Marketing Across Culture: Uniqlo's UAE Expansion Strategies

This report provides a cross-cultural analysis of Uniqlo's potential expansion into the UAE market, focusing on the fashion apparel industry. It begins with an introduction to cross-cultural marketing and the rationale for the project, highlighting the importance of understanding cultural differences. The report utilizes Hofstede's cultural model to compare Japan (Uniqlo's home market) and the UAE, examining dimensions such as power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence. It then explores the impact of these cultural factors on Uniqlo's marketing mix, including product, price, promotion, place, process, and physical evidence. The analysis considers how cultural norms in the UAE influence consumer behavior and preferences. Finally, the report discusses market entry strategies suitable for Uniqlo's expansion, aiming to minimize barriers and maximize success in the UAE market. The analysis emphasizes the importance of adapting marketing strategies to suit the local culture and consumer preferences.

Marketing Across Culture
CW2

Table of Contents
Introduction......................................................................................................................................1
A Cross cultural Analysis................................................................................................................1
Hofstede Cultural Model.............................................................................................................1
Social and cultural factors and the marketing mix...........................................................................5
Market entry strategies.....................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

Introduction
Cross culture within business world denotes effort of firm for ensuring that individuals
can communicate in an effectual manner with professional who belongs to distinct background
with respect to them. Basically, this denotes recognition of regional, ethnic and national
differences top bridge gap among them (Ang and Van Dyne, 2015). It implies scrutiny of culture
in context of masculinity, qualitative and individualism lifestyle. When understanding this
aspect, it denotes attempt that is made by firm for communicating with professionals from other
cultural background for having business opportunities for growth. This will lead to enhancement
of their products as well as services within the market. It is expansion of what is covered within
Cross Cultural Analysis in course work 1. This comprises of elaborated description related with
traditional techniques which can be utilised. Rationale behind this project is development of in-
depth understanding with respect to distinct cultures which prevails within two abstracted nation
along with impact that is created on marketing activities of each country (Alon and et. al, 2016).
For understanding the concept of marketing cross culture Uniqlo is taken into
consideration while planning to carry out their expansion within UAE in fashion apparel industry
for women of each age group. It is a Japanese based firm that is designer, manufacturer and
retailer of casual wear. This was founded in 1949 by Tadashi Yanai and Takahiro Wakabayashi
with their headquarters in Japan. This report renders in depth knowledge related with peculiar
cross cultural analysis for justification of differences with respect to social as well as cultural
factors for specific nation. Along with this, it will also furnish impact on behaviour of consumers
on services or products which are being delivered by specific firm. The strategic implications
will be provided on marketing mix and market entry strategies will also be illustrated for
effective expansion within UAE through minimised barriers.
A Cross cultural Analysis
Hofstede Cultural Model
The framework that is being utilised for understanding difference among culture around
countries and to recognize distinguished ways through which business operations are carried
around distinct culture is denoted by Hofstede's cultural model (Cleveland and et. al, 2016)
(Davidov and et. al., 2018). It is liable for making difference among distinct national cultures,
dimensions as well as impact that is created on settings of business. As per CW1 Hofstede's
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cultural model is an apt model which will enable organisation as well as individuals to
acknowledge ways in which offerings, cultures and values of firm will be impacted through
culture of different countries. It is liable for exploring divergence among nations, their beliefs as
well as norm which will create relatable influence on services and products of firm of another
country. It is important for firms such as Uniqlo to interpret it in an appropriate manner with
respect to cultures as well as offerings (Dawkins and et. al., 2016). It is delivering their services
within Japan and is looking forward to expand their services within UAE in fashion apparel. The
impact which will be created on offerings of Uniqlo has been illustrated below through the
usage of Hofstede cultural model:
Power Distance:
This dimension implies that all individuals present within the society are different which
explicit the attitude or knowledge of culture for inequalities which prevails within. Basically,
power distance denotes the extent up to which less powerful individuals of organisation or
institutions accept as well as expect that power is unequally distributed (De Mooij, 2015).
Japan has borderline hierarchical society which implies that they are conscious for their
position within the social act as well as settings with respect to this. In context of Uniqlo they are
delivering there services in Japan and when their exist hierarchical structure, it leads to slow
decision making as each layer has to be involved within this process. Within Japanese education
system there is a notion and as per that each individual is born equal as well as go ahead as per
their work.
(Source: Hofstede Cultural Dimension, 2019)
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Illustration 1: Hofstede Cultural Dimension Japan & UAE Respectively

