Uniqlo’s distinctive strategy defeats Zara, H&M in the “fast fashion” industry

Uniqlo is a Japanese apparel and retail clothing company with affordable prices and high quality. With a bold and unique strategy, Uniqlo has quickly achieved a firm position in the fashion retail market after Zara and H&M. In the financial year 2019 (as of August 31), for the first time revenue from Uniqlo International has reached 1,026 trillion yen (+ 14,5% YoY).

Good material

For Uniqlo, a good product will be manufactured with good material and suitable for many people. Polyester is often the preferred material chosen by competitors in the fast fashion industry. But Uniqlo uses 30% of cotton in its collections and only 20% of polyester.

Sustainability factors and variety of models

The number of products available of 3 fashion brands

Sources: VIRAC

Although Uniqlo produces the design is much less than the competitors but can create sustainable garments, which is a brand’s highlight.

In addition, it is the variety of sizes and colors available at stores.


Sources: VIRAC

Affordable price

Product price list of 3 famous fashion brands

Sources: VIRAC

Prices of Zara and H&M products mainly range from 10-20€ while Uniqlo ranges around 20-30€, but we can see the difference in materials Uniqlo used to produce better. 

Customers who care about the environment or is interested in natural fabrics because of the quality and comfort, it is clear that Uniqlo sweater is a smart choice, instead of synthetic fabrics of Zara or H&M.

After the resounding success surpassing fashion brands in both home and US markets, UNIQLO is impulsing for potential markets in Asia and the focus is on Southeast Asia. Uniqlo’s target customers in 2020 are the middle-class customers in Southeast Asia.

UNIQLO revenue by each business segment

in 2016 and expected in 2020

Sources: VIRAC

According to the latest Uniqlo report, the business target of the whole group in 2020 is about 2.34 trillion yen, of which revenue from Uniqlo International is expected to account for 45.1% (the highest of the group), surpassing the contribution from Uniqlo Japan, gradually bringing Uniqlo to dominate the international market.

Vietnam is one of the potential markets that Uniqlo International aims for. The first Uniqlo’s store opened in the end of 2019 at Parkson Saigon Tourist Plaza, one of the most popular and outspread shopping destinations. With the advantage of location, the first Uniqlo’s store in Vietnam has quickly become a new among the city’s most vibrant shopping center.

After success in Ho Chi Minh City, Uniqlo has officially announced the second store in Vietnam. The chosen location by Uniqlo this time is Vincom Center Pham Ngoc Thach, which also owns the advantage locations, scheduled to open in February or March 2020. Fast fashion market in Hanoi will be more competitive than ever because it not only is the game of Zara, H&M …

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