The Valuable Things Of UNIQLO

Here world

The small story of shoe and hat net introduces the way of "change" of UNIQLO: to expand the store by O2O.

Familiarity with e-commerce has not made UNIQLO weaken or discard offline stores, but instead tilts its focus.

Compared with UNIQLO's competitors in China, such as Metersbonwe, GAP and so on, UNIQLO's opening speed appears to be high profile and rapid.

As a young casual wear brand, how can UNIQLO expand so fast in 30 years? How to lay down its own market in the crowded clothing market? How to survive in a depressed economic environment? How can we balance the relationship between offline stores and e-commerce? Are there any potential risks facing the high performing UNIQLO?

Trend: industry trend fast fashion brand against market expansion

E-commerce will break down most of the entity store, which has almost become a kind of thinking setting in the big background, for the good operation of the traditional brand business, the network sales is hot, does not mean the shift of the center of gravity, which is the most representative of the Japanese fast fashion brand uniqo.

The "double 11" brand has already been sold, and UNIQLO has become one of the top leaders. Last year, it also had good results. UNIQLO official flagship store's single day sales exceeded 120 million yuan, totaling more than a million pieces of goods, up by 500% over the same period last year.

Nevertheless, UNIQLO is still accelerating the expansion of shops.

As of August 31, 2013, UNIQLO had more than 325 stores in the Greater China region. UNIQLO plans to open 374 stores in the Greater China region by the end of fiscal year 2014.

There is more than UNIQLO in China.

ZARA and H&M, two of the world's two most popular clothing retailers, have also expanded rapidly in Greater China.

ZARA opened the first store in mainland China in 2006, and H&M entered the Chinese market in the following one or two years. At the end of the 2013 fiscal year, the number of stores in the Greater China area owned by H&M was 205, and ZARA was only 135 in Shanghai.

However, the number of global stores is far higher than that of UNIQLO, H&M is 2936 and ZARA is 2385.

In the year, the sales of UNIQLO China market was about 7 billion 600 million yuan, accounting for 10.96% of the total sales of XXX group, which was more than H&M 30%.

Similarly, UNIQLO has a higher sales growth rate.

In the 2013 fiscal year, sales of XXX group increased by 23.1% over the previous year, much higher than 6.49% of H&M and 2% of ZARA parent Intidex.

However, UNIQLO is not as good as controlling the product cost and improving profitability.

In the 2013 fiscal year, the sales gross margin of ZARA parent company was 59.33%, H&M was 59.14%, while the XXX group's gross profit margin was only 49.34%.

Behind the bright spot is that the O2O of UNIQLO is different from most brands.

UNIQLO, through the promotion of APP, has enabled more and more users to know their brands, enhance their popularity, and promote more users to create a desire.

At the same time, UNIQLO based on the user's geographic location, daily activity and other related data, to provide shop location and rhythm control reference.

It will attract customers to shop in a variety of ways, such as providing location guidelines for the surrounding stores in APP, and the coupon two-dimensional code provided by online APP is specially designed and can only be scanned in the physical store.

It realizes the same price between online and offline, and the users of Tmall stores and physical stores can pform each other, thereby avoiding the impact of online channels, and also achieving online drainage.

UNIQLO will enhance the installation capacity of APP with the help of big promotion.

Promote APP to become a tool to increase customer's consumption viscosity and provide real value discount activities online.

At the same time, do not make special contributions to the network, no membership system, employees do not have the problem of profit distribution these three measures, so that UNIQLO online and offline get better.

Innovation: Innovation of traditional chain store mode

It is the ultimate dream of many retail businesses that every product is sold and not backlog.

By creating disruptive innovations in research, design, production and marketing, UNIQLO created a unique management model.

For example, UNIQLO 70% is the basic form, its inventory is less than other clothing enterprises, the error rate is relatively low, the inventory pressure is very light.

However, UNIQLO has carried out in-depth development for each item. A single product is often divided into round collar, V collar, full coverage of men, women and children, especially in terms of color. Each species has four or five colors.

More importantly, because the style is simple, the consumers are more comprehensive, rather than confined to certain groups of people, thus forming a larger market scale.

UNIQLO has thousands of stores around the world, and the situation of each store may be different. For example, it is hot enough to wear shorts in Guangzhou, but northeast may still sell cotton padded clothes.

In this regard, UNIQLO's management and control means, CEO Ryui Masa, a fast selling group, totally negated the traditional chain store mode of "headquarters decision, branch obedience", and the store manager was given great power to sink power.

