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JSC Business
UNIQLO
Doyoung Park
Osaka Gakuin University
Economy Back in Deflation
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Japanese government announced, November,
2009
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GDP Deflator + 0.2%
Domestic Demand Deflator – 2.6%
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Lowest deflator since 1958
Long-term business slump
 DEFLATION
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Price drop – income drop – Business down
Japan in Bubble
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’80-90
Huge benefits from
international trades
Weak Yen $1 = 250 Yen
Plaza Agreement 1987
Strong Yen $1 = 160 Yen
Bank of Japan decreased
the interest
Money flood to the market
Heating stock market and
real estate
Buying the world
Bubble at the Peak
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Total real estate value of Japan in 80-90
2000 trillion yen
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If you sell 1 Japan, you can buy 4 Americas.
1 small apartment in Tokyo 20 billion yen
Heating stock market Nikkei 38000
Luxurious Japan
Louis Vuitton in Japan
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Sales of LV Japan
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1/3 of all LV Group
Actually 70% of sales by Japanese
Crazy for luxuries
Ginza and Omotesando in Tokyo
Wind of Change
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Versace retreated from Japanese market Oct.
2009
Versace’s own problems
Change of Japanese consumers
After Bubble Busted
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Lost Decade
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Stock and real estate bubble busted
 Nikkei 38000 to 10000
 20 billion yen apt to 2 billion
 Deflation
Another Lost Decade
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World Financial Crisis
Long term deflation
Consumers’ mind changed
New winner has come!
Uniqlo the Market Leader 2008
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Sales volume 1,885 billion yen (+ 17.5%)
Net benefit 409 billion yen (+ 45.6%)
History of Uniqlo
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Est. 1984 – Uniqlo 1992
Cheap price and high quality
Role model GAP
American style fashion
Focusing on design
Image marketing
Big hit on fleece
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2 million pc. 1997, 8.5 million pc. 1998
51 colored fleece 26 million sold 2000
Low Price!
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990 yen
Low Price!
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4990 yen
Low Price!
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1290 yen
Crisis in Uniqlo
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Sales drop in 2002
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Price competition
Economy recovered
Cliché items
Fortified marketing for sophisticated
image
Hired famous stars for CM models
Image campaign
Image Campaign
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New functional items and image of urban style
Norika Fujiwara and Skinny Jeans
Heat Tech
Bra Top
Uniqlo Rush
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New items – functional and fashonable
Business slump since 2008
H&M Hennes & Mauritz
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Swedish apparel company
Landed Japan 2008
Two stores at Ginza and Harajuku
H&M Premier
FAST FASHION