Abstract

This article presents an in-depth analysis of Uniqlo marketing strategy. The article covers all key marketing mix elements, conducts competitive and STP analysis, and highlights key lessons learned from Uniqlo’s marketing mix analysis. The article is useful for strategic management students, teachers, researchers, and anyone who wants to learn about Uniqlo’s marketing strategies.

1. Introduction

Uniqlo is best known for its trendy, durable, and affordable clothing. Initially, Uniqlo was known as a cheap brand. Through effective marketing, the company has successfully repositioned itself as an affordable, yet high-quality casual wear brand.

Click here to get basic company information.

2. Uniqlo marketing strategy

2.1. Uniqlo product strategy

2.1.1. Uniqlo product mix

Uniqlo offers a diverse range of products for men, women, boys, girls and babies. The product mix includes:

• Outerwear and innerwear
• Casual and dress shirts
• Jeans, pants, and ultra-light bottom collection
• Shoes and socks
• Fleece
• Sportswear
• Shorts, tops, and pajamas
• Sweatpants and shirts
• Bodysuits
• Newborn collection
• Accessories

2.1.2. Uniqlo mission statement

Uniqlo mission statement is to make the world a better place by selling good clothing, which is simple, high quality, and durable. This commitment reflects in Uniqlo’s diverse affordable product range, and positive customer reviews.

2.1.3. Uniqlo segmentation, targeting and positioning

Uniqlo Segments	Description	Uniqlo Target Market	Uniqlo Positioning Strategy
Segment 1	Basic apparel shoppers seeking high quality basics and essentials	Value seekers	High quality Trendy Durable Affordable Innovative
Segment 2	Fashion forward individuals seeking trendy but comfortable clothing	Style conscious shoppers
Segment 3	Tech enthusiasts seeking functional designs and innovative fabric technologies	Comfort driven shoppers

Uniqlo target market covers all gender and age groups, mainly from middle income segment. The typical target audience includes parents, athletes, busy professionals, and individuals seeking comfortable, trendy and affordable attire.

2.1.4. Uniqlo unique selling proposition

Uniqlo’s USP is built on following pillars:

• Innovation- use of innovative technologies for a functional fabric design.
• Seasonlessness- timeless styles that reduce pressure to constantly update their collection.
• Sustainability- durable clothing, eco-friendly manufacturing and dyeing processes, and use of recycled material.

2.1.5. Uniqlo branding strategy

Uniqlo product branding strategy is characterized by global appeal, quality focus, simplicity, and affordability. Minimalistic yet stylish designs, affordable pricing, and innovative fabric technologies create a unique identity that closely resonates with the consumers’ diverse needs.

2.1.6. Uniqlo ranking

Due to high product quality, durability and innovation, Uniqlo earned 14^th spot in top brands for generation Z. Its net promotor score is 42, out of which 58% are promotors, 26% passives, and 16% detractors:

Source: Comparably.com

Net promotor score shows whether customers recommend the brand based on -100 to +100 scale.

Click here to know more about Uniqlo’s competitive positioning

2.1.7. Key lessons

• Integrate innovative technology and sustainability into everyday clothing
• Attain the balance between affordability, comfort and trendiness 

2.2. Uniqlo pricing strategy

2.2.1. Uniqlo pricing strategy

Uniqlo adopts a blend of penetration and economical pricing strategies.

• It adopts penetration strategy by initially setting low prices, and then gradually increasing the prices as the demand goes up. 
• While, it adopts economical pricing strategy by offering trendy and high quality basic items at affordable prices. 

