Japanese fashion retailer Uniqlo’s e-retail growth strategy allows the company to tailor its online operations to specific markets, according to Verdict Research analyst Natalia Grabov.
The Fast Retailing-owned business ensures it has a physical store in each of the countries where it has an online presence, while every individual market has its own web domain which only delivers to that particular nation.
As Uniqlo grows in the UK, Verdict expects the retailer to extend its shipping service from the UK website to mainland Europe, corresponding with its plans to open physical stores on the continent.
Grabov said: “Uniqlo’s strategy is undoubtedly more costly than launching online only stores first in a new country.
“However, it has its rewards as it is able to tailor its online store to that specific market and, more importantly, it will allow Uniqlo to complement its online store operations with its physical stores.”
Recent Verdict research indicates that companies need to invest in some essential basics when establishing websites outside their country of origin as there is a risk of developing a bad reputation before they formally launch abroad.
The analysis suggests that retailers must ensure vital customer information, such as sizing details and delivery options, is easy to locate online.
“Over the next year we will see more retailers pushing into new markets and the different strategies they use will be vital in ensuring they are able to compete with the retailers in the local markets,” Grabov continued.
“Essentially in the online space it is all about speed, so those who can get into new markets without compromising their service will reap the rewards.”