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    UNIQLO Seeks Overseas Expansion To Regain Revenue Growth

    2010/12/11 15:48:00 70

    Uniqlo

       Liu Chi, the richest Japanese businessman, has followed the advice of managing guru Dulake to create the Uniqlo clothing kingdom. But recently, it has been running out of focus and dragging behind to emulate other brands. Price of stock With revenue, Liu has been readjusting its strategy, hoping to regain its revenue growth by returning to basic design and seeking overseas expansion.


    Ryui Masa, founder and President of Fast Retailing, has transformed his father's tailoring shop into uniformed clothing retailer in the past 26 years, creating the largest clothing retailer in Asia and accumulating an estimated $9 billion 200 million. Social status 。


    Ryui Seiso said his success was inspired by Dulake's management strategy, using Dulake's concept of "creating customers", and using products to create market demand. But this year, Ryui Masa's strategy has problems. Fast Retailing shares have fallen 26% this year, and sales in September, which opened for more than a year, also declined by 25%, and the sales decline continued to the end of November. The company also predicted that the net profit from the end of August next year will be reduced compared with a year ago, the first time in four years.


    Analysts and investors pointed out that Uniqlo Attempts to imitate Spain's Zara and the US H&M are the main reasons for the company's deviations from the norm. Research firm Japaninvest analytics and Shu Yan pointed out that Fast Retailing has lost its focus on its core products, though it has shifted its focus to fashion products, but its performance has been poor.


    Daiwa Kihiko said: "UNIQLO is in need of some fashion items, but its strong point is to buy cloth on a large scale and make a lot of practical clothing. UNIQLO should adhere to the basic design in order to differentiate products from Zara and H&M. "


    Ryui Masashiya recognizes this. In October, he said that the company would focus on functional design after the sale of Fast Retailing by its vogue fashion products.


    Ryui Masashiya set the sales target, hoping that by 2020, the company's revenue will increase five times to 5 trillion yen (US $60 billion), surpassing H&M and Inditex. He will also actively expand the layout of UNIQLO in overseas markets such as China and South Asia, so that the number of global outlets in 2020 will reach 4000.


       "As the Japanese market shrank and the growth prospects bleak, Ryui Masa continued to expand overseas." Fast Retailing will open 36 stores and 44 UNIQLO stores in Japan and the world by the end of August next year, bringing the total number of global branches to 1024. The company also plans to recruit 1200 overseas branch store cadres during the fiscal year September 2012, far more than the 300 people in this year.

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