Brand Consumption Meaning Across Cultures

Brand Consumption Meaning Across Cultures

- A Case of UNIQOL in China and US

Min Huang

Words count: 2110

Introduction

This report identified the consumption of Japanese brand “UNIQOL” meaning across cultures in two different countries: China and US, This brand became the most casual wear brands in China while have some difficulties in expending to the US market, those two counties are both have large demand for fashion but have very different cultural. It is important to study this case, not only for this brand but also for other fashion company involved expand across two countries with different cultures.  

SWOT Analysis

Strengths and Weaknesses

“UNIQOL” has high market share in the international fashion market and Strong financial performance. In 2001 year, It has become one of the most popular casual wear brands in Japan, Onozusa (2001) stated that the brand is such a sensation that one in every five Japanese wears “UNIQOL” clothing. Looking from the whole world, it is also the 4th largest clothing retailer after H&M, Zara and GAP, at the end of August 2015, UNIQLO boasted 845 stores in Japan and 292 in other markets including franchise stores with annual sales over 10 billion USD. (FR, Annual Report, 2015).

The main reason for its success is supply chain management，It use a SPA (specialty store retailer of private label apparel) business model and store concept of “help yourself” (Yanai, 2003), which is picked up what they wanted in a basket and finished shopping quickly at a check-out counter. UNIQLO’s value is comfortable shopping and best service.

Opportunities and Threats

However, most of high level supply chain management is in Asia areas. There are still lots of problems in internationally expansion, for example, UNIQL spent almost eight years to expand it to the US. The founder and chairman of the brand Tadashi Yanai said “It is believed that UNIQOL is aiming to hit 50 billion dollars in global sales by 2020" (Tadashi Yanai,2014), he had set an ambitious goal of opening 100 UNIQOL stores in the US, including the openings of stores in Boston, Chicago and Seattle. UNIQOL has an enormous growth potential in the US after it is booming at Japanese and Chinese fashion market, and no other company let alone foreign apparel brand is engaging in such a venture (Saima Sultana Teresa, 2014). This presents with a blue ocean with immense opportunities to grow both nationally and internationally.

According to Yanai have concluded that the brand still does not have a lot of recognition in the US (Tadashi Yanai, 2014), because the promotions in US is quite poor while the company try to copy their successful experience in Chinese market. The American staff members are mostly involved in field level operations but in terms of strategy and policymaking, a bit more American perspective is required.

Target customer

Demographic Profile

In fiscal 2015 UNIQOL opened 65 stores in China which include more than 23 urban cities. UNIQOL’s fashion target market in China includes women, men, kids and babies. The general age range is 18 to 34 year olds, which includes teenagers as well as individuals well into adulthood. Due to the retailer’s lower price range affordability and simultaneous quality indicating good value, UNIQOL’s loyal customers are main students in college and young adult looking for affordable yet quality clothes.