UNIQLO Supply Network Design: Case Study
Respond to the following questions using UNIQLO case study:
- UNIQLO network operations had proved effective in the Asia Pacific region, but could the same model be scaled worldwide?
- Was the low growth rate UNIQLO experienced in the US, and particularly Europe, also due to the limitations of its current network operations?
- What would you suggest to UNIQLO in terms of improving its network capabilities to support business international growth?
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Introduction
In a period of 20 years, UNIQLO’s growth was unstoppable and grew to become the 4th largest retail and consumer goods Company in the world. In Japan, UNIQLO remains as the biggest and fast-growing retailer; and a strong retail and consumer goods player in the Asian Pacific countries like Taiwan, China, and Korea (Yen & Lentini, 2016). UNIQLO has since 1998 realized double-digit growth in sales rates; and this is the result of the company’s aggressive pricing policy integrated with top quality products and services; a combination that has proved difficult for the Asian based customers to ignore and resist. UNIQLO’s success can be associated with the use of an agile supply chain strategy bolstered by the “fast-fashion” technique used by H&H and pioneered by INDITEX, the two biggest fashion retailers globally. Also, the success of UNIQLO resulted from its reliance on the counter-current approach and its inability to fully rely on the fashion trends when designing, manufacturing, and marketing its clothes (Usui, Kotabe, & Murray, 2017). This report will analyze whether the strategies used by UNIQLO in Asia Pacific countries could fit well is adopted worldwide. Also, the report will analyze whether the low growth rate experience by UNIQLO in the US and Europe was caused by its current network operations. Last, the report will provide suggestions on the approaches that UNIQLO should adopt to boost its….Continue Reading….