They call the headquarters "support center", according to the different regions and different types of shops to set business objectives, the store manager can decide and adjust the order quantity according to the location and source of the store, and can also make independent decisions based on the display of goods, the way of store operation and the contents of advertising leaflets.

However, we must obey the regulation of the regional and headquarters.

The manager is also entrusted with the responsibility of taking the responsibility of selling the store as his own company and being responsible for the sales and inventory of the store.

It is Ryui Matsushi's request from every UNIQLO manager to "manage his own store like an independent and self respecting businessman."

Last June, Cheng Xue became a reserve manager of UNIQLO through school enrollment and was assigned to Shijiazhuang.

As a quasi store manager, in addition to folding clothes and greeting, she has to learn how to adjust and decide the order quantity according to the location and source level of the store, and how to plan the display of goods, the scale of store operation, the printing of advertising leaflets, etc.

"Zhou" is the basic unit of UNIQLO management cycle.

On the 7 day, anything can happen in UNIQLO. According to the weekly data, the store manager decides to increase the production of a pair of shorts S code, stop the production of a T-shirt yellow color, or even remove a coat pocket on the left chest, or introduce a lady's coat for a man's coat.

These large or minor adjustments are based on the consumer's response to the product.

"For example, I think this year's product is not very good, and how to do it next time," or "I think your May 1 promotion campaign may not be in place, it should be done three days in advance" and so on, and the response time usually does not exceed one week.

This means that every store can adjust its business plan next week according to its sales situation. The factory can quickly adjust the quantity of production, and the design department can quickly reflect the customer's reaction to the next stage of the commodity plan.

This weekly management cycle is the secret of UNIQLO's realization of zero inventory. It is also the idea of fast selling in its own name -- rapid sales.

{page_break}

Big data monitoring support product pricing

It sells 79 yuan UT in summer, 499 yuan in winter, and a 299 yuan fleece jacket in spring and autumn.

The strategy behind UNIQLO pricing comes from the capacity building of big data monitoring.

By collecting all the sales data of every day, every color, every yard and every shop, UNIQLO has formed a huge database.

Through real-time monitoring and analysis of sales data, the production volume is adjusted and the marketing plan is adjusted.

Take marketing strategy as an example, UNIQLO analyzes and makes decisions based on the data collected.

They divide clothing prices into two categories, one is the initial price.

The price should take into account the gross margin of the commodity and the price and sales of similar commodities.

Take the light down garment as an example, first we should calculate a price that reaches the basic profit level according to the manufacturing cost and all kinds of expenses, and then make a floating adjustment according to the price of the down garment in the past few quarters.

For example, last year sold 499 yuan, sales volume is very high or even sell goods, this year can consider raising the price appropriately, on the contrary, it is necessary to moderately reduce the selling price.

The other price is the price after the price is cut.

There are two kinds of clothing price reduction in UNIQLO, one is "time limit and the other is excellent" and the other is "changing the selling price".

"Time limited and excellent" means that the selling price of a commodity will be reduced by 20-50 yuan within a specified period, such as a week, and the price will be adjusted back to the original price after the expiration.

The aim is to increase consumer's attention to the product and attract consumers to buy other styles of clothing, which is basically a way to attract customers.

The "change price" is aimed at those products with poor long-term sales and consumer response. It is necessary to revalue the price tag, which means that the original price will not be adjusted again.

Changing the selling price is mainly for clearing inventory in time.

UNIQLO has opened shops and sales in 16 countries and regions around the world, but the pricing of garments in different countries is not uniform, and behind it is still supported by data analysis.

Take the same women's color shorts as an example. The initial listing price in Japan is 1896 yen plus 8% consumption tax, which is about 125 yuan.

The initial price of the shorts in Thailand is about 152 yuan (the price below refers to the RMB price converted after the initial listing price). The UK is 159 yuan, Hongkong Macao is 160 yuan, France is 168 yuan, Indonesia is 175 yuan, Korea is 184 yuan, China is the most expensive, it is 199 yuan, Russia is the cheapest and 90 yuan.

This price difference should not only consider the local economic development level, price level, but also consider the local natural environment and consumer preferences for clothing.

For example, because of the relatively high latitude and relatively low temperature in the UK, shorts are cheaper than China, but the down vest may be more expensive than China.

Tao: ask the way forward and persist in the reform and innovation of Chen Honghui.

The fierce competition in the clothing industry is well known.

It is not easy to settle down and occupy a place in this red sea. It is very impressive to build famous brands and develop rapidly in the international clothing market with strong hands.

After 30 years of creation, UNIQLO has won the throne of the world's fourth largest SPA clothing retailer.

In my view, the essence of UNIQLO's success lies in its constant commitment to innovation and persistence.