Uniqlo aims at having more than 1000 stores in China in three years. The move comes on the back of Chinese consumers’ soaring demand for upscale clothing. Uniqlo will continue to ride the country's booming consumption upgrade to open more stores in lower tier cities.
As of now, the Japanese clothing brand has some 700 outlets in China. Uniqlo will use both physical and online channels to reach its goals. It will also adopt technologies to improve its digital operations, such as developing mobile phone apps and websites so its products can connect digitally with consumers, especially at places where there are no brick-and-mortar stores. Uniqlo, in the meantime, is catering to the new consumption pattern of China's young consumers, who are willing to pay for quality rather than quantity. From 2014 to 2018, its market share climbed from 0.7 per cent to 1.2 per cent in the Chinese market.
Fast fashion produced rapidly to meet the latest trends mainly uses western designs and does not reflect Chinese preferences. Established global and domestic brands face difficulties in maintaining customer loyalty in China. Integration of fashion and traditional Chinese cultural factors is necessary. Retailers need to adopt innovative upgrades and be more responsive to the needs of consumers.