Introduction
Ten years ago, people would have been puzzled if anyone had mentioned the Uniqlo name to anyone outside Japan. Today’s world quickly associates Uniqlo with high-quality, reasonably priced, and stylish clothes. This demonstrates the remarkable growth Uniqlo has experienced in recent years. It is now another player in the global retail and fast fashion industry. Uniqlo is growing at a phenomenal rate, competing with major companies like Zara, H&M, Gap, and Forever 21. Buying power and the social environment are the main determinants of Uniqlo’s external environment.
Why Customers Choose the Uniqlo Brand
Due to its commitment to keeping prices affordable, Uniqlo is loved by many people who appreciate quality clothing. However, the extent to which these customers are loyal to the brand determines whether they can influence price changes, which will undoubtedly affect the company’s profitability. Therefore, Uniqlo can influence its customers by providing high-quality retail clothing and a wide range of products, thereby stimulating brand loyalty (Roll, 2021). In this way, new fashion trends and designs will generate value and meet customer needs.
Uniqlo’s target fashion demographic includes both men and women. The typical age group is 18 to 34, and these individuals are seeking fashionable yet informal and understated clothing. While European competitors stand out for their flashy, eye-catching designs, Uniqlo goes against the trends. Thanks to its Japanese heritage, the company creates simple and practical clothing. Basic clothing is designed for people without obligations, especially young groups such as Millennials and Gen Z consumers, who comprise a significant portion of the U.S. consumer market.
As more and more people demand comfort and efficiency in their work and personal lives, Uniqlo also benefits from the simplicity and ease of casual clothing. Because of this, Uniqlo is chosen more often than other brands. Also, an advantage of the company is its technological advances, such as the creation of Heattech technology for thermal underwear. The company developed the technology itself and made it available to the masses through research on which material would retain heat longer and better.
Brand Awareness in Suburban Localities
However, Uniqlo is relatively rare in smaller cities in the United States. Additionally, statistics indicate that large cities are responsible for the highest profitability of any clothing brand’s retail centers (Roll, 2021). Like many others, this company complies with all rules and regulations of ownership. Although it is just a clothing brand, it has a significant impact on various areas.
Since Uniqlo is a prestigious brand, its influence is hard to overestimate. In the political sphere, it influences the economies of different countries by paying appropriate taxes and increasing their GDP. The same applies to the economic sphere as well. After all, Uniqlo is a brand that actively conducts its business and operates on a full-fledged basis. Thus, it also promotes itself in the legal field, which undoubtedly affects the country’s economy and the company’s operations.
Conclusion
To summarize, the primary factor of external competition for the Uniqlo brand is purchasing power, which should enable the company to focus on new markets, particularly in suburban areas of the United States. This may be because the purchasing power of the inhabitants of these regions is not very different from that of the middle class.
Reference
Roll, M. (2021). Uniqlo – the strategy behind the Japanese Fast Fashion Retail Brand. Martin Roll. Web.