Pressures from aging people may lead UNIQLO targeting Vietnam
Pressures from aging people may lead UNIQLO targeting Vietnam
The increasing number of elderly people, as well as the shrinking young population in Japan, may be the main reasons pushing fast-fashion brand UNIQLO to look into other markets, including Vietnam.UNIQLO will launch its first store in Vietnam in Ho Chi Minh by the end of 2019
The income of young people in their 20s is the lowest in Japan, exacerbating the aging population structure which makes the Japanese market less desirable for fast-fashion brands like UNIQLO.
According to DODA, a Japanese recruitment website, the average annual income of people at the age of 20s in 2016 was $32,182, much lower than the 30s’ $42,455, the 40’s 51,273, and the 50s’ $63,727. Moreover, in early 2019 the elderly made up 28.06 per cent of the nation's population, up 0.4 per cent on-year.
Experts also forecast that the landing of global fashion brands Zara and H&M would increase market competition as these brands approach aging people easier than UNIQLO that focuses on young people. As a result, UNIQLO's decision to reach out to new markets is obvious.
Meanwhile, developing countries like Vietnam have been enjoying rising living standards. The middle class will keep growing richer and it is only a matter of time when they will be able to afford more expensive goods.
From a clothes store, UNIQLO has steadily developed into a local chain in Japan and then into a global brand. In the next step of conquering the global market, UNIQLO also focuses on US-style sports clothes and shoes.
Most recently, UNIQLO also officially announced opening its first store in Vietnam, a 3,000 square metre unit in Ho Chi Minh City by the end of this year.
UNIQLO is a brand of Fast Retailing Co., Ltd., a leading global retail holding company from Japan that designs, manufactures, and sells clothing under seven main brands: Comptoir des Cotonniers, GU, Helmut Lang, J Brand, Princesse tam.tam, Theory, and UNIQLO.
UNIQLO has 2,220 stores in 24 countries with a revenue of $21.5 billion in the fiscal year of 2019.
