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    How Did The Chinese Market Bring The Owner Of UNIQLO To Japan'S Richest Throne?

    2019/4/18 13:53:00 8841

    Uniqlo

    Speaking of the richest person in Japan, I believe many Chinese know that Sun Zhengyi, the head of Alibaba's famous investor, Softbank group, is indeed the absolute richest person in Japan for a long time. However, the throne of Sun Zhengyi's richest man in Japan has been shaken recently. Liu Yi, the founder of excellent clothing library, is beating the Softbank Sun Zhengyi in 24 billion 900 million dollars to become the richest person in Japan. "Sun Zhengyi" is the richest person in Japan.

    No one would have thought that it would be the Chinese market to send Liu Jing to the throne of Japan's richest man.

    1. The boss of UNIQLO, China's richest man.

    In April 11th, Forbes announced the latest 50 richest list in Japan. Liu Chi, founder of the fast selling group of UNIQLO parent company, defeated the Softbank Sun Zhengyi with a net worth of 24 billion 900 million dollars, and was honored as Japan's first richest man.

    In April 11th, UNIQLO parent marketing group released the first half of fiscal year 2019 (up to February 28, 2019).

    During the reporting period, the group's revenue and profit grew by two billion yuan, with a total revenue of 12676 billion yen (about 76 billion yuan, the same below the unit), an increase of 6.8% over the same period last year, and total operating profit of 172 billion 900 million yen (about 10 billion 357 million yuan), an increase of 1.4% over the same period last year.

    In the case of UNIQLO, the overseas market continued to perform well, operating profit of 88 billion 400 million yen (about 5 billion 295 million yuan), an increase of 9.6% over the same period last year.

    In the Greater China region (including Mainland China, Taiwan and Hong Kong and Macau), despite the impact of warm winter, incomes and profits continue to grow in double figures. The growth rate of China's mainland market's revenue and profit has remained at about 20%.

    In addition, the US region made a profit in the first half of the fiscal year.

    The importance of the Chinese market has been mentioned frequently.

    According to financial reports, the overseas UNIQLO business has entered the next stage of growth under the impetus of the Greater China region and Southeast Asian region.

    At the same time, the region is also the GU of the UNIQLO sister brand and one of the important centers for expanding the international market in the future.

    During the reporting period, the percentage of revenue in the Greater China region was 22.3%, which was higher than that in other parts of Asia and Oceania, after only 38.8% of the Japanese market.

    In contrast to the booming market in China, UNIQLO's depression in the Japanese domestic market was the biggest. In the 2018 fiscal year, UNIQLO's overseas market revenues surpassed Japan's domestic market for the first time.

    In the first half of fiscal year 2019, the income and profit of UNIQLO in Japan both fell, and the income dropped by 0.5% to 491 billion 300 million yen (about 29 billion 430 million yuan), and the profit dropped 23.7% to 67 billion 700 million yen (about 4 billion 55 million yuan).

    Plus the number of stores in UNIQLO in China has been close to the number of stores in Japan. It can be said that to some extent, the richest seat of Japanese uniforms has been sent to the Chinese market, but what has UNIQLO done to make it so brilliant in the Chinese market?

    Two, what did UNIQLO do in China?

    In fact, the rise of any enterprise in a market is not achieved overnight, and its own strategy will have a lot to learn. What does UNIQLO actually do in China? This is to start with Ryui Masakai, the head of UNIQLO, and Japan's new richest man, Ryui Masa, who graduated from the political economics major of Waseda University in Japan. As a famous school graduate, he did not choose a large enterprise to become an enterprise white-collar. Instead, he returned to his hometown and joined his own father's small retail store.

    At that time, it was in the golden age of Japan, and after the war, Japan's economy rose rapidly. At that time, the prevailing luxury in Japan was prevalent, and the expensive clothes occupied the mainstream of the clothing market. Under such circumstances, UNIQLO adopted the counter trend development strategy and the main daily inexpensive costumes.

    In 1991, when the Japanese financial bubble burst, Japan entered the "lost thirty years". At that time, a large number of people found that the income was suddenly reduced.

