Japan'S UNIQLO Caused A Serious Loss Of Tourists Due To Price Increases

According to Japan, Japan

The increase in prices has led to serious loss of tourist resources.

Although it was later announced that the original price was repatriated, there was no sign of return to the competitor's customers.

What is the action of UNIQLO now in distress? The author and store consultant Misaki Sato Shoji, who is a shop operator's booming shop, talks about retail, catering and service industries, has analyzed the doldrums caused by the rise in prices of UNIQLO. This time, he will analyze the operation of V again, and make suggestions on how to achieve the restoration of the word "Yi".

Reasons for the failure of UNIQLO's rise in price

Japan

According to the sales data of the first three quarters (9-5 months) ending in the end of May, the Sales Department of UNIQLO parent company XXX group released sales figures in July 14th, and the sales volume was 1 trillion and 430 billion yen (91 billion 100 million yuan), up 6.4% compared with the same period last year. Operating profit fell 23% to 145 billion 800 million yen (9 billion 260 million yuan), and the parent company's profit fell by 46.4% to 71 billion yen (about 4 billion 500 million yuan) this quarter.

UNIQLO presents an increase in revenue and a decrease in profits.

Although sales increased, profits fell sharply.

The decrease in earnings is due to the appreciation of the yen, resulting in a difference of 6 billion 700 million yen (about 430 million yuan) and 23 billion 400 million yen (about 1 billion 500 million yuan) in the exchange of financial expenses.

At the beginning of the month, the exchange rate was about 1 US dollars to about 121 yen, and at the end of May, it was about 1 yen for about 111 yen.

Among the three branches, GU is the main global.

Business revenue and profit grew by double, while Japanese UNIQLO and overseas UNIQLO business revenue increased, but profits declined.

UNIQLO operates poorly in Japan

The performance of UNIQLO business in Japan in the third quarter of 2016 was as follows: sales increased by 1.1% to 645 billion 400 million yen (about 39 billion 700 million yuan), and operating profit fell 18.1% to 93 billion 200 million yen (about 5 billion 900 million yuan).

Operating profits have been sharply reduced.

The average price of goods in autumn and winter in 2014 was 5%, and the average price rise of commodities in 2015 was 10%.

In the first three quarters of 2016, the total number of customers decreased by 6.3% and 3-5 months by 6.1%.

In June, the number of customers decreased by 3.6%, but there was no recovery.

Even if customers are reduced due to price increases, there will be no problem if the unit price increases and sales increase.

But the reduction in customers is the problem.

First of all, once customers are lost, it is hard to return.

Although the price rises failed and the original price was restored, many consumers did not know it.

It is not surprising that consumers who hate high priced goods after the price rise have lost to competitors such as island village.

It is conceivable that consumers who know the benefits of competitors will no longer return to UNIQLO.

Another problem is the low purchase rate.

The number of customers is derived from the number of customers coming to the shop and the purchase rate.

Customer reduction is due to reduced customers or low purchase rate, or both.

The low purchase rate means that the ratio of customers who do not buy things even increases.

It may be that the high price leads to an increase in the number of customers who do not buy things.

The reason why the low purchase rate is a problem is that customers who do not shop easily cause crowded stores and confusion at counters.

As a result, a lot of manpower is needed to renovate the mess counters.

Of course, personnel costs will increase.

For the above reasons, the reduction of customers due to low purchase rate will lead to an increase in personnel costs.

In addition, if the price increases can not be sold, it is necessary to reduce the price, so it will be useless to change the selling price.

And this job also requires personnel costs.

Containment costs increase to curb business

The data reflect the truth.

The personal cost of Japanese UNIQLO business in the first three quarters of 2016 was 44 billion 100 million yen (2 billion 800 million yuan), an increase of 3 billion 100 million yen (190 million yuan) compared with the same period last year.

From 2016 to May, personnel costs in the 3 to May sales decreased by only a year earlier.

Japan's UNIQLO business has increased the rate of sales charges due to the increase in personnel costs.

Therefore, UNIQLO will curb the weekend's Limited sales, explore and pfer to the EDLP (price strategy for low price goods sold throughout the year), control personnel costs and advertising expenses.

In addition, Tokyo has opened the country's largest multifunctional logistics stronghold as a special warehouse.

The aim is to reduce the shortage in stores by increasing the frequency of distribution to stores, and to achieve efficient operation of stores by reducing stock storage.

CFO, chief executive of XXX group, mentioned in the final accounts meeting that we had begun to distribute the shops in the capital circle for the Ming logistics center.

On the distribution of e-commerce, the answer is "basically second days service is the premise, from the autumn and winter commercial competition began to operate formally.

The area can be served on that day. "

The increase in the rate of sales leads to a decline in operating interest rates.

UNIQLO needs to raise sales by recapturing customers who have lost their price hikes, as well as constantly reducing costs such as cost of sales.

The most urgent task is to restore the credibility that has been damaged because of rising prices.