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STRATEGIC INITIATIVE
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CREDITS ELISE JOHNSON NICOLE DRAIN
TABLE OF CONTENTS EXECUTIVE SUMMARY
7
COMPANY SUMMARY Company Overview Company History Current Status Plans for Growth Ownership Structure Financial Highlights Forecasted Growth Mission SWOT Analysis Market Positioning Competitors Distribution Annual Spending
8 8 9 10 10 11 12 13 13 14 17 18 20 21
STRATEGIC INITIATIVE Key Objectives Porter’s 5 Forces Rationale Execution Plan Long Term Benefits
24 25 26 31 35 37
MARKET ANALYSIS Market Size PESTEL Analysis Key Players Direct Competition Indirect Competition
38 39 41 48 52 53
TARGET CUSTOMER Demographics Psychographics
58 58 60
COMMUNICATION & PROMOTIONAL PLAN Pre-Launch Launch Post Launch
62
FINANCIAL PLAN Uniqlo’s Growth Monthly E-Commerce Traffic Increase of Conversion Rate Initiative Budget Sales Units Sales Dollars Budget
65 65 66 66 66 67 67 67
CONCLUSION
68
APPENDIX
70
SOURCES
74
63 63 64
EXECUTIVE SUMMARY
Uniqlo is a specialty fashion apparel brand that aims to “change clothes, change conventional wisdom, and change the world,� (Fast Retailing). Uniqlo expects to catch the interest of its customer base by employing a new initiative with market leader in emotion-analytics,Affectiva. With this new initiative, the company will be able to measure consumer interest in online products and content, allowing Uniqlo to customize their online channel in order to fit the interests of each customer. By partnering with Affectiva, Uniqlo will be able to achieve the following key objectives: 1) increase consumer interest, 2) improve marketing strategies, 3) increase inventory turnover rate, 4) increase online customer engagement, and 5) provide consistent customer experience across all channels. The mission of Uniqlo is to do more than offer quality clothing, it also strives to develop new and innovative ideas in the apparel industry to improve the lives of people and change the world (Fast Retailing).
COMPANY SUMMARY
Company Profile
Founded in 1984, Uniqlo Co., Ltd. is an international apparel and accessory brand, and Asia’s biggest clothing retailer. The brand offers casual apparel and accessory items for men, women, and children. Uniqlo is a brand of leading global Japanese retail holding company, Fast Retailing Co., Ltd. that designs, manufactures and sells clothing under seven other brands: Comptoir des Cotonniers, GU, Theory, Princesse tam.tam, PLST, Helmut Land, and J Brand (Fast Retailing, Group Companies). Currently, Fast Retailing is the fourth largest retail apparel company in the world, and Uniqlo is Japan’s leading specialty retailer (Uniqlo, Uniqlo Announces). Uniqlo is a modern Japanese company that inspires the world to dress casual. The company has benefited from strong growth by offering superior quality casual wear at affordable prices based on its SPA (Specialty Store Retailer of Private Label Apparel) business model. The SPA business model enabled the brand to control all stages of the supply process which begins with the procurement of materials, product planning, manufacturing and development, through distribution and retail, to inventory management (ESCP Europe). While the brand’s global headquarters are located in Tokyo, it has four regional headquarters located in New York, Paris, Shanghai, and Singapore, helping to transform the store into a truly global brand. The brand operates 1,299 (including franchise stores) internationally, with 845 in Japan, and 292 globally (Fast Retailing, Annual Report).
Company History The first Uniqlo store opened in Hiroshima, Japan
1984
Launch of fleece apparel campaign, gained large popularity
1998
Set up Uniqlo Design Studio in Tokyo; operations expanded to China
2002
Uniqlo Design Studio established in New York to help build R&D function
2004
Uniqlo opens its first global flagship store in New York, Soho district
2006
1985
It’s original name “Unique Clothing Warehouse” was shortened to Uniqlo. In the same year, the first roadside store opened
2001
Uniqlo expands overseas, with 4 store openings in London
2003
Cashmere campaign gained high consumer interest
2005
Expansion occurred with stores opening in South Korea, US, and Hong Kong; flagship store established in Tokyo Ginza district
2007
Company introduced HEATTECH fabric which contributes to large increase in sales
Source: Fast Retailing
9
COMPANY SUMMARY
Current Status
“Placing the stores and their managers in the heart of its organization, the company makes decisions based on information from them. And the headquarters becomes the store support center that provides the branches with maximum service and sales assistance. The company conducts competitive, streamlined operations by cutting unnecessary costs and spending on wasteful investment projects” (Fast Retailing, Industry Ranking). “The company uses the world’s most effective management measure called ‘global one’ as its standard to manage worldwide operations. The measure includes various actions, such as global merchandising—unite the product line-ups in the world without difference in countries; and Founder Tadashi Yanai global marketing—promote products in an internationally organized way as demonstrated by the HEATTECH promotion” (Fast Retailing, Industry Ranking). “The employees are asked to understand the entire operations in the company as if they are managers and work hard to help the company grow and flourish” (Fast Retailing, Industry Ranking).
Plans For Growth
Although Uniqlo holds the leading position as Asia’s largest clothing retailer, the brand still has big plans for growth in the upcoming years. Founder Tadashi Yanai has the vision for the company becoming the world’s number one casual clothing brand. Current growth initiatives for Uniqlo include aiming for annual growth of 5% in the sales floor area, as well as achieving high efficiency through “scrap and build” (the replacement of old buildings with new ones) of stores. Other plans for growth include global expansion such as multiple stores generating strong growth in Greater China and South East Asia, building a store network of 20-30 stores annually in the U.S., and finally open stores in Australia and Germany by spring 2014 (Fast Retailing, Overview of). The opening of the New York flagship store in Soho proved that the US is a great market for Uniqlo to further expand its operations. The brand’s international business has had strong sales growth rates of 63.7% CAGR (Compound Annual Growth Rate). Concerning Uniqlo’s U.S. expansion plans, previous Chief Operating Officer for Uniqlo’s U.S. division, Yasunobu Kyogoku, stated, “To hit the company’s stated target of $10 billion in sales in the United States by 2020, we need to go where the customer is and in the United States, malls are the premier location where American’s shop. With 7 stores currently in operation in the U.S. they have a long way to go,” (Petro, Is There). Shin Odake, CEO of Uniqlo’s American division plans for the company to open 200 U.S. stores by 2020 (Erbentraut).
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Ownership Structure
As mentioned previously, Fast Retailing Co., Ltd is the retail holding company, managed by founder Tadashi Yanai, that operate seven main brands which include: Uniqlo, Comptoir des Cotonniers, Theory, Princesse tam.tam, J Brand, PLST, Helmut Lang, and GU. This section will discuss the structure of the Fast Retailing group along with key highlights pertaining to each brand (Fast Retailing, Group Companies).
UNIQLO Business
Theory Business
UNIQLO Co., Ltd.
Link Theory Co., Ltd.
Comptoir Des Cotonniers BUsiness C reations Nelson S.A.S
Princesse tam.tam Business
G.U. Business
Petit Vehicule S.A.S.
G.U. Co., Ltd.
