Analysis of Digital Transformation on Consumer Behavior for Shopping in Offline and Online Store (Case Study: UNIQLO Indonesia)

Abstract

Uniqlo is one of the world’s largest Apparel Fashion firms. Uniqlo’s business strategy integrates the entire clothing-making process, from planning and design to production, distribution, and retail. Uniqlo expanded its retail operations in Indonesia on February 13, 2013, and presently has 65 stores in 25 cities throughout the country. Uniqlo Indonesia must face obstacles in this digital era shift; during the COVID-19 pandemic, the rate of business owners creating e-commerce stores and customers purchasing online surged rapidly. Uniqlo has the lowest online sales contribution rate among its competitors, with 16% Online Sales Contribution and 84% Offline Sales Contribution. Uniqlo aspires to boost its online sales contribution to 20%. This study offers a maximized omnichannel integration approach between Uniqlo Indonesia’s online store and Uniqlo Indonesia’s offline stores to achieve Uniqlo’s aim of becoming the number one global apparel company. This research includes an internal analysis that includes value chain analysis and resources analysis to evaluate Uniqlo Indonesia’s internal condition and determine strengths and weaknesses, an external analysis that includes general environment analysis, industry analysis, and competitor analysis to evaluate Uniqlo Indonesia’s external conditions and determine threats and opportunities, and a customer journey analysis that includes the five A’s. Following the analytical phase, TOWS Matrix, Business Model Canvas, and Value Proposition Canvas were produced to help improve the formulation of the solution for Uniqlo Indonesia. Uniqlo Indonesia should improve every touchpoint across all integrated channels in the customer journey using Uniqlo Indonesia resources to improve the omnichannel integration strategy. This research’s business strategy and solutions can be utilized by Uniqlo Indonesia to boost customer awareness, sales, and customer loyalty.