The secret of Uniqlo's longevity: the marketing model of the "king of fast fashion"

In recent years, UNIQLO has continued to expand in China. It has created an integrated online and offline shopping experience based on digital stores, deeply connected consumers with global brand promotion, guided lifestyles with extreme cost-effectiveness, and focused on service details with users at the center... UNIQLO's success is an all-round success based on solid basic skills. Innovation has enabled it to continuously develop and improve, thus taking the lead among fast fashion brands.

On January 11, UNIQLO's parent company Fast Retailing released its first quarter financial report for fiscal year 2024. Data showed that in the first quarter, Fast Retailing's comprehensive revenue increased by 13.2% year-on-year to 810.8 billion yen, and operating profit increased by 25.3% year-on-year to 146.6 billion yen.

At the same time, while the "epidemic wave" has caused a large number of stores to close, Uniqlo continues to expand in China.

As of now, the number of UNIQLO stores in China has reached 930. In August 2015, UNIQLO only had 387 stores in China, which means that the number has more than doubled in 9 years.

From a small shop on a street corner in Japan in 1984 to more than a thousand stores around the world today, UNIQLO's growth story is like a wonderful business epic.

So how did it do that? This article will take a deep look at Uniqlo's marketing model and see what we can learn from it.

1. Offline stores: Creating an integrated online and offline shopping experience based on digital stores

Offline self-operated stores are the closest contact point for UNIQLO to consumers. It is reported that UNIQLO has not yet opened franchise stores, and all offline stores are managed by the headquarters.

In Uniqlo's growth strategy, offline stores also play a very important role. Let me break it down for you.

1. Offline stores: the first point of contact for brands to reach users

1) Warehouse shopping

Warehouse-style shopping, as the name suggests, is to streamline the number of goods, combine inventory and sales into one, and mainly display goods in large packages and shelves, with a display method similar to that of a warehouse.

Domestic stores like IKEA and Sam's Club have adopted this business model.

So why did Uniqlo adopt the "warehouse shopping" model?

First of all, warehouse-style shopping is comprehensive and detailed in its display.

Uniqlo's stores implement the concept of "allowing customers to shop freely". Both the decoration and location are in the style of large stores, as spacious as warehouses, and are rationally laid out according to consumers' consumption habits.

For example, due to space constraints, most trendy brand stores only display 1-2 items of the same series and in a single size. However, Uniqlo can provide the same item in different sizes and colors for users to choose from.

This will allow customers to have a more comprehensive understanding of product information and choose their favorite styles ( actually satisfying the user's "more, faster, better, cheaper" needs ).

Secondly, warehouse-style shopping is efficient and convenient in management.

Uniqlo's SKUs are relatively streamlined, with only about 1,000 items. The number of SKUs of local casual clothing brands is usually between 2,000 and 5,000, and the SKUs of another fast-moving consumer goods giant ZARA are as high as 8,000.

With fewer types of goods, the difficulty of inventory management will naturally be reduced. And due to centralized management, the logistics and goods storage efficiency of warehouse-style supermarkets is higher.

Consumers can place orders through mini programs or apps without having to go to the store to buy, which further shortens shopping efficiency.

Furthermore, warehouse-style shopping reduces disruptions in sales.

If you often go offline to buy clothes, you will definitely have this experience: you will be "warmly received" by the store clerk from the moment you enter the store, and you will be given various recommendations and introductions during the entire fitting process. For many customers, this is an over-sales promotion that can easily cause discomfort.

Uniqlo emphasizes "self-service shopping" in sales. Users can browse and try on clothes at will according to their own preferences. Generally speaking, unless you actively request, the clerk will not intervene, which gives users greater freedom in shopping.

For stores, warehouse-style shopping can reduce the number of shopping guides and help companies effectively reduce labor costs.

2) Self-service checkout experience: convenient and fast payment

When it comes to reducing labor costs, we have to mention another innovation of Uniqlo - the "self-service checkout experience".

Unlike many supermarkets’ barcode scanning and self-checkout system, Uniqlo’s payment method is more “convenient and quick”.

Put the goods in - scan the code to pay - pack the bags by yourself. The whole process is self-service and no human intervention is required. You can complete your shopping in just three steps.

