintargetcustomersarethemiddleincomeclass,mainlythe younggeneration.

Besidethat,Vietnamhasgoodqualitylabor withstablepoliticalconditions.SinceJapanisoneof thebiggestinvestorsof Vietnam,VietnamisaviableoptionforJapanto makeinvestmentsin.The importandexportvaluehavealsoincreasedsteadilyovertheyears.Vietnamis alsooneofthefastestdevelopingcountriesintheSoutheastAsia,andisincreasinginafastrate.

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Intherecentyears,Vietnam’seconomyhasdevelopedstrongly. Thisledtoasharpincreaseinthedemandedgoods ofconsumers,especiallyfor thefashionindustry.Moreover,thisisthe periodoftechnologyexpansion.Thankstothedynamicdevelopmentoftheonlineretailersand theimprovementinconsumerperception,Vietnamesepeoplearewillingtospendmoreonfamousandexpensivebrands.

Intermsofrecognition,Uniqlo’s recognitionis4thhighestafterZara,H&MandMango.Thisisquite highconsideringthatthestoreisnot yetopenedinVietnam.Thosewhorecognizethebrandcame toknowit throughFacebook,wordofmouthandsportambassadorsuchas NovakDjokovic,RogerFedererandKeiNishikori.Also,therearenota small numberofpeoplewhohasalreadyhadUniqlothroughthepurchasefromthedirect-import(hand-carry)stores.

Inparticular,thewomenspendmoretimeandmoneytobuytheclothesthanthemen.ThisisarelativelyhighfigurecomparedtotheconsumptionandsavingsofVietnameseconsumers.Theconsumershavethehighestpurchasinghabitfrom2to 3timesamonth,and thenonceamonth.Thelevelofconsumershoppingdoesnot differso much.

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Thebrandimageof Uniqloishighlyfederated with“goodqualityimage,althoughitislesslinkedwithsuch keywordsas“fashionable”or“foryouth”.TherearetwobigimagedifferencesbetweenVietnamand Japan,wherethebrandcomesfrom.One isthatithasless “affordable”imageinVietnam,whileVietnamhadsufferedcheapimagesuntilrecently.Theotheristhelackof“innovative”images,wherethe brandiswellknownasinnovationthroughtheirclothessuchasAIRismor HEATTECH.Theseimplythatthe namecametoberecognizedbutthedetailhasnotbeenpenetratedyet.

Currently,therearefourmain competitorsin themarket. Forlocal brands,thereareCanifaandViettien,andforglobalbrands, thereareZaraandH&M.Basedontheperceptualmap,Uniqloiscurrentlytheleaderofthefunctionalcasualclothingbrand,withpriceasaffordableas the localbrands.

Bytheendof2019,UniqloDongKhoiwasthefirstUniqlostoreinVietnam.Here,manyproductsare displayedforsaleexclusivelyfortheVietnamesemarket,withthehighlightofT-shirtprintingservicesaccordingtodesigns.Outofmorethan2,000Uniqlostoresaroundtheworld, UniqloDongKhoiisoneofthebestin-storedesign,displayart,productlayout,andoperatingsystem,thecompanyrepresentativesaid.Thisisthe standardmodelforotherUniqlostores.

ThehighlightofUniqloVincomPhamNgocThachistodisplayalloftheproductsinthefamousUT(UniqloT-shirt) lineinaspecialareawherenoteveryUniqlostorein theworld hasthisspecialshowcase.Inparticular,theUTMickeyStandsVietnamCollectioncombinesexclusiveandexclusivemotifsfortheVietnamesemarketwithiconicimagessuchasconicalhats,lotusflowers,andmotorcycles.

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Thestoreoffersa UTmeexperience!sothatcustomerscanfreely createtheirownUTshirtsbyselectingandprintingunique Uniqlomotifs,includingpatternsspeciallydesignedbypainterVuTuanAnh.Alongwiththatisacollectionofmotifshonoringthelifestyleandlifestyleofthepeopleofthecapitalthrough20intimateimagesofHanoi suchaswalkingaroundthe streetona cyclo,dancinginthe mountains. AoDaior manyotheractivitiesaroundHoanKiemLakepedestrianstreet.Personalizationisthegoal thatUniqloaimsfor.

3.2.Choosingamethodofmarket entry

UniqloissettoopenitsfirstlocationinVietnaminHoChiMinhin2019aspartofits plantoincreasestorecountin SoutheastAsiaand Oceaniatoabout400by2022.

TheHoChi Minhstorewillbeoperatedasa 75/25jointventurebetweenFastRetailingandMitsubishiCorp.

"VietnamwillbethefourthcountryinwhichFast RetailingandMitsubishihaveestablisheda jointventurecompany,following Thailandin2011,Indonesiain2013andRussiain2017,"aUniqlorepresentativereportedlytoldVietnamEconomicTimes.

WhencomingtoVietnam,Uniqlo is alwaysinspiredbythelong historyanduniquecultureofHanoiCapitalinparticular,andaboutthecountryandpeopleofVietnamin general.ThatinspirationisacreativepremiseforUniqlotocreate a world-class shopping space,harmonized with Vietnamese indigenousculture.Thisspacenotonlyprovidesa uniqueshoppingexperiencebutalsomakesconsumersfeelthe respectforthelocalculturethatUniqloofferstotheVietnamesemarket.Itcanbesaidthatcreatingandhonoringthelocal cultureisa remarkableeffortofUniqloin thejourney ofconqueringcustomers.Togainitsglobalrankingaswell asa large marketshareinVietnam, Uniqlohas takenculturally appropriatestepsasstatedearlierbythebrand:customer-centric.

Withthemottoofalwaysapproachingissuesfromthecustomerperspective,Uniqlo asks employees to evaluate everything from the perspective ofconsumers,always considerwhattheydotobenefitcustomers,doesitmeetcustomerrequirements?AllUniqloparts must adheretothiscorevalue. Uniqloisaglobalbrand, sowhenreturningtoVietnam,thisbrandnotonlyabsorbsandpromotesvaluesrelatedtonationalidentity,butalsointegrateswithtrendsintheworld.Thisintersectionbrings new anduniquevaluestoconsumers,this isalsothehighlightofUniqlointheVietnamesemarket,which islovedbymanycustomers.

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