This report aims to provide a strategic analysis for Uniqlo's entry into the South African market. It begins with an executive summary and introduction of Uniqlo and the South African market. It then explores Uniqlo's target customers and demographics in South Africa, and analyzes its product strategy, pricing, promotion, and distribution. The report also provides a competitor analysis and a SWOT analysis for Uniqlo. It concludes by outlining a strategy for Uniqlo to successfully enter the South African market through popup stores in Johannesburg and Cape Town, targeting the country's young demographic.

1. BUSINESS PLAN
SOUTH
AFRICA
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2. Marketing presentation @ IESEG 2012
Sireesh PALLIKONDA
Juliana CASTRO
Karen PORTUGALl
Xington LI
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3. Index
4
Executive Summary
6
Introduction of Uniqlo and South Africa
7
Customers and Demographics
9
Product, Price, Promotion and Place
13
Competitor analysis
14
SWOT Analysis of UNIQLO
16
Strategy and conclusion
17
Bibliography
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4. Summary
This report aims at Market entry strategy
and competitive analysis for uniqlo in
South Africa.
This report is intended to through a light on Uniqlo’s marketing strategy in entering
South Africa. The report also demonstrates the market in which Uniqlo is playing and
what different ranges they offer. Uniqlos ideal customer and demographics are
explored and any issues or trends that effecting this group of people. This report will
investigate the brand competitors and their strengths and weakness along with
Uniqlo’s strength, weakness, opportunities and threats.
The annual report of uniqlo can be found from their website. Uniqlo is very
aggressively expanding world wide with aim that the company would target annual
group sales of 5 trillion yen (about 61.2 billion US dollars) and pretax profit from
operations of 1 trillion yen (about 12.2 billion US dollars) by 2020. Their vision is
reflected in action by expanding allover the globe. In this academic report we
developed a strategic analysis for Uniqlo to enter SA.
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5. Objectives
Developing a Successful business plan
With the competitive analysis data.
South Africa is a middle-income, emerging market with an abundant supply of
natural resources; well-developed financial, legal, communications, energy, and
transport sectors; a stock exchange that is the 18th largest in the world; and modern
infrastructure supporting a relatively efficient distribution of goods to major urban
centers throughout the region. Interesting fact of South Africa is its demographics
with a median age of 25years, which perfectly gears the target market of UNIQLO,
67% of the population in S.A is urbanized. Most populous cities of South Africa are
Johannesburg and Cape Town with a climate of sunny days and cool nights.
Objective of this paper is to present a successful model for entering into and South
Africa and develop a business plan with help of competitive data analysis.
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6. South Africa
TOPIC RANKINGS DB 2012 Rank DB 2011 Rank Change in Rank
Starting a Business 44 74 30
Dealing with Construction
Permits 31 31 No change
Getting Electricity 124 122 -2
Registering Property 76 90 14
Getting Credit 1 1 No change
Protecting Investors 10 10 No change
Paying Taxes 44 18 -26
Trading Across Borders 144 146 2
Enforcing Contracts 81 85 4
Resolving Insolvency 77 79 2
South Africa is one of the growing economy in the world, the changing regulations of
the trade and commerce are making it more lucrative destination for foreign
investors. As we can see from above political map and the statistics, that it is safe to
do business in S.A, unlike in other sub-Sahara African countries.
South Africa is very young with the demographics of median age as 25 years. And
the income levels belong to upper middle class. South African can be developed as
hub for the distribution in future to enter the markets of Middle East and Latin
America.
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7. Customer
It’s quite hard to define uniqlo’s ideal customer as they cater many age ranges and
can create so many different styles but it is suggested that their ideal customer
would be a women at the age of 24-26. She would be living with her partner but not
have any children yet, and therefore have some disposable income to spend on
clothes. She would buy work clothes and fashion items from Uniqlo.
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8. Demographic Issues and trends
Uniqlo as a brand believes people should not be dictated, and should have the
opportunity to create their own exclusive styles with clothing. Currently a very
prominent trend is to have uniqlo clothing style, as no one wants to look the same as
any one else. Uniqlo always supports this trend by not forcing fashion on their
customers. The T-shirts are very important part of person’s style and slogans on a T-
shirt can represent how that person thinks are feels.
