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UNIQLO Wants To Expand And Rebuild A Japanese Market In China

2013/10/20 20:42:00 10

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P, born in the Japanese economy "lost twenty years" of this fast fashion giant, seven years of intent to expand five times in China, reinventing a Japanese market 
 diligence and dedication are the genes Ryui Masa gave to this company. This story is now told from Japan about China, a company that runs chicken and blood every day, and is also using vision and ambition to encourage enterprises. It is rapidly replicating its success in Japan. In the last year and a half, UNIQLO has opened 132 stores in China. In the past 11 years, the total number of stores in UNIQLO China is only 80. The number of new stores in the coming year will reach 80 to 100. In a short time, the number of stores in the Chinese market expanded 1.65 times, which means that the corresponding management difficulty growth is no more than that. 
Less than P, can so many stores keep pace with the rapid expansion of China relative to the needs of China? No matter in busy downtown centers or quiet remote communities, when the UNIQLO can be seen everywhere in the streets, this never-ending machine still runs in China with high efficiency. 
P, the largest flagship store in UNIQLO, will arrive in Shanghai in September 30th. Some people jokingly call it "the flagship store of UNIQLO", which is by no means an empty name. UNIQLO's flagship store in Huaihailu Road has an area of more than 8000 square meters from one to five floors. The momentum of the flagship store makes it difficult for Tokyo's flagship store in Ginza and New York Fifth Avenue flagship store to keep a close eye on it. The flagship store in Yongxin, located in Huaihailu Road, used to be the site of two hundred Yongxin shopping malls, and hundreds of meters away from it was the first store in H&M, which had created a sales miracle of 2 million yuan a day. 
 the flagship store's columns are packaged into LCD screens, and the commercials of different clothing theme areas are scrolled on the screen. This is like a clothing exhibition hall with a strong sense of technology. In the round spanparent glass cover, the position of hundreds of models is stronger than that of the modeling model hung in the flagship store of Nanjing road. 
Less than P, dizzy is not only the flagship store of UNIQLO, but also its speed of expansion. Especially in the past 2012 this year, the number of overseas stores increased by 115 to 292, and the biggest meritorious service was the Chinese market. As of July 2013, UNIQLO's total number of stores in China has reached 212, exceeding 131 of its competitors Zara, 148 of H&M and 57 of GAP. 
Less than P. Correspondingly, when UNIQLO stores expanded rapidly in China, the stock price of Tokyo XX parent company Xun marketing group also rose rapidly with the growth of Chinese stores. The stock price has risen by more than 57% since 2011, which is more prominent than the Nikkei index. For the founder of UNIQLO, Liu Jing Zheng, another exciting news is that its group's total sales in 2013 are expected to exceed one trillion yen for the first time. It is ambitious to set the next target: Sales of fast selling group reached five trillion yen in 2020 and five times in seven years, and the number of stores in UNIQLO China is expected to reach 1000, and also grow nearly five times. 
 this time, Ryui Masa cast his stake in Shanghai, China. The latest LOGO on the UNIQLO paper bag has been printed on the "excellent Shanghai, new start" of the flagship store, including the four brands of Xun Marketing Group: GU, Comptoir des Contonnier, Princesse tam.tam and PLST. The multi brand strategy's entry into China shows that the Inditex group of xungang group and its old rival Zara will launch another war overseas. 
 because the Japanese richest person thinks that the clothing company like GAP and other popular products of casual wear is the first generation private brand professional retailer (editors: in the country, what is the number of American Bon costumes, Lining and other companies that have super stocks), and the Zara and H&M that integrate the fashion elements are the second generation. Its clothing, fabric and clothing matching UNIQLO is the third generation. 
 China has a self-evident position for it. Besides China, which is the largest overseas market of UNIQLO, it also takes up 90% of the production capacity of UNIQLO. Nearly 600 million products come from China every year, and over 500 thousand Chinese work hard for UNIQLO. Ryui Masa said: "half of UNIQLO's success depends on Chinese people." 
 one wins, nine defeats .
 how to expand rapidly in China? As the CEO of China in fast selling group, Pan Ning was entrusted with heavy responsibility. Ryui Masa needs to open 80 to 100 stores in China every year, and the expansion plan is very stressful. 
