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    Japan'S Fast Growing Giant UNIQLO Has Been In The Cold Spell In The Latest Earnings Season.

    2016/5/20 8:34:00 28

    JapanUNIQLOPerformance

    Poor local market and improper operation strategy are UNIQLO.

    Weak performance

    The main reason.

    As a "fast fashion" representative, UNIQLO will pay attention to whether the price strategy will be adjusted and the pace of expansion will slow down.

    In fact, the profitability of UNIQLO began to slow down in 2015. Meanwhile, the repeated losses in the local market caused a very bad growth or even retrogression in the same store sales.

    UNIQLO's parent company, XXX, released its first half of fiscal year 2015 in April.

    As of February 29, 2016, the net profit of the group declined by 55.1% compared with the same period last year, which was only 47 billion yen (about 2 billion 800 million yuan).

    It is reported that this is the first half year net profit decline in the past 5 years.

    In January this year, winter clothing price promotions and other measures increased sales revenue by 6.5% to 10116 billion yen, but profit margins declined, especially overseas business profits below targets.

    Data show that

    Uniqlo

    In the first half of fiscal year 2015, Japan was still the main market, while overseas market revenue increased by 12.7% compared with the same period last year, but operating profit fell by 31.4% over the same period.

    At the same time, Xun group also lowered its performance expectations for the 2015 fiscal year ending August. The operating profit was reduced from 180 billion yen (about 10 billion 26 million yuan) announced in January this year to 120 billion yen (about 7 billion 152 million yuan), which is 27.01% lower than that of the previous fiscal year.

    Annual net profit is also expected to drop from 110 billion yen to 60 billion yen.

    Liu Jing, chairman and chief executive of Fast Retailing, said in an interview with the media that "since entering the Chinese market for many years, annual growth has been rapid, leading to some deviation in the strategy of the group. Therefore, since last year, the group has adopted a price raising strategy aimed at providing more powerful help for brand growth.

    However, this strategy failed.

    Mention UNIQLO, had to mention its president Liu Jing Zheng.

    Ryui Masa came from "

    Clothing family

    Many relatives run clothing stores in Kyushu or Yamaguchi Prefecture, and his father, Liu Jing, also opened a men's clothing store "small county business" in 1949, mainly selling suits, many customers are looking for decent bank or securities industry.

    Ryui Masa said that UNIQLO would lower its product prices and reactivate the "simple pricing" mechanism recently, and stressed repeatedly that "the price increase in recent years is wrong."

    In the future, we will reduce the number of previous weekend markdowns, and instead use the usual price reduction to restore UNIQLO's leading position in fashion and price.


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