Why Do Young People Obsessed With UNIQLO? From Beijing To Vietnam Are Queuing Up.

　　 Preface:
Few know that there are 128 OEM factories in China, accounting for 50% of its total. That is to say, in addition to design elements, nearly half of UNIQLO's products are genuine Chinese products.
UNIQLO's parent company is 06288-HK, a small Japanese company with only 6 employees. From the June Beijing UNIQLO's "looting" storm to the thousands of long queues in front of the first Vietnamese UNIQLO store in December 6th, young UNIQLO went crazy.
As a fast selling group's largest overseas revenue market, the Greater China market contributed 502 billion 500 million yen in sales and 89 billion yen in business earnings in 2019. Especially noteworthy is that in the fiscal year of 2019, XXX group's online revenue growth rate reached 30%, which is better than most Chinese enterprises in the same industry.
On the one hand, it is very popular, queuing shopping from Beijing to Vietnam, and sweeping the online and offline channels to comprehensively layout the Chinese market. What kind of magic power does UNIQLO have in order to make young people, especially young Chinese, addicted to it?
　 On the other hand, "win win" and "uniqu" go anywhere.
In fact, UNIQLO's biggest "magic power" is "the price of one cent goods," the highest price ratio for young consumers to experience fashion and comfort.
In June 3rd, UNIQLO's domestic kaws joint product was "rob". Whether it's five minutes of scramble for empty stores or online store products, the popularity of this theme product can be seen almost "seconds empty." In micro-blog and friends circles, we can easily see news of "stripped model display clothing" and "crazy climbing under the door".
Although many young people who take part in "looting" do not know "kaws", as a master of graffiti art in Europe and America, kaws designs fashion, youthful and usually sells at a higher price; for example, the price of kaws doll is tens of thousands. But the new product sold jointly by UNIQLO and kaws is priced at only 99 yuan, so it is not surprising that such a price has been "looted".
Only this can be seen that in the two main factors affecting product sales, product design and cost performance, the astute Japanese enterprises can achieve the ultimate goal.
In addition, the sales link for consumer psychology is also the key to the success of UNIQLO. Just like what Ryui Masa, the owner of UNIQLO, pursued, "making customers buy casual clothes like buying magazines", UNIQLO's shop display has a strong warehouse style, that is, spacious aisles, high roofs, chandeliers, all sizes of clothes are arranged neatly, and convenient to try on.
And in terms of service details, it has always been the strength of Japanese enterprises. In December 6th, thousands of young people queued in the scene of the first UNIQLO store in Vietnam. UNIQLO specially prepared umbrellas and drinking water for these customers.
As for young people's online consumption, early 2009, UNIQLO opened Tmall flagship store. In the new retail sector, UNIQLO is also involved. In the small program of UNIQLO, there is a "store urgent delivery" service. The customer orders online, and the delivery will deliver the clothes to the customers in the first time, so as to realize the convenient consumption of the city.
Relying on this "extreme" cost-effective, service experience, UNIQLO really has done "where to go, fire to that". In the 2019 fiscal year, sales in the Greater China region were 502 billion 500 million yen, up 14.3% over the same period last year. Sales in Southeast Asia and Australia were 170 billion yen, up 20% over the same period last year; the total income in Europe also reached 100 billion yen.
　　 Overseas market revenue first exceeds the mainland, and fast marketing group backs China's global layout.
It is worth noting that in the 2019 fiscal year, XXX group's overseas market revenue exceeded its local (Japan) market for the first time. This shows that fast retailing group and UNIQLO really become an international clothing brand.
However, the Japanese enterprise is relying on the Chinese market, Chinese enterprises to complete their own global layout.
In March 2019, in the semi annual report of the XXX group, the company revealed that as of the end of March 2019, there were 825 stores in UNIQLO (Japan), while the number of stores operated in China was 767, the largest number of stores in UNIQLO overseas market. According to the plan, in the 2021 fiscal year, the number of stores operated by UNIQLO in mainland China will reach 1000.
As a confirmation of this plan, in the 2019 fiscal year, the Japanese market of UNIQLO added only 30 stores, while the Greater China region added 91 stores, three times more than its local (Japanese) market.