Source: Fast Retailing
11
COMPANY SUMMARY
Financial Highlights Uniqlo Japan
Uniqlo Japan accounts for 53.6% of consolidated net sales and 66.3% of consolidated operating income for the Fast Retailing group. During the first quarter, sales and income both rose, with sales growing by 1.8% to ¥ 208.4 billion ($2.04 billion) and an operating income increasing to ¥42.4 billion ($41 million), a 6.2% increase. However, same-store sales decreased by 0.3% over the months of November 2013 to January 2014, but Uniqlo Japan still reported an increase in net sales as five new stores were added over the previous year. Their “scrap and build” policy of replacing smaller stores with larger ones continued to increase the average size of our sales floor. Uniqlo Japan also accounted an increase in profit during the first quarter, which improved its gross margin by 1.8 points. Thus is linked to the company’s ability of maintaining firm control over the range of discounted items and the magnitude of the discounts. In addition, business expenses were monitored, with a mere 1.1 point rise in SG&A ratio (Fast Retailing, Results Summary).
Uniqlo Japan Financial Highlights Net Sales
Yr to Aug. 2013
¥204.7 billion $2 billion ¥39.9 billion $ 39 million
Operating Income Source: Fast Retailing
Yr to Aug. 2014 1Q Actual Full Year Est. ¥208.4 billion ¥720 billion $2.04 billion $7.03 billion ¥42.4 billion ¥114.5 billion $41 million $1.12 billion
Uniqlo International
Uniqlo International includes Uniqlo stores in countries other than Japan. This segment of Uniqlo has experienced significant gains in both sales and income, with sales reaching ¥114. Billion ($1.11 billion), and operating income increased to ¥16.5 billion ($16 million). Uniqlo operations in China, Taiwan, US, Hong Kong, South Korea, Europe, and South East Asia exceeded financial expectations. This is attributed to the global flagship stores in Shanghai and New York which reported double-digit gains in sales (Fast Retailing, Results Summary).
Uniqlo International Financial Highlights Net Sales Operating Income Source: Fast Retailing
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Yr to Aug. 2013
¥64.5 billion $63 million ¥8.4 billion $ 8 million
Yr to Aug. 2014 1Q Actual Full Year Est. ¥114 billion ¥350 billion $1.11 billion $3.42 billion ¥16.5 billion ¥28 billion $16million $27 million
Forecasted Growth
The performance of Uniqlo Japan is predicted to have a 5.4% gain in net sales during the year ending August 2014. With this increase net sales are estimated to be at ¥ 720 billion ($7.03 billion). In addition, Uniqlo Japan’s operating income is set to increase by 18.2% to ¥ 114.5 billion ($1.12 billion). Sales forecasts for the fiscal year of 2014 has been adjusted from the original estimate announced in October 2013 in order to reflect the subtraction of ¥ 8.0 billion ($8 million) in internal transactions from the UNIQLO Japan sales forecast (Fast Retailing, Results Summary). On the other hand Uniqlo International performance during the year 2014, remain the same as expected at the beginning of the fiscal year. Net sales are predicted to grow 39.3% to ¥ 350 billion ($3.42 billion) while operating income will be ¥28 billion ($27 million) a 52.6% increase (Fast Retailing, Results Summary).
Mission Statement
Uniqlo’s mission states that their brand aims, “to continuously provide fashionable, high quality, basic casual wear at the lowest prices in the market—casual wear that anybody can wear whenever and wherever,” (Uniqlo, About Us). The company also believes that in order to achieve this mission that they need to target their attention on low cost operations as well as directly link production and marketing efficiently (Uniqlo, About Us).
“To continuously provide fashionable, high quality, basic casual wear at the lowest prices in the market— casual wear that anybody can wear whenever and wherever”
In addition, Uniqlo values their customer and believes in providing exceptional customer service. Not only do they believe that their customers should have the best, but the brand also offers “an environment where global standard employees can happily work, and do innovative work as a team with human touch rather than like a bureaucratic team,” (Uniqlo, About Us). By combining all of these values, Uniqlo trusts that they will become the leading retailer in casual apparel (Dacus).
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COMPANY SUMMARY
SWOT Analysis
As mentioned previously, Fast Retailing Co., Ltd. Is a Japanese retail holding group that owns the Uniqlo brand of casual wear. The group operates retail stores that sell apparel items for men, women, and children. The brand has a price advantage in the existing economic scenario as there is an increase of price-conscious consumers, giving the brand a competitive edge. However, the company faces intense competition from other global specialty retailer such as H&M and Inditex, which threaten to erode the group’s margins and reduce its market share (Market Line, Company Profile).
Price advantage gives a competitive edge
Strengths
Weaknesses
SWOT Analysis
Developing new and innovative products Strong market position enhancing bargaining power
Reliance on certain regions for production
Expansion in growing Asian markets
Opportunities
Growth in women’s wear market Popularity of large format stores
Threats
Source: Market Line
14
Stiff competition from global operators like H&M and Inditex Risk of natural calamities
Strengths
Price advantage gives a competitive edge to Fast Retailing against the backdrop of tightening budgets. Uniqlo provides casual wear apparel at various price points. This is linked to the fact that the brand sources majority of its merchandise from China and other low cost Asian countries. In addition, Uniqlo has set up a SPA (Specialty store retailer of Private Label Apparel) business model that encompasses all stages of the business—from design and production to final sale. Their business model is frequently refined in order for the company to differentiate itself from its competitors. In the current economic scenario, consumers have become more budget-conscious thus reducing discretionary spending habits. They now prefer value products priced at a reasonable cost. The company has gained an evident advantage in the existing economic backdrop (Market Line, Company Profile). Developing new and innovative products. The introduction of new and innovative products that satisfy consumer tastes and preferences has also strengthened the power of the company. One such original product was HEATTECH fabric, which was introduced in 2007. The fabric functions by absorbing sweat from the body and using it to generate warmth, while special antibacterial processing suppresses odors. Additionally, the fabric includes a moisturizing function which uses
milk proteins in the material to create a soft, moist feel on the skin. Not only has the company developed HEATTECH fabric, but in 2010, Uniqlo launched Silky Dry and Sarafine innerwear products. These fabrics function similarly to that of HEATTECH by quickly absorbing moisture produced by the body as well as incorporating the use of anti-microbial and anti-odor functions (Market Line, Company Profile). Strong market position enhancing bargaining power. Uniqlo is Japan’s largest apparel retailer with a 5.5% share in the market which contributes to ¥10.7 trillion ($136 billion) of the Japanese market. In addition, Uniqlo ranked first in the ‘FY2011 Buying Power Rankings’ for Japanese domestic apparel retailers, which ranks Japanese clothing retailers based on apparel retail sales. Therefore, Uniqlo’s superior position in the market gives the group a competitive advantage and bargaining power in the Japanese apparel retail sector (Market Line, Company Profile).
Weaknesses
Reliance on certain regions for production. The majority of merchandise sold (approximately 70%) through Uniqlo is imported from China and other Asian countries. Due to the establishment of production offices in Shanghai and Shenzhen in 1999, Uniqlo has expanded its production of merchandise in China. This poses a problem since if there were to be any changes in the political, economic and legal environment in its manufacturing countries, it could significantly impact procurement activities. As a result, dependence on certain regions for production could affect the company’s bargaining power and sales (Market Line, Company Profile).
