Japanese Clothing Brand UNIQLO Strives To Open 1000 Branches In China

In May of this year, Fast Retailing was owned by Japan.

However, Hideo Majima, a spokesman for Fast Retailing, said that the company is following its global line and striving to achieve 1000 branches in China before 2020.

UNIQLO intends to offer the same products and the same level of customer service at almost the same price in all parts of the business, Majima said. "We do not allow any country to be different from other countries.

We believe that the world is global, and the products that consumers like Japan, New York, London and Shanghai love are becoming more and more similar.

Some analysts are skeptical that they doubt this.

Even modest growth, however, will help Fast Retailing to make up for its slower growth in the core Japanese market.

And shoppers at Shanghai new store.

It seems to be willing to get the same treatment with other international consumers.

"The shopping environment here is good, and the price is acceptable," a customer said.

Supplement:

In order to reduce production costs and dependence on Chinese manufacturing, Japan's fast retailing company announced that 1/3 of its clothing brands will be produced outside China.

Fast Retailing is the owner of UNIQLO brand. In the latest 2009 fiscal year report, fast retailing company disclosed that 70 factories in China and some other Asian countries produced clothing for UNIQLO, 80% of which came from China.

In 1999, when UNIQLO set up production management office in Shanghai and Shenzhen, the number of factories producing clothing for UNIQLO in China increased. However, from 2006, UNIQLO began to change its strategy.

In 2006, UNIQLO opened a production management office in Hu Zhiming, Vietnam. In 2008, it opened another production management office in Dhaka, Bangladesh (Dhaka).

The fast retailing company believes that the textile industry in Bangladesh and other regions is developing rapidly, which has been over dependent on China's manufacturing industry, and the cost of production in China is getting higher and higher. In order to reduce risks, the proportion of UNIQLO clothing produced outside China will increase to 1/3 in the future.

Wang Qianjin introduced the rising cost of domestic textile industry.

First, the prices of raw materials such as chemical fiber raw materials and cotton increased rapidly by demand pull and cost push. In the 20 textile materials and products tracked by the first textile net, in 2009, 5 kinds of products increased by 100% over the year, 12 products increased by more than 50%, and only 2 products increased by 10%.

Two is the continuous rise in labor costs, the recent textile enterprises recruitment difficulties highlighted.

The three is the rising or rising of energy prices such as coal and electricity, which will increase the cost pressure of textile enterprises.

Compared with domestic ones, the cost of labor in Southeast Asian countries is relatively low.

In 2008, Hu Yongya, general manager of Wuxi Embroidery Co., Ltd., Kampuchea's first Sihanouk Economic Zone in Jiangsu, once told the first Financial Daily reporter that the monthly salary of Kampuchea's labor force is about 50 dollars, even if the overtime pay is 70~80 dollars.

Wang said that Vietnam, Indonesia and other countries began to export labor-intensive products to developed countries such as the United States and Europe, with the advantage of lower cost, and gradually replaced the Chinese market in the middle and low end market. In the US apparel market, Vietnam and Bangladesh have now increased their share to 7.5% and 6.5% respectively.

UNIQLO has shifted its production base to more and more regions outside China, and has shifted China's position from manufacturing base to core sales market.

As of August 2009, UNIQLO achieved sales of 37 billion 700 million yen in overseas markets outside Japan, an increase of 28.8% over the same period last year, operating income of 1 billion 600 million yen, an increase of 350% over the same period last year, and the growth rate in overseas markets was much higher than that in Japan.

In fiscal year 2009, there were 92 stores in UNIQLO overseas market, 33 of which were in China. In that year, the number of new stores in the Chinese market was 20, the total number of stores and the number of new stores in the Chinese market ranked first in the overseas market of UNIQLO, and 30 and 12 in the second Korean counterparts.