The future distribution mode: Part 1 - Uniqlo

This formula was nearly blind pursued by many retailers for decades, but in recent years a great change has led to a great success for the three heavyweights in the industry: Uniqlo, Zara and H & M. These and the other - the international leader are radically taken different paths of the status quo. Everyone has flourished in its own right, and all seem to want to avoid a "race to the bottom" prices. What I find particularly interesting is that these three companies are learned with experience from other industries to build long-term, sustainable competitive advantage. And it pays off. Uniqlo: call your choice of long-term trends Firstly, let us look at Uniqlo. The real distinguishing feature of the company lies in its leadership. As CEO of the parent company of Uniqlo, Fast Retailing Tadashi Yanai is the richest man in Japan. Its goal is to increase sales Uniqlo to $ 50 billion in 2020, four times the current level, with $ 10 billion of sales from North America. Chanel Caviar Bag Projected growth rates are certainly nothing new. What is different is the approach the company Yanai. While other companies to focus on research and according to the latest fashion trends, Yanai is a look at the technology and the investment in the long-term vision of Uniqlo. In general, the clothing industry is not about continuous improvement process or the perfect piece of denim, it comes to chasing trends. "During Yanai believes in the power of being on the cutting edge, it expresses bearing longevity, said:" Uniqlo we think about the future. We believe that the way to create innovative new products ... and sell them all. " Uniqlo offers are basic elements such as fleece, thin jackets, thermal underwear, jeans and plastic. The Company believes that its customers more value to quality and value as a rapid response to changing styles. Instead of rushing to the market, used Uniqlo long development cycles in which they test new materials and designs. And instead of a jump from a single vendor, they develop long-term partnerships with manufacturers of materials. In this way I find Yanai strategy to be similar to that of the manufacturer. Car manufacturers spend months or years in product development, create a product that will appeal to many consumers. And while some manufacturers focus on trends, quality trumps trendiness long term. The industry could find a way similar to the automotive industry. Was between 1896 and 1930 more than 1,800 vehicles in America. Why? Manufacturer wanted cars that develop suitable everyone. In the early 1940s, a large percentage of these companies was set operation, and today we have some significant few automakers in the United States As in the early days of the automobile, the current U.S. market is saturated clothing brands and retailers. Mickey Drexler, CEO of J. Crew, said recently in an interview with CNBC: "There are too many retailers There are too many brands there are designers and there are too many discount retailers and companies discount online predators sell like crazy...." Yanai Uniqlo operates more like a guard 21st Automakers. It identifies the styles in product categories that will not go fast fashion which distinguishes these styles, then you place a supply chain that provides these styles for consumers. Uniqlo has also announced a strategy used by the technology industry, as Yanai pushes consumers to update their wardrobe according to the evolution of the technology implemented "planned obsolescence." - Detects and changes implemented by Uniqlo - the update rather than a reaction to the style preferences developed.