Uniqlo SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 26, 2020

Uniqlo SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Uniqlo, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Uniqlo to benchmark its business & performance as compared to the competitors, and make strategic improvements. Uniqlo is one of the leading brands in the lifestyle and retail sector.

The article below lists the Uniqlo SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Uniqlo SWOT Analysis:

SWOT Analysis of Uniqlo

For Uniqlo, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Uniqlo Strengths

The strengths of Uniqlo looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Uniqlo :

1. Uniqlo is Japan's leading clothing retail chain in terms of both sales and profits.

2.The company also operates innearly 15 countries worldwide

3.Offer very discounted prices which increase footfall in store

4.Strong presence in international market

5. Uniqlo had begun outsourcing their clothing manufacturing to factories in China where labor was cheap, a well-established corporate practice

6. A strong workforce of over 30,000 employees

Uniqlo Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Uniqlo SWOT Analysis:

1.Despite being a popular brand it has a limited brand recall

2.Bargaining power of customers is high hence brand switching affects value

Uniqlo Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Uniqlo SWOT Analysis:

1.Good brand image could leverage on that and increase product portfolio along with clothing

2. The brand can promote itself by viral advertising and aggressive social media usage

3.High opportunity in campaign in various sports events

4. Increase global presence

Uniqlo Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Uniqlo are as mentioned:

1. Increasing competition from domestic market and global players

2.Strategic cost leadership is not long term sustainable

3. Brand switching could happen easily as only concentrated target segment for clothing

3.Regulation in different countries for FDI pull on aggressive growth

Uniqlo Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 2 competitors of Uniqlo:

1. Walmart

2. Tesco

Hence this concludes the Uniqlo SWOT analysis.

Continue reading more about the brand/company.

About Uniqlo

Uniqlo Overview
Parent Company

Fast Retailing Ltd


Retail stores


Lifestyle and Retail

Tagline/ Slogan

Driven by innovation


Unique high fashion

Uniqlo STP

Departmental and retail store chain

Target Market

Middle class and premium class households


Huge variety of styles and high quality at affordable prices

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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