Group assignment analyze uniqlo's international marketing environment in brazil and china markets

Executive Summary The presented report consists of an exploration of the international marketing environment analysis for UNIQLO to share insights into the international deployment of a

7 UEF

ĐẠI HỌC KINH TẾ TÀI CHÍNH

GROUP ASSIGNMENT ANALYZE UNIQLO'S INTERNATIONAL MARKETING ENVIRONMENT IN

BRAZIL AND CHINA MARKETS Subject: International Marketing Lecturer: Hồ Hữu Lực

I |ĐoànNgọcTrân 225084322 |B03 100%

Lê Huỳnh Như 225086173 [B03 100%

Nguyễn Thị Mỹ Linh 225087261 B04 100%

Ho Chi Minh City, December 22

Table of Contents

1 Customers

2 Competitors

3 Suppliers

5 Publics

1 Political and Legal Environment

2 Economic Environment

4, Technological Environment

5 Environmental (Natural) Environment

1 Customers:

2 Competitors:

3 Suppliers:

4 Intermediaries:

5 Publics:

V DISCUSS HOW THE COMPANY ADAPTS ITS MARKETING MIX (PRODUCT, PRICE, PLACE, PROMOTION) TO ADDRESS THE SPECIFIC CHALLENGES AND OPPORTUNITIES IN EACH MARKET

15

1 Product

2 Price

3 Place

4 Promoion

5 Recommendation

Executive Summary

The presented report consists of an exploration of the international marketing environment analysis for UNIQLO to share insights into the international deployment of a new product line

of the company within two target markets, namely: Brazil and China It analyzes both microenvironmental and macro environmental aspects that impact UNIQLO's marketing objectives and strategies Such findings, including customer insights shaped by cultural nuances, competitive landscapes with notable rivals, and differing socio-economic conditions, help companies better understand local buyers Taking into consideration these findings, we have proposed targeted strategies related to product localization, pricing, distribution, and promotion that we believe will best position UNIQLO for success in these markets

I INTRODUCTION

No table of contents entries found Uniqlo is a global brand with more than 1000 stores worldwide Uniqlo's clothing focuses mainly on quality and textiles, which remains the same today By December 2024, Uniqlo has more than 2500 stores worldwide and is present in 25 countries

The Chinese market is known as the billion-people market A market that any brand wants to set foot in In 2002, Uniqlo officially entered this billion-people market By 2020, Uniqlo had

767 stores in China While Uniqlo only had more than 764 in its mother country, Japan

In 2011, Uniqlo set foot in Brazil, the 5th largest country in the world With about 205 million people To date, Uniqlo has more than 57 stores in this South American country Uniqlo not only wants to expand its brand position to the South American market but also wants to use its unique fashion products to develop the indigenous culture in the place known as the land of samba

Currently, the trend of sustainable consumption is becoming more and more popular globally And Uniqlo has seized that opportunity with the philosophy that the brand has put forth, LifeWear - fashion models suitable for every corner, suitable for different lifestyles

Uniqlo mainly focuses on providing sustainable products, bringing a sense of comfort and convenience, to meet the necessary needs of both markets

IL MICROENVIRONMENT ANALYSIS

1 Customers

Brazil:

In Brazil, the main classes are the middle and upper classes, aged from about 20 to 40 years old, living mainly in Sao Paulo and Rio de Janeiro

The population in Brazil is mainly young and diverse, there is a high level of urbanization The gap between the rich and the poor 1s very large and clear

In Brazil, customers often have a comfortable lifestyle, people mainly like bright colors because it has a meaning like evoking optimism in our lives And people also like eye-catching patterns because this is a country famous for big festivals such as Camival, Festa Junina, Parintins Folklore Festival,

Brazilians often tend to choose to use international brands with products that have a strong local or national character

China:

Currently, China has about 1.4 billion people The population density is young, highly urbanized and the average income per capita is creasing

