Retail Theory and Practice: A Study on UNIQLO

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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