GU, a Japanese fashion brand and sister company to Uniqlo, launched its first U.S. flagship store in New York and its eCommerce platform last month.
Company officials focus on digital transformation to create a cohesive shopping experience that integrates online and offline interactions.
For GU U.S. Marketing Manager Dawn Abotsi, the key to this strategy is the GU app, which is designed to enhance customer interaction through features like barcode scanning for real-time inventory checks and personalized sizing recommendations using the “MySize CAMERA.”
“We believe that success in the U.S. is essential for global success,” Abotsi told PYMNTS in an interview. “We believe it is convenient for our customers to have both the online/app and physical stores. They see products in stores and buy them online or through the app or the other way around. The MySize CAMERA function lets you measure your own body using your smartphone camera for a more accurate recommended size. When you tag products you like as ‘Favorites,’ we’ll notify you when they’re available for pickup, back in stock, or on sale.”
GU’s eCommerce site and digital platform integrate online and offline retail, Abotsi said. By encouraging customers to engage with the app and physical stores, GU hopes to drive higher purchase amounts and encourage loyalty in a competitive marketplace.
“We have found in the past that customers who use both online and in-store have high purchase amounts,” Abotsi said. “We’ll continue to provide a seamless and convenient experience that blends online and offline, allowing our customers to enjoy fashion easily and freely.”
GU’s commitment to integration aligns with the growing trend of Click-and-Mortar shopping. This hybrid shopping approach highlights a rising consumer preference for a smooth integration of digital and physical retail experiences.
The PYMNTS Intelligence report “2024 Global Digital Shopping Index: The Rise of the Click-and-Mortar Shopper and What It Means for Merchants,” commissioned by Visa Acceptance Solutions, showed the number of shoppers engaging in Click-and-Mortar behavior has surged by 38% across Brazil, the United Kingdom and the United States since 2020. The evolution of shopping preferences revealed insights into modern consumer habits. Click-and-Mortar shoppers comprise nearly 40% of the global consumer base.
Additionally, the PYMNTS Intelligence report “2024 Global Digital Shopping Index: U.S. Edition,” a collaboration with Visa Acceptance Solutions, revealed customer satisfaction rises by 65% for Click-and-Mortar shoppers compared to those shopping in-store without digital assistance. Meanwhile, two-thirds of U.S. shoppers want features that close the gap between the in-store and online shopping experience.
Changes in consumer behavior allow brands like GU to stand out. GU differentiates itself by offering trend-driven fashion at affordable prices, targeting a broad audience while maintaining a unique identity distinct from Uniqlo, Abotsi said. GU’s strategy comprises capturing mass trends and focusing on high-quality, stylish pieces without overwhelming customers with excessive choices.
“Behind this strength is our unique product concept, MINI edit MAX, which aims to deliver maximum quality and styling with minimum products and price,” Abotsi said. “In today’s information-overloaded society, the common approach brands take is to increase customer value by offering a huge variety of products. GU takes the opposite approach and has less than one-tenth the number of items compared to other global fashion brands in the same price range.”
Each curated collection is designed to be mixed and matched, resulting in more styling possibilities with fewer products, she said.
“By reducing the number of products and narrowing down the range to the essential items that customers actually want and use, we dramatically increase the efficiency of the entire supply chain, including material procurement, sewing, distribution, sales and supply-demand coordination, resulting in high-quality products at low prices,” Abotsi said. “We believe that this kind of wallet-friendly and earth-friendly fashion is in demand, and the MINI edit MAX is the concept that sets us apart from other competitors.”
GU’s focus allows the company to forge a unique niche in the U.S. fashion market, differentiating itself from Uniqlo, she said. While Uniqlo is known for its high-quality, functional basics, GU caters to a wider audience with items that reflect contemporary trends.