From a technical perspective, the secret to achieving self-service checkout comes from the RFID technology that the brand launched a few years ago. The RFID electronic tag is hidden behind the price tag of each product, and the built-in device in the self-service checkout area reads the electronic tag of the product for settlement.

Compared with barcodes that require manual operation, electronic tags can automatically read information, saving labor costs and improving shopping efficiency. In addition, stores can regularly export information through the system to further optimize inventory ratios based on user purchasing tendencies.

2. Online and offline integration: omni-channel operation to optimize shopping experience

With the support of offline stores, how can brands further improve shopping efficiency and optimize user experience?

Uniqlo's approach is to connect online and offline through omni-channel operations and setting up multiple touch points.

In order to have a deeper experience of UNIQLO, I checked in at the UNIQLO store again two days ago.

It turns out that in Uniqlo, the slogan "Scan the code in store and buy online" can be seen almost everywhere. When shopping on the website, the slogan "Pick up in store and choose as you like" can also be seen frequently.

Through the digital system, UNIQLO has achieved seamless integration of online and offline, creating an omni-channel shopping experience that integrates shopping, consulting, and social interaction. Specifically, let's take a closer look at the following examples.

1) Order online and pick up in store

Whether it is a mini program or an app, consumers can check the inventory of their favorite products in nearby stores in real time when shopping. Uniqlo supports consumers to place orders online and pick up the goods in stores.

On the one hand, consumers can try on clothes in stores to avoid returns due to dissatisfaction with the products due to non-physical scenes. On the other hand, picking up the clothes in stores can save express delivery time, making it convenient for customers to get their favorite clothes as soon as possible.

In addition, for some popular products, consumers can also choose to place orders online and lock in inventory in advance.

2) Try on clothes offline and buy online

Of course, sometimes, even if customers try on clothes in the store, they will prefer to buy online. For example, they are traveling and it is inconvenient to pick up the goods. Another example is that they are interested in the product, but are not satisfied with the current price and want to wait and see for a while.

In this regard, Uniqlo also supports customers to "try on clothes offline and buy online".

In UNIQLO stores, mini-program QR codes can be found everywhere, such as on product display racks, in fitting rooms, and in the queues of fitting rooms. Consumers can scan the code to enter the mobile mall and add suitable products to the shopping cart.

3) Return or exchange in store

Traditional online shopping returns and exchanges take a long time and have low service efficiency. For this reason, Uniqlo provides store returns and exchanges within 30 days for online shopping orders.

After consumers receive the goods they bought online, if they find that the size is not suitable, the color is not to their liking, or the quality is defective, they can apply for a return or exchange at the nearest store. This measure has greatly improved the efficiency of returns and exchanges.

4) Store express delivery service

For some consumers who need UNIQLO products urgently, they can place an order online and select the store delivery service. The store delivery uses SF Express's same-city express delivery, and the delivery time can be selected, making shopping as simple as receiving a courier.

To sum up, as a fast fashion brand, stores are undoubtedly an important touchpoint for UNIQLO to reach users. Based on stores, UNIQLO further connects online and offline channels and operates omni-channels to help consumers achieve an efficient and comfortable shopping experience.

2. Online traffic generation: Global brand promotion deeply connects consumers

With strong offline stores as support, UNIQLO's online communication can be more focused. The purpose is to continuously attract customers, pay attention to the brand, and establish a deeper connection with users through multi-dimensional interaction.

1. Public domain planting: cultivating stickiness

Nowadays, the "grain-planting economy" has become a phenomenon that is widely present on various social media platforms. Especially on the Xiaohongshu platform, the average number of grass-planting notes published per day exceeds 3 million, becoming an important channel for brands to acquire users.

Uniqlo also pays great attention to "planting grass" in social media marketing. Take Xiaohongshu platform as an example. Although the content released is mainly about new product promotion and product planting, the content still shows the outfits of models and ordinary people, attracting users through the matching of upper body.

In terms of user interaction, the official account will respond actively and increase user activity through some welfare activities (such as giving away canvas bags for forwarding, liking and commenting).

Uniqlo will also take the initiative to like some "outfit" posts posted by ordinary people, or go to their comment area to interact. In this way, the brand expresses its attitude of embracing consumers and further strengthens the connection with users.

