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Pestle Analysis Of Uniqlo

1510 Words7 Pages

Introduction
Uniqlo is ranked as the 1st apparel brand in Japan (Fast retailing, 2014) and the 5th SPA (Specialty Store Retailer of Private Apparel) in the world (VFPress, 2012). The brand has demonstrated a strong development during the past years with around 818 stores worldwide, estimated at August 2015, (Fast retailing, 2014) and now, they are planning for an expansion to Vietnam market. This report will provide useful information which can be guidelines for Uniqlo’s strategy to enter a new market. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix.
Question 1: PESTLE analysis of Vietnam market
1. Politics
Political decisions could …show more content…

Uniqlo is a company from Japan; it could easily take advantage of this political factor. Vietnam – Japan Economic Partnership Agreement signed in 2008 has brought opportunities for two countries’ businesses and consumers to “access capital sources, modern technology, materials and goods” effectively (Viet Trade Promotion Agency, n.d)
2. Economic
Economic bodies which constitute the external environment have certain influences on economic environment faced by organizations (Capon, 2009).
• It is expected that, in 2016, among the six major countries in ASEAN group, Vietnam would grow fastest (The Economist, 2015).
• Vietnam has been a member of WTO and a TTP trade agreement: these practices promote more competition and provide more mode of entry alternatives for new firms into Vietnam markets (KPMG, 2015).
• Private consumption is developing strongly; enhanced by increased consumer confidence and low inflation (Asian Develop Bank, 2015).
• Sales in retail sector increased 9.8% in January – September 2015 compared with previous year (Bloomberg, …show more content…

This promises potential target audience for an effective digital marketing strategy of Uniqlo.
5. Legal
According to Peng (2014, p.43) a country’s legal framework helps reduce “transaction cost by minimizing uncertainty and combating opportunism”
• Fair treatment for foreign investors are guaranteed by Vietnamese Government and the 2015 Enterprise and Investment Law has implemented favourable conditions for FDI sectors (Ernst & Young, 2015)
• These attempts of Vietnamese Government include overhauling the investment and intellectual property law, and simplifying business administrative procedures.
6. Environment
• Vietnam has tropical climate with annual average temperatures of 5°C-37°C (Global Security,

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