Source:Uniqlo
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COMPANY SUMMARY
Opportunities
Expansion in growing Asian markets. In the past few years, the East Asian economy has seen a stable growth. According to research by Market Line, the region is forecasted to increase by 6.5% by the end of 2014 from a 6.2% during 2013. Since Uniqlo is a well-known brand in Asia, the company can leverage this advantage by expanding its operation in Taiwan and Southeast Asia by building alliances and opening new stores. In addition, the company is also expanding its presence in Malaysia, Thailand, and the Philippines. They also plan on opening stores in Indonesia and Australia (Market Line, Company Profile). Growth in women’s wear market. With the women’s wear market being the leading category in the Japanese market, it continues to grow. According to research from Market Line, the Japanese women’s wear market reached a value of $74.13 billion in 2011 and is expected to grow to $81.67 billion, a 10.2% increase. Uniqlo’s women’s wear holds a 4% share in the Japanese apparel market, and by improving the amount of stores in Japan’s urban centers, the company can expect to see an increase market share in this category. Hence, by increasing the number of stores in prime urban locations, the company can position itself to attract affluent female customers and increase market share in the women’s wear market (Market Line, Company Profile). Popularity of large format stores on the rise in major Japanese cities. Over the past few years the company has begun developing large-format stores. The group operates large-scale stores with at least 1,600 square meters space which have gained popularity in recent years. As of August 2012, 147 of the 845 Uniqlo stores in Japan were large-scale stores. In the same year, the company opened its largest flagship store in Tokyo’s Ginza district. Therefore the group plans on expanding it sales-floor space by focusing on new large-scale store openings, creating an opportunity (Market Line, Company Profile).
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Threats
Stiff competition from global operators like H&M and Inditex. Uniqlo competes in the casual wear market which is very competitive and exposed to various market forces. In order to effectively compete with other leading retailers in the industry, Uniqlo has launched new products and opened new stores. With the expansion of stores into the Asian market by competitors such as Abercrombie & Fitch Co., H&M, and Inditex, S.A., Uniqlo has suffered a decline in its business strength. In order to stay ahead of the competition, Uniqlo needs to continuously revamp its product offerings as well as balance its pricing strategy. If they fail to take these actions can result in the decline in competitive edge and thus impact business results (Market Line, Company Profile). Risk of natural calamities. With Japan accounting for 77.2% of Fast Retailing’s revenue, the company also is threatened by the risk of natural disasters that the country is prone to such as earthquakes and tsunamis. For example, in March 2011, Japan suffered from a massive earthquake of 9.0 magnitude, which then triggered a tsunami. This disaster devastated regions in the northeastern part of the country where several product manufacturers of the company are located. These
prefectures housed several nuclear reactors that power the Tohoku region, damages to these reactors seriously affected business operations. As a result, damages caused by natural calamities such as earthquakes could impact business operations, financial position and business performance (Market Line, Company Profile).
Market Positioning
“The products are priced lower than those sold at department stores, but higher than similar items sold at general merchandising stores. However, when the quality of materials is considered, Uniqlo is a better bargain than those sold at general merchandising stores. Quality, style and fashion are usually sacrificed to keep the price low, but Uniqlo sacrifices none of these to produce attractive, inexpensive products,” (Porter Prize). “Uniqlo’s value propositions are: 1) apparel items treated as components (to be worn with other
items on offer, all featuring a basic design. 2) high quality with a significantly lower price; and 3) apparel proposing new performance features, such as with a high heat-retaining function, HEATTECH clothes can keep the wearers warm enough to not have to put on extra clothes in winter,” (Porter Prize). “Uniqlo’s value proposition of targeting a wide range of customers with low-priced, high-quality products resulted in the hit product HEATTECH, with record-breaking sales of 28 million units in 2008. This roughly translates as one out of four Japanese buying a HEATTECH product,” (Porter Prize). “As stated above, Uniqlo makes high-quality, lowprices, easy to-combine casual basics and offers added value to customers. To do this, the company has introduced the vertical integration system in which all operations, including planning, material development, manufacturing, marketing and sales are integrated (to become a manufacturing retailer) thanks to cooperation with excellent
Worldwide Apparel Specialty Stores: Ranked by Market Capitalization
Source: Fast Retailing
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COMPANY SUMMARY
Distribution
“Uniqlo was the first company in Japan to establish an SPA (Specialty store retailer of Private label Apparel) model encompassing all stages of the business – from design and production to final sale. By continuously refining its SPA model, Uniqlo successfully differentiates itself from other companies by developing unique products. We quickly make adjustments to production to reflect the latest sales trends and to minimize store operation costs such as personnel expenses and rent. This is how we at Uniqlo provide such highquality clothing at such reasonable prices,” (Uniqlo Business Model) “Sales from the Uniqlo Japan Online Store totaled 24.2 billion yen in fiscal 2013, or 3.5% of total Uniqlo sales. We also offer online sales in China, Hong Kong, Taiwan and the U.S. Uniqlo
UNIQLO Japan
Japan had 853 stores nationwide (including 19 franchise stores) at the end of August 2013. Since opening the first store outside Japan in 2001, Uniqlo International has expanded to 446 stores, including 280 stores in Greater China, 105 in South Korea, and 39 elsewhere in Asia. Stores develop a full-fledged store network in the United States.” (Uniqlo Business Model) “Does not own factories (to succeed in selling each of the products in large volume, the company needs to have facilities with huge production capacity. In light of investment and management, the company cannot produce a broad range of clothes, such as bottom, outer, inner and cut and sew, on its own. So, it asks big factories to meet that demand.). Offers popular products to a wide range of customers (unlike other apparel makers). Mass marketing does not work in a targeted business (The company aims to produce clothes that people want to wear anywhere at any time). Does not undertake small-lot production of a wide variety of products. Does not operate stores in a franchise or license business format. (Franchises are limited only to proven Super-Star-StoreManagers and this opportunity is very limited.)” (Uniqlo Business Model)
UNIQLO International
Source: Fast Retailing
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Source: Fast Retailing
Annual Spending Figures
“SG&A expenses totaled 431.0 billion yen (4.21 billion USD), while the SG&A to net sales ratio held flat at 37.7% year on year. The SG&A ratio for Uniqlo Japan expanded 0.6 percent, due to an increase in store personnel costs for part-time and contract staff and higher advertising.� (Fast Retailing, Annual Report). Selling, General, and Administrative Expenses Major items included in selling, general and administrative expenses for the years ended August 31, 2013, 2013 and 2011 are as follows:
Source: Fast Retailing
Breakdown of SG&A Expenses
Source: Fast Retailing
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STRATEGIC INITIATIVE
Overview
In order to further develop both their omni-channel communication and multi-channel distribution, it is suggested that Uniqlo partners with the company Affectiva, the market leader in consumer emotion analytics and insights. Affectiva developed Affdex, which employs advanced computer vision and machine learning algorithms to create facial coding software. Affdex’s design allows for it to recognize facial expressions and head gestures acquired through webcams found on everyday devices such as laptops, tablets, and mobile phones. It can then evaluate, examine, and translate the viewer’s reactions to content in order to identify a range of emotions from joy, discomfort and indifference to rapt engagement (Affectiva). Instead of using traditional marketing research tactics, Uniqlo’s use of Affdex software will provide a better evaluation of viewer’s engagement of their online content, thus improved insight into the emotional response of the consumer. In recent years, consumers have become more complex in a number of dimensions including an increase in: knowledge, demand, empowerment, collaboration, interactivity, and diversity (Carroll). In order to effectively respond to the evolution of consumer needs and behaviors, Uniqlo needs adapt their omni-channel approach that manages superior customer experiences across all touch points. The brand needs to deliver seamless, consistent and tailored customer experience through the incorporation of agent-assisted channels and digital channels like social media, in order for customers
to interact whenever, wherever and however they want with Uniqlo, across all channels. This initiative will allow for Uniqlo to recognize and acknowledge individual customers, along with their purchase history and previous interaction. In addition, the brand will be able to improve customer relationships by showing consumers that they are valued through personalized content. This content will include allowing customers to view products online and gauge their interest if they choose to use the option to use the technology and then pull up other items that the customer may positively respond to as well. In addition, the employment of Affdex will also provide customers the ability to view online videos and allow them to measure and view their reactions to the content. By taking advantage of Affdex technology, Uniqlo can develop customized marketing strategies, and provide better customer experience that educates and engages the customer. Not only can this initiative improve Uniqlo’s omni-channel strategy, but it also can advance their multi-channel approach as well. By employing Affdex technology, the brand can offer customers an enhanced and consistent customer experience across all channels by integrating the data into a single database in order to better identify customer preferences and obtain a 360-degree view of customers. As a result, the brand can maximize revenue and loyalty by offering customers a range of choices and convenience through improving multi-channel distribution.
