This article is about the story of two interesting brands Uniqlo Vs. Zara, strategic differences of their businesses. Uniqlo based in Japan was founded by Tadashi Jana in 1949. Zara is one of the world’s largest international fashion company best in Galicia Spain Palette founded by Amancio Ortega in 1975. In 2018 Zara was the top-ranked after Wolf by a Pyro manufacturer in retail, followed by the Japanese company as a Uniqlo.
Both of them are international clothing retailers with over 1000 stores each.
1. Brand Strategy
The secret to Zara’s success has largely been driven by its ability to keep up with rapidly changing fashion trends and showcase them in its collections with very little delay. The brand keeps a close watch on how fashion is changing and evolving every day across the world.
Based on the latest styles and trends, it creates new designs and puts them into stores in a week or two. Years in product development by offering a mix of affordable innovative styles and high-quality posting at a low price such a detail Zara focuses on.
In stark comparison, UNIQLO’s strategy has always been about investing in product development – leveraging technology and advanced materials – even if it takes long cycles of iteration.
“We don’t chase trends. People mistakenly say that UNIQLO is a fast-fashion brand. We’re not. We are about clothing that’s made for everyone.” – CEO Tadashi Yanai UNIQLO | Source: Business Insider
Strategic differences in branding have never been their weakness to compete with each other. It has rather been their strength and advantage above each other.
2. Cultural Focus
As for the cultural comparison between Zara and Uniqlo, we will focus on three dimensions which are for collectivism, masculinity and long-term orientation. For collectivism, those countries are a collectivist society that emphasizes the needs of the community over its other needs.
In Cabrera, Korea is a strong bond of loyalty and focused on cooperation and teamwork among employees of masculinity or femininity. Japan are male societies in which employees are the most motivated by competition that drives excellence and perfection. Instead, Spain is a feminine society where the quality of life is the style of success and conflicts are resolved through compromise and negotiation.
The last is long or short-term orientation. Japan defines itself as a long-term-oriented society that focuses on long-term investment rather than short-term profits. Spain is a company oriented in the short term and precise in quick results without delays and really focused on maximizing the benefits of the interest groups.
3. Organizational Structure
Both Zara and Uniqlo are similar companies in organizational structure. Uniqlo’s organizational structure is in the national division into a national product structure. Under this structure, the scope of the business is divided into smaller groups based on the specialized functional area such as functional departments followed by the international division a storage center for all products in order to distribute products between countries.
The organizational structure of Zara is multi-divisional, that is, a hierarchical flow of subordination of the functional department when observing this image that the employee knows who to report to. A technology company is owned by some infra retail store. Zara Amancio Ortega is the president of the company under the senior management of Unitech.
There are some smaller managers, like the dominant regional managers and the country managers. The demon is 70,000 international stops, which is different from human resource management in both companies. It is divided into two parts, the first is recruitment and the second is training and development; The first part, recruiting Unicode will focus on giving the opportunity to work.
All candidates regardless of the break, especially the college student and calumet university resale, because they believe that everyone has the potential to work, but the hiring of Zara will be looking for people who are creative, intuitive, and flexible, the wood will send guidance customer and communication skills. They also feature outside recruiting like job sites, college job fair workshops, and social media for the second part of the strength training camp.
Uniqlo and Zara are quite focused in the same way on training the employee on how to effectively treat a customer communication skill, know the information of the service and product and how to motivate and manage that team, the next is leadership.
4. The leadership style
Uniqlo’s leadership style has three models which are openness, extraversion, and conscientiousness. The Zara leadership style has five pages that are Fit, Consciousness, Openness, Kindness, and Extraversion.
Uniqlo encourages members to be inspired, work better for the company, therefore it relates to the openness that the employee can think freely because the leader means flexibility.
Yanai tends to have an autocratic style, he is taking control of the subordinate’s activity. It is related to extroversion in terms of high power distance in Japanese culture.
Furthermore, it is also related to consciousness. Because Uniqlo has to emphasize on the top oriented taking control to get the best result followed by the highest score of.
Maskelyne indicates that society will be driven by the achievements and success of the competition. Zara, the leadership staff CEO Zara has close and personal interactions since the leaders of the feminist model always consult their subordinate to get her opinion and make decisions to compromise the situation that is the adjustment model.
The leadership style of management is very consuming to the cutting edge of understanding exactly what the client wants and then translating the interpreter offerings you can send to Hans.
Zara’s leadership values teamwork and open communication. It means that employees used to work as a team and tend to work with them, without the need for a strong motivation with each group, it is them.
It is also related to the openness model that empowers subordinates to share opinions in case of social agreeableness ability in which everyone follows the consensus in the same direction.
As a team player, the leader is a cellular impulse that leads to clear direction for employees. Depending on the different situations, there is no specific leadership style that is truly effective in every organization, however, the best leadership style outcome does not matter. It’s about being wise in all the actions you take.
Uniqlo is a cutting die company that purchases the fabric and retains ownership of the raw materials and process. For Zara, consumers are looking for quality fashion products at affordable prices. In spite of Uniqlo and Zara being successful in the fashion apparel business both operates with tremendous differences in their strategies.
Zara, which is moderate, some customers like the appreciation regardless of the brand, but some individuals have the level of loyalty at Zara. The marketing power of suppliers in the Uniqlo area that are low. Uniqlo has 70 partner factories and has production ownership and complete control of the procurement provider.
Zara has many suppliers more than 200 external suppliers of raw materials less for the prosperity of Uniqlo’s internal growth strategy.