MKTG 5007 PAUL GILLESPIE UNIQLO MARKETING ANALYSIS EXPANSION INTO CANADA Alysandra Noce Ariana Nunes Kellie Cavallin Matthew Paonessa Olivia Osatchuk Simran Kaur Table of Contents Company Overview 3 Executive Summary 3 Market Overview 4 Strategic Domain Analysis 5 SWOT Analysis 5 PEST 8 Target Market and Segmentation 12 Product and Service Offering 13 Mission Statement Of UNIQLO 14 Marketing Objectives and Strategy 15 Marketing Mix 17 Financials 21 Contingency Plan 22 2 Company Overview UNIQLO was founded in the late 1940’s in Japan. The company started out as a small division of a large Japanese men’s clothing retailer. During the late 1980s when Japan reached large economic growth, the company progressed into what it is today. The company decided on the name UNIQLO to be a combination of unique and cool clothing. UNIQLO is a globally recognized apparel company established in the 1980’s within the Japanese market. Founded by Tadashi Yanai, UNIQLO positions itself as a technological company, rather than a fashion company. This is attributed to the constant innovation of their heatretaining synthetic material called HeatTech. With an emphasis on providing unique clothing, establishing and innovating technologies such as HeatTech is their ultimate objective (Fast Retailing, 2012). UNIQLO today serves as a unisex clothing brand, known for it’s modern styles, high quality and functionality. UNIQLO positions their products as daily life wears, suggesting that instead of expending all of their energy and resources to stay on top of current trends, they provide fashionable items that do not go out of style. UNIQLO has a global presence in fourteen countries currently, and plans to extend to various other metropolitan areas as it expands (Fast Retailing, 2012). While introducing clothes according to the latest fashion trends, UNIQLO focuses on the innovation and functionality of their items. It’s low prices and high quality are essential in providing the UNIQLO experience to it’s customers. Executive Summary UNIQLO is Asia’s largest and most popular fashion retailer. On a global scale, UNIQLO is catching up to other retailers such as H&M, The Gap and Zara. Since the early 2000’s, UNIQLO has been expanding into the global market. With UNIQLO entering Canada’s already 3 congested and competitive market, UNIQLO will need to strategize with the proper marketing objectives in order to have leverage above their wellestablished competitors. UNIQLO’s Canadian marketing objectives include achieving 1.5% of the market share by 2020, expand within various Canadian cities with eight flagship stores by 2020, attain high profitability and increasing sales within comparable units, sell 18 million within the first year between both locations and to raise brand awareness in order to achieve dominance in the retail market. The marketing strategies utilized in order to fulfill these objectives include various promotional strategies where UNIQLO will highlight their affordable, high quality products. These promotional strategies will help to increase sales at both Toronto locations and their online store, with the goal to expand further into the Canadian market. It is estimated that within the fiscal year, UNIQLO will generate $52,323,390 between both stores. UNIQLO is projected to experience positive growth. Market Overview UNIQLO will be entering the Canadian unisex clothing retail market. The current market is highly competitive and already congested with well established brands. However, the fashion retail industry is expected to grow between 20132018. Within the next five years, menswear is expected the grow at 10.1% while womenswear at 8.4% (Passport, 2014). As UNIQLO continues to record considerable growth within the apparel market, entering the Canadian market will provide UNIQLO with the opportunity to appeal to their target market. 4 Strategic Domain Analysis COMPANY UNIQLO is entering the Canadian retail apparel industry. The products being offered are innovative, fashionable and high quality. The key to UNIQLO’s success will be due to marketing efforts, pricing strategy, superior service and location. Canadians and specifically Toronto consumers, are proven to be open to new and different brands. UNIQLO’s competitive advantage is that instead of focusing on the quick turnover of fashionable trends, they focus on high quality functional products. SWOT Analysis Strengths UNIQLO has many strengths, from their location to their innovative products, UNIQLO is demonstrating that they have what it takes to be a successful company in Canada. It’s geographic location in Toronto serves as a strength for this company. UNIQLO has positioned itself in one of the most multicultural areas in the world. The Eaton Centre Mall and Yorkdale Mall are ideal areas to introduce the company to Canada. UNIQLO strives to set its retail stores apart from their competitors. The setup of the store consists of stacks of merchandise that are colour coordinated and contains in store technology. For example, there are televisions that outline the different uses of products as well as monitors that customers can read. Having