Back to Basics: UNIQLO's Brand Strategy

Hello Readers!

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This week we're going back to the basics, the basics in your wardrobe to be precise.?

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UNIQLO , known for its affordable cashmere sweaters and timeless basics, has shown notable growth recently: the Japanese brand reached double-digit sales growth, in addition, its shoulder bag was named fashion's hottest product this past quarter, in Lyst Index's quarterly fashion ranking. Uniqlo has expressed its goal to expand into the US market while maintaining its vision of minimalist design, high-quality fabrics, and competitive pricing. Despite facing competition from established retailers while having expanded operations to the US, Uniqlo's focus on quality and affordability has set it apart. To gain a loyal following among American consumers, how can the brand continue to stand out?

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An international pivot?

Uniqlo, expanding internationally is inevitably going to be faced with the challenge of establishing the most relevant pricing structure, across markets. Considering the brand's presence in Europe and the US, the question of how Uniqlo prices its collections across markets can be raised.?

Retviews data show that Uniqlo has a more upscale pricing approach in the European market, where the average price is $41, in comparison to $38 in the US and $29 in the Japanese market, reflecting a 41% higher average price point. Inflation has been the talk of the industry this past year, and Retviews’ data indicate that the average price has increased by 8% and 7% YoY in the European and Japanese markets, respectively. In contrast, the data reveals that Uniqlo hasn't raised prices YoY in the US market.?

Retviews' data reveal that both the US and Japanese markets have shown an 8% increase in the proportion of discounted items. However, the average discount rates have also increased. In particular, the US market has experienced the most significant discounting, with an average discount rate 31% higher than in Japan. Could this indicate a challenge to get the most relevant collection within the US market??

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Want to get more clues on Uniqlo's international expansion strategy? Read our full article here.

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Don’t miss out on the secret to nailing your international expansion strategy with Retviews, the AI-powered competitive intelligence platform, that is helping fashion's hottest brands stay on top of the industry with detailed real-time data on competitors' pricing strategies, assortments, discounts, and international strategies.