UNIQLO Crossover Marketing Brings Consumers Back To The Physical Store

The cross-border marketing of brands is becoming more and more diversified.

According to the world clothing shoes and hats net, in the early August,

Announces the opening of exclusive radio on Tencent QQ music, and claims that this cooperation is "through 6 different life scenarios, to provide a wealth of beautiful clothes to wear scenes, combined with music appreciation experience."

Consumers can scan the two-dimensional code of the radio music in all stores in UNIQLO, and experience the recommendation of the exclusive scene song sheet and clothing, "bringing the new retail shopping fun of figures, retail, social interaction".

The combination of music and clothing sounds a bit far fetched, explains Wu Pinhui, CMO of Greater China in UNIQLO, in an interview with reporters. "Consumers choose uniforms in UNIQLO, which may need to go to sports and watch exhibitions. He can also experience music in different scenes at music radio, and better integrate the experience of clothing, music and scenes."

Based on the music big data and crowd insight, Hou Deyang, vice president of Tencent Music Entertainment Group, said that QQ music summed up the music demand of 3 new middle class people: the pursuit of film and television original sound; the emphasis on quality; 42% users had downloaded high quality and lossless music; and enthusiasts, on average, used running stations 2.5 times a week.

"Now users are not satisfied with simple recommendation and search, but will pay for music quality and intimate service, and begin to enter the personalized recommendation stage."

For UNIQLO and QQ music cooperation, Hou Deyang hopes to make music more visualized and more sense of scene through clothing, "let consumers feel the brand attitude, thereby increasing consumer stickiness."

Cross boundary marketing is used to UNIQLO, from authorization,

Joint name, titled logo to vigorously promote the electricity supplier, continuous investment and exploration at the digital marketing level has brought more benefits to UNIQLO.

At the same time, in the increasingly mature online shopping environment, clothing retail entities continue to emphasize the importance of physical channels.

In July, UNIQLO launched the "intelligent buyer", launching online shopping and self promotion in hundreds of stores nationwide, bringing more consumers back to the store.

Continuously strong digital marketing

Over the past decades, China's clothing market has experienced two digit growth, surpassing the United States as the world's largest clothing market, and its market value is close to 300 billion US dollars.

According to the CEO viewpoint 2017 released by JDA and PwC, a supply chain software vendor, the pformation of retail industry (China) shows that the digital pformation strategy is the top priority of the respondents in 2017.

78% of Chinese retail executives said they will continue to invest more in digital pformation next year.

Internet of things, big data, robots (20.490, -0.06, -0.29%) and AR are the key directions for CEO to invest next year.

"China's CEO investment in digital pformation is 11% more than that of other countries that made the same statement," CEO said.

JDA Patrick Viney, vice president of retail strategy in the Asia Pacific region, adds, "but how to really satisfy consumer needs, many enterprises and CEO do not have a clear idea."

On the other hand, the European enterprise management consulting recently released a report that local clothing brands' investment in digital marketing is far less than that of foreign companies.

In the past ten years, the brand position of Chinese clothing has been challenged and the market share has been continuously eroded because of the continuous entry of foreign brands.

Among the top 60 brands in China, the share of Chinese brands dropped to 59% in 2016, down from 64% in 2011.

The leading industry leaders are international brands, such as UNIQLO, Adidas and JACK&JONES, which occupy three of the top five.

Zhuang Chunjie, partner of the Greater China business management consulting firm, said: "the clothing market (especially women's clothing) of the age group of 20 to 30 years old is fiercely competitive. Some foreign garment manufacturers have invested significantly in marketing. Chinese companies are a little cautious. Some brands invest less in marketing than 2%-3% in the net sales (such as La Natsu Bell and Hai Lan's home (9.260, -0.01, -0.11%)".

UNIQLO has obviously benefited a lot in this regard.

According to the September 2016 -2017 May earnings report released by UNIQLO parent company, the overseas market is still the biggest highlight of earnings.

Fast sales and operating profits were 1 trillion and 480 billion yen and 180 billion 618 million yen, up 3% and 23.9% compared to the same period last year, while sales and profits in overseas markets increased by 5.4% and 61.3% respectively.