Key Objectives
By partnering with Affectiva, Uniqlo will be able to achieve the following key objectives. Through the use of Affdex technology, the fashion retailer will be able to better understand consumer’s emotional responses to their online advertising by determining whether or not their content touched them. 1. To increase consumer interest in products 2. To improve marketing strategies 3. To increase inventory turnover rate 4. To increase online customer engagement 5. To provide consistent customer experience across all channels
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STRATEGIC INITIATIVE
Porter’s Five Forces Analysis Competitive Rivalry Although Uniqlo is one of the top participants in the specialty and casual apparel industry, the brand still faces high competitive rivalry not only in the traditional retail, but also in online retail as well (Global Data). In Japan, the online retail sector is heavily fragmented, with a number of industry heavyweights, such as Amazon. com Inc. and Rakuten, operating alongside smaller and more specialized brands such as Uniqlo. Many of these larger companies have established a strong global presence, and their existence as well as the absence of consumer switching costs and low cost sales capacity has increased rivalry within the online retail market. Competitive rivalry is strengthened by the ease
of using search facilities and price comparison websites. Major players within this sector sell similar products, which enables customers to purchase products on the basis of priced alone, thus boosting rivalry within the online retail market. Fortunately, for specialty retailers such as Uniqlo they don’t face this dilemma; however there are a vast number of other specialty brands which creates significant competition. Despite this predicament, low fixed costs and dynamic market revenue growth in recent years help to lessen rivalry, therefore making the overall competitive rivalry of the market moderate (Market Line, Online Retail).
Drivers of degree of rivalry in online retail sector in Japan
Source: Market Line
26
Buyer Power The buying power in this industry is measured to be moderate. In the online retail market of Japan, the number of buyers varies but is steadily increasing, thus decreasing the buying power. According to research from the Internet World Stats, as of June 2012, the Japanese Internet penetration was 79.5%. There are relatively non-existent switching costs in this sector. As a result, buyers are more inclined to switch, since they are price aware. Many brands within this segment offer similar products, allowing for buyers that are price sensitive the option to shop around until they find the cheapest product offered. Due to poor
economic conditions in recent years, consumers have begun to frequently look around for the most budget-friendly means of purchasing goods, therefore increasing buyer power. However, the security of online transactions has been a concern for many consumers. Brands that offer secure online transactions have a larger probability of consumer loyalty. Since many online retail provide an exceptionally diverse variety of goods, it reduces their reliance on any particular category, which increases their customer base and decreases buying power (Market Line, Online Retail).
Drivers of buyer power in online retail sector in Japan
Source: Market Line
27
STRATEGIC INITIATIVE
Threat of Substitutes The threat of substitutes for online retail exist in terms of traditional forms of retail channels such as catalogs or brick-and-mortar stores. Many customers still prefer to experience traditional methods of shopping by enjoying the benefits of being able to physically engage with the product. In addition, there is customer concern over the security of online transactions that can lead them to choose traditional channels of retail. Despite this, many brick-and-mortar stores struggle from the impact of the economic recession which has significantly altered customer behavior. Instead,
there is a shift to online retail due to the lower price of products and the convenience of looking for products and delivery. In order to compete with online businesses, traditional stores have begun offering price-matching services. However, online retailing suffers from the disadvantage of the time it takes for the product to get to the customer, which can lead the customer to favor traditional means of shopping. In general, the threat of substitution in the online retail arena is moderate (Market Line, Online Retail).
Factors influencing threat of substitutes in online retail sector in Japan
Source: Market Line
30
Rationale Best Practice
Affectiva’s facial-reading software, Affdex has made it a market leader in the realm of online consumer emotion measurement by providing superior results in comparison to traditional marketing research strategies such as focus groups, surveys, and test ads. The problem with the old approach to market research is that it required people to self-report their reactions, while Affdex uses a scientific algorithm to examine subtle facial cues, drawing from a database of more than one billion facial reactions (Joyner). According to a study performed by MIT, when the facial data was combined with real-world sales data, it found that facial measurements predicted with a 75% accuracy of whether sales of advertised products would increase, decrease, or stay the same after the commercials aired. By comparison, results from surveys of panelists’ feelings about content shown only predicted 70% accuracy. Even though it was a small improvement statistically, it demonstrated a milestone in the field of affective computing. This
technology now enables machines to not only read emotions but also predict the statistical probability of later behavior. The accuracy of the system could lead the way for applications that read the emotions on viewers’ faces using everyday home computers and mobile devices (Talbot). “With social networking and geo-location, our devices are enabled to know who we are, where we are and what we’re doing. However, these smart devices are still missing the key elements to understanding human sentiment. As technology innovators, Affectiva is creating a platform for passive and active emotion-sensing—the next generation of social communication,” said Stephanie Tilenius, an executive in residence at Kleiner Perkins, as cited in an article from Tech Crunch (Ha). The Affdex analytics provide overall emotion scores and real-time, scene-by-scene playback of facial data. Companies can track responses through a summary of emotion metrics which measures net positivity, expressiveness, attention, concentration, dislike, smiles, and surprise. In addition, companies are able to precisely view which areas might need improvement (Affectiva).
