Uniqlo’s global expansion

An article in the Economist (March 24, 2012) describes the Japanese retailer’s expansion into the US and China. The company focuses on producing large volume, low cost items that are sold across the season. Given that weather patterns in China are similar to Japan, as are shapes and styles, will the larger global footprint with a Japanese design aesthetic enable the company to generate profits ? Given that Uniqlo’s profits are 33 % of Zara, despite being 60 % of Zara’s sales volume, will this global expansion make the firm more competitive ? Will the global impact of the fashion choices made by the company increase or decrease overall risk ?

About aviyer2010

Professor
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