Fast Fashion Brand UNIQLO Will Break Through Europe And Get Rid Of Its Dependence On The Chinese Market.

Actively expanding the overseas market of local accidents can be described as "forced helplessness" of fast selling.

In April of this year,

In the first half of fiscal year 2017, which ended in February, the sales in Japan almost fell into a stagflation state. The performance of 455 billion 100 million yen was only 0.3% higher than that of the same period last year, while the same store sales rose by only 0.1%. The average cost of individual customers dropped by 0.8%.

In Japan, the number of stores in UNIQLO has been around 840 for a long time, so it is hard to expect to increase sales through opening stores.

Fast Retailing plans to make the world's sales reach 3 trillion yen in fiscal year 2020 (up to August 2020).

In the expansion of overseas markets, the pace of fast selling has never slowed down.

In addition to Asia, the company also plans to expand in Europe.

As report goes,

It plans to increase its number of stores in Europe to 100 in 3 years.

At present, the brand has opened about 50 shops in 5 countries including France and Russia.

According to the plan, UNIQLO will open shops in Barcelona, Spain and Milan, Italy.

In addition, UNIQLO has opened flagship stores in Paris and plans to expand the number of stores in Bordeaux and Toulouse.

According to the Japanese media, this is to prevent the company's business from overrelying on the Chinese market.

Data show that in terms of overseas business, UNIQLO's sales in fiscal year 2016 were about 660 billion yen, which has continued to grow, and China's most profitable business has accounted for half of the total.

Another reason may be that in the Chinese market, after several years of expansion, it is still a popular brand, but the growth has slowed down significantly.

In the past fiscal year, UNIQLO sold only 9.3% growth in China, compared with 66.5% and 46.3% in fiscal 2014 and fiscal 2015.

However, UNIQLO may be able to cope with the same cities in China and other countries in Asia.

But it is not easy to develop in a completely different Europe.

UNIQLO also crashed.

In 2001, UNIQLO had a total of 20 stores in the UK, most of them outside London.

But soon after, the company shut down all the shops.

Liu has described the performance of UNIQLO in the UK market as "a tragic start."

In 2004, the company adjusted its strategy to show that it was no longer just a product of "cheap goods and not beautiful products" and returned to the British market.

In addition to the UK, UNIQLO's attention to the United States is not friendly to it. It experienced a series of strategic mistakes in the US market, such as undermarketing, sales channels and so on. From 2015 to 2016, UNIQLO opened 8 stores, but once closed 5 stores.

Although in last year's earnings report, the company did not mention the specific circumstances of the US market, many market participants speculated that the company was still in a state of loss in the US market.

In any case, UNIQLO wants to make a break in Europe.

Europe has countless sizes.

The competition is fierce.

The parent company of ZARA, Spain Inditex group and the parent company of H&M Hennes, Sweden Hennes & amp; Mauritz are also there.

But UNIQLO believes that the demand for high functional commodities is relatively large, so it decides to accelerate the opening of stores.

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