2.2.2. Uniqlo pricing range

Following table shows the pricing range of some of the Uniqlo’s products:

T Shirts	$20 to $30
Jeans	$30 to $60
Heat Tech	$10 to $60
Outerwear	$40 to $200
Dresses	$40 to $60
Sweaters	$30 to $80

Source: Uniqlo Official webpage

2.2.3. Uniqlo pricing in different countries

Uniqlo charges different prices in different countries. For example, Uniqlo at Japan is more affordable than Uniqlo at Australia. The graph below shows the percentage by which Uniqlo’s prices exceed those in Japan in different countries:

Source: Yahoo Finance

2.2.4. Uniqlo pricing comparison

Here is the Uniqlo pricing architecture alongside key competitors:

Source: Edited.com

Above table suggests that Uniqlo is more affordable than Zara and H&M. Uniqlo has only 7% products that are priced over $50, compared to Zara (9%), and H&M (12%).

A more recent comparison is available here.

2.2.5. Key lessons

• Offer Affordable quality and value driven innovation
• Lower prices without compromising over quality
• Consistently offer desired value to build loyalty
• Adapt pricing strategy in different geographic regions

2.3. Uniqlo place strategy

2.3.1. Uniqlo distribution strategy

Uniqlo adopts intensive distribution strategy to make its products widely available to target market across different channels.

2.3.2. Uniqlo distribution channels

Uniqlo uses three distribution channels:

• Retail stores- own brick and mortar stores worldwide.
• Franchise partnerships
• Online stores

Following table shares the latest (2023) statistics about Uniqlo’s stores across the world:

Source: Fast Retailing

Uniqlo store hours are from 10am to 9pm.

Click here to know how Wall Street Journal ranked Uniqlo better than competitors due to its Omni-channel retailing.

2.3.3. Uniqlo distribution level

• Uniqlo adopts 1-level distribution, which means the goods travel from manufacturer to retail stores, from where they are purchased by customers. 
• Uniqlo has a wide manufacturing network (including 146 suppliers) that is spread across South-East Asia and China. 
• Uniqlo distribution centre network ensures seamless supply chain operations, facilitating the prompt product distribution across the globe. 
• In 2018, Uniqlo invested $885 million in warehouse automation- as reported by Reuters. In 2023, Uniqlo aims to invest $438 million (£345m) more to automate its warehouse operations. 

2.3.4. Uniqlo supply chain management

Here is a snapshot of Uniqlo’s supply chain:

Source: Logistician.com

2.3.5. Uniqlo sales through different channels (within Japan)

Following table shows the Uniqlo sales from own stores, directly run (same) stores, and online store:

Source: Fast Retailing

Up to July 2023, Uniqlo was able to drive its total sales by 12% through all distribution channels compared to previous year.

2.3.6. Key lessons

• Use multiple distribution channels to ensure wide spread accessibility.
• Cater diverse markets.
• Invest on automation to streamline production/distribution operations.

2.4. Uniqlo promotion strategy

2.4.1. Uniqlo promotional mix

Uniqlo adopts a mix of traditional and digital marketing strategies to promote its products. Uniqlo promotional mix includes:

• TV advertising
• Billboards
• Print advertising
• In-store Uniqlo advertising
• Promotional discounts 
• Influencer collaborations
• Social media marketing

2.4.2. Uniqlo traditional marketing strategy (TV advertising)

Uniqlo uses TV ads as a way to showcase its products, and reach the mass market. Although, Uniqlo has successfully launched various TV campaigns. However recently, Uniqlo TV ad was taken down in South Korea for mocking wartime sex slaves- as reported by Business Insider.

2.4.3. Uniqlo billboard and print advertising

Other than TV, Uniqlo posts billboards on public spots to enhance the brand visibility:

Uniqlo also invests on the print advertising. The brand posts ads in renowned magazines, like- Vogue, Elle, In-Style, and Nylon:

2.4.4. Uniqlo instore advertising

Uniqlo uses in-store displays and signage to highlight the special offers and new arrivals:

2.4.5. Promotional discounts

Uniqlo offers promotional discounts to boost the sales. Here, is a recent example of discount coupon that customers can redeem until December 31, 2023:

Other than traditional marketing strategies, Uniqlo uses digital marketing strategies as well.

