Summary
This report is the review of UNIQLO, a leading casual apparelretailer in the world. UNIQLO is known for its high quality, fashionable clothes and affordable price. This report will discuss the reasons behind UNIQLO’s success, popularity and how it makes use of Information Technologies to compete among its competitors. This report is to examine the organization structure, value chain a
Retailing
Fast Retailing Co., Ltd. is a holding company. The specialty retailer UNIQLO is the Group's mainstay operation, and it has enjoyed strong growth by offering high-quality casualwear at reasonable prices based on its SPA (Specialty store retailer of Private label Apparel) business model, which spans product design, manufacture, distribution and retail.
The first UNIQLO store opened in 1
Similar to Spain market
Minimum level of economic development
Easy Entry
Market
Entry
Company-owned – key, high growth
Franchises – small, risky
Joint ventures – medium risk and importance
Prevent Exorbitant and Vast expansion strategy
Improve & Develop way to manage existing channel
Adding Distribution hub on channel of each continents
Offer s
1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?
GAP H&M Benetton Inditex
ROIC -0.15% 24.16% 11.20% 27.24%
Return on sales -0.06% 9.60% 7.05% 10.46%
COGS/sales 7
retail industry is growing very rapidly with a 5% compounded annual growth rate and has $320 billion in annual revenues in 2006. The report says that rising incomes and increased consumerism in urban areas along with an upswing in rural consumption will further fuel this growth to around 7%~8%.
In the U.S., when people think of a big warehouse store, they think of lower prices and small bou