 < a href= > http://www.91se91.com/pioneer/ > Pan Ning < /a > is a real Beijing native who has worked in UNIQLO for 18 years. At first, it was just an ordinary employee. At the beginning of its accession, UNIQLO was only a hundred stores in Japan, and then rapidly expanded to nearly 1000. From 100 stores to 1000 stores, what did Pan Ning learn from Ryui Masa? "The most important thing is rigour and diligence." He said to "Global Entrepreneur", "my boss is very dedicated, so many years ago, the richest man in Japan was not able to get enough money, but he came to the company earliest. So, I am also very hard to come to the company at six o'clock every day to attend a headquarter meeting with an hour lag. 
When Pan Ning took over the Chinese market from the end of 2005, there were only 7 stores in Beijing. "At that time, the business performance was really bad. I closed two shops in P and put all my energy into the East China market." Pan Ning told reporters. 
In 2002, UNIQLO opened its first shop in Nanjing Road, Shanghai, in P. This is four to five years ahead of H&M and Zara's investment in the Chinese market, but it has yet to take the lead. At that time, UNIQLO was positioned as a "popular brand" in China, consistent with its position in the Japanese market. Liu Jing and the then head of the Chinese region, Lin Cheng, cater to this position to lower the price of UNIQLO. In order to lower the price, the products in China's market have been changed to the standard, making the gap between the product quality and the Japanese market obvious. These products that were sold at a low price have not been recognized by Chinese consumers. 
Worse than P, UNIQLO was also bogged down in the price war with other casual wear brands. Until 2005, UNIQLO still did not make any profit in China. At this time, UNIQLO was successful in Hongkong market, and Pan Ning, the head of the company, was in danger of taking over the Chinese market. He began to rethink the brand positioning of UNIQLO in China. He believes that the public in Japan and the Chinese people are totally different concepts. The price difference between the two places is about 10 times. 
 the Japanese public can almost be interpreted as a standard above the middle class in China. Just before the May 1 golden week, Pan Ning unwittingly gained inspiration from a broadcast news. At that time, the news said that China's outbound population reached one hundred and fifty million people. He immediately associated with the business of UNIQLO, and thought that these one hundred and fifty million people represented the typical middle class of China. This is the target consumer group of UNIQLO. It will report the idea to the Japanese headquarters, causing a great shock. 
 UNIQLO is a company that encourages innovation and change. As Ryui Masa advocated the "one win, nine defeats" business philosophy, it soon allowed Pan Ning to boldly put his ideas into practice. Luckily, the experiment was successful. 
 2006, Shanghai port Hui square was selected as the best shopping center in the country. Pan Ning hoped that a shop on the four floor of port Hui square would be a new starting point for the spanformation of UNIQLO. The promise he made to customers at that time was that goods purchased in London and UNIQLO, Tokyo, could be bought in Hong Kong stores. Although prices have risen over the past, the quality and quality of products have been in line with international standards. 
The cooperation of the designers of the P UT series is a refreshing brand for consumers, and a fashion kingdom created by UNIQLO with T-shirts is seen. Since then, UNIQLO has entered a period of rapid growth in China. Not only has the number of shops ranking first in this year, but also in the industry. At that time, Pan Ning stood at the front office of the Hong Kong Hui store and pointed to the shop. "I thought the Hong Kong Hui store was quite large, but now it is just a medium-sized shop." 
 Pan Ning explained his affinity with UNIQLO as predestined. Like many Chinese students in Japan, he attended various job fairs near graduation, and he was just a company in offer. "At that time, the enterprise was completely unknown in Tokyo, and in China's words it was a township enterprise." Pan Ning remembers this year's 90s UNIQLO. At the interview, Liu Jing Cheng told him that he wanted to make UNIQLO the world's first fashion brand. Recall that when she was a store manager in Japan, Pan Ning was most impressed by the black apron. At school, he always fantasized about sitting in his office in a suit, but in real life, he was wearing a black apron, and he used the vacuum cleaner in the 500 Ping store to suck from the corner of the left corner to the right side. 
 today, as the president of fast marketing group, the president of China faces thousands of shop expansion targets. He recalled that he had done trivial work in the shop. He thought that all these laid a solid foundation for later management. "Nowadays, as a CEO, the core of the management of UNIQLO is" three principles ". The solution to all problems and all future possibilities are from the scene. The scene is our shop. Pan Ning told reporters that the core competitiveness of UNIQLO. 
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 quality and service 
 new products in China, apart from products, and meticulous service spanplanted from Japan. However, the spanformation is not accomplished overnight. Chinese salespeople can not understand the corporate culture, and it is difficult to carry out the details of the criticize. 
