Retail Theory and Practice: A Study on UNIQLO

This article explores the theory and practice of retail, focusing on the case of UNIQLO. It discusses key modifications in the UK fashion retailer, changes in the micro-environment, tactics and strategies for the organization, and provides recommendations. The study also highlights the importance of understanding the market and implementing effective strategies for success in the retail industry.

Retail
Theory
And
Practice

Table of Contents
Introduction:.....................................................................................................................................1
Overview of the UNIQLO:..............................................................................................................1
Key relevant modification or modification in UK fashion retailer........................................1
Relevant changes in the micro-environment:.........................................................................3
Tactics and strategies that can be used by the organisation:..................................................3
Recommendation:...................................................................................................................4
Conclusion:......................................................................................................................................5
References:.......................................................................................................................................5

Introduction:
The retail is defined as a process though which goods and services are delivered to the target
audience by different mode of supply chain in the market. The organisation focus on developing
the product and services according to the needs and wants of the customer so that company are
able to make profits by satisfying the desire of its customer.
Retail fashion industry is fastest growing sector in the UK market places, offering various type
of goods and services so that consumer can satisfy their needs on demand and in time.
According to the survey conducted into UK shows that around 600000 people are employed in
the retail fashion industry. Another company such as Burberry, marks and Spencer ,ASOS offers
different type of clothes in the target market which lead to grow this segment in the economy
(Anand, and Grover,2015)
.
Overview of the UNIQLO:
UNIQLO was established in the year of 1949 having headquartered in the Mid town ,Tokyo
in Japan, is one of the retailing company offering different variety of clothes for customer. They
have also opened the speciality store for their private labels so that they can produce their own
brand in the market. While using unique SPA model they are able differenced themselves from
the another retailers in the market. The organisation are focusing on providing comfortable
clothing which enhance the living of the people. In the 2017, UNIQLO has expand its business at
global levels by opening more stores in international market, currently it has 830 stores in Japan
and 980 stores in global market.( Banerjee and Mishra, 2017)
Key relevant modification or modification in UK fashion retailer.
The UK retail industry has made various changes and modification in the quality of
services offered by them in the market by practicing the anticipation of new standards and
technology. The changes also contribute to growth opportunities of retailers as they are able to
sale different product and services according to needs of the customer. The change in the
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fashion retailer can be understood by analysing the micro-environment, which is discussed as
follows:
Political factors: under this factors, it includes various government policies and
regulation which affect the business of the UNIQLO in its target market. UK has very stable
market expect the Brexit case under which British exist from the European countries that have
affected the trade practices of the retailer in the UK markets. The problems which are faced by
retailers due to Brixit are trade restrictions which are implement by the EU countries over the
UK retailers which affects the performance of the fashion retailer in the target markets. To
introduce the product and services in the market, the organisation has to face the several
government tariffs which have impact on the profits and sale of the UNIQLO.(Bowen,.2016)
Economic factor: This include the different types of rates such as inflation and interest and
foreign exchange rate and various another rates that affects the business activities of the
organisation. The recession which is faced by the UK market have influence on the trading
practices as high inflation rates affects that purchasing power of the customers. To overcomes
such challenges the UNIQLO has enhance their sales promotion activities by giving discounts to
its customer and provide high quality of goods at lesser prices so they are able to attach more
customer and retain the existing ones.
Social factors: it involves various type of factors such as beliefs, values and
assumption of the customer which affects the performances of the organisation in the target
markets. UK market is considered as one of the largest consumer market which have a 65.7
million population and consuming different kinds of product and services. the biggest challenge
which UNIQLO is facing is that they have to offers the products according to the needs of their
customer which belongs to different age groups. (Bodie, 2015)
Technological factors: It refers to the changes which takes place in the work environment
as technology is keeps on changing with time at the work place. UK market is consider as one
of advance country as they adopts new technology very fast in their business environment. It is
opportunities for the fashion retailer to make sure of new technology to enhance and expand their
business operations.
Environmental factors: the UK governance body have strict rules regarding
environment safety and security of the environment as it includes the better utilisation of
resources, following the standards set by the government and avoid any activity that harm the
