What’s in this article:
- Uniqlo is now the world’s most valuable fashion retailer – with its share price reaching £74bn – ahead of Zara and H&M
- Part of the reasons for its triumph: Uniqlo puts digital technology and customer–centricity front and center
Uniqlo, owned by Japan’s Fast Retailing, is winning the comfort-fashion war – beating Zara, owned by Spain’s Inditex and Sweden’s H&M.
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Though it has become the undisputed leader in fast fashion for many reasons – today, we’ll focus on two:
1. Leveraging Digital Technology
The brand not only takes a more technical, forward-thinking approach in its clothing – like its AIRism products and HEATTEACH wear – technology has also been at the core of Uniqlo’s digital marketing strategy.
Since 2016, the brand adopted the “digital consumer retailing” concept to leverage data from both in–store and online purchases using IC tags attached to all merchandise.
By partnering with Google and other external companies, Fast Retailing was able to develop manufacturing infrastructure powered by AI.
Uniqlo’s online traffic is high quality, too. In 2020, the number of visitors to their site increased by 30% YoY.
“Of the three players, Uniqlo over-indexes on desktop traffic, which bodes well for sales because desktop shoppers are highly engaged and more likely to convert,” said Caroline Kim, SimilarWeb Lead Retail Industry Consultant.
“H&M and Zara, on the other hand, have a higher percentage of mobile web users who are less engaged, stay on the site for a shorter amount of time, and are more likely to bounce off the site.”
To remind us how crucial your site’s UX is.
2. Focusing on Customer-Centricity
A recent Forbes article reported that affordability and accessibility are top of mind for the retailer among other customer-centric values.
Though most customers still seek comfortable WFH attire, at the same time Uniqlo tends to other segments. For instance, a customization clothing service for males who still need high-quality suits or women who need blazers or blouses has been launched. And it starts at just $10 for a shirt and $100 for a jacket.
“As people economize, the quality of brands and products will be more important,” said Tadashi Yanai, Fast Retailing Chairman, and CEO. “Consumers will select reliable, truly good brands.”
Uniqlo also focuses on making its merchandise appealing to a wide range of customers by designing simple and plain looks with solid colors, like in its LifeWear line. The brand also designs clothing that stays in fashion longer than those timely trends and styles made by other retailers – which taps into the responsible shopping trend that many customers love.