In addition, Uniqlo also stated that the price tag will show the price including tax to save customers the trouble of calculation.
Affected by this
Fast Retailing’s share price fell 6.22% to HK$71.65.
Uniqlo told Blue Whale Financial reporters that the price adjustment of related brands in Japan is in cooperation with Japanese government policies. There are currently no plans for markets outside of Japan.
According to the 2020 financial report of Fast Retailing Group, the parent company of Uniqlo (as of August 2020), data show that the company achieved a net profit of 90.3 billion yen, a year-on-year decrease of 44.4%; revenue was 2.01 trillion yen, down 12.3% year-on-year. Although there was no deficit, this was the first full-year performance decline for Fast Retailing since 2017.
In this regard, Fast Retailing said that due to the impact of the new coronavirus epidemic, the sharp decline in offline sales has become the main reason for the sharp decline in Uniqlo’s performance.
In the first quarter of fiscal year 2021 (September to November 2020), Fast Retailing Group’s total comprehensive income in the first quarter of 2021 declined year-on-year. 0.6% to 619.7 billion yen (approximately RMB 36.838 billion), and operating profit increased by 23% year-on-year to 113 billion yen. (approximately RMB 7 billion). According to the financial report, thanks to the strong performance of products such as homewear and sportswear in countries such as China and Japan, the market value of Fast Retailing Group exceeded 10 trillion yen for the first time.
Fast Retail’s overall performance last year came under greater pressure. However, as soon as it improved in the first quarter of fiscal 2021, UNIQLO Japan cut prices across the board, which may put profits under further pressure. Will this move make Uniqlo even worse during the epidemic and reduce profits? Fast Retailing’s stock price has plummeted, and the capital market has voted with its feet.
But before that, Uniqlo’s market value surpassed ZARA for the first time, ranking first in the apparel industry.
“In the apparel field, we have reached a position close to the world’s No. 1 in total market value,” Fast Retailing Chairman and President Yanai Masaru said in a message sent to employees in early 2021. Expressed this way. Currently, the company’s market value has risen to No. 1 among apparel companies in the world. But Fast Retailing still lags behind its competitors in some areas, such as sales. (Nikkei Chinese website)
Masa Yanai said: Under the trend of accelerated integration of online and offline, he hopes that Uniqlo will provide Products can be sold whether consumers come to the store or not. He emphasized that truly excellent products must contain an aesthetic. This applies not only to clothing, but to all products.
“Products we provide
It can be sold whether consumers come to the store or not”
Since the outbreak of the epidemic, many brands in the fashion industry have faced reduced demand, factory shutdowns, and shortened production times. Due to issues such as store opening hours and even suspension of operations, many fashion retailers have announced that they have filed for bankruptcy protection, including J.C. Penney, the long-established American department store, J.Crew, the American fashion group, and Renown, the Japanese clothing group.
Uniqlo is no exception. When the epidemic in China was at its worst, the brand closed 390 stores. However, its focus on daily practicality, high quality and low price has avoided large-scale inventory price cuts. Some spring clothing will also be postponed to autumn. Compared with most retailers in the world, UNIQLO has better withstood the adverse effects of the epidemic. .
In this interview, Yanai Tadashi emphasized: “The physical retail industry will not die. Even if consumers’ address, phone number and other information can be obtained online, it is still impossible to Know what he/she really looks like. The customer’s reaction in the store and their thoughts on the product are very important. These can only be asked on the spot. Internet companies want to obtain the business information of physical stores, so many are acquiring and operating physical stores. The retail business of the store.”
Masa Yanai took the American retail giant Wal-Mart as an example, “A key to Wal-Mart’s resurrection is to connect online and offline, that is, to realize the physical, Online is just as important. For consumers, it is best to be able to use both physical stores and virtual ones. Today’s consumers believe that there is no difference between shopping in physical stores and online. In the future, consumers They may browse clothes and communicate with store staff through the Internet. We hope that the products we provide can be sold whether consumers come to the store or not.”
“To operate a physical clothing retail business, you must have an aesthetic and professional knowledge of clothing. Talents who can quickly understand fashion trends and know how to match them are indispensable. Without professional knowledge, they will become ordinary consumables. Among truly excellent products, There must be an aesthetic. This applies not only to clothing, but also to all products. Apple mobile phones are best-selling around the world because of their aesthetics,” said Tadashi Yanai.
From Uniqlo’s series of actions in 2020, we can see Yanai’s persistence in the physical retail industry. In the first half of 2020, UNIQLO received…��It has opened three “amazing” heavyweight stores in Yokohama, Tokyo, Ginza and Harajuku, Japan. The combined retail area of the three stores is approximately 11,000 square meters.
As of December 31, 2020, UNIQLO has 2,306 stores around the world. The group hopes that by the fiscal year ending in August 2021, the total number of UNIQLO stores worldwide will reach 2,371. “The final form of future stores will probably be that customers can connect to the store digitally. For example, they can see the appearance of the store and sales staff through a tablet at home, and they can also confirm the appearance and product information of the goods through a mobile device. You can get it when you go to the store,” Masa Yanai revealed.
“Make the best daily attire, suitable for work and home”
The impact of the epidemic on The impact of income has made consumers become more frugal. Yanai Masaru said: “As consumers become more frugal, the importance of brand and product quality becomes more and more prominent. Consumers will choose high-quality and reliable brands. At the same time, people affected by leisure With the increase in clothing demand and remote work, the days of wearing formal attire are gone forever, and the era of daily wear has officially arrived. We want to make the best daily wear. People will choose to wear it at work and at home. It is durable and versatile. Matching clothing. Clothes you wear and throw away after one year are no longer needed.”
In the latest joint series with German designer Jil Sander, the same emphasis is placed on “daily wear. “This scene. In the new +J series, Jil Sander uses minimalist lines to outline a flowing and three-dimensional engineering silhouette. It uses high-quality fabrics such as high-performance fabrics, high-grade cashmere, and worsted merino to design linings, pockets, zippers, and contrasting linings. Every detail has been cleverly processed, and the minimalist design is used to create a classic item for people’s daily wear.
“China and Southeast Asia markets will lead the recovery”
“China and Southeast Asia markets will lead the recovery and drive consumer spending , but the infection situation of the epidemic varies from country to country. For example, consumer spending in Asian countries with serious infections, such as Malaysia, Indonesia and the Philippines, has stagnated, but in places like Taiwan and Vietnam, which have been brought under control, consumption is recovering. Unless the number of infections Stop growing, otherwise consumption recovery will still be difficult.”
In countries where the epidemic has not yet been brought under control, the number of people who are unemployed, on vacation, and have to be quarantined at home continues to grow, Yanai Masaru pointed out: ” People are anxious about the future, so we must also start from their anxiety. Today’s consumers are very price sensitive, much higher than after the 2011 financial crisis. We cannot increase prices under such circumstances. If we increase the price of ordinary goods The price cannot be sold at all.”
“In Japan, the third wave of the epidemic has a huge impact on sales, especially weekend sales will drop sharply, because everyone They will avoid going out on holidays. But everyone will still shop near where they live. Uniqlo’s stores in the city centers of big cities are not performing well, but business in the suburbs is booming,” Tadashi Yanai added.
“In 2021 and beyond, as expected, Asia will become the center of the world. Formal wear originated in Europe. On the other hand, affected by various factors, emerging markets in Asia Being able to wear casual clothes every day is acceptable. We want to be a global brand and the first and best clothing brand to start in Asia.”</p