UAE also have high hierarchical order which implies that each individual of Uniqlo will
be given unique place as well as further justifications are not needed. Hierarchy often denotes
inherent inequalities, subordinates and centralisation which will expect that what there
employees have to do (del Mar Miras‐Rodríguez and et. al, 2015).
Individualism:
The degree of mutuality which is maintained by society among their employees is
referred to as individualism. This denotes the self-image of individuals and whether it is referred
in context of “We” or “I”. Collectivist societies denotes people who belong to in group who are
liable for taking care in context of conversation for loyalty. Individualist societies look after
themselves as well as their families.
Japanese society reveals characteristics of collectivistic society like harmony of group in
context of people as well as opinions. This will enable Uniqlo to have a workforce who are loyal
towards their responsibilities as they are more reserved and private. They emphasise on
rendering their operations in an appropriate manner rather than something else (Feskens and
Hox, 2018).
UAE also have a collectivistic society which will lead Uniqlo to have a workforce who is
committed to their work. In this culture loyalty is paramount and is liable for over riding societal
regulations and rules. It will aid Uniqlo to build up strong relationship within team in which each
individual can take responsibility of their fellow members. This will have affirmative impact on
responsibilities carried out by them.
Masculinity:
The high score of this factor shows that society is driven through attainment, success and
competition and success is being defined by the one who is best in respective field. This denoted
masculine which implies what will motivate people for attaining best (Marsh, 2016). On the
other hand low score implies feminine dimension which illustrates quality of life as well as
caring for others.
Japan has masculine society which leads them to have competitive behaviour. Uniqlo
have a workforce who are motivated as well as survive or work harder for competing with the
best or their competitors. It will lead them to drive perfection as well excellence within
production of their services
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Within UAE the score is 50 which implies that there is both feminine as well as
masculine culture.
Uncertainty avoidance:
It denotes the way in which society deals with fact that future is not known and the way
in which activities are being carried out, it should go in same manner. It brings anxiety within as
unknown situations leads to threat (Moorman and Day, 2016).
Japan is uncertainty avoiding country and is attributed by the fact that it is vulnerable to
tsunamis, earthquakes or any other natural disasters. Japanese are aware about this fact and have
prepared them for this. This will enable Uniqlo to have a workforce who makes effort to analyse
the feasibility along with risk factors. Managers can have detailed figures as well as facts before
making any kind of decisions.
UAE also have higher preference for dealing with such kind of uncertainties. Through
this, Uniqlo can have rigid codes of behaviour as well as belief which implies unorthodox ideas
and behaviour. People possess an urge to work harder and be busy through which innovations
can be brought in.
Long term orientation:
This implies the way in which each society can maintain links with past while dealing
with challenges which are faced in present and might be in future. There is a normative society
who opt for maintaining time honoured norms as well as traditions while having a view of
societal alterations (Ordóñez and et. al., 2017). On the other hand, pragmatic approach will
emphasise on inspiring efforts along with thrift for preparing for future.
Japan have long term orientation with societies as they look it as a short journey in which
they have to give there best. This assist Uniqlo to invest within research and development that
leads them to have impelling clothes for their individuals. It will render them to attain growth
within market shares.
Indulgence:
This implies the extent to which people attempt to control their impulses as well as
desires depending on the ways they were brought in. They are categorised into indulgence and
restraint culture (Soldatenko and Backer, 2019).
Japan have restraint culture which means that they have tendency for pessimism and
cynicism. It denotes that employees of Uniqlo will not focus on leisure time and have a control
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on their desires. This will have an affirmative impact on organisation as employees can be
motivated easily when there basic needs will be accomplished.
Social and cultural factors and the marketing mix
Marketing mix is defined as framework which is used by enterprise to influence their
consumer and buying behaviour. It is referred as set of actions as well as tactics used by
organisation for promoting their products and brand at marketplace (Thomas and Kureshi,
2017). This is conducted by each and every organisation for conducting their activities and
operations in an effective manner. It includes various elements such as product, promotion,
place, price that are controllable by enterprise. The impact of culture has to be faced by products
as well as services of business along with other determinants of marketing mix. The norms and
code of conduct of UAE has impact product provided by firm. Quality of life is better as well as
high in UAE which influence promotional as well as pricing aspect of business. There are several
factors and components which are presented in UAE that are varies from Japan and has impact
on every elements of marketing mix. UNIQLO attain their success and development by
considering each and every factors by following as per culture of respective country so that they
can establish their firm. Marketing mix of respective organisation are mentioned below in
appropriate manner such as:
Product- UNIQLO has targeted population surviving at internal country i.e. UAE
through launching products as per their need and requirements. They have focused on
manufacturing ethnic fashion wear clothes for their people (Zheng and Tian, 2019). The
management of respective organisation look trends of market prevailing within new country as it
restricts women to wear western wear. It will provide help to respective organisation in order to
know about buying behaviour of their prospective buyers within UAE and accordingly have
established strong brand image in mind of customers by providing ethic wear product to target
consumers.
Price: The respective organisation will be offering ethnic wear to target consumers at
high prices. As they will be targeting premium class people who prefer high quality of ethnic
dress in UAE who does not bother about prices. They have adopted such strategy to expand their
business and success at marketplace (Ang and Van Dyne, 2015).
Promotion: The respective organisation will adopt their own hi tech promotion tool in
order to expand business in UAE market by using IOT. UNIQLO will be using digitalisation in
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promotional method by combing QR scanning code and seasonal discount for providing
advantages to their consumers. Therefore, this will assist in grabbing attention of customers
living at UAE towards respective organisation.
Place: The respective organisation will use Hi tech promotional techniques that assist