In the overseas expansion plan, P introduced a large number of Japanese managers. These managers were sent overseas to support the local recruits and train them. Nishimura Masami, who came to China in 2008 and now serves as the flagship store of UNIQLO, is one of the expatriates. Nishimura Masa, who joined UNIQLO in 1995, has more than ten years of experience in store operation in Japan before coming to China. Japan's flagship store in Ginza is in its jurisdiction. "We are not directing our employees to do this or not, but to tell him why we should do so, and the educational process is to guide repeatedly." Nishimura Masami explained to reporters how to train shop assistants. 
 this is also inseparable from preciseness and diligence. As Liu well is putting forward the concept of "full staff management", he hopes every UNIQLO employee can think about the problem from the perspective of the operator. 
 taking item as an example, UNIQLO clothing is mostly basic, and the display emphasizes super finishing to highlight the effect of warehouse display. Meticulous to the height of each shelf display, there is a strict uniform standard for each garment displayed on the shelf. Although it is an extremely simple commodity arrangement, UNIQLO also requires the salesmen to do the best. In the early days of opening a shop, the last hour of business is the collation training. At this time, shops are like training grounds, training staff whistle for time, and employees should quickly organize their clothes according to the specifications. Only five clothes in one minute are qualified. Demonic training has made every UNIQLO salesperson a leader in the industry, and a staff member of Muji, a Japanese company, describes UNIQLO employees' obsessive obsession with clothing. 
 XXX group copied the successful experience of UNIQLO to many brands of the group. For example, GU, which has been a great success in Japan. It will debut its overseas debut in the flagship store in Huaihailu Road. GU is a brand that is much higher and cheaper than UNIQLO. 990 yen jeans became a hot topic in the streets of Japan. "Incredible low price" is the marketing strategy of GU. 
It is not easy to guarantee profits on the basis of P. In terms of fabric and sewing, the GU cost is lower than that of UNIQLO. At the same time, it uses the data system of UNIQLO to make a detailed production plan. The method is to gather the data together to predict, for example, which colors and sizes need more, and further adjust the production volume in the sales process. "GU and UNIQLO are the same set of data systems, which can accurately track daily sales data and feedback to the production department. This is the advantage of fast selling. " Yuzuki Ji, executive director and chief executive of GU, told reporters. 
One of the core competitiveness of P is UNIQLO's ability of data analysis. "This is also a major feature of Japanese enterprises." Shen Jun, general manager of Shanghai Rui Yong Enterprise Investment Co., Ltd. said, "UNIQLO performs data tracking every day, immediately observing the data problems, and Chinese enterprises are still unable to achieve them." Shen has been concerned about the Chinese fashion industry for 14 years, and was recommended by uniformed bank when he entered China in 2002. 
 during a visit to NHK documentary, Ryui Seiso repeatedly stressed that when UNIQLO competes with international brands, the key to success lies in its DNA, namely quality and service. Cleverly bypassing chasing fashion Zara and H&M, the quality of products is greatly improved, not only for producing more than several colors for each basic item, but also for developing functional fabric products. This makes UNIQLO more like a technology company to some extent. 
 in the history of UNIQLO, its proud product is probably Heattech. This lightweight thermal underwear sold one hundred million pieces in the autumn and winter of 2011. It is the key work of UNIQLO R & D department to create goods that did not exist according to the potential needs of customers. In Japan, a fabric similar to Heattech has been made into sports underwear for sale only in sporting goods stores, and its shape and texture are not good enough. At this time, UNIQLO seeks to cooperate with textile giant Dongli to overcome technological obstacles, making this professional fabric rapidly applied to mass products. 
 nowadays, Heattech has extended from underwear to men's wear, women's wear, coats and so on. "Continuous improvement of UNIQLO products on material and edition. For example, Heattech used to be plain color until last year. Because printing on Heattech fabrics is a difficult process. " UNIQLO R & D director Sheng Tian Hong Hong told reporters. UNIQLO, which owns three major R & D centers in Tokyo, New York and Shanghai, not only collects first-hand information locally, but also collects raw material information inside factories to determine which fibers and fabrics may become popular trends. 
 Heattech the latest season of women's wear series even adds camellia oil, which is the raw material of cosmetics. In the field of thermal clothing, Heattech is becoming omnipotent. 
 as early as 1998, Liu Jing Zheng visited Maeda Katsunosuke, former president of Dongli company. At that time, UNIQLO was a small company, but Dongli did not refuse to cooperate. Instead, it helped its research and development fabrics, and gradually created many new products such as fleece, Heattech and so on. In 2006, UNIQLO signed a strategic cooperation agreement with Dongli and formally formed the "next generation raw material development team". 