2. Live streaming on TikTok: fast conversion

UNIQLO has established an account matrix on Douyin, including accounts such as UNIQLO on Palm, UNIQLO, and UNIQLO Hot Fitting Room. The main account UNIQLO has 2.619 million followers, and its main content includes brand promotion and product display.

It is worth mentioning that these accounts conduct live broadcasts almost every day, with the main theme being to promote products. The live broadcasts are mostly conducted in the afternoon and evening, covering multiple periods of the day. Through live broadcasts, conversions can be achieved efficiently and brand sales can be increased.

3. WeChat Ecosystem: Full Interoperability

Uniqlo's WeChat ecosystem is built on the basis of public accounts as the core touchpoint. When users follow the [Uniqlo] public account for the first time, they will receive a 20-yuan new member coupon and an automatic welcome message.

In the welcome message, modules such as [Browse the Mall] and [Grab Discounts] link to mini programs, corresponding to new products and discounted products respectively. Users can shorten the decision-making path according to their needs and complete the purchase efficiently.

The [Popular·New Products] section in the menu bar at the bottom of the homepage displays the latest brand activities and the latest product launches. The [Mall·Special Offer] section allows you to view the store's hot-selling products and organize limited-time special products. The [Member·Benefits] section allows you to receive gift certificates, check orders or member benefits.

Uniqlo has achieved connectivity between the official account, mini program, and video account interfaces. Users can enter the mini program or video account from the official account, or jump to the official account or official mall from the video account, which is very convenient.

Therefore, whether it is social media, Tik Tok live broadcast, or WeChat ecosystem, Uniqlo is trying to optimize customers' decision-making steps and achieve efficient purchases . And through continuous exposure + planting grass to promote the brand, it has a deeper connection with users.

3. Product strategy: Extreme cost-effectiveness guides lifestyle

Marketing is 0, product is 1, and brand marketing will eventually return to the product.

The success of Uniqlo is also due to its successful "product strategy", from its initial positioning of "high cost performance", to its crazy cross-border collaborations, to the "life-friendly clothing" concept newly launched by the brand in recent years.

Uniqlo's product strategy is constantly optimized and iterated, and is therefore widely popular among consumers.

1. Early stage: “Cost-effective + co-branding” strategy: Seize the market

As the "Xiaomi of the clothing industry", Uniqlo's products focus on high cost-performance.

Uniqlo adopted penetration pricing, with prices ranging from 99 to 299 yuan. The relatively low prices helped it quickly open up the market in the early days of the brand and accumulated a large number of fans.

It should be noted here that Uniqlo’s products do not pursue extreme cheapness, but rather “maintain the lowest decent cheapness.”

Specifically, UNIQLO attaches great importance to fabric research and development. The brand has cooperated with the world's top suppliers such as Toray Group and Shima Seiki to develop various new fabrics to improve the quality and comfort of its products, which distinguishes it from general fast-moving consumer goods brands that "focus on appearance rather than fabrics."

To sum it up in one sentence, products of the same quality win by price, and products of the same price win by quality.

On the other hand, the UT series, as one of UNIQLO's most classic series, was just an experiment at the beginning. However, with the Japanese fashion godfather Tomoaki Nagao becoming the creative director of UNIQLO's UT series in 2014, UNIQLO officially launched its "co-branding strategy".

I have counted the co-branded IPs of Uniqlo over the years and found that their coverage is very wide, from artists to cartoon characters represented by Disney, to Japanese comics, American comics, games, and even fast-moving consumer goods.

The implementation of the "joint brand strategy" not only replaces the high design costs, but also meets the needs of young consumers from different circles, becoming a magic weapon for Uniqlo to increase sales.

2. Later stage: "LifeWear" suits life: conveys brand concept

Traditional fast fashion brands usually put product appearance first and do not pay attention to the material and fabric of the clothing, resulting in a situation of "first-rate style, second-rate tailoring, and third-rate material".

Based on the concept of "pragmatism", UNIQLO places great importance on the comfort of its products and strictly controls product quality.

In 2013, UNIQLO Chairman Tadashi Yanai proposed the brand concept of "LifeWear", emphasizing that clothing is no longer about following fashion trends, but about clothes adapting to the style of the wearer and constantly being reshaped according to people's needs.

To this end, Uniqlo's product features are "few SKUs + large inventory + basic styles + comfort + affordable", emphasizing the compatibility of a single product for a wide range of people, and enhancing consumers' personalized wearing experience through "basic styles + different dressing options".