Source: Affectiva
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MARKET ANALYSIS
The increase in the market size of the global apparel industry provides opportunity for Uniqlo to increase their overall financial performance. Within this all-encompassing market, is Uniqlo’s target market, of casual wear. The brand provides comfortable, high-quality products for men, women, and children in apparel and accessories for an affordable price. Although, the company was originally based in Japan it has made global expansions, capitalizing on market opportunities. For the purposes of this report, a PESTEL analysis of Japan will be described. This industry is expanding in size and represented by a domestic and international competitors such as, Gap Inc., Inditex, S.A. (Zara), and Hennes & Mauritz (H&M). In an attempt to gain a competitive advantage over the competition, Uniqlo offers products that are innovative, functional, and affordable.
Market Size
The online retail market is defined as the total revenues produced through the sale of retail products through online channels, valued at retail selling price. The values recorded exclude travel and ticket bookings, online corporate purchasing, and online auction transactions. For the 2008-2012 period, the Japanese online retail industry maintained a steady growth, while the traditional retail market has struggled. In future years, the market is projected to continue its growth from 2013 into the end of the forecast period of 2017. IN 2012, the Japanese online retail sector was measured $26.4 billion, with a CAGR of 11.4%. Comparatively, online retail markets in China and India grew with CAGRs of 148.7% and 46.5% respectively, during the same time period, to reach values of $62,5 billion and $600 million in 2012. The performance of the industry is anticipated to increase, with a forecasted CAGR of 7.2% from 2012 to 2017, driving the industry value to $37.4 billion by the end of 2017. In comparison, over the same time period, the Chinese and Indian industries will grow with CAGRs of 30% and 71.2% respectively, to reach values of $232.3 billion and $8.8 billion by 2017 (Market Line, Online Retail). In addition, online apparel and accessories sales are forecasted to grow 16.4% through 2016, to $73 billion (Internet Retailer).
Japan online retail sector value: $billion, 2012-2017
Source: Market Line
39
MARKET ANALYSIS
Category Segmentation
As mentioned previously, the online retail industry encompasses of the sale of retail products through online channels. Currently, books, music and videos is the leading category of the internet retail industry, accounting for 27.9% of the industry’s total value, with revenues of $7.3 billion. Following behind is the electronics segment which contributes $4.6 billion in revenue equating to 17.4% of the industry’s aggregate value (Market Line, Online Retail).
Japan online retail sector category segmentation by value
27.9% Books, music, videos
40.6%
Electronics
17.4%
9.7%
Source: Market Line
40.1%
16.9%
0.4% Source: Market Line
40
Other
14.1%
Japan online retail sector geography segmentation by value
32.9%
Apparel, accessories, footwear
China Japan South Korea India Rest of Asia-Pacific
Geography Segmentation
Although China accounts for 40.1% equating to $62.5 billion of the AsiaPacific apparel industry, Japan is second in the industry with $26.4 billion, making up 16.9 % of the retail industry value (Market Line, Online Retail). The same trend follows in future years as well, China is forecasted to grow to $271 billion in the next five years compared to current its value in the e-commerce market. Japan on the other hand will grow $80 billion in the same period (Internet Retailer).
PESTEL Analysis
This profile examines the political, economic, social, technological, environment, and legal (PESTEL) landscape in Japan. Each of the PESTEL factors is analyzed on four parameters: current strengths, current challenges, future prospects, and future risks. According to research from Market Line key findings of this Japan include: • The country has a secure democratic setup, but political instability could derail reforms • Japan has well-developed industrial and services sectors, but deflation continues to be a challenge • Social security agreement with Switzerland is a positive, but an aging and declining population continues to be a challenge • Japan is one of the most technologically advanced countries in the world, but high wage costs are a concern • Japan has a strong legal services market, but rigid and slow legal procedures could turn away investors • The country has initiated renewable energy policies; however, air pollution and radioactive pollution remain a challenge
Japan Key Fundamentals GDP, constant prices ($bn)
2013 5,232.1
2014 5,270.2
2015 5,344.3
2016 5,408.1
GDP, growth rate (%)
1.6
0.7
1.4
1.2
GDP, constant 2000 prices, per capita ($) Inflation (%)
40,963
41,310
41,951
42,525
0.195
0.208
0.387
0.556
15.1
14.8
14.5
14.5
14.4
14.4
127.6
127.4
127.2
Exports, total as a percentage 15.2 of GDP Imports, total as percentage 14.4 of GDP Mid-year population (mn) 127.7 Unemployment (%)
4.4
4.3
4.2
4.1
Mobile Penetration (per 100 people)
103.2
104.5
105.6
106.5
Source: Market Line
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MARKET ANALYSIS
Japan Key Facts Country & Capital Full Name Capital City Government Government Type Head of State Head of Government Population Currency GDP per capita, adjusted by purchasing power parity Internet Domain Demographic Details Life Expectancy Men Women Ethnic Composition Japanese Korean Chinese Other Major Religion Buddhism & Shintoism Christianity Other Country Area Language Exports Imports Source: Market Line
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Japan Tokyo Constitutional Monarchy with Parliamentary gov’t Emperor Akihito Prime Minister Yoshihiko Noda 127.3 million Yen $35,2000 .jp 83.91 yrs (total population) 80.57 yrs 87.43 yrs 98.5% 0.5% 0.4% 0.% 90.2% 2% 7.8% 377,915 sq km Japanese Transport equipment, motor vehicles, semiconductors, electrical machinery, chemicals Machinery equipment, raw material, fuels, food stuffs, textiles, chemicals
Political Analysis Japan has a strong democratic system with stable macroeconomic policies. Although the emperor is the head of state, he holds little power in terms of the administration of government affairs. Despite the strong democratic system, the government has commenced a new growth strategy in order to improve the economy and employment in the country. In addition, the government has also taken action to resolve the problems that are damaging relations with China (Market Line, PESTLE Country). Yet, the political landscape is characterized by instability, due to the Democratic Party of Japan (DPJ) governing the House of Representatives and the upper house controlled by the Liberal Democratic Party (LDP). This causes a political
one-upmanship, dissension, and disagreement on important bills and legislation. The prime minister lost approval ratings as a result of the nuclear accident at Fukushima Daiichi following the tsunami in March 2011, as well as a series of economic woes. In August 2011, Naoto Kan renounced his position and was replaced by Yoshihiko Noda in September 2, 2011 (Market Line, PESTLE Country). The present government has sanctioned a new strategy to increase economic growth which contains a number of goals for 2020, however it is still facing vast opposition to the prospective increase in sales tax to 10% by 2015 (Market Line, PESTLE Country).
Analysis of Japan’s Political Landscape
Current Strengths
Current Challenges
• Strong democratic setup • Strong relations with the US Future Prospects
• Political instability • Protects against nuclear power plants Future Risks
• New growth • Japan-China relations
• Diplomatic row with North Korea • Opposition to sales tax hike
Source: Market Line
With the strong relations with the US, Uniqlo can eventually expand the use of this initiative into the American market, improving the overall growth of the company. In addition, with the future prospects
including new growth for the political landscape, Uniqlo can expect more liberal policies when it comes to operating its business.
