Page 149 - Accelerating out of the Great Recession

ACCELERATING OUT OF THE GREAT RECESSION

amount. The jackets, which had been codeveloped with Toray
Industries, a fiber and materials company, were the first range
of fleece clothing to be introduced in Japan.
The campaign for the jackets was a huge success—Uniqlo
sold 2 million units in the autumn/winter season in 1998. By
2000, it had sold 20 million jackets. Not only did the market-
ing campaign move a lot of fleece, but it also played a key role
in establishing the Uniqlo brand. By the end of the decade,
Uniqlo had become the market leader, increasing its market
share from 7 percent to 23 percent, a dramatic increase relative
to the growth of Japan’s economy at the time.
The Uniqlo story offers three lessons. First, consumers are
happy to buy appealing new products even when times are
tough—especially if they are well priced. Second, the money
invested in the development and promotion of new products
is money well spent. Third, achieving a high share of voice—
even an overwhelming share of voice—comes at a lower cost
in straitened times. At best, catching up when the economic
tide turns comes at a disproportionately high cost; at worst, it
is impossible.

■ TAKE THE FIGHT TO YOUR COMPETITORS ■

Competition intensifies during a recession as markets contract,
and companies are left with an excess capacity of workers, facil-
ities, and products. In the new era of slow growth, companies
will do everything they can to protect—and grow—their share
of the market. To do this, they will expand into new geographic
regions, enter new product and service categories, and reach out
to different groups of customers. This means that companies

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