Ryui Masa, Founder Of UNIQLO, Will Merge GU And UNIQLO.

After abandoning the sales target of 5 trillion yen in 2020, Asia is the largest.

Retailer Fast Retailing Co. Ltd. fast marketing group boss Tadashi Yanai Ryui Masa said that it is not necessary to rely on mergers and acquisitions alone to achieve the target of 3 trillion yen reduction through organic growth.

But he still does not give up the unconquerable American market, and intends to finally build up the brand of the current development momentum.

In addition to the US, he also revealed the possibility of GU and pillar brand Uniqlo.

The merger plan.

These are some of the views expressed by Liu Jing in an interview with reporters on Thursday.

Because of the "nationality" of the media, the topic can not be separated from the US market.

These include Fast Retailing Co. Ltd. XX Group's acquisition of J. Crew Group Inc.'s old news.

Liu Jing is visiting that he is not interested in J. Crew Group Inc..

Admittedly, J. Crew Group Inc. flagship brand J. Crew Crew has been in decline since 2014, so that the Fast Retailing Co. Ltd. fast marketing group in the US market has been muddied.

It is reported that now J. Crew Group Inc. even intends to sell or split up the fast-growing Madewell brand, so that the two fund owners squeeze the biggest remaining value.

The collapse of the merger negotiations in 2014 will surely make Liu well feel that he has escaped a disaster.

Data show that J. Crew brand in the product, positioning, marketing and other strategic direction of a series of errors led to the sale of J. Crew Group Inc. has been down for two consecutive years.

It takes only one hammer to break the signboard, but the road to rebuild the brand has proved to be extremely difficult. It may even not be able to turn over again. Although Uniqlo's UNIQLO has also fallen due to the price increase in 2015, its essence and route is still the consumer's "buying uniforms".

Moreover, the J. Crew J. is also the main market for the US which is now very difficult to manage. Therefore, it is meaningless to talk about J. Crew Group Inc. and Fast Retailing Co. Ltd. fast marketing group.

What's interesting is the intention of the parity brand GU to enter the US.

As Uniqlo UNIQLO faces different resistance in the Japanese mainland, the largest overseas market and China's high hopes for the US market, Fast Retailing Co. Ltd. fast marketing group is making more efforts to develop GU, which will become a more important growth point for the Japanese retail giant.

Ryui Masa, who has always liked to boast of the sea, described the grand blueprint for opening 1000 stores in Japan in the next 10 years for GU, a brand named "liberty" in September this year. The expansion road of GU will start in Asia, where Uniqlo UNIQLO has been successful and has become "Asia first".

After landing in mainland China and Taiwan market, GU will enter two other stores in Hongkong next spring.

More importantly, Yuzuki Ji, chief executive of G.U. Co., Ltd. Osamu Yunoki, said that the helm of the brand will become another pillar of the group in the future. The target of 10 years later is 1 trillion yen income, and the brand's income in the 2016 fiscal year ended August 2016 is 187 billion 800 million yen, the annual rise of 32.7%. It is the best performing brand in the group, and has accounted for more than 10% of the group's revenue, and its operating profit has risen 34.8% to 22 billion 200 million yen simultaneously.

Now, Liu well's plan to set 200 stores and $10 billion in 2020 in the US market a few years ago has apparently failed.

In the US, Uniqlo's new market and new strategy, which has been unable to open up the situation in the US, has been continuously expanding rapidly.

Willow well is still determined to build a firm foothold in the US market in the 2016 Uniqlo autumn and Winter Conference in May. He said he is ready to rebuild this struggling but important market.

Uniqlo, a spokeswoman for UNIQLO, said earlier that it was changing the local strategy to open large stores in big cities where consumers appreciated the quality of products and follow the fashion trend. Ryui Seishushi said that the launch of Donald Trump trump will consolidate the implementation of the strategy.

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In this regard, Tang Xiaotang, founder of No Agency, a consulting and investment institution in the retail industry of luxury goods and clothing, said: "this may be another trick for Ryui Masa."

He said that the expansion of the United States is the most important part of Liu's global plan. Although it is hard to say that it has failed completely, Ryui Masa's original sales target of $10 billion has become a mere empty talk.

Tang Xiaotang believes that if the merger strategy is only to win the US market, then Ryui Masa may again discover his "conceit and arrogance" when he made the US plan.

The reporter has reported many times that Uniqlo UNIQLO and GU are analogous to the American Gap Gap and the old navy of Old Navy.

Ryui Masasai's GU plan to eventually develop into the United States further demonstrates the foresight of this analogy and the deep imitation of Ryui Masa at the beginning of the US group.