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TARGET CUSTOMER
Demographics
“UNIQLO does not define its target customers in terms of gender, age, or ethnicity. It targets all people. Apparel makers often focus on specific designs to satisfy their target customers, but UNIQLO serves a wide range of customers by offering highquality, casual basics” (Porter Prize). Although, Uniqlo does not have a defined target market, and their slogan being “Made For All” because Uniqlo strives to selling clothing to those who want a contemporary and elegant look and the typical customer of the brand ranges from the age 18-30, which are known as the Millennials. “The Millennial generation is a group of young people whose birth years range from 1980 to 2000. This generation is actually just slightly larger than the Baby Boom generation (born from 1946 to 1964). Nearly 78 million Millennials were born between 1980 and 2000. Millennials are already having an impact on business, the workplace, churches, and other organizations. Because of their impact in business, politics, and the church, they are simply too large and too influential to ignore. We should begin by noting that not only are Millennials the largest generation, they are also one of the most diverse. That means that for every trend we identify in this generation, there are also lots of exceptions. Millennials are also on track to become America’s most educated generation.
It is important to fully understand millennials, so we researched more in depth so we could fully understand who they truly are. They are between the ages of 18 and 25, male and or female. They’re education level is known to be one of the most important factor for millennials, so they are the “most educated generation in American history with over 63% of millennials having a Bachelor’s degree.” (Jenkins) Millennials are in all races and are more likely to live in urban area’s. (Uniqlo) Because the millennial generation is still so young, when it comes to marital status, 21% are married, 4% have been divorced or they’re separated and 74% have never been married (Noren). For their occupation, they are “white and blue collars, 62% are civilian employed, 1% is employed by the armed forces, 10% still unemployed and 28% of millennials are not in labored forces. (Noren) By 2025, 3 out of every 4 workers globally will be millennials, so why not start building your company culture to appeal to millennials now... since it’s going that way anyway.” (Noren) Millennials would also prefer to “choose when and where they work rather than being placed in a 9-to-5 position and 56% of millennials won’t accept jobs from companies that ban social media. To keep millennial talent, it is important to rethink your current company culture and find ways to infuse more flexibility, technology and social-ness... otherwise, be prepared to pay the
price. It costs an average of $24,000 to replace each Millennial employee. So it is important to know how can we motivate the Millennial generation to become Uniqlo’s loyal consumers? “The answer to that question is easy: build relationships. Relationships are important because of their connection to their family. Millennials also see the world as a much smaller place since they can visit anywhere in the world (either in person or on the Internet). And they are connected to people through the new media in ways that no other generation was able to do. Millennials do want to make money, but they are not driven by money. Their motivation for education and career are motivated more by family and friends. One word that often surfaces is the word “flexibility.” They see money as a means to do what they want to do. At the same time, they reject the “keeping up with the Jones’ mentality” that often drives their parents. The Millennial generation has been influenced by media and technology like no other generation. Social commentators made much of the influence of television on the Baby Boomers but the proliferation of Internet, smart phones, and social media has had an even greater impact on Millennials” (Anderson).
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TARGET CUSTOMER
Psychographics
Although, Uniqlo doesn’t define itself as having a target customer in terms of age, ethnicity, or gender (Porter Prize), the brand faces competition from retailers such as Zara, H&M, and Topshop who have a target market of the millennial generation ranging from the ages of 20-35 (Zogby). Consumers in this demographic lead relatively active lifestyles. They balance work and leisure activities such as nightlife entertainment and traveling. What sets this demographic part from others is their adaptation and use of technology. They are heavily dependent on using laptops, smartphones, and tablets to surf the internet, watch videos, play games, shop, listen to music, etc (Nielsen).
Attitudes
While they still have respect for authority and tend to harmonize with others, Japanese millennials have begun to use the freedoms granted by the democratic government recently set up in Japan. The shift from conservative views to more liberal ones have started taking place within the country, this can be seen with the emerging Japanese youth culture that has gained much attention. However, while millennials express their individuality, they still are community-oriented and value the opinions of their peers when making purchasing decisions (Intelligence Bridges).
Media Consumption
Technology and media is widely used by this demographic. Studies have found that approximately, 93% of millennials used a mobile phone in 2012, and of that number 63% were smartphones. The use of tablets, which was previously concentrated among the older, wealthier generation, is shifting to being used among younger users, with 41% of millennials using a tablet at least once a day. This generation also has the highest penetration of internet and social media consumption, which is about 93% and 84%, with Facebook being the most widely used among this age group (Cohen). Social media has proven to be a main competitor for young people’s time, but it is also the main way for them to find media to consume. A study from Pew, found that a third of people under 30 received their new from social media, compared to 13% who turned to traditional methods of reading a print newspaper. Not only are millennials going online
to connect with peers, but they are abandoning the use of television and instead watching video content online. According to statistics from comScore, 91% of millennials have accessed online video, providing evidence that online video is replacing TV. Media metrics firm, Nielsen has tracked a decrease in the amount of time of 18 to 35 years spend watching TV in the past few years (Jackson).
Buying Behavior
With all the convenience offered by modern day technology, millennials have found it more convenient than ever to buy products from brands they love. Consumers can now shop on a variety of electronic devices such as, smartphones, tablets, laptops, and computers. With these mobile devices consumers within this market are more prone to shopping wherever they are, thus creating impulsive buying behavior. Although, they are more inclined to spontaneously buy products, it doesn’t mean they aren’t savvy shoppers. Research shows that on average that nearly half of these consumers search for the cheapest option, in addition, an increase in “showrooming” which is when customers shop in store in order engage with products in a physical space and then purchase them online, with 40% of consumers participating in this method of shopping. Other factors that have shaped their shopping behaviors is the ability to buy products outside business hours, with more than half of surveyed consumers doing this; and the influence of real-time product availability, with
92% saying this impacts where they decide to shop (Accenture). Considering the information provided above, this sets the stage for Uniqlo to fully gauge the interests and gain better insights of their consumers by using Affdex software. With more and more of their consumers going online to shop, this presents the perfect opportunity for Uniqlo to better connect with consumers and provide this technology. Uniqlo’s products mimic the current mindsets of Japanese consumers, by offering simple, casual apparel that can be styled to fit the personality of each individual consumer.
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COMMUNICATION & PROMOTIONAL PLAN
This section covers the strategy Uniqlo will incorporate in order to promote the Affdex technology it plans to use during the year 2016. The plan will cover pre-launch, launch, and post launch strategies that the brand will employ. In addition, a timeline will be provided in order to measure how long each marketing strategy will take. Strategies that the company will use will be promoted through all its channels, but majority of the focus will be online since the imitative will be launched on the Uniqlo Japan online website.
Pre-Launch
During this initial stage, Uniqlo will spend majority of its efforts on promoting the new technology it plans to implement on its sites. These actions will include in-store promotion and online promotion. However, most of these efforts will be put into online promotions since majority of Uniqlo customers spend most of their time online. In-store events will include handing-out flyers to customers, informing them of the Uniqlo integrating Affdex technology onto its online site. Customers can then test the technology in stores by using tablets available around the sales floor in order to get more familiar with the technology. Associates will be available to help customers if needed to guide them through the steps to use the technology. As the launch date gets closer, discounts will be offered to customers who use the new initiative within the first month of its launch date. Online promotion strategies will consist of digital advertisements shown on the Uniqlo website, sites that feature Uniqlo advertisements, and especially social media sites such as Facebook, where Uniqlo target customer spend much of their online time (Cohen). A link will be attached to the advertisements, transferring customers to a demo of Affdex technology also allowing the chance for customers to get better acquainted with the technology. With these efforts Uniqlo can expect to see an increase in customer interest in their new initiative thus increasing the company’s return on investment. Pre-Launch Plan
Launch
After previous marketing efforts, Uniqlo will continue to promote its new technology instore and online, however there will be a few adjustments. During the launch, the company will continue to distribute flyers in-store but will increase discounts from the previous 10% to 25% in order to really motivate customers to use the software. When customers enter the store, there will be associates there to greet them and offer them the option to try out the software and then guide them to options that meet their interests found in the store inventory. If items are not available in-stores, then customers have the option to buy online and ship to home.
