Value Proposition

Last week, the Minister of Education, Chan Chun Sing visited 新加坡国立大学 and asked a group of NUS students one question, "What is Singapore's value proposition". I started thinking about my own value proposition and listed down ways to make more value propositions for myself. Everything in life needs a value proposition and needs to be of value to at least one person. Every brand aims to differentiate themselves through numerous and unique value propositions in order to attract the most customers.

What is Value Proposition?

A value proposition is a concise statement that communicates the unique benefits and value a product or service offers to its target customers. It is a promise of value stated by a company that summarises how the benefit of the company’s product or service will be delivered, experienced, and acquired. A value proposition tells prospects why they should do business with you rather than your competitors, and makes the benefits of your products or services crystal clear from the outset.

In everyday life, a value proposition can be applied to personal branding, job interviews, and even relationships. It is important to have a clear understanding of what makes you unique and what value you can offer to others. By having a strong value proposition, you can differentiate yourself from others and stand out in a crowded market.

Why is Value Proposition Important?

A value proposition is important because it helps a company differentiate itself from others by highlighting its unique strengths and what sets it apart from the competition. It provides clarity on what a company offers and how it benefits customers. This can help a company communicate its value more effectively and make it easier for customers to understand what it does. Having a clear value proposition can boost a company's confidence and help it feel more self-assured in its abilities. A value proposition can also help a company align its goals and values with those of its customers. By understanding what it offers and what customers are looking for, a company can find better matches in relationships, jobs, and other areas of life.

Value Proposition: Uniqlo

One company that I feel has multiple unique value proposition in Singapore would be Uniqlo.

Uniqlo, a Japanese clothing brand, entered the Singaporean market in 2009 with the opening of its first store in Tampines. The store featured more than 200 items selected specifically for the Singaporean market, with the "UT" and "denim" feature items taking center stage. This marked a key acceleration in the globalisation of Uniqlo, and the company viewed this store opening as a key strategic move in its drive to enter Southeast Asian markets. Since then, Uniqlo has expanded its retail store presence in Singapore, with 26 stores across the country as of 2021. Uniqlo's support among local customers has risen to even higher levels than before COVID-19, and the company plans to keep expanding its retail store presence in Singapore. Uniqlo's CEO in charge of operations in Singapore, Malaysia, and the Philippines, Yuki Yamada , stated that brick-and-mortar stores remain a "very important" part of Uniqlo's business. The company aims to provide clothing for all, and customer shopping experience, in-store and online, comes along amongst the top priorities of the apparel giant. Uniqlo has also employed digital services that will further enhance its customers' shopping experience, such as the "price tag scanner functions" and the same day Click & Collect service in its online store. The company continues to refurbish its physical stores to give new experiences to its customers.

Uniqlo has three value propositions that other clothing brands do not.

1) Chime & Greeting - Whenever you step into any Uniqlo outlet, a staff member would call out "Welcome to Uniqlo!" In fact, I can imagine and hear it in my head while writing this. This unique chime and greeting reinforces the shopping experience that Uniqlo aims to achieve. It was something so simple yet unique about Uniqlo that a lot of other companies do not have.

2) AIRism Brand T-Shirts - Uniqlo knows the market in Singapore extremely well and they developed a technology called the AIRism. Uniqlo's AIRism T-shirt is a type of clothing made with a special fabric that is designed to keep the wearer feeling fresh, dry, and comfortable. The AIRism fabric is incredibly lightweight and high-performing, and it is designed to ensure continued comfort in any condition. The fabric is smooth and stretchy, with quick-drying DRY technology, and it is perfect for wearing on its own or as an inner layer. Before Uniqlo, most stores such as Giordano or even H&M did not focus and hone in on the unique climate that Singapore has. Therefore, another value proposition that Uniqlo has would be the AIRism shirts.

3) Easy Checkout - In my opinion, Uniqlo perfected the hassle free self-checkout counters. You just have to place the Uniqlo shopping bag or any clothes into this box and it will scan every article and give you a price to pay. This is one of the most hassle-free checkout methods that I have seen, say goodbye to handheld scanners. This value proposition enabled Uniqlo to easily let the checkout queue flow seamlessly and smoothly, increasing the flow rate.

Uniqlo's Path Forward

However, no matter how many value proposition a store has, it must always continue to innovate. Other stores are starting to pickup on Uniqlo's value propositions. Don-don-donki has started to play its famous "don don donki" music in the store, improving the customer experience. Muji has started to release their Muji Quick Dry UV Protection shirt, capitalising on Singapore's market and demographics. A small minimart in NUS called Octobox has started to use RFID in their checkout system and protects, ensuring a seamless checkout experience for their shoppers.

Every company MUST continually innovate and find new value propositions in order to woo new customers and improve customers' experiences. This is akin to taking additional certificates and classes to create more value proposition for yourself in order to make yourself stand out amongst the competition.

Last but not least, ask yourself, what is your value proposition. What is your firm's value proposition. How can you create more value propositions for both your firm and yourself?

Satoshi Onoguchi Lisa Ohkawa Yuki Yamada Joyce Tan Juliana Tan Zhong Ru Goh Harris Tan Jerry Seow Jon Goh Amanda Ngein