Takashimaya to enter the crowded Fast-Fashion category
Coming off of a depressing year of negative 14.6% in sales in 2009, Takashimaya Co. will start to design, produce and sell its own line of clothing. Copying the successful models of Fast Retailing’s Uniqlo and H&M, Takashimaya will look to boost their market positions in this down economy through producing affordable fashion – or as we know it fast-fashion.
Takashimaya is buying fabrics in bulk and outsourcing production in China. They plan on competing directly with some of the very brands they carry by selling similar merchandise at a fraction of the cost. Along with their new fast-fashion strategy Takashimaya plans on expanding into men’s apparel as well as into new markets Hokkaido and Kyushu. Takashimaya is forecasting sales of 1 billion yen in the first year for their new fast-fashion line
I am curious if this strategy will work for Takashimaya and if so will other department stores, which are desperately looking for a new revenue generating strategy, do the same?