Why Are The Key Products Of UNIQLO Sold In Japan?

According to the world clothing shoes and hats net,

The parent company announces the first quarter of 2018/2019 fiscal year (September 2018 ~2018 November).

This quarter's fast sales revenue was 6444.66 billion yen, an increase of 4.45% over the same period, and net profit of 73 billion 476 million yen, down 6.45% from the same period last year.

Japan

Slow down sales.

UNIQLO Japan's revenue fell 4.3%, to 246 billion 100 million yen; operating profit fell 29.9%, to 37 billion 900 million yen.

Last quarter of autumn and winter (9~11 months) both earnings and profits declined from 3 years ago (2015/2016 fiscal year).

UNIQLO's local same store sales (year-on-year sales for more than one year) also dropped by 4.3%.

It is explained that this is due to the warmer weather in Japan in October and 11, and some major winter products (including down garments, sweaters and thermal underwear "HEATTECH") are unsalable.

"There is also a problem in the autumn and winter commodity structure that focuses on cold prevention," said CFO, Okazaki chief executive, at a press conference.

In an interview with "Japan economic news", the relevant persons of Fast Retailing express that UNIQLO lacks new explosions. "Recently, no new products have been released."

In addition, because of the depreciation of the Japanese yen, the cost rate has increased.

Warehouse automation and increased administrative expenses also led to a decline in profits.

The good news comes from the international market.

Overseas market performance increased 12.8% to 291 billion 300 million yen in the first quarter, and operating profit increased 12.6% to 525 billion yen.

The sales volume of the Greater China region (including Mainland China, Hongkong and Taiwan) is 1348 yen billion yen.

UNIQLO's sales in mainland China are still strong, and its sales and operating profit both have double-digit growth.

UNIQLO has more than 660 stores in mainland China.

UNIQLO has achieved double growth in revenues and profits in Southeast Asia, Europe and the United States.

Profits in the Korean market increased, but earnings did not mention changes in earnings.

It is worth noting that the US has seen double growth in sales and profits this quarter, which is officially attributed to product mix and channel adjustment.

UNIQLO's expansion and operation in the United States has been less successful than other markets.

Last year, UNIQLO earned a surplus in the United States a year ago.

In the new quarter, Xun marketing group will focus on the strategic focus of UNIQLO in the Asia Pacific market, such as greater China and South Korea, and increase the sales promotion of winter products, which are unsalable by the warm winter.

GU (excellent) sales fell 7.7%, to 65 billion 400 million yen.

Considering that as early as 2016, the fast selling plan was to develop GU brand, this growth rate was not fast.

As advertising spending increased, operating profit fell by 4.9% to 8 billion 500 million yen.

International brands including Theory, PLST, Comptoir des Cotonniers and J Brand earned 40 billion 700 million yen, an increase of 1.8% and a 9.9% decrease in operating profit of 2 billion 700 million yen.

In November 2018, Fast Retailing announced the sewing factories and raw materials factories of UNIQLO and GU, which are said to be "responsible for improving the pparency of the supply chain, protecting the environment, achieving a reasonable labor environment and human rights issues".

Under the pressure of environmentalists and the rising trend of environmental selling points in developed countries, fast fashion people are investing more in environmental protection and sustainability.

Recently, H&M also announced that all cotton in the group came from sustainable sources in 2020, and that 100% of renewable or other sustainable sources of materials were achieved in 2030.

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