 > at this point, < a href= "http://www.91se91.com/news/index_c.asp >" UNIQLO "/a > practical and popular products have been recognized by the public, but it is still not fashionable enough. Pan Ning explained the brand positioning of UNIQLO as the middle route of daily necessities and fashion clothes. UNIQLO's fashion feature is storytelling, for example, UNIQLO UT always tells customers the story between designers and products or cartoon images through T-shirt. Besides selling goods, UNIQLO also has to sell the information behind the merchandise. In Ryui Masa's view, these have added value. "UT to convey a message is usually a simple and impacting theme. For example, it is unique, very happy, very moving, and there are stories behind it. Katsuda Yukihiro explained to reporters. 
 international journey /p >
 compared with those great clothing companies, UNIQLO is less than 30 years old. In 1984, Ryui Masa took over the family business in his father's hand, and built a small workshop style clothing store into the first UNIQLO Street store located in the mountain pass County of his hometown. 
 in fact, Ryui Masa never concealed ambition. He has expressed in many public occasions that he wants to be the number one in the world, and he repeatedly refers to a series of digital goals. His bottom line is the miracle growth of UNIQLO in the past more than 20 years. In its 2012 earnings report, XXX group created 928 billion yen sales and became the fourth largest apparel retail group in the world, second only to Zara, H&M and GAP brands. 
 for fast fashion, inventory control is very important. "If we compare the inventory of UNIQLO and Zara, Zara is already losing money." Shen explains that this is because Zara, with a small number of routes, has more SKU than UNIQLO. "A pattern is broken, so it can be spanferred from another store quickly. UNIQLO only needs to make a size combination, and it will soon be able to digest inventory. But Zara has different styles, so we have to analyze the reasons why they sell well or not. 
The starvation marketing practice of < < a href= > http://www.91se91.com/news/index_c.asp > > Zara > /a will no longer work when the store expands to a certain extent. Consumers can easily go to other stores to buy their favorite clothes. 
From P's point of view, Shen Jun chose UNIQLO in two different modes of Zara and UNIQLO. "I dare vote for UNIQLO. Because its things are basic necessities, the impact of economic ups and downs is very small, money can be worn without money, and its audience is very large. " Therefore, whether it is a medium-sized store or a flagship store in China, shops can go deep into different properties and neighborhoods, because demand will not disappear with the stylish design. 
 it is said that the Shibuya subway station in Japan is also a small shop with less than 6 Ping. UNIQLO is just like the convenience store in Japan, which is full of people's life at high frequency. It makes people walk around a UNIQLO store in less than ten minutes' walk. 
 with the upgrading of commodity design capability and brand image, UNIQLO implemented large scale stores after 2005 to meet the needs of mass consumers. Although more than 500 Ping Ping stores are below the 200 Ping standard store, in order to gain more brand competitiveness in overseas markets, UNIQLO has had to open flagship stores on busy commercial streets overseas. 
 in Ryui Masa's view, "only when we compete with the international brand in the heartland can we truly live." "At present, UNIQLO has more than 850 stores in Japan, but it still does not make the outside world feel that we are at a critical point." According to Pan Ning, according to the conversion of the land area, there are still huge room for growth in the more than 200 shops in China. 
At the beginning of China's development, UNIQLO will focus its efforts on the first tier cities and some second tier cities. What's valued is the consumption power of these cities and the acceptance of international brands. P Nowadays, "UNIQLO" signs can be seen in 40 cities in China. "With the development of urbanization in China, UNIQLO will pay more attention to the second, three, even four line cities in the future development process." Pan Ning told reporters. 
 over the past ten years, UNIQLO has worked out the law of survival in China. Production in China and consumption in China all respond to the rapid expansion of their stores. They have the unique advantage of sinking two or three line cities. 
Liu Jing is putting forward a talent strategy for the National Grand mobile at a p Japan monthly ceremony. About 3000 Japanese management cadres will be appointed overseas to develop overseas markets. At the same time, the face of 3/4 employees in the future market of UNIQLO will be foreigners. 
 pannin also declares that UNIQLO Chinese employees only need to speak English, and Japanese is not necessary. UNIQLO, like Samsung, has been learning English frenzy within the group. He hoped that UNIQLO would become a truly international company. Ryui Masa's ambition to conquer the world and prudently maintain vigilant attitude is due to his understanding of the new organism of the enterprise. "If we can't grasp the opportunity, the enterprise will only decline." Ryui Masa said, "the most important thing is to survive. I think growth is survival." 
"P" was born with the Japanese economy "lost twenty years", has never earned a quick money of UNIQLO, now rely on the survival instinct constantly fast swallow the Chinese market.