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industry. So it is important for the UNIQLO to meet the required standards which are stated by
the government.
Legal factors: this factor includes various government rules and regulation which
affects the business operations of the organisation in the long run. With the removers of Brexit,
the UK government have to reforms its polices which has affects the fashion retailer industry to
large extends. UNIQLO has to make changes in its policies to perform better in the market and
make profits in long periods. (Chudik. and Pesaran, 2016)
Relevant changes in the micro-environment:
The micro-environment includes all those factors which have influence on the performances of
the organisation in the market places. It includes factors such as supplier, shareholders and
employees and supplier. (Elbeltagi,and Agag, 2016. )
Customer: The customer are ones who are interested in increasing the company sales and
revenue in the market, so that organisation are able to build their brand image in the market
places and customer can uses good quality of product and services. due to increase in
globalisation , the fashion retailer industry are able to make changes in their productivity and
grow in the target market.
Suppliers: they are person who provide raw material to the organisation so that
manufacturing process can be started in the organisation. Due to dynamic work environment, the
demands of the customer keeps on changing which also changes the requirement of new raw
material that will lead to difficulty for the suppler to arrange such material in shorter period of
times.
Competitors: under this factors, the various competitors of the organisation such as Zara
and H&M are also offering fashionable clothes in the market which create completion for the
UNIQLO to build their good image in the market places. (Francks, 2015)
Tactics and strategies that can be used by the organisation:
In the work environment , there are various factors that influences the business operations
of the organisation in present as well as in coming years. These factors affects the marketing
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position of the product and services in the market and perception of the customer towards the
organisation. The issues and problems which are faced by the UNIQLO due to the environmental
factors are discussed as follows:
Micro-environment factors: (Christoforou and Melanthiou, , 2019)
Competitors: there are various another companies such as marks and Spencer, ASOS that
offers similar product in the target market ,which in turn restrict the UNIQLO to capture the
market as they have planed. To take the competitive advantages in the market places the
UNIQLO must focus on offering various benefits to it customer so that customer remain loyal to
the organisation for the longer period of time.
Customer: according to the expect advices the customer are considered as the king of the
market as they helps in grow and success of the organisation in the market. The major issues for
the UNIQLO is to handle the fluctuate changes in the demand of the customer as they affects the
sale and profits of the organisation. The changes in the demand of the customer occur due to
new trends in the market or by new offering of goods and services by the another competitors.
To know the latest trends in the market , the organisation needs to conduct the survey on regular
bases so that they can make best strategies for the company.
Macro-environment factors: (Hayes,2018)
Social factors: It includes the taste and preferences of the target customer that affects the
performance of the organisation in the market. The UNIQLO operates its business at the
international levels offering different types of clothes to different customer who have unique
social background , different culture , value which affects the productivity of the organisation at
the international levels.
Technology factors: this factors affects the fashion retailer industry as technology needs to be
up-graded in the organisation so that effectiveness can be improved in the company and increase
market shares and comes up with the innovation ideas which will helps the organisation to build
good image in the target market places.
Recommendation:
According to the above discussion , it is recommended to the UNIQLO to apply the
PESTLE analysis in its business operations so that all the activists are performed smoothly and
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in the most effective ways. With the use of the PESTLE, organisation are able to make proper
strategies and tactics which will help them to capture the market and earn the profits in the long
run and enhance their business at international levels. Some of the recommendation are stated as
below:( Ivanov. and Mayorova, 2015)
 It is recommended to the UNIQLO to expand their operations in different countries by
taking into consider ion micro-macro environment factors as these factors will provide
various opportunities and threads which are present in different market.
 The organisation needs to have open communication system in their management so that
employees of the organisation are able to understand the mission and vision of the
organisation and work towards achieving such goals in the most profitable manners.
 The organisation operates in different outlets at international levels so they needs to be
more attractive so that customer can be pleased to use its product for that organisation
needs to provide different training and development programs so that employees are able
to serves best quality of services to its different customer.( Joanna, and Jenny, 2016. )
Conclusion:
As per above report, it can be concluded that retail theory and practices are very important for
the organisation to get success in the target market places. It is very essential for the organisation
to study the market condition and make effectives strategies so that they can capture the market
and achieve the desire outcomes within the set time period. organisation needs to do Pestle
analysis to know more about the market and make changes in their policies so that goals can be
achieved in the most profitable manners.( Karrholm, 2016)
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