es4c9 supply chain management globalisation daniel law
Post on 17-Jan-2016
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ES4C9 Supply Chain Management
Globalisation
Daniel Law
Who are UNIQLO?• Japan’s No. 1 casual wear brand - “Made for All” motto
• Japan’s biggest clothing company - 6th largest in the world
• Goal to be the world’s largest apparel retailer - sales of five trillion JPY per year by 20201.
• Approx. 800 stores in Japan. 140 stores overseas2.
• “Trading industry” and “Born-global company”.
UNIQLO’s Strategy• UNIQLO’s revenue is around two thirds that of Gap, H&M and
Inditex (which runs the Zara chain).
• UNIQLO has a distinctive business model3. Zara and H&M - Rapid up-to-date fashion UNIQLO sells significantly fewer products – on shelves for longer Same item – variety of colours “We don’t want to chase after fashion trends” – CEO Lower-priced, higher-volume deals with suppliers Managing inventory - simpler and cheaper
Business ModelSpecialty store retailer of Private label Apparel (SPA)5
Source: http://www.fastretailing.com/eng/group/strategy/uniqlobusiness.html
Global Sourcing• 90% of UNIQLO’s products are manufactured in China.
• Business dealings with 70 companies – mostly located in China. UNIQLO view factories as long term partners.
• Material costs brought down due to large-scale world wide network.
• May commit to buy up 100% of the raw materials that a particular supplier can provide4.
Able to negotiate directly with leading global textile manufacturers
5 Year Financial Summary
Source: http://www.fastretailing.com/eng/ir/financial/statement.html
What are the risks?
• Specialty store retailer of Private label Apparel (SPA)
• 90% of production in China Transportation breakdown? Natural disaster? Legal/political issues?
• Economic risks
• Currency risk
What about in 10 years time?
"If Toyota can become a household name, then why not UNIQLO?”Tadashi Yanai - President, Chairman and CEO. FAST RETAILING CO., LTD.
• UNIQLO’s 2020 vision Achieve sales of five trillion JPY per year To be world’s No.1 apparel retailer
• UNIQLO looking to expand more globally Open 300 new stores annually
Thank you for listening
Please feel free to ask any questions
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