What It Takes to Become the World’s No.1 Retailer and Manufacturer: An Analysis of UNIQLO’s Branding and Differentiation Strategy

UNIQLO (in Japanese ユニクロ) is a Japanese clothing company, leading business of the Fast Retailing group. In the last decade, UNIQLO has expanded its business overseas, in order to become the world’s no.1 casual brand and be the best retailer and manufacturer worldwide. However, UNIQLO is going through a rough competition, especially in the European market, due to the presence of strong competitors such as H&M and ZARA. To reach its target and become the world’s no. 1 manufacturer and retailer, UNIQLO is utilizing different strategies. In my thesis, I analyze how the company utilizes branding and differentiation strategies to gain competitive advantage against its competitors. In particular, I analyze how UNIQLO’s original technologies contribute to the creation of competitive advantage, how the company utilizes its online stores and social media for its branding, and how its sustainability approach can contribute to the betterment of the brand’s image among clients, making it the best option compared to other casual brands such as ZARA and H&M. I try to identify what makes UNIQLO different compared to its competitors, to finally find an answer to the question “how is UNIQLO acting in order to become the world’s no.1 retailer and manufacturer?.”