In the 2016 fiscal year, UNIQLO's operating profit in the second half of fiscal year increased by 38% compared with the same period last year, and the sales volume of e-commerce increased by 30.1%. Due to the excellent business performance in Greater China, Southeast Asia, Oceania and Europe, UNIQLO's international profit in the second half of the fiscal year rebounded strongly.

Ryui Masa, chairman and President of fast marketing group, said that it planned to carry out the "digital flagship store", combine the entity store with the electricity supplier, provide more new services for the customers, and continue to strengthen globalization and digitalization. "Further developing the electricity supplier will make the sales of the channel account for 30% of the total."

At present, the electricity supplier accounts for 5%-10% in all markets. "

In the selection of partners, "mainly considering the concept and quality requirements of enterprises, we prefer to make products and experience to extend the scene.

We want to make UNIQLO become a brand for all people, from 6 to 60 years old, from birth to old age.

Wu Pinhui said.

Physical retail return

Channels, compared with the previous years, the boundaries of online and offline are constantly blurring. Business owners no longer pursue online or e-commerce input. They want to "pull back" the store and retain the habit of visiting the store.

"I still care about physical retailing."

Zhou Chengjian, founder of the 3.820, -0.01, -0.26%, said that it will continue to adjust the layout of the channel, not only in the second tier cities, but also in the three to five tier cities, and gradually push to new retail channels such as shopping centers.

Zhou Chengjian said that at present, the revenues of the US bond online include about 15%-20%, including the state purchase, Jingdong, Tmall, vip.com and other platforms.

But the next line will certainly get better and better. This is based on the data and visits of all parties.

In the past, the United States and the United States invested heavily in online business, but did not integrate the new business environment according to the changes in the city, the business environment and the change of consumers' form.

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A few years ago, "Internet +" and the electricity supplier trend hit retail sales. Smith Barney launched the Internet platform such as state purchase, fan and so on. It has the layout in O2O, Cloud Gate store and big data application, but these investments did not improve their performance.

In the past few years, the pformation strategy of Smith Barney has been controversial.

In 2015, earnings fell sharply, and losses exceeded 431 million. In 2016, revenue exceeded 6 billion 500 million, while the same period increased by 3.56%. But in 2017, the revenue in the first quarter decreased sharply, and it closed at 1 billion 674 million yuan, down 12.89% from the same period last year. Net profit was 28 million 935 thousand yuan, down 43.68% compared to the same period last year. Net profit loss attributable to shareholders of Listed Companies in 2016 was 60 million 190 thousand and 800 yuan, and the net profit in the first half of this year was expected to be $10 million.

Zhou Chengjian told reporters, "before 2005, the supply chain efficiency of the United States was very good. Later, it was led by various strategic consultations, and all of the franchised and wholesale modes came together, squeezing stocks and squeezing them in."

In 2012, Smith Barney had 5220 stores at its peak, and now there are nearly 4000 retail terminals.

Before and after 2012, the emergence of foreign fast fashion brands and the rise of electric providers brought double impacts.

The United States is also a microcosm of the current garment industry, and other brands such as YISHION, Semir, Baleno, JEANSWEST, Giordano and so on are struggling in the quagmire of pformation.

Zhou Chengjian said, "today, the popularity of US bond is not as good as that of foreign fashion brands ZARA, UNIQLO and Muji.

But by providing a diversified lifestyle and a one-stop shopping experience, the United States still has the opportunity to go beyond UNIQLO.

Looking at the development of foreign brands in China in recent years, Zhou Chengjian thinks that the high cost performance of UNIQLO is based on its advantages in category depth.

What Zhou Chengjian wants is to have a little more attitude than the basic, more interesting on the price ratio, "to strengthen the advantages of style, and to continue to dig in the depth of the category."

"UNIQLO attaches great importance to the experience and service of physical stores."

Wu Pinhui said that there are nearly 550 stores in China's UNIQLO and an annual increase of 80-100. "We spend a lot of energy and money to understand social trends and insights.

China's Internet changes are more challenging, but the core remains unchanged.

Consumers must have better added value to store stores.

We have done a lot of extensions online. When everyone is fighting for the double eleven ranking, UNIQLO is more leading more people to offline stores.

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