a visually appealing store will result in a higher number of volume and traffic the store will receive. UNIQLO also has a unique product offering in mass volume. They own a proprietary technology on their products in the form of HeatTech fabric (Fast Retailing, 2014). This consists 5 of clothing that is created to keep a person warm in cold temperatures. This is a strength UNIQLO has over its competitors in that consumers can not purchase the exact HeatTech fabric from any other company. UNIQLO also offers a large range of fashionable and functional products, free from logos, that are sold at reasonable prices. This is a main advantage that UNIQLO has over its competitors. The low prices are a strength since customers are always looking for the best price possible, but do not want to sacrifice the quality of the product. As a result, customers will keep purchasing from UNIQLO based on the great quality of products provided. The staff at UNIQLO exhibits exceptional customer service to every customer. This is proven by the rigorous employee training for every staff member and is evidently helpful in retaining new customers. The level of customer service provided by UNIQLO sets them apart from their competitors. They will be able to provide answers to customer inquiries and allow the retailmerchandising experience much more meaningful. UNIQLO has a strong presence globally. UNIQLO is currently in 16 countries with over 1400 flagships stores currently open (Uniqlo, 2015). A strong global presence is a strength because the UNIQLO brand is highly recognized around the world. UNIQLO being able to open such a large amount of stores around the world creates a strong customer base on a global scale. Having the brand recognized worldwide will continue to draw customers towards the brand since it is easily accessible to consumers. Weaknesses The brand’s limited consumer loyalty in Canada has made it difficult for consumers to recognize the company. Consumers have already established loyalty to other brands in the same 6 industry as UNIQLO since they have had roots in Canada for a number of years. Since UNIQLO has yet to have any presence in Canada, they do not possess a loyal consumer base in the country. The lack of social media and advertising within the Canadian market poses as a weakness because the brand awareness is low. Another weakness UNIQLO faces is that they are only operating in Toronto. This is problematic because the company’s reach to attract new customers is limited solely to people in the Toronto region. Opportunities UNIQLO will be entering the Canadian market and has an opportunity to introduce an online store for products to be delivered to Canadian households. UNIQLO does not currently deliver to Canada and by establishing an ecommerce store, UNIQLO will be able to reach consumers nationally. An opportunity to expand presents itself to other national market areas.A significant strength in choosing Toronto as the location to open UNIQLO is the Asian population in Toronto. As of 2015, 23.4% of Toronto’s population is those from South Asia and China. UNIQLO is projected to be popular amongst this group of individuals due to the connection to their roots (Toronto, 2015). Following the expansion online and nationally, UNIQLO will be able to exceed sales and production and obtain a larger market share in Canada. There is also an opportunity to serve new markets with their HEATTECH and AIRism products. These can be offered to the sporting goods market and also to the outerwear apparel market due to the cold winters in Canada. Acquiring different brands in North America is an opportunity for UNIQLO to gain fashion cred and market share. 7 Threats Due to the current recession in Canada, UNIQLO’s sales could be impacted by the effect on the purchasing power of consumers in the country. Consumers may not have enough disposable income to purchase nonnecessity items and will lead to potential brand switching. UNIQLO also faces tough competition between Zara, H&M, and the Gap. These brands are popular and well established among Canadian consumers and are situated in the same location that UNIQLO will be operating. Canadian consumers also value a “Made in Canada” approach to shopping and they are stepping away from outsourcing. This poses a threat to UNIQLO as they outsource all of their products from Asian countries. PEST Political Canada has recently elected a new Prime Minister, bringing the Liberal party into majority. With this election having taken place as recently as 2 months ago, we are assured that there are no anticipated shifts in power. The Liberal party, and their leader Justin Trudeau, are guaranteed to be in power for at least 2 years. This suggests a politically stable country. The Liberal platform aims to move Canada out of it’s recessionary period by encouraging economic growth and by investing in innovation. In terms of political risk analysis, this encourages Canada as a safe investment for global marketing. Management responsible for representing the stores within North American territory are subject to the currency exchange between Canadian and U.S dollars. This may prevent the opportunity for uniform pricing. The exchange rate is ever changing, and thus requires constant exchange control. 