Too far away

COLLAPSE

Running a successful business in one part of the world does not always translate over to running that same business successfully in a different location. In the case of Uniglo, they were able to successful run their fast fashion business exception well in the Asian markets where they experience significant growth each year. Unfortunately, when I came time to expand the business to new markets such as the U.S and Europe their growth rate slowed down.

Seeing that Uniglo is fairly new to the United States and European markets they need to take some time to further understand what these markets truly consist of and require. Deeper understanding of the market much like they have in Japan and China can help to meet customers' needs translating to an increase in sales. Growth in these new markets is also going to be a bit slower than the Asian markets because Uniglo overhead in these locations are going to be significantly higher compared to other markets (think about how much rent cost in NYC or California).

Going forward, Uniglo will also need to adjust their supply chain that supports the European and American markets. The company should put an effort in to bring their supply chain much closer to these new markets. By doing this they would be able to solve issues such as the size difference issue that they are experienced in the United States. Even though it is going to be slightly more expensive, the company will benefit from having a factor in Texas (for example a state with cheaper labor and easy port access) where they can ship all the material from Asia and get the clothes assembled to match the market sizing.

By having this assembly location in the U.S the company can get closer to the market they are operating in, and consumers can see that Uniglo is doing their part in employee individuals in more than just their retail stores with the U.S. Another aspect that Uniglo will need to incorporate in these new markets is fast and on time delivery. There is a large area for improvement within fast fashion and retail industry once it come to delivering in both the American and European markets. Bring their supply chain closer to the market can help Uniglo to gain a competitive advantage within this area!

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