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    UNIQLO'S Key Products Are Not Sold In Japan.

    2019/1/12 22:47:00 71

    Uniqlo

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

    This quarter's fast sales revenue was 644 billion 466 million yen, an increase of 4.45% over the same period, and net profit of 73 billion 476 million yen, down 6.45% compared to the same period last year.

    The Japanese market has dragged down its sales performance.

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

    The last autumn and winter quarter (9~11 month) income and profit both declined 3 years ago (that is, 2015/2016 fiscal year).

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

    Fast Retailing explained that it was warmer in Japan in October and November this year, and some major winter products (including down garments, sweaters and thermal underwear "HEATTECH") were 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", Fast Retailing related persons also said that UNIQLO lacked new explosions, and "recently failed to introduce new products that are new to us."

    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 revenue increased 12.8% to 291 billion 300 million yen in the first quarter, and operating profit increased 12.6% to 52 billion 500 million yen.

    The sales volume of the Greater China region (including Mainland China, Hongkong and Taiwan) is 134 billion 800 million 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 marketing plan was to develop GU brand vigorously, 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 factory and raw material factory of UNIQLO and GU brand. It is said to enhance the pparency of the supply chain, protect the environment, realize the responsibility of 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.

    Source: curiosity daily writer: Dong Zhifei


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