8 Canadian quotas on foreignmade textiles were essentially eliminated in 2005 (Grewal et al., 535). This increased the allowance for imported apparel products, of which UNIQLO identifies as. UNIQLO’s apparel is manufactured in various Asian countries, which suggests that these products are exported to Canada. Economic Canada’s economy is currently in a recessionary period, which suggests that unemployment rates have risen while gross domestic product, household income, inflation rates etc. have fallen. The current recession in Canada may affect overall sales however UNIQLO could be a substitute for more expensive fashion clothing because of the discount prices compared to other fashion retailers. The most recent Canadian population estimation of 35,851,800 was conducted on July 1, 2015. This represents a 0.9% population growth over the 2014/2015 calendar year. (Statistics Canada, 2015) As a result of economic activity, Canada is currently in an income recession. The average household real income is measured at $44,700. This suggests the reality that a majority of the Canadian population falls within the category of middle class. The Canadian apparel industry has seen moderate growth overall. Sociocultural As households age, a higher proportion of consumption is attributed to residences and properties, leaving a lower proportion to be attributed to food, clothing and care (Statistics Canada, 2011) Canada’s demographic is currently aging. According to Stats Canada, one in two Canadians is over the age of 40 (Statistics Canada, 2014 ) Since the target market of UNIQLO is ages 1834, this could affect the amount of individuals interested in buying the product. 9 Canadian citizens believe that access to foreign cultural goods is important, however a strong importance is placed on the need for Canada to have it’s own voice, as Canada’s culture defines who the nation is (Global Affairs Canada, 2015). Thus, importing foreign products may not be as welcomed, in comparison to a brand that is made in Canada. Technological Canada has an effective technical infrastructure. This access to information allows for constant innovation in technologies. Through this access to information, production and distribution channels can be made more successfully. The target market for UNIQLO is people aged 1834, including teenagers. This age group is often savvy with technology, and able to access information and products presented on the Internet. This allows an opportunity for ecommerce. The Toronto Transit Commission is a well established public transit system servicing the city of Toronto as well as the Greater Toronto Area. The system consists of four subway lines, 11 streetcar routes, and over 140 bus routes (Toronto Transit Commission, 2014). The TTC is the most common method of transportation in the city of Toronto, and thus would be the most common transportation system for the potential customers of UNIQLO. As well as the TTC, Yorkdale and Eaton’s Centre shopping centre are accessible by car. This contributes to the flow of traffic to said shopping centres, and thus UNIQLO. 10 COMPETITION Primary Competitor: H&M Product For the most part, H&M offers similar products that UNIQLO offers. They both offer fashion products and accessories for men, women and children. This puts the company in direct competition with UNIQLO. H&M continually introduces new product lines as a way of delivering a low price in combination with the latest fashion (h&m.ca). In doing so, H&M places their main focus on staying on top of fashion trends (h&m.ca) whereas UNIQLO aims to produce items that are unique and functional, with little emphasis on current fashion trends. Price A strategy in maintaining low prices that H&M employs is outsourcing their labour to countries where production costs are much lower. By the company utilizing a strict cost control plan regarding nonnecessity luxuries for employees, as well as outsourcing transportation according to each product, H&M is able to cut costs and therefore sell their product at a cheaper price. The way H&M attracts new customers is highly attributable to the low prices they offer. In Canada, H&M accepts SPC (student price cards). Upon presenting the SPC at the point of purchase, with certain restrictions applying, the cost of a purchase of $40 or more is reduced by 10% (Student Price Card, 2015). At the point of purchase, a valid student ID is required for proof of student status, and then on regular priced merchandise, the discount may be applied (Student Price Card, 2015). 