Posts Tagged ‘Uniqlo’

Bargain sales aren’t always what they appear to be

Wednesday, May 1st, 2013

Half price today or twice as much tomorrow?

Half price today or twice as much tomorrow?

On April 25 the Consumer Affairs Agency sent notices (pdf) to 12 nationwide retailers regarding sales of frozen foods. The CAA thinks that the way these sales are advertised purposely misleads shoppers and thus violates the Price Indication Law. The cited stores, which include supermarkets, drug stores and discount chains not named in the media, have regular bargain sales on frozen foods at savings of 30 to 50 percent off “the manufacturers’ suggested retail prices,” but as the CAA points out there is no such thing as a price suggested by the manufacturer when it comes to food. In essence, the stores are “fabricating” discounts.

Frozen food bargain sales have been commonplace for more than decade. In fact, every supermarket and discount drug store has them. They take place on a weekly basis, usually Tuesdays or Wednesdays, and regular patrons thus come to expect them, which means they rarely buy frozen food the rest of the week.

What the CAA is pointing out is that these retailers have convinced shoppers that on those days when frozen foods are “half-price” or “one-third-price” they are cheaper than they “normally” are, but what is normal in this case? The CAA only seems to have cited retailers who use the phrase “suggested manufacturers’ retail price” (kibo kagaku or kori kagaku) in their ads, but even those stores that don’t use the phrase are being cagey with the semantics: Half of what price?

According to the business magazine Toyo Keizai, wholesale prices for merchandise sold in supermarkets and discount drug stores are determined through negotiations between individual retailers and their suppliers, and no retail reference prices are mentioned, must less “suggested,” by the respective manufacturers. Traditionally, bargain sales are carried out to clear excess inventory, but that’s not the case here.

For all intents and purposes the ostensible “sale” prices are the standard ones, since the bulk of a store’s frozen foods are sold on those specified sale days. It’s the other days, when the products cost twice as much, that are the exception. The reason this strategy is applied to frozen food is because consumers are more willing to buy frozen food in bulk since they can be kept for long periods of time in the freezer. So on sale days, shoppers buy more frozen food than they would if there were no bargain sales; it’s just that they do it only once a week.

Uniqlo has applied this same strategy to clothing. Last year the chain expanded its weekly bargain sales from two days to four. Previously, the weekly sales took place on Saturday and Sunday, but now sale periods also include Fridays and Mondays, which means there is a “bargain sale” four days a week. But if you look at the matter a different way, you could simply say that on those four days Uniqlo is selling merchandise at their normal price and on the other days it is selling it at “premium prices.” It’s all in the terminology, and the thinking.

Uniqlo not as different as its workers thought it would be

Thursday, March 7th, 2013

Stock til you drop: Uniqlo branch in northern Chiba

Stock til you drop: Uniqlo branch in northern Chiba

The highest ranking Japanese person on Forbes’ most recent Billionaires List is Tadashi Yanai, the president of Fast Retailing Co., which operates the huge discount clothing chain Uniqlo. Yanai placed 66th on the list with $13.3 billion. His inclusion in the world’s most prestigious business magazine’s prestigious list is appropriate in that Fast Retailing has promoted an image of being more internationally oriented than other major Japanese companies, with its insistence that management be fluent or at least conversant in English and employment policies that have resulted in one of the highest percentages of female management of any company in Japan. When recruiting new talent, Fast Retailing pushes its global outlook and hints that ambitious new employees could see themselves transferred to Paris after only 18 months on the job. Consequently, the company has became a top draw for university graduates, who see it as a forward-looking company that rejects the insularity Japanese firms are known for.

Coincidentally, the weekly economics magazine Toyo Keizai recently ran a cover feature critical of Fast Retailing titled “Hihei suru shokuba” (“The worn-out workplace”). The article describes the company as a different sort of employer than its image would have you believe, dwelling on labor practices that follow all the worst stereotypes of Japanese corporations. Apparently, this isn’t news. Fast Retailing is suing Bungei Shunju for publishing an unflattering book about the “Uniqlo Empire,” asking for ¥200 million in damages and halting sales of all remaining copies. Toyo Keizai seems to have gotten Uniqlo’s cooperation up to a point. In addition to talking to a number of former and current employees (anonymously, of course), they interviewed executives who gave them some startling statistics, such as the turnover rate. In 2007, 37.9 percent of all new regular employees quit the company within three years. This portion rose to 53 percent by 2009. Moreover, 43 percent of employees who take sick leave cite mental stress as the reason. It’s common for new grads to become disillusioned with company life, but that’s pretty high for a company with Uniqlo’s appeal.

The problem is the workload. Company policy prohibits (more…)

Jeans on the cheap

Sunday, October 18th, 2009

If you need jeans at 4 in the morning you know where to go

If you need jeans at 4 in the morning you know where to go

As apparel goes, jeans fill a unique niche. Originally marketed strictly as work clothing whose main sales point was durability, ever since the ’60s denim trousers have become ubiquitous, first as the uniform of the counter-culture, then as a template onto which various high-rent designers projected their hip cachet, and finally as pretty much the world’s de facto leisure wear. Levis, the original jean manufacturer, can charge anything it wants and in such a way became the standard for pricing. Anything more expensive than a pair of basic 501s was considered ostentatious; anything cheaper was, well, cheap.

Last March, discount clothier Uniqlo broke the thousand-yen barrier at its even cheaper retail subsidiary g.u. (or jiyu, which means “freedom”) by putting on sale jeans that cost ¥990. Since then, other cheapo retailers have followed suit and last week the discount chain Don Quijote announced that it would be selling its own “private brand” (PB) of jeans called Jonetsu Kagaku (passionate price) for only ¥690 per pair.

Continue reading about cheap jeans →

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