Young people from about 18 to 35 years old, belonging to the middle class, will live mainly in big cities such as: Beijing, Shanghai, Guangzhou, this is also the customer group that Uniqlo

is targeting

Young customers in China have been and are tending to shop online through famous e- commerce platforms such as Tmall, Taobao, JD.com or Wechat

They will often search for product information through Weibo, Tiktok and products introduced

by their idols

2 Competitors

Brazil:

Renner is a large retailer and ranks 13th in Brazil in the field of large fashion, they have the advantage of understanding the local market, the products, and the familiar fashion styles of the people However, those advantages also make it difficult for them to expand their brand internationally because they only understand the local market in Brazil

Renner mainly focuses on fashion products with reasonable prices and suitable for the preferences of local customers

Here, there is also the presence of H&M and Zara

H&M and Zara are also gradually expanding their brands in Brazil, they use their reputation and position in the international market to compete here

However, their store network 1s still very limited in the Brazilian market because they have to face domestic brands and sustainability issues

H&M and Zara's competitive advantage is mainly based on the rapid change and freshness of new designs, they are still promoting their brands to attract young, high-income and fashion- loving customers

China:

Zara is the most prominent fast fashion brand today, they constantly update new designs Zara has a dense network of stores and customers easily recognize the brand However, for the fast fashion model, it can increase inventory costs and lose sustainability

Zara mainly competes with domestic brands with diverse designs and product changes

Peacebird is a domestic brand of China, they understand people and local cultural preferences very well They can also change products quickly to suit customers' preferences and needs

Peacebird mainly focuses on selling products that suit people's tastes and fashion styles, with fast delivery service

3 Suppliers

Brazil:

Brazil is still heavily dependent on imported raw materials, especially fabrics with the technology that Uniqlo needs to produce its products

In addition, the transportation situation in Brazil has not been improved because the

infrastructure is not adequate The cost of manufacturing products in Brazil is still high, mainly due to high labor costs and tariff policies

China:

China can be called the largest textile center in the world, with abundant raw materials and a large source of experienced labor Uniqlo factories in China not only produce for domestic use but also produce to supply products to other stores around the world With abundant raw materials and labor, China has a very large production capacity, with modern advanced technology, so it 1s able to meet large orders

Labor costs in China are rising, especially in the big cities This could affect the advantages and costs of production But it does not affect too much because high labor productivity and efficiency have reduced these costs

4 Intermediaries

- There are large distributors such as MercadoLibre and Magazine Luiza They play a major role in distributing products to people across Brazil

- The logistics system here helps manufacturers manage their complex distribution and transportation systems in Brazil

- Retailers: Uniqlo operates through independent stores and stores in popular shopping centers

- There are intermediary platforms and e-commerce sites that help expand sales channels such

as Mercado Libre

China:

- In China, distributors play a key role in managing the supply chain and optimizing delivery speed to meet fast-moving consumer demand

- In China, distributors are developing very well in managing the supply chain and optimizing delivery speed to meet fast-moving consumer demand

- In addition, intermediary platforms such as Alibaba, JD.com and Suning are also holding a large market share among young consumers

5 Publics

Brazil:

- They use TV and newspapers extensively to promote their products to customers especially in small cities

- The government has many strict regulations on commercial activities such as imposing high import duties on some products, managing production activities, using labor force and environmental factors

- Consumers are very concerned about brand value and they like products that suit their lifestyle, weather and local culture

- Chinese media, especially social media platforms such as WeChat, Weibo, and Xiaohongshu, have a great influence on consumers’ purchasing decisions

- The Chinese government strictly controls trade and business regulations

- Local communities in China often have a strong national spirit, prioritize local culture, and actively contribute to the community

Ill ANALYSIS OF MACRO ENVIRONMENT

1 Political and Legal Environment

Brazil :

Brazil is one of the largest democratic countries in South America, but it often faces situations such as political instability and fierce debates about legal policies

Brazil is also one of the countries with a complex and frequently changing legal system In Brazilian law, an import tax of up to 35% 1s applied to clothing

Brazil's business environment can be called complicated because there are many regulations and administrative procedures for establishing a business and complicated import and export procedures