The median age of demographics in SA is 25 years. The population diversification
and projections can be seen from the above statistics.
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9. Product and Customer Perception
Uniqlo offers basic casual clothing, which can be worn at work in the gym, while
doing house work or just relaxing at home. They have also included more
fashionable pieces such as skinny jeans and a long knit cardigan, which means
costumers, can buy all their fashion essentials and basics from one store. This
means shoppers will regularly visit the stores because the prices are relatively low
shoppers can effort to buy some thing every time they enter into the shop. Uniqlo
jeans has been very popular recently especially because of their offers such buy one
get two. Cosumers buying decisions are heavily dependent on weather conditions
and seasons. UV clothing is a special design wear for sunny days.
“I like the simplicity and quality of the clothing — and the colors and the prices,” “I think their
customer service and the way they approach the brand and treat their people is really honorable. I was
flattered when they asked me to do it.”(Susan Sarandon on WWD Issue 09/06/2011`)
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10. Price
Uniqlo aims to keep their price low but the quality of garments high. They have
succeeded well in this endeavor by introducing new offers on their garments such as
buy one get one on men and women’s cotton cashmere sweaters and jeans.
Customers perception of Uniqlo price is very positive as one pickup a complete
good quality outfit for less than $ 60 which is very rare on the high streets.
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11. Distribution
Uniqlo coordinates and maintains control over the entire production process from
manufacturing to sales, including planning, development, and purchase of materials,
manufactures distribution and retail of their products. Uniqlo regards its clothing sub
contractors as its business partners bounded by strong ties of trust” this ensures
they can oversee all points of development and intervene if needed to ensure the
production of high quality garments. Uniqlo are very conscious in caring for the
environment therefore they have worked to increase efficiency of distribution of their
stock. They have reduced the weight of cardboard boxes used in product transport
to improve distribution loading efficiency and reduce carbon dioxide emission. They
are also working on recycling and using hangers in order to reduce waste.
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12. Promotion
Uniqlo values more for humanity in process of this they are helping the undeveloped
people of the country. We plan to choose athletes who have good potential and
lacking the financial support, in order promote them to be a successful sport person
and those who succeeded will be brand ambassadors for Uniqlo promotion the good
image of the bran in South Africa and around the word.
Our strategy of campaigning is based on Native African women, as Africa is more
dominate by the native population, women will relate more somebody from their own
race, creating a competitive advantage in connecting with south Africans.
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13. Competitor analysis
BRAND STRENGTH WEAKNESS OPPORTUNITY THREAT
GAP Womens, mens No SA Adhere to Economic
and kids, home website. fashion trends crises
ranges. Not such as skinny Bankruptcy
Clothes appeal to completely jeans. Competitors
wide audience. fashionled. Start another
Help charity with Stopped eye TV
(product) red. catching TV companying.
Do interesting ads. Make use of
colorations such Do not make new technology
as vespa. use of new such as pop
Good range of exiting stores.
denims technology. Selling limited
edition
products.
ZARA Very fashion led. Not very Create more Economic
Very popular exiting exiting crises
among Europe. campaigns. campaigns. Bankruptcy
Men, women and Tired and Collaborations Competitors
kids boring stores. to make clothes
Have organic Plain more appealing.
range of clothes. garments. Revamp stores.
Not much
media.
FOSCHINI Womens, mens Tired boring Create new and Economic
GROUP and kids, home stores. exiting crises
ranges. Plain campaigns. Bankruptcy
Clothes appeal to garments. Collaborations Competitors
wide audience. Not much to make
Support eco media clothing more
friendly with eco- appealing.
leather
FASHION Gets lot of press Donot appeal Could advertise Economic
EXPERT coverage. to older age the band to crises
Very popular with range. older people for Bankruptcy
young generation. Not much sport wear. Competitors
Men, women and attention on Make
kids collaborations interesting
collaborations.
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14. SWOT ANALYSIS
STRENGTHS Weakness
• Cheap prices for quality products • Clothes are quite plain, no
• Special offers patterns
• Economical essentials and basics • Not all clothes and ranges
• Caters for all young and old are available on website
• Numerous variety women, men, children, • Don’t sell every range in
baby, home and accessories every country.