11 Place As of 2014, H&M operates in 72 locations across Canada located in every province whereas UNIQLO is only operating in 2 locations in Toronto, Ontario. H&M stores can be found in big cities with big malls. The closest most direct competing store to UNIQLO happens to be in the Eaton Centre and Yorkdale locations. Promotion H&M choses to put forth more effort into advertising than UNIQLO in the Canadian market. This is because they well established in the Canadian market currently and is a larger company operating across Canada. In order to increase exposure, H&M has adopted a multichannel strategy including, but not limited to, internet promotion, advertising, and sales promotion. Target Market and Segmentation The target market for UNIQLO is men and women between the ages of 18 and 34. With clothing made for children and infants, families are also able to purchase high quality clothes for children for low prices. The different product offerings cater to many different segments. From the highly tailored collections, for the fashion forward shopper, to the casual styles and sportswear for the minimalist shoppers. This is in close range with the target market of UNIQLO’s competitors (Zara, H&M, The Gap). UNIQLO’s mission statement is to develop clothes that anybody can wear whenever and wherever. Though this is highly ambitious, the target market selected will remain 1834. Toronto has the largest population in any Canadian city along with the most comprehensive retail options. 12 The segment is worth pursuing because it is reachable through digital media. By incorporating a stronger online presence in the Canadian market, UNIQLO will be successful in reaching it’s target market. Abroad, UNIQLO has been able to reach its target markets through social media, such as Facebook, Twitter, Google+ and Instagram. Instagram is a popular social media outlet used by the target market in Toronto. UNIQLO has official Instagram accounts for their UK and Asian markets. By creating an Instagram account for UNIQLO Canada, the target market will be able to view new merchandise, promotions and news on a daily basis. This target market is profitable due to their age and location. Ages 1834 include young professionals or soon to be professionals who are willing to invest into their wardrobes. The geographic location of the flagship stores are in regions that will satisfy all products UNIQLO offers. UNIQLO’s products range from summer clothing to winter apparel, Toronto’s four season climate requires varying options for garments and accessories. Based on the location alone, UNIQLO will be able to offer all of their products to the target market in Toronto, Canada. Product and Service Offering UNIQLO strives to be the largest clothing company in the world. They aim to accomplish this by creating high quality products with low prices. UNIQLO develops a large volume of clothing that serve functionality while incorporating a timeless design in a wide range of colours. UNIQLO separates themselves from other clothing retailers by offering a large amount of products of the same style and fit in several colours. UNIQLO also separates itself from its main competitors by shortening pants, altering the fit and modifying other clothing to meet the needs of individuals. This process will be free of 13 charge and will be done by the end of the day. This gives consumers an incentive to purchase more of the same valued product in order to customize their wardrobes. Moreover, by manufacturing products that do not follow a particular trend UNIQLO reduces the risk of losses through fashion trends. Regarding service offering, UNIQLO emphasizes a high importance towards the training of their employees. Each employee that is hired, whether it is in the corporate office or at a retail store, goes through rigorous training. Employees get trained so that they are in the mindset that they are the owner of the store. For example, they get trained in aspects such as folding clothes, working the cash, fitting rooms, and alterations. UNIQLO creates a fun atmosphere, as they start off every morning with a cheer and motivation speeches to get each employee ready to interact with their customers (Fast Company, 2012). Offering customers premium service is an advantage UNIQLO has over its competitors. Placing a high level of emphasis on employee training and interaction with customers is beneficial as it creates a positive shopping experience for its customers. Every technique that is demonstrated by a sales associate at UNIQLO, from folding techniques to greeting techniques, is noted and assessed to assure each employee is adding a high amount of value to each customer experience. Customers get the benefit of receiving quality service while purchasing innovative products at a low price. Mission Statement Of UNIQLO We have made moderate changes to the existing mission statement and have created a new mission statement to appeal to the Canadian market. The modified mission statement is: 14 “To create unique, functional, fashionable clothes that will satisfy our individual customers’ needs. We will create a brand recognition across the globe as a fresh, modern, comfortable clothing brand while offering low prices and supporting customers’ personal growth” Our marketing team decided to create a mission statement that directly appeals to Canadian consumers. One of the problems with the old mission statement is that it was too vague. The old mission statement highlighted the company’s efforts to create “truly great clothing.” One of the problems with that is that it doesn’t clearly state what truly