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    UNIQLO'S "Waterloo" Is No Exception.

    2016/7/20 9:08:00 35

    UNIQLOFast FashionBrand Strategy

    The profit in the first 9 months of UNIQLO's parent sales group plummeted by 46.4%. As the main brand, UNIQLO increased its income both in Japan and abroad, but its profits were dropping.

    Coincidentally, H&M, ZARA and other fast fashion apparel entered the Chinese market in a strong way, quickly occupied the market share, but also encountered the "Waterloo", which was repeatedly troubled by the quality of the negative reports.

    And Baleno, Metersbonwe, JEANSWEST and other traditional clothing brands that have grown up with the growth of 80's are hard to trace again. Closing stores and declining performance have become the common keywords of these leisure brands in recent years: the number of franchised stores is decreasing; the area of counters is constantly shrinking; the discount sales in stores are also endless.

    The reports about these brands are also sad: "decline", "loss", "glory no longer" and so on.

    The fast fashion group of Japan's fast fashion UNIQLO group announced today's sales figures for the first three quarters of the year ended May. During the period, the group's sales revenue rose by 6.4% to $12 billion 480 million, but pre tax profits fell sharply by 46.4% to 617 million dollars, and business profits fell 23% to 1 billion 270 million dollars.

    After releasing the sales figures for the first half of the year, the group decided to

    Uniqlo

    The products were sharply reduced to attract consumption and boost sales, but sales figures in the previous September were reminding the group that a sharp reduction in sales would not be of much benefit to the increase in profits.

    The fast retailing group said that UNIQLO will reintroduce its simple pricing mechanism. The price rise mechanism in the past two years has made UNIQLO's fast fashion brand lose the price advantage in the market competition, resulting in consumers having difficulty in accepting and turning to other brands. The group hopes to restore consumers' favor with the previous simple pricing mechanism.

    In addition, the group also hopes that the sales volume of the network channel will increase to 30% of the total sales in the future, and is actively carrying out the pformation of the logistics distribution system, and plans to open new logistics centers in other parts of Japan, as well as overseas locations such as the United States and China.

    In the fast fashion camp, it is not only UNIQLO that proposes to reduce the price to reverse the situation. The Swedish fast fashion H&M group also said it would follow the market development trend to further adjust the price and return to the strategic position of "affordable fast fashion" to win the favor of consumers. Even so, it is hard to say that it can save the declining trend.

    One of the reasons why fast fashion can win is that its price is low, but the low price often corresponds to the quality of worry.

    ZARA, H&M, etc.

    Fast fashion

    In recent years, the brand has repeatedly boarded the list of quality blacklists, which is a frequent visitor on the blacklist of the industrial and commercial and quality supervision departments.

    Facing the increasingly fierce market competition, fast fashion is to ensure "close to the people".

    Price

    In order to maintain the consumer's brand popularity and strive for greater profit space with the advantage of continuous low price, we can only take the helplessness of compressing the cost.

    In order to ensure their meager profits, the order generation industry and commerce can further reduce the cost, and the quality crisis caused by cost reduction is easy to highlight in this link. It is not surprising that ZARA, H&M, GAP and other brands have repeatedly cracked the quality crisis.

    In addition, most of the fast fashion brands locate their products in affordable fashion, so designers must maintain very high fashion sensitivity and quick market response. Under such extreme pressure, designers are often trapped in inspiration and can only imitate, plagiarize and borrow large design elements.

    This will ensure that fashion is designed to attract more consumers to blindly consume with the luxury of gimmick, but fast fashion brands will also pay high fines for top brands.

    The more serious consequence is that the fast fashion brand lacks the unique original design and lacks the building of the brand soul. With the unique and irreplaceable market appeal, the weak design makes the fast fashion brand development stamina insufficient.


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