As the founder of Uniqlo UNIQLO, Ryui Masahito looked directly at the chief executive of Millard Inc. Drexler, the Millard Inc. Drexler, as its spiritual mentor, and the creation of GU and Millard Drexler were very similar to the Old Navy brand created by Gap Drexler.

Although the Gap Inc. Cape group's performance decline has been fired in the late period, the old navy of Old Navy can be said to be the biggest legacy left by Millard Drexler for the Gap Inc. Cape group.

In the past five years in the Gap Cape brand, the Old Navy Old Navy has been struggling to support it, while the Old Navy veteran navy has surpassed Gap to become the largest brand of the largest clothing group in the United States.

Uniqlo UNIQLO has pformed from a middle-aged sweater brand to a fast fashion brand. It is learning Gap cover kit under the leadership of Millard Drexler. GU can no doubt be regarded as the Old Navy Old Navy of Fast Retailing Co. fast marketing group.

The position of Old Navy is closely related to its low price, especially in the typical market where consumers in the US are increasingly unwilling to pay for non essential items such as costumes or high and medium price.

Look at discount department stores TJX Cos. Inc. (NYSE:TJX) and Ross Stores Inc. (NASDAQ:ROST) and other discount department stores in recent years in the Macy, s Inc. (s), Messi, general merchandise, and other high-end department stores, such as the department store of the "s", "Nord", "Nord" and "steed".

Therefore, as a cheap brand, GU has taken the lead.

And GU and Uniqlo UNIQLO's main functions and innovative products with different basic products, the brand is walking the fashion line.

Cheap and fashionable, did you think of Primark? The brand that entered the US market in late 2015 has achieved initial success. Its parent company Associated British Foods PLC (ABF.L) last week announced that it decided to accelerate the expansion of the brand in the United States to make up for the decline of European sales.

Old Navy's Old Navy and Primark's success in the United States obviously gave Liu Jing Zheng confidence, and cheap is still one of the signs of success of retail brands in any era.

Of course, the interpretation of fashion in Asia, especially Japan, is different from that in Europe and America. In this respect, GU has no precondition for Primark, which is one of the reasons why Uniqlo UNIQLO has been frustrated in the United States. Now it has only 45 stores in the United States.

Tang Xiaotang, founder of No Agency, said that once the merger of Uniqlo and GU, the price of the combined brand can only be equated to GU, while consumers still want their quality to be Uniqlo, that is, the actual "Uniqlo price reduction".

However, Tang Xiaotang said that the current Uniqlo encounter in the US market is not just a price, or rather a price problem. Its recognition and localization are the main reasons for its resistance to expansion in the US market.

In addition, the merger may lead to a price war in the fast fashion industry. At this point, Uniqlo has no advantage over Primark and Old Navy, and the biggest competitiveness of Uniqlo is its basic cost and the price performance of some technology products. Once the price war is started and the quality is sacrificed, the collapse of Uniqlo may be unthinkable.

This year, the 10th anniversary GU has been established in 341 and 11 stores in Japan and abroad. Up to the end of August, the number of overseas stores in 956 stores in the world of Uniqlo and UNIQLO has surpassed the domestic market. The Greater China market occupies a significant proportion.

G.U. Co., Ltd. chief executive Osamu Yunoki Osamu, Japan today publicized the brand's achievements and potential in recent years, and said it would lead the brand to exceed Uniqlo UNIQLO in sales.

In fact, GU has sold 100 billion yen in annual sales in only 8 years, twice as fast as Uniqlo UNIQLO.

After the Greater China region, Osamu Yunoki teak said that GU will accelerate its entry into the Southeast Asian market, including Thailand, Malaysia and Singapore.

With its own GU future growth engine, Liu Jing is also unable to acquire new brands, and is unwilling to spend more effort on integration and training. Fast Retailing Co. Ltd. fast marketing group also does not want to relive the failure of J Brand.

Ryui Seishushi said that there was no need to accelerate growth through large overseas mergers and acquisitions, but he only talked about it on the topic of possible merger between Uniqlo UNIQLO and GU.

The American media's American topic is also inseparable from the US President elect Donald Trump.

As for Trump's election, Ryui Masa's tone was full of indignation. He pointed out that "it is not embarrassing to elect such a person in the United States as president." he added that "people with conscience in the Republican Party" will make greater efforts to ensure that Trump's advocacy will not become a reality.

He pointed out that if the Republican Party did not give up the position of "America first" proposed by trump election, it would be possible to change the US strategy.