What is the challenge UNIQLO faces in their global expansion?
The main challenge UNIQLO faces in global expansion is competition. While UNIQLO is one of the top global competitors, they do not hold the spot of the top competitor. The company faces tough competition from Zara, H&M, Forever 21, and Gap. UNIQLO is growing in Europe, but is not meeting the goals of the company. The company is also facing tough competition and growth in the United States (Dacus, n.d.). According to Fast Retailing, UNIQLO only has 858 stores worldwide. Zara has 1,808 stores worldwide (Zara, n.d.). H&M has around 2,700 stores worldwide. The total outlets of UNIQLO are less than the number of outlets of other global fast fashion businesses. Their main challenge is the competition because UNIQLO does not have as many global stores as H&M or Zara. Most of the competitors are well established in other countries and have stores in a variety of cities. It is a challenge for UNIQLO to enter a market where there are already established fast fashion and basic apparel companies.