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Fast Retailing Company SWOT and PESTLE Analysis

ID : 52786953| Apr 2023| 15 pages

COMPANY PROFILE -Fast Retailing Company

Business Sector :Retail

Operating Geography :Japan, Asia, Global

About Fast Retailing Company :

Fast Retailing Company is a public Japanese retail holding company. It was founded in 1963 by Tadashi Yanai with its headquarters being located in Yamaguchi, Japan. It operates multiple fashion brands including UNIQLO, GU, and Theory. The Company offers high-quality, reasonably-priced clothing by managing everything from procurement, design, and production to retail sales. In terms of broad operational strategy and future direction, Fast Retailing is making process on its Ariake Project, which aims to transform the apparel retail industry into a new digital consumer retail industry. As of 2020, the company has 56.5 thousand employees and 3,648 stores worldwide. The company transformed their e-commerce approach into one that would enable it to operate as a single united global group. It has started fusing their e-commerce and physical store operations. Fast Retailing achieved a record performance in FY2019 expanding UNIQLO operations in Greater China and Southeast Asia & Oceania.
Its mission statement reads, “To create truly great clothing with new and unique value, and to enable people all over the world to experience the joy, happiness and satisfaction of wearing such great clothes.” Its vision statement reads, “To always work toward a better, more sustainable society.” Its USP or unique selling proposition lies in being the world’s third-largest manufacturer and retailer of private-label apparel, upholding unique high fashion with its tagline, “Made For All”.

Fast Retailing Company Revenue :


¥2.29 trillion – FY ending 31st Aug 2019
¥2.13 trillion – FY ending 31st Aug 2018

Competitive Analysis of Fast Retailing Company

SWOT
PESTLE
The SWOT analysis for Fast Retailing Company is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
1. Fusing e-commerce and physical stores
2. One of the largest manufacturers and retailer of private brand apparel globally
3. Consistent global performance of UNIQLO
4. GU achieving record results and harboring strong growth potential
5. Strong supply chain transformation improving efficiency
6. High dedication and focus towards innovation
1. Embroiled in allegations of labor abuse at supplier factories
OpportunitiesThreats
1. Expansion into countries considered as global economic centers - China, Southeast Asia, India
2. Expected huge growth of fashion apparel market
3. Bringing sustainable products to European markets
1. Highly competitive retail industry
2. South Korean customers boycotting Japanese products
3. Heavy impact on sales and operations due to COVID 19
4. Slowdown of China negatively affecting Uniqlo
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Detailed SWOT Analysis of Fast Retailing Company

Strength

1. Fusing e-commerce and physical stores: With surging expectations of people to buy anything anytime without the hassle of visiting a physical store, ecommerce is bringing about a watershed transition. It is the next big thing for retail. Fast Retailing Company correctly acknowledged this and is building a global e-commerce platform which will enable expanding operations for all the brands. This paradigm shift from the traditional business practice is necessary to fit into today’s digital society and hence in 2019 the company transformed the e-commerce approach enabling it to operate as single united group. It aims to increase e-commerce sales to 30% of the total revenue. The fusion of e-commerce and physical store operations is meant to enhance customer experience. UNIQLO and GU brands also introduced an app called StyleHint which enables customers to check out different looks from around the world and collect new ideas for styling through image searching. UNIQLO Harajuku store launched in June 2020 offers services that leverage digital technologies holistically, along with products making it possible for customers to experience fashion and culture inspired by Harajuku. This store is the world's flagship sales space linked to StyleHint, a mobile app that lets users style themselves and be matched with UNIQLO apparel.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threats

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Major Competitors :

Major Brands :

  • Uniqlo
  • J Brand
  • Comptoir des Cotonniers
  • GU
  • Princesse Tam-Tam
  • Theory
  • PLST
  • Helmut Lang
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References used in Fast Retailing Company SWOT & PESTLE Analysis Report

1. Uniqlo: The Strategy Behind The Global Japanese Fast Fashion Retail Brand - https://martinroll.com/resources/articles/strategy/uniqlo-the-strategy- behind-the-global-japanese-fast-fashion-retail-brand/
2. Fast Retailing Announces Expansion of Strategic Global Partnership to Strengthen Supply Chain Transformation - https://www.fastretailing.com/eng/ir/news/1911131400.html
3. Fast Retailing: fit for the future - https://www.ft.com/content/e123d240-1e6b-11e9-a46f-08f9738d6b2b
4. How Young People Are Changing the Fashion Industry - https://sustainablebrands.com/read/defining-the-next-economy/how-young-people-are-changing-the-fashion-industry
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2024). Fast Retailing Company SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/fast-retailing/ [Accessed 05 Dec, 2024].

In-text: (SWOT & PESTLE.com, 2024)

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Fast Retailing Company SWOT & PESTLE analysis has been conducted by Sushree Lasyamayee and reviewed by senior analysts from Barakaat Consulting.

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