great clothing is. Everyone has a different opinion on what consists of truly great clothing. Clearly stating the brand’s efforts to create unique, innovative, fashionable clothes directly states what the company does best. Another reason we created this specific mission statement is to differentiate the company from competitors. Highlighting the company’s low prices and innovative technology used to create clothes outlines the company’s competitive advantage. Also highlighting that the company will satisfy individual needs means that the company is willing to customize clothes for each individual consumer. This is done by offering free alterations and fittings in store. Customers are able to shorten pants and alter jackets to meet their specific measurements. Furthermore, it was important to incorporate a few of the company’s core values in order to appeal to consumers. Marketing Objectives and Strategy ● ● ● ● To achieve 1.5% of the market share by 2020. Expand within various large Canadian cities with 20 flagship stores in operation by 2020 Sales of $53 million in the first year of business between the two stores Become Canada’s most popular retailer for casualwear by emphasizing low prices for high quality products ● Raise brand awareness in order to achieve dominance in the retail market 15 UNIQLO will achieve their short term and long term objectives by focusing on different aspects of the business. First, by focusing on the location of the stores, UNIQLO will obtain stronger customer recognition within cities. UNIQLO will focus on opening stores only in the largest cities in Canada. They will then be able to open in more rural areas after they have established a lasting presence in Canada. UNIQLO will also build brand awareness prior to the opening of flagship stores in large cities. Through marketing and advertising UNIQLO will spread the word about their high quality and fashionable pieces that are sold at reasonable prices. UNIQLO will pay attention to brand collaborations with highly recognizable designer names in North America. This will help them with increasing sales while being recognized for their trend setting and staple items. UNIQLO will stand apart from their main competitors by perfecting their product and developing a unique type of merchandise. By perfecting the product to meet the needs of the Canadian market, UNIQLO will be able to create products that will satisfy the Canadian consumer. By customizing products for individual shoppers, UNIQLO will stand apart from the competition by adding the service of shortening pants and altering the fit and length of clothing free of charge. By listening to the Canadian consumer, UNIQLO can determine the needs and wants of shoppers. They will also acquire different brands within North America in order to expand the company quickly. Moreover, an established web presence with an ecommerce website and social media presence would create a platform for further awareness. A well established web presence would not only help market UNIQLO’s goods, but would serve as an outlet for potential to increase sales and thus functions as an alternative distribution channel to minimize potential risk. 16 Marketing Mix Product The main featured products that UNIQLO offers are basic casual clothes and accessories for men, women, children and infants. The main products are listed in Table 1. Table 1: UNIQLO Product Offerings Men Women Children Infants Outerwear Blazers Dress shirts Tshirts Fleece Loungewear Polos Graphic Tees Jeans Pants & Chinos Shorts Underwear & Socks Sleep & undershirts Accessories (hats, belts, sneakers, toys) Outerwear Blazers Sweaters Knitwear Tshirts & Blouses Jeans Pants & Leggings Dresses Skirts Loungewear Intimates Socks & Hosiery Accessories (belts, sunglasses, slippers, hats, bags) Outerwear Sweaters Graphic Tees Fleece Bottoms Loungewear Sleepwear Underwear & Socks Accessories & Toys Outerwear Tops Pants & Leggings Sleepwear Accessories UNIQLO also sells innovative products such as HEATTECH and AIRism. These products are made specifically for UNIQLO. HEATTECH is functional innerwear such as tshirts, pants, jeans and sweaters. It is made from moisturewicking fabric which retains heat and also features antiodor properties and camellia oil which moisturizes dry skin. (Fast Retailing, 2014). HEATTECH is available to men, women, children and infants. AIRism is also an innerwear product and includes tshirts for women and men and also underwear. It is made from ultra fine fibres and quickly dries any sweat on the body to prevent chill and maintain 17 smooth, dry skin. AIRism is available to men, women and children. This is a good product to be brought to Canada because of the cold months that Canadian consumers face. UNIQLO also sells many different collections made with specific designers who collaborate with UNIQLO and sell specifically in store. Currently UNIQLO is collaborating with Carine Roitfeld, Princesse tam•tam, Lemaire, Disney, and Yukata which all offer different collections and inspirations to the clothing. Price We propose that UNIQLO set the price to compete with its top competitors, H&M, the