What Is Ryui Masa'S "Ongoing New Plan"?

The total revenue of parent company XXX group in fiscal year 2016 is about 1 trillion and 790 billion yen (115 billion 500 million yuan), an increase of 6.2% over the previous year.

However, both operating profit and net profit declined, operating profit of 127 billion 200 million yen (about 8 billion 200 million yuan), down 22.6% from last year.

Net profit of 48 billion yen (about 3 billion 100 million yuan), down 56.3% over last year.

The group also put forward the highest operating profit target in history. In the 2017 fiscal year, its operating profit is expected to reach 175 billion yen (11 billion 300 million yuan), an increase of 37.5% over the previous year and a net profit target of 100 billion yen (about 6 billion 500 million yuan), an increase of 108.1% over the previous year.

Why is fast selling offering an almost doubled net profit target in the 2016 fiscal year of slow down? Let's analyze the recent work of UNIQLO.

Why did the 2016 fiscal year slow down?

The fast retailing group is divided into the Japanese UNIQLO cause, the overseas UNIQLO business, and the global market.

The three part of the business.

In this financial year, although the income of UNIQLO brand in Japan's domestic market and overseas market increased, the impact of the first half financial year's performance on the whole year's performance is still great.

In the first half of fiscal year 2016, under the influence of warm winter, inadequate marketing of UNIQLO Japanese stores brought inventory backlog and low performance.

UNIQLO's operating profit in the half year has been reduced by 28.3% compared with the same period last year.

In addition, China's Taiwan, Hongkong and South Korean markets are also affected by the warm winter and the economic situation. They are struggling in sales. The US market is dragged down by inventory and closing losses, and the deficit is still expanding.

In the first half of the year, the operating profit of fast selling group decreased 33.8% in the first half of the year compared with the same period last year, and net profit fell by 55.1%.

Because of this, UNIQLO experienced performance pressure.

In the half year, by adjusting the price and inventory strategy and controlling the cost of sales and administrative costs, Japan's domestic business income and operating profit in the second half of this year increased by 48.8% and 38% respectively compared with the same period last year, and the overseas business profit in the second half of this year was 15 times that of the same period last year.

But in the whole year, the final operating profit has fallen by more than 10% in both domestic and overseas markets.

In terms of global brands, the US high-end jeans brand J Brand, which was acquired in 2012, continued to suffer losses, with a loss of 13 billion 800 million yen (about 900 million yuan) in the 2016 fiscal year.

UNIQLO Greater China has a total sales of 332 billion 800 million yen (about 21 billion 500 million yuan), an increase of 9.3% over the previous year.

China's mainland benefited from cost control, and its performance in the second half of this year rose sharply.

Hongkong and Taiwan were affected by the first half of the year, and began to pick up in the fourth quarter.

In the Greater China region, business profits eventually settled at 36 billion 500 million yen (2 billion 400 million yuan), down 5.5% from last year.

Another factor that affects net profit is the appreciation of the yen.

Combined with other data on income and expenses, the XXX group converted from exchange earnings in the first half of the year to exchange losses, resulting in a gap of 68 billion 900 million yen (about 4 billion 500 million yuan) compared with the 2015 fiscal year.

Who is the new star of fast marketing group?

In the 2016 fiscal year, the GU brand with lower price and more catching up trend achieved an increase of more than 30% in terms of sales and operating profit.

The brand, founded in 2006, first opened up popularity with jeans of 990 yen (about 64 yuan).

The growth rate of GU is also very striking in fast selling group. Sales in fiscal year 2014 exceeded 100 billion yen (about 6 billion 500 million yuan), and in fiscal 2016, it reached 187 billion 800 million yen (about 12 billion 100 million yuan).

It is planning to become a second pillar of fast selling group in addition to the brand of UNIQLO.

"In the next 10 years, we will update the brand and the company in an all-round way so that GU will become a company with a revenue of 1 trillion yen (64 billion 600 million yuan)."

GU President Yuzuki Ji said.

He also appeared in this fast marketing group press conference - in the past, only Liu Jing he and CFO Okazaki group were the protagonists of this conference.

By the end of September 2016, GU had 341 stores in Japan and 11 overseas, including 4 shops in Shanghai.

Teak governance plan, in the future growth strategy of GU, will continue to open a large number of high growth strategies in the Japanese market, so that the proportion of revenue from e-commerce channels will be expanded from 5% to 30% of the medium-term plan.

3 years later, the number of overseas stores reached 50, and contributed 10% of sales.

2016 sales and operating profits in fiscal year 30% have increased by more than 30%, and GU is planning to become the second pillar of fast selling group.

What is Ryui Masa's "ongoing new plan"?

"My goal is to create a new industry," said CEO Ryui Masa, a fast marketing group. "We need to commercialize information and create an" information industry retail industry ".

In June 15, 2015, at a news conference with Accenture, Ryui Masa first announced his new vision of Future Ltd.

At that time, he said that the "invisible face customers" should be similar, and the global supply chain management and information system should be unified and fast.

By October 13, 2016, his ideas were clearer and clearer -- a complete subversion of the supply chain of material distribution, painting, design, production and sale, and customer centered, providing the goods they really wanted.

In August 14th, UNIQLO released its first global LifeWear advertising film, asking people what it meant to dress.

Unlike in the past, they did not hand over the ad to a cooperative advertising agency, John, Jay, the global creative director of fast marketing group.

Ryui Masa's plan is that in his goal of "information industry retailing", people will think about their own needs, and UNIQLO can provide consumers with various guidance information and suggestions.

This is also one of the changes that many Japanese retail companies are considering - using big data to analyze customer needs, and then quickly entering the commercialized supply chain.

By analyzing customer purchase behavior, forecasting their demand data, and immediately forming and revising sales plan.

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The key to the implementation of the concept is the Ming logistics center located in Tokyo.

"At present, we are making preparations in turn, and by next spring, there will be quite a lot of things happening."

Ryui Masa said.

Fast marketing group plans to launch 10 logistics centers with the same level as Tokyo in Sapporo, Sendai, Nagoya and Osaka, and has the same plans in overseas markets such as China, Europe and North America.

Next spring, he will put the digital development department on the top floor of the Ming logistics center, which is an office with an area of about 15 thousand square meters. By combining product manufacturing with content team, the new team will undertake important commodity and sales functions.

The electricity supplier is also one of the important growth strategies that will be included in the plan.

A clear growth trend has been reflected in the e-commerce data of UNIQLO in fiscal 2016. In the 2016 fiscal year, UNIQLO's revenue in the Japanese market reached 42 billion 100 million yen (about 2 billion 700 million yuan), an increase of 30.1% over the previous year, accounting for 5.3% of the total sales in the Japanese market.

In the outlook for the 2017 fiscal year, the expected revenue of the entity store is basically flat, but there is an increase of 4 of the expected revenue for the electricity supplier.

For this reason, Ryui Masa asked the electricity supplier to provide customers with more "new shopping experiences", including special services for members, personalized information recommendation based on shopping records, diversified facilitation of settlement and distribution services, upgrading distribution speed, direct fitting of customer sizing orders, and special commodity providers.

His goal is to make the electricity supplier account for 30% of the total revenue in the medium-term plan.

In the description of mid-term goals in 2020, Liujing has set the target of "global No.1 apparel information manufacturing and retailing company" with annual sales of 3 trillion yen (194 billion yuan) and operating profit margin of 15%.