Brazil's government mainly supports domestic enterprises, thereby causing many disadvantages for foreign enterprises when entering the Brazilian market

China

- China is known to the world as a country with a stable political system, a potential gateway for Uniqlo's expansion However, China also has international tensions such as the trade war with the United States China is also a country that strictly controls foreign companies entering their country, which also leads to some difficulties for Uniqlo

- China has a very strict legal system, businesses entering this billion-people market are required to comply with strict regulations on advertising and communication content

2 Economic Environment

Brazil

- Brazil is the world's 9th largest economy with a GDP of $2.08 trillion in 2023

- With an average inflation rate of 4.73% in 2023, which has led to high prices of goods and a significant unemployment rate of around 8%, which has also affected consumers’ purchasing power and made them prioritize essential products

- In 2019, Brazil ranked 9th in the world in terms of income inequality, measured by the Gini coefficient of 53.4%

- Brazil has a well-developed retail market This helps retailers expand their market share for the fashion industry and focus mainly on the middle class

China

- In 2023, the GDP economic growth rate reached 5.2% This is higher than the global average This shows that consumer purchasing power is increasing, especially among the middle class

- Inflation in China 1s well controlled at around 0.8% (2023)

- Unemployment rate is quite stable at 5.2% (2023), supporting increased consumer

consumption, especially in major cities in China

- According to McKinsey's report, the middle and upper classes in China are expected to account for 65% of total domestic spending by 2030 China is rapidly expanding its middle class, creating huge opportunities for the mid-range and high-end fashion segment

3 Socio-Cultural Environment

Brazil

- Brazil has a rich and diverse culture, with a mix of ethnic and Western cultures, preferring bright, individualistic fashion

- Christianity is the main religion in Brazil, but the country also has many diverse beliefs

- Brazilians have many big festivals and diverse cultural traditions such as Carnaval and Festa Junina In addition, music and football festivals are an indispensable part of Brazilian life

- Nielsen's report shows that 73% of Brazilians are willing to pay more for environmentally friendly products

China

- China has a long and rich culture with a combination of tradition and modemity

- Chinese people value family, pay attention to image and social status, and they also tend to be frugal and care about product quality

- The main religion is Buddhism, which has a great influence on Chinese culture

- Chinese consumers tend to shop around major holidays such as Lunar New Year and Singles' Day (11/11)

- Chinese consumers are increasingly interested in international brands and high-quality products

- Chinese consumers are very fond of online shopping E-commerce and live shopping channels such as Taobao Live, JD.com, and Douyin are at the center of marketing campaigns

4, Technological Environment

Brazil

- In 2023, 78% of Brazil's population (about 165 million people) will have access to the Internet

- Most users are concentrated in large urban areas such as Sao Paulo and Rio de Janeiro Brazil ranks highest in South America in terms of e-commerce penetration, but is still limited in rural and remote areas

- Brazilian consumers are increasingly familiar with new technologies such as e-wallet payments such as Pix, PayPal, Mercado Pago, which are becoming popular

- Brazil is the 2nd largest country after United States with the most Facebook (33.09% of Population) and Twitter users (8.79%)

China

- China is one of the countries with the fastest technological development in the world such as

AI, big data Internet penetration will reach 76% of the population by 2023

- E-commerce accounts for more than 50% of retail sales, and platforms such as Tmall or JD.com

- Platforms such as WeChat and Alipay not only serve payments but also integrate many services, including shopping and promotion

5 Environmental (Natural) Environment

Brazil:

- Has a humid tropical climate and is distinct by region

- Summers are hot and humid, winters are cool Therefore, people here prefer bright, natural- colored clothes

- Brazil also has diverse resources such as the Amazon forest - one of the largest tropical forests in the world However, Brazil still faces problems with deforestation, environmental pollution and climate change

- In big cities, consumers tend to be more interested in sustainable fashion

- According to a McKinsey survey in 2022, about 43% of Brazilian consumers are willing to spend more money on environmentally friendly products