Want To Surpass Zara And H&M To Build Up The Chinese Market.

Unintentionally, China is still the largest contribution to UNIQLO profit growth.

。

Recently, the fast selling group of UNIQLO parent company released its first three quarters of fiscal year 2018.

In the first three quarters of May 2018, the sales revenue of XXX group increased by 15.3% to 1 trillion and 700 billion yen (about 100 billion 800 million yuan), operating profit rose 32.3% to 238 billion 800 million yen (about 14 billion 160 million yuan), and net profit rose 23.5% to 148 billion 300 million yen (about 8 billion 790 million yuan).

In the third quarter, the sales revenue of XXX group increased 12.4% to 704 billion 400 million yen (about 14 billion 770 million yuan), and net profit rose 93.1% to 44 billion 100 million yen (about 2 billion 620 million yuan).

UNIQLO revenue data for the first three quarters of fiscal 2018

From a regional perspective, compared to the 7.8% growth in Japanese sales and 29.6% growth in operating profit, sales in overseas markets such as greater China region were more obvious, reaching 23.5%, and operating profits rose 65%.

The report shows that the revenue and profit growth of Greater China (mainland, Hongkong and Taiwan) is higher than that of other overseas markets, and at the same time, it also surpasses the local market of Japan.

China has been the second largest market outside UNIQLO for many years.

。

According to the 2017 fiscal year report of UNIQLO, the Chinese market contributed 70% of the profits of overseas sector for UNIQLO.

In addition to the strong ability of supply chain and rapid product innovation, precision marketing is also an important reason why UNIQLO can harvest the Chinese market.

However, unlike most of the fast fashion brands, UNIQLO rarely deals with celebrity traffic and hot spots, but connects consumers through products and stores to enhance interaction experience.

In product marketing, UNIQLO usually adopts the way of cross linking with designers and international IP to enhance the fashion of products.

For example, in April of this year, UNIQLO launched UT, a superhero series co operating with man Wei, triggering a queuing tide in stores.

In terms of stores, in recent two years, in order to adapt to China's new retail environment, UNIQLO has made many changes in store experience and inventory.

During the Spring Festival this year, UNIQLO launched the "online order, pick up all stores in the country, pick up goods within the fastest 24 hours" service to speed up channel integration, but this needs to greatly enhance the ability to control inventory.

To this end, UNIQLO introduced 500 RFID stores in China to become the first Japanese retailer to use electronic labels worldwide.

Through the RFID technology, UNIQLO can monitor the sales situation of the stores in real time and deploy the commodities in time.

In addition, due to the large volume of orders and uneven regional distribution in China, China has become the first weekly custom accounting system in UNIQLO to prevent inventory accumulation.

。

Through this accounting system, UNIQLO can see the needs and inventory status of different stores with the fastest speed, adjust the category and sales strategy according to the different needs of consumers in different stores, while ensuring the profit is not affected while taking account of the expansion speed.

At present, these changes stimulate sales.

UNIQLO's 2017 fiscal year report shows that during the double eleven Shopping Festival in 2017, the sales of customers brought by self service stores were five times more than eleven of the previous year.

Based on the steady growth of the Chinese market, UNIQLO still plans to open a new store in the gloomy period of fast fashion brands.

In the future, UNIQLO wants to surpass Zara and H&M to become the world's largest clothing chain.

The chairman, President and CEO of its parent company limited has set a new target for Greater China: the number of stores has been expanded to 1000 in 2021, with a turnover of 62 billion 500 million yuan and a profit of 12 billion 500 million yuan.

This means that UNIQLO will open about 100 stores in China every year.