In summary, in the early days of its products, Uniqlo focused on the "cost-effectiveness" strategy and used penetration pricing to quickly open up the market. Later, by tapping into the preferences of post-95s for IP, it launched a crazy "co-branding" campaign and achieved huge sales.

In recent years, UNIQLO has introduced the concept of comfortable life, which respects the comfort and personalized needs of the wearer.

4. User experience: user-centric and focused on service details

Today’s users start with the product and end with the experience.

Good user experience can bring trust to the brand and promote spontaneous communication, thereby helping companies reduce costs, gain traffic and increase conversions.

Next, let’s take a look at how Uniqlo provides good “user experience”.

1. Say goodbye to the difficulty of making choices

UNIQLO’s mobile mall has launched the “Match as You Like, Shop without Worry” column, providing matching solutions for those who have difficulty making choices and are not good at dressing.

This column can also provide users with different recommendation options based on style type, popularity and new product promotion groups.

2. Customized shirts

Shirts are a basic need for male consumers, but the varieties of men's shirts on the market are limited and the styles are scarce.

Uniqlo has seized the needs of male consumers for diversified, customized, close-fitting and comfortable shirts and launched a selection of fitted shirts. Consumers can customize their shirts based on their personal preferences in terms of style, collar type and size, and choose to buy according to their own size.

3. Free trouser length modification

Since standard clothing sizes cannot fully match the differences in consumers' physical features, UNIQLO provides consumers with free trouser leg modification services through both online and offline channels.

Consumers can measure the trouser length that needs to be modified accurately according to their own needs and follow the standard trouser length measurement method instructions provided by UNIQLO.

4. Some other details

Of course, what impresses consumers about Uniqlo is not only the services clearly marked in the above-mentioned official apps, but also some heartwarming moments during daily shopping.

Below are a few details that impressed me based on my personal shopping experience:

1) When Uniqlo displays clothes, it strictly follows the principle of S at the top, M at the bottom, and XL at the bottom. There are obvious size markings on the body and hangers, so users don’t need to flip the tag to check the size.

2) During the checkout process during non-peak hours, the clerk will remind customers who buy jeans "not to mix them with light-colored clothes" and will proactively remind customers that if the pants do not fit, they can have the length altered for free, which is very thoughtful.

3) When Uniqlo's shopping bags are taped on, the staff will fold them again to make it easier for customers to open them all at once.

Final Thoughts

After deeply analyzing UNIQLO's marketing model, we found that UNIQLO's success is an all-round success based on solid basic skills.

Whether it is store operations, online traffic, product strategy, or user experience, Uniqlo has many innovations and ingenuity. It is these innovations that have enabled them to continue to develop and improve, and to be at the forefront of fast fashion brands.

As UNIQLO CEO Tadashi Yanai said in his book "Nine Failures and One Victory", "When a company challenges new things ten times, it will inevitably fail nine times. In order for the company to survive and develop, we must constantly innovate the company and pursue development."

This sentence is not only a summary of UNIQLO's entrepreneurial experience, but also a condensed version of UNIQLO's business philosophy.

Disadvantages

Of course, even a strong company like Uniqlo has some minor problems.

In the previous article, we mentioned that Uniqlo’s product display is warehouse-style, usually displayed according to product category, color and size.

Although this display method is neat and regular, it lacks product combination and lacks a sense of consumption scene .

Sometimes when shopping, consumers only see the display of products and do not have the urge to buy. At this time, if the display of products is arranged according to the matching of models, it will increase consumers' interest in trying on products, thereby stimulating purchases.

Therefore, how to combine and display products is important, and this is also where I think Uniqlo can consider optimization (personal opinion, for reference only).

References

1) UNIQLO: Behind the brand’s evergreen success

2) Uniqlo DTC operation logic and model

3) It’s not that I can’t afford the big brands, but Uniqlo is more cost-effective

4) How did Uniqlo conquer the global market? Uncover its unique marketing strategy!

5) The secret of Uniqlo's self-service checkout counter - RFID technology

6) How does Uniqlo achieve the smoothest checkout experience?

Author: Yan Tao

Source: WeChat public account "Yan Tao Sanshou (ID: yantao-219)"