Meanwhile, the sales and profits of XXX group in the Greater China market increased rapidly. In addition to the 2019 fiscal year revenue of 502 billion 500 million yuan, up 14.3% from the same period last year, UNIQLO achieved a profit of 89 billion yen in the 2019 fiscal year in China, an increase of 20.8% over the same period last year. In the 2019 fiscal year, the Chinese market also surpassed the US market and became the most widely distributed offshore asset group.
Over the years, Tmall's "double eleven" clothing brand list has been the top priority for many years. In 2019, "double eleven" and UNIQLO Tmall flagship store once again broke the fastest record of sales exceeding 1 billion yuan.
From these data, on the one hand, XXX group has taken a firm foothold in the Chinese market, citing XXX group's statement in its earnings report, UNIQLO has become the NO.1 of the clothing brand in the Chinese market; on the other hand, UNIQLO's expansion in the Greater China market is moving from line to line, and has achieved great success, and has already been in front of Chinese enterprises.
As China has taken a firm stand in the Chinese market, Xun marketing group is gradually penetrating into the Southeast Asian and Australian market. At present, the Greater China market is more like the forward base of the global distribution of fast marketing group, not only contributes tens of billions of yen expansion funds every year, but also accumulates experience in China's marketing ecosystem construction and e-commerce platform operation, which will contribute to the global layout of fast marketing group. After all, the Chinese market is one of the most developed markets of international electricity business.
What is interesting is that La Natsu Bell, a former Chinese fashion and clothing benchmarking enterprise (06116-HK), is now on the verge of bankruptcy. Compared with these leading international industries, Chinese enterprises are too young and too easy to rise and fall. The fast selling group has replaced the role of these enterprises, relying on the Chinese market, the layout of the global apparel industry.
Are there any opportunities for domestic enterprises besides fast marketing group?
From the young people to the Chinese market, the layout of the global apparel industry...... At present, in the face of Xun marketing group and UNIQLO, are domestic enterprises still competing with them or even against the opportunities?
As far as the present situation is concerned, such opportunities are very small. At present, most domestic clothing enterprises, especially fashion dress platforms such as La Natsu Bell and Taiping bird, are all in the business adjustment period, paying for the financial strain caused by the rapid expansion in the past. Only in the first three quarters of 2019, only a total of 4517 stores were shut down, with an average of sixteen off seven stores per day to save money.
In fact, financial stress is only a temporary problem. Compared with the industry giants such as UNIQLO and H&M, domestic clothing enterprises are obviously insufficient in brand influence, especially in terms of brand culture connotation and technical connotation.
In the final analysis, the long-term weakness of the domestic cultural market is the main reason. A clear example is that the kaws products produced by UNIQLO jointly can produce "looting" in China, and domestic cultural elements hardly have such appeal.
This is not the reason for the cultural factors themselves. On the contrary, it is related to the relatively backward environment of the development of the domestic cultural industry. It is precisely because of the lagging development of the domestic cultural industry that young people's recognition of kaws's graffiti art is much higher than that of the thousands of years in China.
Not only is kaws, UNIQLO's seven dragon themed series T-shirt, weekly Youth Theme clothing has also been sought after by domestic teenagers. In contrast, although the spread of national culture has been strengthened in recent years, there is still a long way to go before we really need to integrate with the development of the real industry economy.
What's more, with the pressure of economic downward pressure and market competition becoming more intense, the Matthew effect in the industry is becoming more apparent. In the face of UNIQLO and H&M, the problem of how domestic counterparts should survive may be more urgent.
　　 Conclusion:
The appearance of foreign brands in the apparel industry in the mainland is the objective result of the previous economic development mode. At the same time, in the process of industrial upgrading, while attention is paid to technological innovation and mode innovation, the dissemination and processing of culture, especially the rational integration of cultural factors and industrial development, should also give enough attention and capital investment.
After all, the level of industrial technology is only the difference between good and bad products, and the difference of cultural factors is the essential difference between products belonging to others. Without the upgrading of cultural industries, without the touch of consumers, industrial upgrading will become boring.