From the Japan Times 2014.06.10
for June 20 class
Uniqlo will raise prices on its upcoming autumn and winter garments by about 5 percent, a company source said on Tuesday, as the apparel chain owned by Fast Retailing Co. tries to offset the effects from rising raw material costs and the weaker yen.
The first-ever price hike by Uniqlo, which has kept prices low with a business model that incorporates the production process from design to final sale, may prompt its competitors to follow suit and thereby help lift Japan out of chronic deflation.
The price hike for products coming out this summer reflects the growing costs of raw materials such as cotton and wool, the source said.
The weakening of the yen has made it more expensive for Fast Retailing to import its own products, which are made in foreign countries such as China.
Questions
1. Why will Uniqlo raise its prices?
2. Is 5% reasonable, in your opinion?
3. What does "a business model that incorporates the production process from design to final sale" mean? Explain in your own words.
Questions
1. Why will Uniqlo raise its prices?
2. Is 5% reasonable, in your opinion?
3. What does "a business model that incorporates the production process from design to final sale" mean? Explain in your own words.
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