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COMMUNICATION & PROMOTIONAL PLAN
Through its online channel, the home page will feature a banner displaying a demo on how the new technology works. It will also continue to promote its initiative on social media sites such as Facebook, enticing customers to try the software. From these social media sites, customers can click on the ads to be led to the Uniqlo page where they can follow the instructions provided to use the Affdex software. Launch Plan
Post Launch
After intensive marketing efforts, Uniqlo will finally be able to relax in these endeavors. Flyers will still be handed out, allowing the chance for unaware customers to get the chance to become acknowledge with the new technology, but the discounts will no longer be offered. Tablets will still be integrated in stores, with signs located next to them displaying instructions on how to use the technology to determine what items best meet their interests and help them find merchandise online or in-stores. On its online channel, the company will feature the new initiative on the home page but moved towards the middle of the page, instead of previously on the top of the page. Advertising will no longer be featured on social media sites or other sites. With the use of all these marketing efforts in all phases of the company’s promotional plan, the company can expect to see increased customer traffic in stores and online, leading to gained sales and increased return on investments. Post Launch Plan
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CONCLUSION
In conclusion, the research and data provided in this new initiative strongly supports that the partnership between Uniqlo and Affectiva will be successful and increase profits. We have throughly thought out our key objectives, which are: 1) increase consumer interest, 2) improve marketing strategies, 3) increase inventory turnover rate, 4) increase online customer engagement, and 5) provide consistent customer experience across all channels. Our key objects have been addressed with supporting research on how they will be accomplished throughout this initiative and improve the Uniqlo ecommerce experience.
[SOURCES[ Overview
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Company History
Uniqlo. “Brand History.” Uniqlo. Uniqlo Co., Ltd., n.d. Web. 25 Feb. 2014.
Current Status
FastRetailing.“IndustryRanking.”FastRetailing.FASTRETAILINGCO.,LTD.,14Feb.2014.Web.24Feb. 2014. WWW
Plans For Growth
Erbentraut, Joseph. “Uniqlo To Open Chicago Store As Part Of Aggressive U.S. Expansion.”The Huffington Post. TheHuffingtonPost.com, 08 Nov. 2011. Web. 26 Feb. 2014. Fast Retailing.“Overview of Business Segments.”Fast Retailing.Fast Retailing Co., Ltd., n.d.Web.26 Feb. 2014. Petro, Greg.“IsThere Room In America For H&M And Uniqlo?”Forbes.Forbes.com LLC, 9 May 2013. Web. 24 Feb. 2014.
Ownership Structure
Fast Retailing. “Group Companies.” Fast Retailing. Fast Retailing Co., Ltd., n.d.Web. 26 Feb. 2014.
Financial Highlights
Fast Retailing.“Results Summary.” Fast Retailing.Fast Retailing Co., Ltd., 9 Jan.2014.Web.26 Feb. 2014.
Forecasted Growth
Fast Retailing.“Results Summary.” Fast Retailing.Fast Retailing Co., Ltd., 9 Jan.2014.Web.26 Feb. 2014.
Mission
Dacus,Steohen.“Uniqlo’sOverseasStrategy.”FastRetailing.FastRetailingCo.,Ltd.,n.d.Web.26Feb. 2014. Uniqlo. “About Us.” Uniqlo. Uniqlo Co. Ltd., n.d. Web. 25 Feb. 2014.
SWOT Analysis
Market Line.“Company Profile:Fast Retailing Co., Ltd.”Market Line.Market Line, 27 June 2013.Web. 24 Feb. 2014.
Market Positioning
Economist.“UniquelyPositioned.”TheEconomist.TheEconomistNewspaper,26June2010.Web.24 Feb. FastRetailing.“IndustryRanking.”FastRetailing.FASTRETAILINGCO.,LTD.,14Feb.2014.Web.24Feb. 2014. Porter Prize.“Fast Retailing Co., Ltd.Uniqlo.”Porter Prize.“Porter Prize”Organizing Committee, 2009. Web. 24 Feb. 2014. Uniqlo. “Uniqlo Offers Functionality In Style With 12 Distinctly Designed Projects For Fall/Winter 2013.” Uniqlo. Unqilo Co. Ltd., 7 Aug. 2013. Web. 24 Feb. 2014.
Competitors
Gyben,Emily.“Uniqlo’sBiggestCompetition:Apple?”FashionEtc.com.FashionEtcLLC,20Apr.2012. Web. 24 Feb. 2014.
Distribution
Uniqlo.“UniqloBusinessModel.”FastRetailing.FASTRETAILINGCO.,LTD.,13Feb.2014.Web.22Feb. 2014.
Annual Spending Figures
FastRetailing.“AnnualReport2012.”FastRetailing.FASTRETAILINGCO.,LTD.,31Aug.2012.Web.24 Feb. 2014.
Advertising Activities
FastRetailing.“AnnualReport2012.”FastRetailing.FASTRETAILINGCO.,LTD.,31Aug.2012.Web.24 Feb. 2014.
Strategic Initiative
Affectiva. “How Affdex Works.” Affdex. Affectiva, Inc., n.d. Web. 14 Feb. 2014. <http://www.affdex. com/technology/how-affdex-works/>. Carroll,David,andInesGuzman.“TheNewOmni-ChannelApproachtoServingCustomers.”Accenture. Accenture, 2013. Web. 14 Feb. 2014.
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SOURCES
Porter’s 5 Forces
GlobalData.“FastRetailingCoLtd-SWOTAnalysis.”OneSourceGlobalBusinessBrowser.OneSource Information Services, Inc., Feb. 2014. Web. 14 Feb. 2014. Market Line. “Online Retail in Japan.” Market Line. Market Line, July 2013. Web. 15 Feb. 2014
Best Practice
Affectiva. “How Affdex Works.” Affdex. Affectiva, Inc., n.d. Web. 14 Feb. 2014. <http://www.affdex. com/technology/how-affdex-works/>. Ha, Anthony.“Affectiva Launches An SDK To Bring Emotion Tracking To Mobile Apps.”TechCrunch. AOL Inc., 13 Feb. 2014. Web. 15 Feb. 2014. Joyner, April. “How to Take the Guesswork Out of Your Advertising BY April Joyner.” Inc.Mansueto Ventures, 18 Apr. 2013. Web. 15 Feb. 2014. Talbot, David.“Startup Gets Computers to Read Faces, Seeks Purpose Beyond Ads.”MITTechnology Review. MIT Technology Review, 28 Oct. 2013. Web. 15 Feb. 2014.