GAP and Zara. The low pricing strategy for high quality products will position products to be priced lower to slightly higher depending on the quality of the garment. UNIQLO will use the price lining pricing tactic aimed at customers. By using this tactic UNIQLO will establish a price floor of $10 and a price ceiling of $130 for certain products. UNIQLO will then set a few other price points in between to represent distinct differences in the quality of the products. Outlined below are the price ranges for different products. Outerwear and blazers $10$130 Sweaters $10$80 Shirts and blouses $10$40 Loungewear $10$60 Jeans $20$60 Dresses $10$80 Accessories $5$20 Pants $10$40 HEATTECH $10$40 AIRism $10 to $40 18 Place UNIQLO will open two physical flagship stores located in downtown Toronto. One store will be located in the Eaton Centre Mall and one entering Yorkdale Mall. The store in Eaton center will be located in the north end of the mall and has a total of 28,000 square feet. The flagship store located in Yorkdale will be located in the new wing that is currently being renovated and will have a total of 24,000 square footage. This wing will have 28 new stores that are new to the Canadian market. The two malls are located in the heart of downtown Toronto and are easily accessible through subway and TTC. The convenience of both retail centers will be key to UNIQLO’s success in the retail industry. The physical location and also an Ecommerce retail store will meet the needs of the target market in Canada. Promotion UNIQLO will provide a variety of promotions in order to generate excitement about the brand. We propose that UNIQLO follow the promotional campaigns that they use globally but tailor it to the Canadian market. Different push and pull strategies will be employed in order to cater to the Canadian market. In regards to advertising, UNIQLO has been successful globally and has grabbed the attention of several markets using virtual marketing campaigns. These campaigns will generate awareness from Canadians who may not have heard about the brand before and will build a positive digital presence in Canada. With the target market between the ages of 1835 the majority of these people rely on the Internet for information regarding different products and brands. A virtual marketing campaign that will play on the Internet will be able to generate buzz. These channels include UNIQLO.ca, advertisement commercials online and 19 YouTube channels. By engaging with their target market in Canada, they will be able to effectively build a brand relationship with consumers. Also, we suggest UNIQLO have advertisements in local and Canadian magazines and advertisements on TTC and in Eaton Centre and Yorkdale Mall. The key to the advertisements within local magazines are not only to promote the brand but it is also a way to distribute discount coupons to be used in store or online by Canadian consumers. The purpose of the new promotion stream is to differentiate UNIQLO’s products by offering deals year round because majority of the clothing offering is not subject to seasonal changes. In terms of communication, we will use an integrated communication mix that will feature social media, online ads, and public relations. We suggest that UNIQLO have a Canadian celebrity endorsement who will be able to promote the brand and communicate directly with consumers. By endorsing a sports celebrity, UNIQLO will be able to use them to communicate their HEATTech and AIRism apparel and the benefits of this clothing. This will be able to segment the target and possibly open a new market for sports wear. Also, on the homepage of the ecommerce website, it will offer direct access to local social media presence such as Twitter, Facebook, Instagram and Google+. This will be beneficial for the company to communicate directly with consumers and interactively engage consumers by posting pictures and information online. The strength of their social media presence in Canada will be beneficial to their success in reaching the target market. The hashtag #UNIQLO Canada will promote the company and connect its consumers throughout the country. Consumers will be able to communicate with one another and view what is trending. 20 Alongside promoting UNIQLO through digital media, advertisements, celebrity endorsements and social media, UNIQLO will design a press kit to communicate with consumers directly. The press kit will be distributed to blog sources and news outlets. The press kit will include information regarding UNIQLO’s products with an emphasis on their high quality and low prices. The press kit will provide Canadians with UNIQLO’s history and mission statement in order for them to familiarize themselves with the brand before the opening dates. Financials 980,000 yen/ square meter = $10,833 Canadian per square meter. Eaton Center (28,000 square foot = 2,601 square meters). Yorkdale Mall (24,000 square feet = 2,229 square meters). Therefore: Sales per square meter at the Eaton Center, best case scenario will equal: 2,601 X $10,833 = $28,176,633 Sales per square meter at Yorkdale Mall, best case scenario will equal: 