them to sell their goods as well as service through online portal where customers can buy
products without any difficulties (Alon and et. al, 2016). UNIQLO focus on online medium and
usage of outlets for attracting large number of consumers in best possible manner.
Process: There is constant evolving in trend of digitalisation at UAE where UNIQLO has
to decide for making best use of digitalised process so that huge number of consumers are
offered with high quality products and services. This also helps creating positive image towards
organisation in mind of consumers.
Physical evidence: UNIQLO has physical evidence in terms of mortar style and brick
stores which is serving ethnic fashion wear for their consumers in effective and efficient manner
(Cleveland and et. al, 2016). With the ensuring of ease of success, respective organisation will be
able to draw attention of large number of consumers for buying products and which helps in
increasing profit margins as well as revenues.
People: UNIQLO will includes their working force and employees as people because
they will helps in making business survive and success at UAE market. This helps them to gain
experience in working at various cultures which is good for them (Davidov and et. al., 2018). It
will also assist them to implement and carry business activities and operations at UAE in
effective and efficient way.
Market entry strategies
This is essential for the company to have proper knowledge to expand the business which
is useful for the management to reduce the competitive edge in the market. There are different
types of international market entry strategies which help the firm to enter in the foreign market
without any risk (Dawkins and et. al., 2016). There are different types of market entries such as
Direct exporting, Franchising, Joint venture, Strategic alliance, Licensing etc. This is crucial for
the company like UNIQLO to choose the right market strategies for implementing the business
more effectively. There are number of factor which help in making effective decision which
influence the choice of decision taken by the individual. This factor may increase the cost or it
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may expected to increase the sales to improve the performance of the company. Here is the detail
explanation of market strategies which are explain down below:
Direct exporting: This refers to the selling of the product and the services in the market
which is helpful in making effective decision for expansion and growth. This help in the firm to
support the sales agent as well as the distributors present in the market. UNIQLO has the option
to choose the agent in UAE who will send the product to nation. This will help company to
expand the business as well as the sales performance of the organisation in the well define
manner. The major drawback of the company is that the appointed agent may cheat and do
financial misuse (De Mooij, 2015). Along with this, it can get effected due to environmental
factor such as natural calamities which may occur and cause several problems for the company.
They have to keep records which is essential for the growth and expansion in the well define
manner.
Strategic Alliance: This following marketing strategies help in using to or more than two
business and they are into a contract about the resources for one and other. This market entry in
the business strategies help in making larger market share. This following strategies is useful for
UNIQLO which can easily make profit with the assistance of established business in UAE. This
is essential for the firm to have knowledge about the business as this will help in making larger
customer base in the limited time frame (8 Strategies to Enter a New Foreign Market, 2019). The
main advantage of this strategy is the use of resources of one another which makes its easier for
them in performing business activities. Along with this is major drawback such as lack of
secrecy in the strategies and decision making.
Joint Venture: This refers to mutual contract between two or more than two firm so they
can form new company. In the context of UNIQLO the company must ensure about the changing
demand of the customers and enter in the market. The joint venture is a useful method through
which the firm can expand the business by merging with another company. The main advantage
of this company is that risk as well as uncertainty can be reduce and profit margin is increased
due to joint venture. The major drawback of this method is that not individual firm can not take
decision alone they have to indulge the other boards of members for the policy making. However
this have direct effect on the main target of the market and influence the character to perform
better for making more profit in the well define manner (del Mar Miras‐Rodríguez and et. al,
2015).
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Partnering: This is essential when the firm is entering in the foreign market or in any
part of the world. There are different partner to take variety of form with the simple co
marketing arrangements. For the company like UNIQLO the management can use different set in
partnering up for the growth and expansion. This is use for those market where the culture and
both social activities are done to offer better services to the consumer (Feskens and Hox, 2018).
Franchising: A franchising is the type of license that a party acquire to allow them to
have access to the business and the proprietary knowledge , process and the trademark . This
allow the party to sell the product and provide a service under the business for making more and
more profit. In exchange for gaining the franchise the third party usually pays the franchisor the
limited amount of licensing fees. For the organisation like UNIQLO they can take franchise in
UAE which help in expand the market rapidly. The main purpose of this technique is to provide
better services to the consumer and also company will have the opportunity to cover the
untapped market. This is consider as one of the most popular method for people to start a
business, especially for those who wish to operate in a highly competitive industry like the fast
moving consumer product.
From the above discussion it has been analysed that there are different strategies and the
franchising is the best suitable option for the company like UNIQLO in order to expand their
business. It has been analysed that the market and of apparel is good for the UAE women as the
major part of nation is of women. There are different level of risk and by using franchise the firm
can reduce the risk which is beneficial for covering the larger market share in the well define
manner (Marsh, 2016). This market strategies will help the firm not to promote or support the
business which save the marketing cost for the company.
CONCLUSION
From the above stated report it has been concluded that business expansion is essential
for making more profit in the well define manner. Along with this it help in improving the sales
performance of the company which increase the profitability in the well define manner. There
have been use of Hofstede's model as this is essential to make effective decision for the
betterment of the organisation. Along with this, it help in understanding the cultural differences
between two nations and how these affects business performance of the organisation. Further this
has been analysed that franchise is the best option for the company to expand the business.
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