Uniqlo Reigns Supreme
by W. David Marx
26 January 2009
Introduction
Uniqlo did not just survive a hostile 2008, but became its master
Keywords:
Uniqlo
These appeals to cutting-edge consumers, however, did little to change the brand's reputation of being mostly dedicated to casual menswear. In order to better target women, Uniqlo tied up last September with "real clothes" fashion festival Tokyo Girls Collection and model Yu Yamada to produce a series of sweater dresses for the Shibuya 109 set. The company further targeted young women with new products such as the "beautiful leg" stretch denim (using popular model Norika Fujiwara in the TV commercials) and a "bra-top" that puts brasserie-like pads inside of a tank top.
Despite such narrowly focused marketing efforts, Uniqlo never alienated its middle-aged middle-market consumers, who mostly shop at the brand for the low prices, laid-back styles, and easy access. The incredibly functional, but not particularly stylish "Heattech" line of winter under-items is currently selling-out nationwide despite a production run of an unprecedented 28 million pieces.
Surveys indicate that Japanese consumers are not just buying Uniqlo out of desperation but actively like the brand. In the yearly TBS General Consumer Preference Survey, Uniqlo took the top "preferred brand" ranking in 2008 for women in their 20s at an incredible 41% — beating out perennial favorite Louis Vuitton (26.7%) for the first time. Just a year before, Uniqlo had only hit 23.1% with the same survey group.
Admittedly, most consumers use Uniqlo products as invisible inner-wear rather than key wardrobe items. According to a survey in Nikkei Marketing Journal on January 16, 62% of women and 61% of men who buy Uniqlo mostly purchase shirts, turtlenecks, and sweaters. Many young customers have ceased thinking the brand is unfashionable, but they still do fear that others will easily identify the Uniqlo in their daily wear. As Japanese fashion blogger Dale wrote on his site Elastic, however, "Uniqlo is fashion's most famous supporting actor!" In other words, fashionable young consumers rely on Uniqlo to "pad" their daily wardrobes, but then let high-fashion items act as the most visible and memorable pieces.
Uniqlo's success has come, of course, at the expense of other retail sectors. According to the previously-mentioned survey in Nikkei Marketing Journal, 45% of consumers who increased their shopping at Uniqlo curbed their shopping at department stores and fashion buildings (like PARCO and Marui). This set of consumers has become fully satisfied with Uniqlo's quality and price. Furthermore, compared to "fast fashion" rivals H&M, Zara, and The Gap, Uniqlo has a distinctly Japanese design sensibility that fits the Japanese body and closely responds to the industry's other trends. The items are also so neutral and basic that each consumer segment can adapt the brands to its own specific wardrobe needs: somewhat like American Apparel but with lower prices and a more accessible brand identity.
Despite such narrowly focused marketing efforts, Uniqlo never alienated its middle-aged middle-market consumers, who mostly shop at the brand for the low prices, laid-back styles, and easy access. The incredibly functional, but not particularly stylish "Heattech" line of winter under-items is currently selling-out nationwide despite a production run of an unprecedented 28 million pieces.
Surveys indicate that Japanese consumers are not just buying Uniqlo out of desperation but actively like the brand. In the yearly TBS General Consumer Preference Survey, Uniqlo took the top "preferred brand" ranking in 2008 for women in their 20s at an incredible 41% — beating out perennial favorite Louis Vuitton (26.7%) for the first time. Just a year before, Uniqlo had only hit 23.1% with the same survey group.
Admittedly, most consumers use Uniqlo products as invisible inner-wear rather than key wardrobe items. According to a survey in Nikkei Marketing Journal on January 16, 62% of women and 61% of men who buy Uniqlo mostly purchase shirts, turtlenecks, and sweaters. Many young customers have ceased thinking the brand is unfashionable, but they still do fear that others will easily identify the Uniqlo in their daily wear. As Japanese fashion blogger Dale wrote on his site Elastic, however, "Uniqlo is fashion's most famous supporting actor!" In other words, fashionable young consumers rely on Uniqlo to "pad" their daily wardrobes, but then let high-fashion items act as the most visible and memorable pieces.
Uniqlo's success has come, of course, at the expense of other retail sectors. According to the previously-mentioned survey in Nikkei Marketing Journal, 45% of consumers who increased their shopping at Uniqlo curbed their shopping at department stores and fashion buildings (like PARCO and Marui). This set of consumers has become fully satisfied with Uniqlo's quality and price. Furthermore, compared to "fast fashion" rivals H&M, Zara, and The Gap, Uniqlo has a distinctly Japanese design sensibility that fits the Japanese body and closely responds to the industry's other trends. The items are also so neutral and basic that each consumer segment can adapt the brands to its own specific wardrobe needs: somewhat like American Apparel but with lower prices and a more accessible brand identity.