Fast Fashion, UNIQLO, "Encirclement And Suppression" ZARA

Faster than other bottlenecks.

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The horse is in full force and is stepping up global expansion.

Overseas markets are becoming an important driving force for UNIQLO.

In the first three quarters of this year, sales of UNIQLO overseas, including China, surged by 27.5% to 716 billion yen, and operating profits rose 65% to 112 billion 400 million yen.

UNIQLO emphasized in the earnings report that UT series of products are in the

After listing, young consumers were actively sought after, so that the same store sales in the region increased by double digits.

In the Korean market, UNIQLO's performance has benefited from reduced discount efforts, improved store display and marketing initiatives.

The brand's UT series, POLO shirts and shorts also have strong sales in Southeast Asia and Oceania.

After UNIQLO's optimization of product mix and sales plan in the US market, the operating losses in the region have shrunk.

The same store sales also increased in Russia.

Kase So revealed that the Asian and Oceania regions beyond China and Korea will be the potential market with an annual growth rate of about 30%, and plan to increase sales to more than 300 billion yen in the 2022 fiscal year.

UNIQLO had previously been mainly shopping in the local shopping center, but in March this year, UNIQLO opened the first Street store in Southeast Asia for the first time in Thailand.

Set up shop of this type.

In autumn 2018, UNIQLO will open the largest flagship store in Philippines and open its first store in India in the autumn of 2019.

Besides selling classic AIRism underwear and ULTRA LIGHT DOWN down garments, UNIQLO will also introduce clothing that matches local religions and culture, for example.

The brand will be publicized as a closely related Japanese brand.

In addition, UNIQLO will also strengthen its business in the region. It plans to set up e-commerce websites in Indonesia and Philippines, reaching the same level as Japan in terms of product lines and convenience.

It is worth noting that the large-scale shop plan of UNIQLO is in sharp contrast to the current strategy of Zara and other fast fashion brands.

Too many stores are becoming the burden of Zara, which is betting on the more efficient and efficient online market with its "fast" famous fast fashion.

Pablo Isla, chief executive of Inditex group, the Zara parent company, has earlier acknowledged that the strategic adjustment of offline entity stores and the redundant stores that have been closed have certain impact on their performance.

In the first quarter of this year, its parent company Inditex Group recorded an increase of only 2%.

In the first 6 months of this year, the net profit of H&M group, a fast fashion giant in Sweden, dropped by 33% to $800 million. Sales were basically flat compared with the same period last year, and recorded about $12 billion 600 million.

In the trend of fast fashion changing to online, UNIQLO's decision seems unwise.

However, analysts said that UNIQLO did not ignore the expansion of the online market, and was relying on the role of technology to enhance digital competitiveness. The Japanese fast fashion brand is now showing ambition, and the benchmark is the first Zara in fashion.

From the end of 2015, the market competition of fast fashion industry is becoming increasingly fierce.

Even in such a depressed market environment, UNIQLO is still expanding on a large scale.

Last year, UNIQLO opened 77 new stores in the mainland of China.

According to a survey, UNIQLO's "goodwill", "awareness" and "purchase intention" in China all exceed the competitive brands such as H&M.

Some analysts point out that this is the layout of Ryui Masa, the founder of the uniqo, that is to open a store in a certain area, and when the number of stores is up to a certain number, it will stimulate the rise of income. Ryui Masa summed up this experience as "dominance phenomenon".

After opening up barriers across the Internet and realizing full channel retail, UNIQLO will open the core second step of digitalization.

In view of the fact that weather has become one of the key factors affecting the trend of the fashion retailing industry, the fast marketing group of UNIQLO parent company will start the pformation of production and retail based on AI AI.

XXX will formally introduce a mechanism in the year 2018 to forecast the required quantity of goods by analyzing the large numbers of data such as weather and fashion trends by AI.

This will help to avoid producing redundant products and deliver goods that consumers need as soon as possible.

The company will also shift from the traditional private brand professional retailer to the new form of information management.

The demand forecasting mechanism will involve a wide range of objects, including functional underwear AIRism sold in UNIQLO.

Compared with the other two fast fashion giants, UNIQLO grew stronger in 2014 because of the low price strategy. As at the end of February, the sales revenue and operating profit of the XXX group reached the highest level in the same period. The total revenue increased by 16.6% to 1 trillion and 190 billion yen (about 69 billion 900 million yuan), and operating profit rose 30.5% to 170 billion 400 million yen (about 10 billion yuan).

As the world's most famous Japanese apparel brand, UNIQLO is speeding up its overtaking, not only to compete with Zara in terms of electricity and high-tech, but also to further enhance its market position through global expansion and become a fast fashion destroyer.