Can Not Grasp The Users, Can They Be Born Again?

Brand supremacy is dead, how to reconstruct consumer trust?

Consumer

The brand is facing great difficulties, but this does not mean that the brand has no value, but because many brand operators have not yet realized the challenges brought by the "interactive" market environment to the brand.

In the current market environment, consumers interact rather than blindly follow advertisements. The information that consumers are holding can be quickly plated into action, not just in the mind.

Those that once looked great.

They began to walk down the altar, their performance declined, and even began to withdraw.

In the era of consumption upgrading, their pformation is imperative.

According to the world clothing shoes and hats net, in October 2016,

The parent company, XXX group, released its 2016 financial year report, with a post tax profit of 127 billion 200 million yen, down 22.6% from last year.

In addition, UNIQLO has seen varying degrees of decline in the global market.

Among them, UNIQLO Japanese market profit after tax fell 12.6%, UNIQLO China's performance is also declining.

In fact, in this fast fashion brand, the 2016 performance decline is not just UNIQLO, H&M performance is also declining.

And Metersbonwe, which has always been "not taking the unusual road", is from 1 billion yuan to a huge loss.

According to the world clothing shoes and hats net, from 2012 to 2015, Smith Barney's clothing business income continued to fall for four years, 9 billion 509 million yuan, 7 billion 889 million yuan, 6 billion 620 million yuan and 6 billion 295 million yuan respectively.

In 2015, the net profit attributable to shareholders of listed companies was -4.31 billion yuan, the first loss in Listing 7 years, and the number of stores dropped by more than 1500.

In the first half of this year, the net profit loss of American Apparel is still over 60 million yuan.

Lack of user thinking and source of performance decline

UNIQLO attributed the decline in profits to "being affected by the exchange rate, resulting in the exchange loss caused by the appreciation of the yen".

In fact, the profitability of UNIQLO has slowed down since 2015, and the failure of the Japanese domestic market has made the same store sales growth extremely bad or even retrogressive.

Since 2014, UNIQLO has adopted a price increase strategy to deal with the depreciation of the Japanese yen.

From 2014 to 2015, UNIQLO increased its price for two consecutive times.

Although this did fight against the depreciation of the Japanese yen, it also brought a fatal blow, a decline in passenger traffic.

The decline of China's performance has a deeper reason.

An industry insider said that the decline of UNIQLO's performance was not only affected by the price increase, but the update rate of UNIQLO brand style was low, and fabric leather was not strong, which led to a low probability of repeated consumer consumption.

Faced with the same situation, there are also Metersbonwe.

In 2014, Metersbonwe founder Zhou Chengjian, who was deeply involved in various contradictions, once admitted that in the age of "channel is king", clothing enterprises will open shop by spending money to smash channels, and now it is the age of "users are king", and they become spending money to "smash" users.

In order to move closer to users, Metersbonwe began to test the water e-business difficultly and began to reduce channel operation.

At its peak, Metersbonwe had more than 5000 stores, but it closed nearly 1500 stores in three years.

Metersbonwe, the biggest flagship store in Beijing, was once closed by Metersbonwe.

One industry insider said that the decline in Metersbonwe's performance was mainly due to the impact of the international fast fashion brands and the relative lag in the implementation of Metersbonwe's internal pformation.

UNIQLO and Metersbonwe, which have always been in the thinking of enterprises, have not changed the way of thinking to users. No matter what UNIQLO's "simple and not simple" brand concept, or Metersbonwe's "do not take the unusual road", they are exporting values to users instead of understanding the real style design needs to users.

Enterprise thinking is difficult to change to real user thinking. It is the biggest challenge they face in the new retail era.

Building a good medicine for business is good for disease.

The continuous price adjustment strategy did not bring the actual profit to UNIQLO, but made UNIQLO miserable.

In this regard, the 2016 earnings report gave UNIQLO a good slap in the face of the idea of maintaining performance through price increases.

Facing the pressure of performance, Xun group lowered its sales target in 2020 to 3 trillion (about 30 billion US dollars) yen, and in 2012, when the first target was set in 2020, the figure was 5 trillion yen.

In an interview with the media, CEO Ryui Masa, a fast selling group, admitted that it was wrong to adopt the price increase strategy, and the price adjustment would be carried out around the world in order to improve its performance.

At the same time, UNIQLO is also conducting online and offline joint business.

