After several fits and starts, Uniqlo has once again tweaked its U.S. strategy as it struggles to become a mainstay in the American shopping scene. The brand is shuttering stores in suburban U.S. malls, in cities like Boston and Washington, D.C.
Chief Marketing Officer Masahiko Nakasuji stated in CNBC that probably the best way to let the people understand what the company is sellingand that the people know about our product. The label's first attempt at cracking the U.S. market came more than a decade ago, when it opened stores at three New Jersey malls.
Then, after expanding to 20 locations over a 10-year period, the company picked up its expansion pace in 2014. Still, its strategy fell short, leading to the closure of several mall-based stores in towns like Willow Grove, Pennsylvania, and Danbury, Connecticut.
Nakasuji further stated that the company has a very low presence and the brand has a much bigger opportunity in the U.S. Indeed, while it is still relatively unknown by American shoppers, Uniqlo is owned by the world's third largest specialty apparel retailer:
Uniqlo first time held an event that was showcased its upcoming fall line at a presentation in downtown Manhattan Wednesday. Jan Kniffen, CEO of the J Rogers Kniffen research and consulting firm and a CNBC contributor mentioned that the company doesn't do a great job communicating the quality and functionality of its products to the American consumer.
Uniqlo's products are low quality and disposable due to the fast-fashion companies like H&M or Forever 21. Meanwhile, the brand has an "extremely limited" number of styles that makes its assortment look repetitive, Kniffen stated. The company will better be able to respond to consumer demand if CEO Tadashi Yanai wishes to trim that window to two weeks
Uniqlo's parent company Fast Retailing does not explicitly break down the brand's U.S. performance. However, it said in its latest quarterly earnings report that revenue across all of Uniqlo's international divisions increased when excluding the impact of currency. According to Nakasuji the company is making a lot of progress.
