Uniqlo Supply Chain

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C) Threat of Substitutes
Casual wear is one of the basic wear among the loose fit and relaxed fit wear. There are so many substitutes circulated into the market. One the main substitute of casual wear is active wear or athletic wear. Casual fashion clothing have been anticipated into the industry. The differentiation into the casual clothing could be provided a new line of clothing which could be nearest substitute of the product. The specialised stores could have been offered semi casual, smart casual and business casual lines. Semi casual clothes have been presented less than formal dresses. Smart casual lines have got a conservative look but the differentiation in colour, fabrics make it more acceptable to the customer. However, business casuals are differentiated in definition and colour is same. The Spa model of Uniqlo makes a differentiation between the substitutes into the industry. Threat of substitutes is low for Uniqlo into the industry. They have followed by one umbrella. Planning to sale department has continued in a process. So it is hard for the rival to make substitute products of Uniqlo.

Threat of Suppliers:

Threat of supplier is low into the industry because of cheap labour and many suppliers. According to Laszlo (2008), It has been stated that there are five parts of apparel value chain. They are raw materials supply, provision of components, production networks, export channels and marketing channels. Uniqlo has got an possession over the supply procurement . Therefore, it has good control over the supply chain and it makes the threat of suppliers become low.

E) Threat of Buyers

The buyer power into the industry is high. There are few reasons to make the buyer power high. There are lots of choices into the market. Moreover the switching cost is low. Customer can switch to any brand at any time. However, brand loyalty can make buyer power low. Strong brand loyalty could possibly make the buyer power low.

 
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