• Internationally successful
• Striking add capanges
• All ways trying new ways to selling products
• Trying to be environmental friendly in
manufacturing and distribution of their
products,
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15. Opportunities Threats.
• Growing economy • Government wants to export
• Friendly business environment more than import
• Above medium level income group • Import duties on clothes are high
• Multicultural country • Long distance between stores
• Turist places • Competing brand are already
• Demographic avarege is 25 years positioned
old.
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16. Strategy and conclusion
After brief analysis, our team comes to a comprehensive decision of launching
uniqlo as subsidiary. As per the World Bank report of doing business in South Africa
stands 34 and in the recent years complexities have been reduced to a large extent.
Initial operations can be established with a popup stores. These stores can give
more accurate picture of South African consumer. Evaluating the demographics data
leads us densely populated cities.
Johannesburg and Cape Town are two cities with more population. The strategic
decision of choosing Cape Town is because of its port infrastructure and
Johannesburg being the most developed city in S.A, this city has highest disposable
income. As these two cities are known for tourist destination, lot of floating market is
expected. These cities will be perfect place for Uniqlo business model of
“continuous innovation of shopping” because high usage of internet in this cities than
any other place in South Africa.
The target market is young people because majority of the population in South Africa
is young falling in the demographics of 25 years. The competitive brands are very
new in S.A. Hence its great chance to penetrate into the markets. With all the
available data and established distribution channel of uniqlo, It can generate good
business in South Africa.
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17. Bibliography
http://www.uniqlo.com/fr/ (10/02/2012)
http://fr.wikipedia.org/wiki/UNIQLO (10/02/2012)
http://www.fastretailing.com/eng/group/strategy/ (11/02/2012)
http://www.doingbusiness.org/data/exploreeconomies/south-africa/ (12/02/2012)
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/SOUTHA
FRICAEXTN (12/02/2012)
http://www.statssa.gov.za/ (12/02/2012)
http://www.gap.com/ (17/02/2012)
http://www.zara.com/webapp/wcs/stores/servlet/home/fr/fr/zara-S2012(16/02/2012)
http://www.tfg.co.za/ (15/02/2012)
http://www.benetton.com/ (15/02/2012)
http://www.southafrica.info/business/trade/(12/02/2012)
Photos
http://www.menageresdemoinsde50ans.com/uniqlo/(11/02/2012)
http://fashionindie.com/uniqlo-jeans-spring-2010-campaign-christian-brylle-paolo-
anchisi-viggo-jonasson-by-inez-vinoodh/(11/02/2012)
http://www.pinoyborian.com/2011_11_01_archive.html (11/02/2012)
http://www.google.fr/imgres?
q=uniqlo+offers&um=1&hl=fr&biw=1280&bih=653&tbm=isch&tbnid=ysNWD-
_JiJL6lM:&imgrefurl=http://www.shoppingnsales.com/2012/02/17/17-feb-1-mar-
2012-uniqlo-
promotion/&docid=xWeXdN5pYZTs7M&imgurl=http://www.shoppingnsales.com/wp-
content/uploads/2012/02/20120217-Uniqlo-
Offer.jpg&w=1660&h=2356&ei=k1BAT8X2Oci_8wOg8925CA&zoom=1&iact=hc&vpx
=857&vpy=65&dur=127&hovh=268&hovw=188&tx=84&ty=123&sig=1102178657916
76926739&page=2&tbnh=147&tbnw=104&start=16&ndsp=25&ved=0CPcBEK0DMC
c(17/02/2012)
http://www.google.fr/imgres?
q=uniqlo+offers&um=1&hl=fr&biw=1280&bih=653&tbm=isch&tbnid=K-
Pqzr_4tpHJRM:&imgrefurl=http://www.greatdeals.com.sg/2011/08/01/uniqlo-
sale/&docid=8DXFmXQhPFh81M&imgurl=http://www.greatdeals.com.sg/wp-
content/uploads/2011/08/uniqlo_jul-
628x812.png&w=628&h=812&ei=k1BAT8X2Oci_8wOg8925CA&zoom=1&iact=hc&v
px=658&vpy=287&dur=283&hovh=255&hovw=197&tx=96&ty=184&sig=1102178657
91676926739&page=4&tbnh=152&tbnw=116&start=65&ndsp=22&ved=0CLUDEK0
DMFQ(17/02/2012)
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