What strategy does Uniqlo use during seasonal changes?

Uniqlo employs a strategy of offering discounts and promotions during seasonal changes as part of its business model to manage inventory effectively and attract customers. This approach allows the company to quickly clear out older inventory in preparation for new seasonal items, creating space and offering shoppers appealing prices. By providing discounts, Uniqlo encourages consumers to purchase items that may be discounted, which can boost sales volume even if the profit margins are lower. This strategy not only helps the brand stay competitive in the fast-fashion market but also enhances customer loyalty, as shoppers often look forward to promotions during transitions between seasons.

The success of this approach is reflected in the ability to maintain a steady flow of new merchandise while effectively managing stock levels, ensuring that items fit within the current consumer demand.