Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0045

Year : 2004

Industry : Retailing

Region : Japan

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:Fast Retailing Co., owner of Uniqlo apparel stores, was considered to have changed the traditional retail model in Japan. With its new business model and strategies in merchandizing, it was able to offer high quality goods at low prices. Uniqlo manufactured 90% of its products in China, cashing in on the low labor costs and transferred the value gained to customers in the form of low prices. 'Cheap chic', as it became to be called not only brought a new trend in the apparel retailing but also influenced other retail markets like departmental stores, super markets and automobile retailing.

By marginalizing the role of middlemen in the traditional distribution system, it reduced its costs further. High quality casuals like fleece jackets, pullovers etc. at low prices in a comfortable ambience became its USP (Unique Selling Proposition). It gained popularity in the Japanese apparel industry with its low price offerings, and was being considered as 'Japanese GAP'. Triggered by the success of the Uniqlo stores, many apparel retailers, super markets and other merchandisers followed the trend.