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    Even 12 Stores, Why Do QQ Run Faster In China?

    2019/8/30 13:21:00 0

    Uniqlo

    Reporters recently noted that UNIQLO opened 12 new stores in China, and now there are about 700 stores in the mainland. In recent years, international fast fashion brands such as Forever 21 and Newlook have withdrawn from the Chinese market. Why does UNIQLO of Japan's fast marketing group do the opposite thing and expand in the Chinese market?

    In August 16th, UNIQLO opened 11 stores in Beijing and Tianjin. In August 18th, Harbin Vientiane store opened. In the new store of Beijing UNIQLO, the reporter interviewed several consumers randomly. They said that the discount of new stores was bigger. Besides the clothing discount, UNIQLO WeChat fans and coupons could be used.

    Compared with the performance of some international fast fashion brands in the Chinese market, the Chinese market is becoming an increasingly important driving force for UNIQLO. Up to now, UNIQLO has about 700 stores in the mainland of China, and plans to increase to 1000 in 2020. Ryui Masa, chairman and chief executive officer of Japan Xun marketing group, said that the company is strengthening its business model in China and promoting business and digital services combined with China's market conditions. It will add more than 100 stores a year.

    This year, the performance of UNIQLO in the Chinese market is commendable. According to the financial report, the Chinese market contributed 25 billion 600 million yuan in the first three quarters of fiscal year 2019, or over 20%, becoming the main growth force in Asia. And in stark contrast, UNIQLO's domestic market revenue and profits fell by two. In fact, since 2012, the layout of Japan's local market has been relatively stagnant, and the number of stores has changed little. UNIQLO executives have repeatedly said that the limitations of the local market development are large, and the potential of overseas markets is huge. In the future, the strategy of internationalization will be vigorously promoted. Meanwhile, UNIQLO plans to close a store in downtown Seoul, South Korea, under the influence of boycott Japanese goods.

    Experts from the China Clothing Association told the Chinese Commercial Daily that UNIQLO's investment and expansion in the Chinese market, apart from its consideration of the improvement of its performance, also led to the shrinking of the Korean market to the Chinese market.

    Statistics show that UNIQLO officially entered China in 2002, accelerated its opening speed in the Chinese market in 2012, and opened a global flagship store in Shanghai in 2013, covering an area of more than 8000 square meters, larger than the flagship store in Tokyo and the flagship store in New York. Since then, with the rapid development of China's electricity supplier, UNIQLO entered Tmall in 2009 and began to exert its efforts on online channels. From the data of "double 11" over the years, UNIQLO's sales increased continuously, breaking through 600 million yuan in 2015, becoming the clothing sales champion of that year. Since then, UNIQLO's "double 11" sales rank has stabilized in the top three of Tmall's "double 11" apparel category. In 2018, UNIQLO had sold 35 yuan in 1 billion seconds.

    The experts also said that the current international fast fashion brands such as Zara, H&M and so on all appeared the situation of declining performance and closing stores. Some brands even withdrew from the Chinese market, which is an opportunity for UNIQLO. Although UNIQLO's clothing style is mainly based on the partial base, this point has been criticized by consumers. However, according to the current development, UNIQLO's operation mode in Chinese market is quite successful.


    Source: China Commercial Daily writer: Wang Yue

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