    Ryui Masa promptly renamed the shop as "fast sales". In the face of the depression of Japanese economy, people suddenly discovered that there was a store selling cheap but not low quality products in the street. At the same time, UNIQLO began to rise rapidly.

    Especially in 1998, the slogan of "1900 yen and a casual wear" made UNIQLO popular in the hearts of the people. In the Japanese clothing market of tens of thousands of yen, UNIQLO had a whirlwind and sold 2 million pieces in a year.

    After that, UNIQLO began his fast rising road, opened a branch in London in 2001, and began his first step in China in Shanghai in 2002.

    According to Qi Xinbao's data, UNIQLO's parent company, fast selling China Trading Co., was founded in 2006 and has been developing rapidly in China.

    UNIQLO grew into a multinational company.

    In mid December 2018, UNIQLO announced that the number of stores in mainland China exceeded 660, and plans to increase the number of shops in China to 1000 in 2020, exceeding that of Japan.

    So what did the success of UNIQLO do?

    First, introduce the law of the jungle into business operation.

    In Japan, there has been a system of "lifetime employment". Many people have worked in a company from graduation to retirement, which has been called an integral part of the Japanese miracle. But Ryui Masa did not believe in the lifelong employment system.

    "Those who can't swim will let them sink."

    It's called Ryui Masa's mantra.

    Under the guidance of this concept, UNIQLO has always adopted the jungle rule of "survival of the fittest" for enterprises. Not only will the number of shops and stores be released to the public, it will also continuously adjust the structure of enterprises and exchange blood for employees according to the market needs. Instead, he will replace senior management with young backbone instead of qualified heroes.

    The two is to do Internet technology at all costs.

    The success of e-commerce has created a large number of Internet leading enterprises in China, such as Ali and Jingdong, but what you may not know is that UNIQLO is one of the earliest Internet companies in the world. In the early days of e-commerce development in China, UNIQLO chose to cooperate with Chinese e-commerce enterprises. In 2009, UNIQLO launched Tmall flagship store, and its competitor ZARA and H&M lagged far behind UNIQLO.

    At the same time, UNIQLO has introduced data into its business management. In 2016, UNIQLO realized the digital mode of online ordering and offline picking, and introduced artificial intelligence and LED digital display into the physical store. Through a large range of big data, UNIQLO can make advance calculation of production, logistics, sales and so on, adjust the inventory of products, and timely adjust the price of products with poor sales.

    This is the digitized grounding gas mode, which is rare in Chinese enterprises, but UNIQLO has already done it.

    The three is joint IP to make net red.

    This era is a net red era, so UNIQLO is doing its own Internet, but also spares no effort to reddening the Internet.

    Ryui Masa, the head of UNIQLO, is a business leader, but a crazy Internet expert. He knows the mentality of young consumers and holds the principle of doing things every year. Almost every year, UNIQLO has a joint marketing with a super net red IP.

    Therefore, UNIQLO's T-shirt has almost become the carrier of the red tide culture, whether it is Lego, star wars, Disney, Mario, Picacho and so on. As long as it is net red UNIQLO, it will come and go. This super network red IP plus UNIQLO's low price makes the UNIQLO get the heart of young consumers in China.

    In early 2019, UNIQLO responded to the pig year in China and put the piggy community in its own clothes.

    Including the classic memories of silver spirit, One Piece, Naruto and king of games this year, UNIQLO will not let go.

    Moreover, Ryui Masa even announced his successor plan. He had no interest in getting his children to take over. He put forward a request for "who knows young people better? Who knows the trend better?"

    It can be seen that UNIQLO's success lies in the fact that he is far from having the pride and high end of Japanese products entering China as a Muji product. He has molded himself into a luxury product, but is very much like China's famous brand and excellent products. He likes to connect with Chinese enterprises. The Chinese like to buy online. I will set up an electronic flagship store, and the Chinese like net red. I will quickly make a net red IP, and this flexible business mode will make UNIQLO succeed in China.

    UNIQLO can send its own leaders to the throne of Japan's richest man in the Chinese market. This kind of play is really admirable.

    Source: Jiang Han's field of view

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