The Transformation Of Fast Fashion Brand UNIQLO O2O: Adverse Market Expansion

The electricity supplier will destroy most of the physical stores. This has almost become a stereotyped thinking background. For the benign brand operators, the hot sales of the network does not mean the shift of the focus. This is the most typical example of Japan's fast fashion brand UNIQLO.

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 Uniqlo O2O and most brand It's different.

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 users in many ways. Physical store Shopping, for example, provides location guidelines for peripheral stores in APP, and the coupon two-dimensional code provided by online APP is specially designed and can only be scanned in physical stores. It realizes the same price between online and offline, and the users of Tmall stores and physical stores can transform 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.