“Back to Basics” at Uniqlo Japan

Businessweek (Jan 10, 2011, page 16) describes the travails at Uniqlo, a division of Fast Retailing in Japan. The firm is repoted to be Asia’s largest retailer and is known for its low-priced casual “basic” apparel.  But competition from Zara and H&M caused the firm to look for more fashion clothing – at the expense of basic items. The result – a 25 % revenue slide at stores with a mismatched assortment that did not meet demand.  The company describes a plan to “strengthen basic lines”(see BW reference) but also expand abroad.  Will Uniqlo manage to export its low priced basic apparel worldwide ?  will Zara and H&M, with their fast response fashion apparel, dominate the Uniqlo low priced basic line ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues and tagged , , , . Bookmark the permalink.

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