UNIQLO said that it is constantly striving to achieve online consumer interaction and pformation, encouraging consumers to take an active part in online and offline interaction, and improving the overall fan base in the online ecosystem of UNIQLO, so as to realize the O2O fans economy.

Before the "double eleven", UNIQLO launched the "double eleven consumer expectation" survey in 2016 through the company of the company. The conclusion is that the simultaneous discount and the increase of the receiving speed are the conclusions of most consumers.

In response to the needs of consumers, UNIQLO has formulated the "new retail experience economy strategy" in the "double eleven", with multiple stores preferential policies, such as online and offline selected commodity synchronization offers, self mentioning stores and Alipay's "surprise", so that users can feel that the innovation service of UNIQLO is upgrading.

Although UNIQLO achieved an increase of nearly 50% in sales in the Greater China region in the fiscal year 2014/2015, the "double eleven" in the past two years has always been among the top clothing categories, but the brand has shown signs of a slowdown in the 2015/2016 fiscal year.

The report shows that the profit margin of Greater China has fallen by 5.5%.

UNIQLO responsible person said that the trend of the market and the needs of customers is UNIQLO must consider, so UNIQLO will choose to conform to the market trend, customer demand, and the marketing concept and brand positioning to maximize the co integration.

Metersbonwe, while shutting down shop, is also testing water O2O.

However, Metersbonwe's test water does not seem to be so successful.

In 2010, Metersbonwe's state purchase network was formally launched. As of now, the voice of Bong seems to have disappeared.

As many traditional costumes appear unacclimatized in the initial test of electricity supplier, the new style of Metersbonwe's new measures has not been effective because of the difficulty in coordinating the styles, prices and even discount activities on different channels.

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Unable to catch up with users, can they reborn in Nirvana?

In order to eliminate the haze brought by rising prices to UNIQLO, UNIQLO began to reshape its brand and reemphasize its brand concept.

Uniqo said, will always uphold the "LifeWear suit life" brand concept, with a simple style, superior quality and classic taste for the consumer to provide clothing for daily wear, and in the service and consumer experience in the continuous innovation, create a consumer centered experience economy.

Still remain in this enterprise thinking, not to really understand user needs of UNIQLO, can really achieve its expected sales target, we need to wait and see.

UNIQLO also said that "globalization" and "digitalization" will be the direction of development in the future.

UNIQLO will collect and analyze commodity trends around the world through the commodity design center (R&D), further enhance the capacity of commodity development, and strengthen the combination of commodity composition to reduce the impact of climate change.

Meanwhile, UNIQLO first placed its expectations on overseas markets.

"The number of overseas UNIQLO stores surpassed Japan in November last year. We expect that the proceeds from overseas UNIQLO will exceed Japan's UNIQLO next year or next year," its official said.

The official also said that UNIQLO will use the Internet to achieve digital innovation, linking planning, production, logistics, sales and other links, creating new industries, changing consumption patterns, and providing consumers with more convenience and comfort.

If UNIQLO's business is successful, then Metersbonwe's e-commerce business is not perfect.

It has not changed the performance of the United States continuous losses. Zhou Chengjian has handed the sceptre to his next generation, hoping that the next generation can inject new blood into Metersbonwe.

In the evening of November 21st, the parent company of Metersbonwe, Metersbonwe, announced that its chairman and President Zhou Chengjian had submitted a resignation report and resigned from the company's chairman, director and board members, and the position of president of the company.

Zhou Chengjian will not hold any post in the company after his resignation.

Zhou Chengjian's eldest daughter, Hu Jia Jia, 30, will take over as chairman and CEO of the company.

A source close to Metersbonwe revealed that Zhou Chengjian resigned as chairman and CEO of the listed company, but still acted as the chairman and President of Huafu holding company of the holding company.

Zhou Chengjian has made poor decisions in recent years, plus some negative rumors, so that his daughter will be more suitable to host.

In recent years, the reforms in the US state have been mostly partial marketing, and they have not been determined to land on the basis of their failure to make progress.

After all, Zhou Chengjian is a fashion industry. He represents a traditional businessman.

In the recent Zhejiang business conference, Zhou also told former subordinates that the spirit of Zhejiang businessmen should be handed over to the next generation.

I hope this young returnee successor can bring new experience to Metersbonwe.

More interesting reports, please pay attention to the world clothing shoes and hats net.