How Did UNIQLO Send Liu Chi To The Throne Of Japan'S Richest Man?

In April 11th, Forbes released the latest list of the 50 richest Japanese companies. Liu Chi Jing, founder of the fast selling group of UNIQLO parent company, won the richest man in Japan by beating the Softbank Sun Zhengyi with a net worth of $24 billion 900 million.

Liu Qiangdong said, "it's not my brother who has been mixed up"; Ma Yun said, "up till now, I'm definitely over 12x12"; and Ryui Masa said, "I get off work at 3 p.m. every day, and the group's performance is thriving."

According to the financial data of UNIQLO 2019 in the first half of fiscal year (September 1, 2018 to February 28, 2019):

Japan's domestic market profit fell 23.7% to 67 billion 700 million yen over the same period last year.

Operating profit in overseas international markets increased 9.6% to 88 billion 400 million yen over the same period last year.

Total operating profit increased 1.4% to 172 billion 900 million yen over the same period.

Although Japan's domestic market is not performing well, this does not prevent the growth of UNIQLO's overseas business and put Liu well in the position of Japan's richest man again.

Sure, 39 yuan a bag T-shirt, 99 yuan to buy artists UT.

Price is hard to resist.

But brand marketing is not the same as price war. UNIQLO's shrewdness is far more than simply seen.

Create a "flow container" for joint play.

UNIQLO is a very subtle existence in the minds of consumers.

Compared with Zara and H&M, UNIQLO's main role is "basic money", with monotonous style and no sense of design.

In the fast fashion field, the pressure of "neither fast nor fashionable" has once become the bottom of the despise of young Japanese.

But when you need a white T-shirt, a pair of pants, and you don't know what brand to buy, UNIQLO is a good choice.

For consumers, UNIQLO is a popular brand with a sense of security. Some people even pointed out that "UNIQLO's T-shirt will start loosening in half a year, so I know that it will be replaced every six months".

It is stable in quality and low in thunder rate, but you should not expect it to surprise you.

Until the advent of UT, UNIQLO created a flow container for artists and fashion IP, and movies, comics, animations, art and music could be installed inside.

It also enables young people to express their favorite trend culture with the help of UT.

As we all know, branded products can be generally classified into two categories: functional products and dopamine products.

The different flavors of ice cream introduced in McDonald's are the products of dopamine, and the classic chicken wings fries are for your fullness.

In UNIQLO, UT is a dopamine product. Every new city is a topic of conversation. It has become a hot spot of menstruation. It is mainly responsible for stimulating consumers' nerves and attracting you to rush into stores.

Compared with the price prohibitive designer brand and IP with different quality, the big brand UT has found a cost-effective living space, and has gradually become the star of the UNIQLO star, and has continuously entered the topic flow and purchasing power for the lack of "new" brand.

Promotion is not only a price war, but also a psychological battle.

There is a concept in economics called "consumer surplus": consumer surplus = the highest price the buyer is willing to pay - the actual payment price of the buyer.

The more surplus consumers get, the stronger they feel that they are "earning".

Also playing sales, UNIQLO is very good at making "consumer surplus".

For example, often remind you "initial listing price", as far as possible let you know the price difference, harvest pleasure.

Online search will also find many so-called "UNIQLO discount strategy", and even spread such a form: when a commodity sells continuously, it will experience almost 3-4 price cuts.

Long term regular discounts will form consumer habits. If there are any discounts, they will consider it.

In fact, Zara and H&M are all discounted, but you don't know when the next discount will come.

When you open the wardrobe one day and find that you have no clothes to wear, you will think of going shopping.

But the difference between UNIQLO is, "it makes you feel that it's a discount."

In fact, you don't know which product is on sale. You just know that it has discounted merchandise every week. Why don't you go in and see it? Maybe you can find a leak.

What's more, the magic of basic funds is that you think "always comes in handy."

Don't let consumers return empty handed.

For the clothing industry, the characteristics and preferences of people in different places, the asymmetry and lagging of information, the backlog of commodities in one place, and the popular selling in another place often happen.

Over time, inventory became a fatal problem.

In the first half of H&M 2018 (December 2017 to May 2018), earnings showed a backlog of about $4 billion.

Brands prefer to sell at a lower price, and do not want to bear the inventory pressure brought about by the backlog of goods. However, bundled with the label of "fashion", the action of reducing prices also means changing seasons and being out of date. Consumers are not necessarily willing to pay for this.

The key to buying goods as quickly as possible is to lock in customers who have definite purchase targets.

For this group of people, if they do not find the clothes they want, they will not only be disappointed, but will also enter the competitors' stores to find the next alternative.

UNIQLO's practice is to provide them with "inventory Enquiry" service. Without the help of a salesperson, they can always find out which stores near the target goods are available, or even choose "self promotion" or "urgent delivery".

In addition, because of frequent discounts, UNIQLO consumers form a habit of "watching bad habits", and checking inventory can create nervousness. If the stock tension has been shown, it is hinting that you are still hesitant.

"Look at inventory" seems to be a very small experience function. In fact, it has firmly locked this loyal customer, reducing the wastage rate, and never let you go back empty handed.

To some extent, consumers even share part of the pressure on brands.

epilogue

UNIQLO greatly compresses design cost and inventory pressure, creates profit space for itself. On the other hand, it can play a joint name, promote sales and play experience in marketing, so that you can become a frequent customer and increase sales volume.

There is a saying in the Handbook of Xue Zhaofeng Economics: "quality products", popularly speaking, is not that the higher the quality, the better, nor the lower the price the better, but the higher the cost performance is, the better.

It's good for users to get a price and a share. That's good. "

Different brands have different positioning and selling points. They have their own logic when they sell at low prices or sell high prices.

But whether it is cheap or expensive, create value, so that the people who pay the bill feel "worthwhile", you win.