Uniqlo Supply Chain Analysis

1863 Words8 Pages
Abstract The following essay critically evaluates the UNIQLO supply-chain in order to identify components that contribute to the success of the company in terms of popularity, revenue and strategy. Namely, UNIQLO differentiates itself from the conventional fast-fashion model by focusing on the technological aspect of their products, developed through their long-term partnerships with specific manufacturers. The introduction provides a contextual overview followed with an analysis evaluating the three stages of the supply chain (planning, production and sales) along with an evaluation of external contributing factors. Introduction UNIQLO is a Japanese casual-wear designer, manufacturer and retailer founded in 1949 and currently employs over 30,000 people across the world with 1,148 retail locations. The company is a wholly owned subsidiary of Fast Retailing Co. Ltd., listed on the first section of the Tokyo Stock Exchange. Considered part of the ‘big three’ of high-street retailers (along with Zara and H&M) UNIQLO differentiates itself from the conventional fast-fashion model. Their approach is the polar opposite of Zara’s: UNIQLO is able to keep the selling/retail price low because they do not change their merchandise plans based on the latest trends (in terms of producing classic/high quality products versus trendy/seasonal garments). Instead, UNIQLO reserves factory capacity in advance to enable the production of garments at a constant rate rather than rushing to produce fashionable garments. By manufacturing well-designed, fabricated, technologically driven, classic garments and managing to sell them at affordable, competitive prices largely due to reined-in factory costs; UNIQLO is able to maintain customer demand without chasing trends, thus defying the traditional fast-fashion model pursued by the majority of high-street apparel

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