2.4.6. Influencer collaborations

Uniqlo offers an affiliate program to influencers, and has a wide influencer network that endorses the brand over different social media platforms.

2.4.7. Social media marketing

• Uniqlo has strong presence on Facebook (1.193 million), and Instagram (2.4 million). It has separate accounts for each country on YouTube, Twitter (X), and TikTok.
• In 2019, Uniqlo launched a successful marketing campaign over TikTok “#UTPlayYourWorld”. The campaign increased the web traffic, and created a buzz word about Uniqlo among Gen Z.
• In 2022, Uniqlo launched ‘fast moving image campaign’ online, and in 100 stores. The campaign asked customers to capture fast images, and upload code to Uniqlo website to redeem points. The campaign created excitement, and grabbed everyone’s attention over social media.

2.4.8. Investment on AI for tailored marketing campaigns

Uniqlo invests on the AI to analyze the customers’ purchasing style. It enables Uniqlo to gauge the customers’ preferences, and create the advertising/promotional content accordingly. Uniqlo’s growing online sales provide extensive data that brand uses to tailor its marketing campaigns.

2.4.9. Key lessons

• Leverage the power of diverse marketing channels.
• Tailor marketing campaigns according to audiences’ needs/preferences by leveraging power of big data.
• Launch campaigns that create excitement, and resonate with target audience.

2.5. Uniqlo people strategy

Uniqlo has developed a customer-centric workforce. It arranges regular trainings to equip staff with latest knowledge and skills, and trains them to create a positive shopping experience.

2.6. Uniqlo process strategy

Focus on innovation and automation efficiently fulfills Uniqlo material needs. Application of advanced manufacturing techniques, and sourcing right materials enables Uniqlo to fulfil its commitment to innovation, quality, and sustainability.

2.7. Uniqlo physical evidence strategy

Uniqlo physical evidence reflects the cohesive brand identity through elements like website aesthetics, store layout, and Uniqlo employee dress code. A modern, aesthetically pleasing retail environment aligns with the brand’s stylish yet minimalistic ethos, reinforcing the unique brand image, and improving overall customer experience.

3. Recommendations

• Integrate cultural sensitivity in advertising campaigns
• Increase sustainability efforts in messaging
• Increase digital engagement through creative social media campaigns
• Optimize online shopping experience
• Adapt the marketing strategies according to regional preferences
• Keep investing on AI for personalized marketing campaigns
• Invest more on in-store layouts for immersive shopping experience

4. Conclusion

To sum up, Uniqlo marketing strategy success rests on a creative blend of quality, innovation, and affordability. Its well-integrated marketing mix resonates well with the target customers, driving the Uniqlo’s prominence in competitive global fashion landscape.

5. References

Women’s, Men’s & Kids’ clothing & Accessories | UNIQLO US. (n.d.). UNIQLO.

Yahoo is part of the Yahoo family of brands. (n.d.).

Marci, K. (2022). Secret ingredients of the Uniqlo strategy. EDITED.

Group Outlets | FAST RETAILING CO., LTD. (n.d.). 株式会社ファーストリテイリング  ©2023 FAST RETAILING CO., LTD.

Writer, S. (2017, February 28). Uniqlo operator publicizes nearly 150 suppliers. Nikkei Asia.

Staff, R. (2018, October 9). Uniqlo owner Fast Retailing to invest $885 million in warehouse automation. U.S.

Week, R. (2023). Technology strategy at Uniqlo. Retail Week.

UNIQLO Sales Data (Japan) | FAST RETAILING CO., LTD. (n.d.). FAST RETAILING CO., LTD.

Esfandiari, S. (2019, October 22). Japanese clothing giant Uniqlo pulled a TV ad in South Korea after viewers complained it mocked World War II sex slavery amid the 2 nations’ escalating trade war. Business Insider.

Redirect notice. (n.d.).

How Uniqlo is Killing It With Their Digital Marketing Campaign. (2023, April 19).