Industry Trends
Sparrow, Stephen.“5 RetailTrendsTo Look For In 2014.”Forbes.Forbes Magazine, 07 Jan.2014.Web. 15 Feb. 2014.
Consumer Behavior
Consumer Lab. “10 Hot Consumer Trends.” Ericsson. Ericsson AB, 2013. Web. 15 Feb. 2014.
Execution Plan
Affectiva. “How Affdex Works.” Affdex. Affectiva, Inc., n.d. Web. 14 Feb. 2014. <http://www.affdex. com/technology/how-affdex-works/>. Dye,Renee,andOlivierSibony.“HowtoImproveStrategicPlanning.”McKinsey&Company.McKinsey & Company, Aug. 2007. Web. 18 Feb. 2014. Moriarty, Dan. “How Long Does It Take To Build a Website?” Dan Moriarty Design. Pixelary LLC, 19 Nov. 2010. Web. 17 Feb. 2014.
Market Analysis
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PESTEL Analysis
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Key Players
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Direct Competition
AHAlife. “About AHAlife.” AHAlife. AHAlife, n.d. Web. 25 Feb. 2014. <http://www.ahalife.com/ about#about-ahalife>.Feb. 2013. Web. 25 Feb. 2014. Brownswell, Alex. “Topshop Ties with Google for London Fashion Week Content Innovation.” Marketing. Haymarket Inc., 13 Feb. 2013. Web. 25 Feb. 2014. Carr, Austin. “Nike: The No. 1 Most Innovative Company Of 2013 | Fast Company | Business + Innovation.” Fast Company. Fast Company and Inc, 11 Feb. 2013. Web. 23 Feb. 2014. Lidsky,David,MargaretRhodes,andLindseyKratcowill.“19_NastyGal,ModCloth,StyleSeat,Science, Snapette, Birchbox, Ahalife | Fast Company | Business + Innovation.”Fast Company.Fast Company & Inc., 11
Indirect Competition
Apple. “Apple and Procurement.” Apple. Apple Inc., n.d. Web. 25 Feb. 2014. BMW. “BMW of North America, LLC.” BMW. BMW of North America, LLC, n.d. Web. 07 Mar. 2014. <http://www.bmwusa.com/>. Ikea. “Welcome Inside Our Company.” Ikea. Ikea Systems B.V., n.d. Web. 25 Feb. 2014. Innovation Leaders.“Innovaro Insight.” Innovation Leaders. Innavaro.com, n.d.Web. 25 Feb. 2014.
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Demographics
Anderson, Kerby.“The Millennial Generation.”Probe Ministries.9 Mar 2014 <http://www.probe.org/ site/c.fdKEIMNsEoG/b.6601055/k.7A91/The_Millennial_Generation.htm>. Jenkins, Ryan. “Next Generation Catalyst .” Ryan Jenkins. 9 March 2014 <http://ryan-jenkins. com/2013/09/16/22-shocking-stats-about-millennials-to-help-you-chart-tomorrows-change/>. Noren, Laura.“Who is the Millennial Generation .” 5 March 2011. Graphic Sociology . 9 March 2014 <http://thesocietypages.org/graphicsociology/2011/10/04/who-is-the-millennial-generationpew-research/>. Porter Prize. “Uniqlo.” 2009. Porter Prize. 9 March 2014 <http://www.porterprize.org/english/ pastwinner/2009/12/03114807.html>. Uniqlo.“StrategicTarget Audiences.”2010.Blogspot.March 9 2014 <http://juniqlo.blogspot.com/p/ chapter-8-strategic-target-audiences.html>.
Psychographics
Accenture.“Seamless Retail for Millennial Consumers.” Accenture. Accenture, 2013.Web. 28 Feb. 2014. Cohen, Carolyn.“How Do Millennials Behave on Social, Mobile and theWeb?”Millennial Marketing. Millennial Marketing, Mar. 2013. Web. 27 Feb. 2014. Jackson, Jasper. “Know Your Audience: How the Digital Native Generation Consume Media.” The Media Briefing. Byte9, 20 Aug. 2013. Web. 28 Feb. 2014. Intelligence Bridges. “Analysis of the Japanese Consumer Essential for the Marketing in Japan to Target Japanese Consumers.” Intelligence Bridges.IntelBridges, 26 Dec.2013.Web.28 Feb.2014. Nielsen. “PRIZM Social Group.” Nielsen. The Nielsen Company, n.d. Web. 28 Feb. 2014. Zogby,John.“WhoAretheFirstGlobals?TheDemographicsofMillennials.”Forbes.ForbesMagazine, 22 Dec. 2013. Web. 28 Feb. 2014.
Pre-Launch
Cohen, Carolyn.“How Do Millennials Behave on Social, Mobile and theWeb?”Millennial Marketing. Millennial Marketing, Mar. 2013. Web. 27 Feb. 2014.
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Financial Plan
Added Bytes. “Ten Ways To Improve Your Website Conversion Rate.” Added Bytes. 10 Mar 2014 <http://www.addedbytes.com/articles/online-marketing/ten-ways-to-improve-your-websiteconversion-rate/>. Boundless. “Accounting for R&D Activity.” Boundless . 10 Mar 2014 <https://www.boundless. com/accounting/controlling-and-reporting-of-intangible-assets/research-development-cost/ accounting-for-r-d-activity/>. FastRetailing.“ResultsSummary.”9Jan2014.FastRetailing.9March2014<http://www.fastretailing. com/eng/ir/financial/summary.html>. Jeff Anderson Consulting .“WhatYou Can Expect forYour Focus Group Investment.” Jeff Anderson Consulting . 7 March 2014 <http://www.jeffandersonconsulting.com/marketing-research.php/ focus-group/focus-group-costs>. Katkin, Zach.“What does a website cost? Web Site Development Costs.” 17 March 2010. Atilus . 10 March 2014 <http://www.atilus.com/what-does-a-website-cost-web-site-development-costs/>. Lunden, Ingrid.“Emotient Raises $6M For Facial Expression RecognitionTech, Debuts Google Glass Sentiment Analysis App.”6 March 2014.Emotient.8 March 2014 <http://www.emotient.com/blog>. Poleg, Dror. “Uniqlo’s Hybrid Strategy in China: Turning virtual games into physical sales.” 17 May 2012.Buy Buy China.7 Mar 2014 <http://www.buybuychina.com/uniqlos-hybrid-strategy-in-chinaturning-virtual-games-into-physical-sales/>. Porter Size.“UNIQLO offers high-quality, low-priced, easy-to-coordinate casual basics.”2009.Porter Prize. 9 March 2014 <http://www.porterprize.org/english/pastwinner/2009/12/03114807.html>. Textiles Updates. “UNIQLO Reports November 2013.” 4 Dec 2013. Textiles Updates. 8 Mar 2014 <http://textilesupdate.com/uniqlo-reports-november-2013-same-store-sales-growth-of-7-7>. Traffic Estimate. “uniqlo.com Website Traffic and Information.” 2014. Traffic Estimate. 8 Mar 2014 <http://www.trafficestimate.com/uniqlo.com>.
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