How Uniqlo Develop the China Market by E-Commerce Through Taobao.Com

April 1, 2018 Commerce

How UNIQLO develop the China market by E-commerce through Taobao. com Give a brief overview of the case and why the group picked it: Uniqlo has been entered into China market since 2002 and there has nine retail shops in 2005. Unfortunately, she was not successful to run the business since later on two shops was closed. It showed that the low price strategy which she was using is not appropriate for her to growth in China. In view of the results, Uniqlo was finding ways to capture the huge potential in Chinese market. Hence, they’ve been partnered with Taobao. om to start their e-business on the internet afterwards. So we’re going to explore why they’re being so successful by partnering with them, what they could do more to gain the market share and how the situation of their competitors is. Identify its business/market/products/services and if online or not at this time UNIQLO Hong Kong, Limited is a click-and-mortar organization. Its parent company is Fast Retailing Co. Ltd from Japan which owns and operates over 680 UNIQLO causal clothing stores in Japan, London, Korea, Shanghai and Beijing, etc. They sell high quality clothing with wide color ranges at an affordable price to all customers. They have their own online store as well as collaborated with Taobao. com to sell their products through internet. Hence, this platform is their e-marketplace. The current situation of e-Business within the case UNIQLO is using multichannel business model is a click and mortar retailer. Since they have selected Taobao. com as their e-business partner, it has been recorded that within 11days in both the turnover and traffic is equivalent to the sum of all physical stores in China for nine years. Taobao. com has been also provided a maintenance service and payment system to UNIQLO’s own on-line stores. 2 They are using interorganizational information systems to control and monitor the daily transaction. They have been also demonstrated a typical B2C business model to an apparel industry. Highlight and justify initial areas of the module that may be relevant to the case – What is our chosen case currently doing or what could it be doing online? After UNIQLO has cooperated with Taobao. om to set up an on-line purchasing platform, the sales order was boomed very fast from second tier cities in China. Surprisingly, the growth of sales volume on internet was better than the stores opened in the major cities in China. People can be more easily and convenience to order the UNIQLO’s products with no boundary, 24 hours and everyday at anytime. Besides, their Auto Stocking Inventory System can provide the real-time information to the customers and they have created a customer service desk section on the website that allows customers to contact UNIQLO by e-mail, telephone.

Referencing: 1. http://www. uniqlo. com. hk/company_e. html (Accessed on 24 Jan 09) 2. http://it. big5. enorth. com. cn/system/2009/07/02/004111612. shtml (Accessed on 24 Jan 09) Consider using one or more of the following: the eCommerce models, e-marketing techniques, and possibly strategic models? By making use of different ecommerce model, company can generate revenue to sustain its business on the electronic market. In this case, Uniqlo uses direct online marketing as the strategic model. Uniqlo makes use of Taobao. om to reduce the cost of creating, distributing and increase flexibility on the pull-type supply chain management on manufacture. On the other hand, it is convenient to customers to purchase at anytime anywhere and they can collect the relevant information easily. If the case has both an online and offline element compares the two offerings. The consumers are able to touch and feel the actual products at the physical stores. Online shopping has the limitation on those aspects since it is selling in the virtual platform.

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Besides, consumers can pay by different payment terms while online stores only allow credit cards. Finally, consumers can take the products away from the shop after the payment at the physical stores. However, online shopping relies on mailing the products by delivery service. Competitor Analysis For local competitors in Japan, Royohin Keikaku Co. ,Ltd. – Muji is the directly contestant. In Asia, Giordano is more popular and established as a casual apparel retailer. For the international market, H&M and Zara replace Gap, Inc. nd United Colors of Benetton, becoming their main competitors. eBusiness Strategic in China market, only Giordano (cn. e-giordano. com) have the capability to do their own eMarket well. H&M and Zara do nothing for the China online market. Why do Uniqlo do better than Levi’s and Justyle which they also have the selling channel in Taobao. com? Potential for eBusiness development In China, people work on city and return to their countryside once a year. Uniqlo could develop the “gift mail home” to increase their eBusiness, not only focus on their direct sales services.


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