2,229 X $10,833 = $24,146,757 (Fast Retailing, 2013) 21 We can estimate that with both locations operating in 2016, the total sales for the year end will generate $52,323,390. Our objective is to reach $53 million in 2016. The sales forecast for 2016 2020 is projected from the 5.8% increase in retail clothing store sales for the current calendar year, as stated by Statistics Canada (2015). Year Annual Sales Forecast 2016 2017 $52,323,390 2017 2018 $55,358,147 2018 2019 $58,568,919 20192020 $61,965,916 Market Analysis: The unisex apparel market is a highly congested market. Within North America, companies such as the Gap, Zara and H&M hold considerable market share. Entering an already extremely competitive market is a potential risk for UNIQLO. By entering the Canadian market in Metropolitan locations, UNIQLO increases its foot traffic and visibility. Contingency Plan: In order to minimize risk, UNIQLO will plan to expand to other major cities in Canada, such as Calgary, Vancouver, Montreal. This will also increase distribution channels and allow for an increase in revenue within the Canadian market. If a specific location underperforms, merchandise could be transferred to an alternate location. Alternatively, if the flagship store was not successful, UNIQLO could relocate to a smaller space, selling their specialized gear such as HeatTech and AIRism. 22 If underperformance of a UNIQLO retail store was attributed to service inefficiency, UNIQLO could provide the incentive of commission. If the current service objectives were not successful in Canada, UNIQLO has the opportunity to create a sales driven workplace. The potential for career opportunities would serve as an incentive to perform exceptionally. UNIQLO’s training strategy is tested and developed primarily within the Asian market. Western culture does not necessarily respond in the same way to these objectives. This strategy would account for a potential variance in service performance. If entering the Canadian market during an economic recession has a negative impact on sales, UNIQLO could develop a SPC promotion. A Student Price Card would provide discount on overall purchase. UNIQLO’s target market is for individuals between 18 and 34, suggesting that many of their potential customers are student aged, and would benefit from a Student Price Card promotion. 23 Works Cited (n.d.). Retrieved 12 2, 2015, from • http://www.businessinsider.in: • http://www.businessinsider.in/HowClothingChainUniqloIsTakingOverTheWorld/a rticleshow/21151902.cms (n.d.). Retrieved 12 2, 2015, from • http://www.forbes.com: • http://www.forbes.com/sites/walterloeb/2015/04/17/uniqloaimstobetheworldsnumbe roneapparelbrand/ Aaker, David. (2014, October 21) Reasons Why UNIQLO is Winning https://www.prophet.com/theinspiratory/2014/10/21/6reasonswhyuniqloiswinning/ . (Accessed December 7th, 2015) Fast Retailing. (2013). Annual Report: Uniqlo. https://www.fastretailing.com/eng/ir/library/pdf/ar2013_en_09.pdf (accessed on December 8th, 2015) Fast Retailing. (2012, June 18). Cheap, Chic, And Made for All: How Uniqlo Plans To Take Over Casual Fashion. http://www.fastcompany.com/1839302/cheapchicandmadeallhowuniqloplanstake overcasualfashion (accessed on December 7, 2015) Fast Retailing. (2014, July 11). HEATTECH. http://www.fastretailing.com/eng/group/strategy/tactics.html (accessed on December 7, 2015) Global Affairs Canada (2015, November 27th) Canadian Culture in a Global World http://www.international.gc.ca/tradeagreementsaccordscommerciaux/topicsdomaines/i ppi/canculture.aspx?lang=en . (Accessed on December 7th 2015). Grewal, D., Levy, M., Lichti, S., Persaud, A. (2015). Marketing (3rd Canadian Edition). McGrawHill Ryerson Limited. Passport (2014, June 6) Womenswear in Canada. Passport. (accessed December 5th, 2015) Passport (2014, June 6) Menswear in Canada. Passport. (accessed December 5th 2015) 24 Statistics Canada (2011, March 25) Consumption Patterns Among Aging Canadians. http://www.statcan.gc.ca/pub/75001x/2011002/article/11417eng.ht m (accessed on December 7th, 2015) Statistics Canada (2014, September 26) Annual Demographic Estimates Canada. http://www.statcan.gc.ca/pub/91215x/2014000/partpartie2eng.htm . (Accessed on December 7th 2015) Statistics Canada. (2015, November 20) Retail Sales by Industry. http://www.statcan.gc.ca/tablestableaux/sumsom/l01/cst01/trad42aeng.htm (Accessed on December 9th, 2015) Statistics Canada. (2015, July 1). Canada’s population estimates: Age and Sex. http://www.statcan.gc.ca/dailyquotidien/150929/dq150929beng.htm (accessed on December 7, 2015). Student Price Card. (2015) H&M Student Price Card. https://www.spccard.ca/partners/hm (Accessed on December 7th 2015) Toronto Your City (2015). Diversity Toronto Facts. http://www1.toronto.ca/wps/portal/contentonly?vgnextoid=dbe867b42d853410VgnVCM 10000071d60f89RCRD (Accessed December 8th 2015) Toronto Transit Commission. (2015). TTC General Information. https://www.ttc.ca/Routes/General_Information/General_Information.jsp (accessed on December 6, 2015). Uniqlo. (2015). Our Story. Uniqlo. http://www.uniqlo.com/us/company/aboutuniqlo.html (accessed on December 7, 2015) 25