Under the epidemic, it is not easy for anyone, even international brands are no exception!
Some time ago, Japanese retail giant MUJI’s parent company, Ryohin Plan, announced that its U.S. subsidiary had filed for bankruptcy with liabilities of US$64 million.
It is also produced in Japan and is often dragged into Uniqlo to compete with others. The situation is completely opposite.
After the epidemic stabilized slightly, new stores were opened non-stop.
On June 19, the world’s largest flagship store opened in Ginza, Tokyo. Six days later, seven new stores were opened in seven cities in China.
From first-tier cities to third-tier small towns, UNIQLO has opened stores wherever it can.
Under the rapid expansion of Tiger, even its founder Tadashi Yanai continues to be the richest man in Japan, with a net worth of US$28.9 billion.
What is the magic that allows Uniqlo to swim upstream in such a depressed market?
01 Fashion brand with high quality and low price
Uniqlo was born in the middle of Japan’s economic bubble burst in the 1990s.
Although luxury goods consumption was still prevalent at the time, people’s spending power was weakening. Uniqlo founder Yanai was aiming at this through the brand of “high quality and low price” Ideas attract consumers.
Cheap, high-quality, and affordable for ordinary people have become Uniqlo’s main labels.
Facts have proved that this is a very correct decision!
On the day the first UNIQLO opened in Hiroshima, Japan, it was packed to the rafters.
A long queue formed in front of the store early in the morning. In order to prevent chaos in the store, Yanai Masaru not only limited the number of people entering the store, but also issued a notice warning customers not to come for the time being.
Japan’s first UNIQLO opening scene
He said that he never dared to think that consumers would show their reaction to a new store. Such great enthusiasm.
But the editor feels that all this is the reward for him fighting a well-prepared battle.
Before opening the store, he was worried that there would be no customers, so Yanai Masaru did enough advertising.
Boldly promote it through TV, newspapers, flyers, etc., with the slogan “Customers can buy cheap and high-quality casual clothes as easily and conveniently as they go to a bookstall to buy magazines.”
In terms of business, he has also accumulated a lot of experience as a second-generation rich man. Before that, he had worked in management of his own clothing store for ten years, starting from operating customized suits. In the process, it was discovered that people have a higher demand for affordable casual clothing.
As a result, Unique Clothing Warehouse, which young people can afford, was born under the right time, place, people and environment.
The price advantage of a piece of clothing is only 1000 to 1900 yen, indeed Let Uniqlo taste the sweetness. Basically, new products sell out quickly as soon as they are released, and the number of stores is constantly increasing.
But doing business is just like what the owner Tadashi Yanai said: “One win and nine losses.” There are more challenges waiting for you.
02 Inventory is the key to success
When it first started, UNIQLO, which mainly sells products on behalf of others, has always been regarded as “cheap but not good”. Troubled by “goods”, many people will cut off the labels immediately after purchasing, so as not to let others know that they are wearing clothes from this company.
Less than 3 years after opening, Uniqlo’s sales showed a sharp decline. At this time, Yanai realized that if the brand wanted to survive, it must have its own original design and factory.
However, there is a risk of slow sales when making original products and setting up factories. Therefore, how to solve the inventory problem has become the top priority.
70% are basic styles
In addition to being cost-effective, what else does Uniqlo’s clothing have?
That’s versatile!
They focus on functionality, accounting for 70% of basic items that can be worn by all ages and genders.
Then, againContinuously innovating clothing and store design
Yes, you read it right, this intense scene where you have to roll and crawl to enter the store is a scene of a group of young people frantically grabbing KAWS limited co-branded items.
In order to let consumers feel the unique trend, UNIQLO has come up with new ways to make various joint models. From the minimalist U series to artist collaborations such as Takashi Murakami and KAWS, almost every new model launched is sold out within a few seconds.
By the way, there are many co-branded clothing brands. Why does everyone love Uniqlo?
The editor believes that although Uniqlo cooperates with famous IPs and top designers in the world, the prices are still as cheap as before, and you can buy “luxury goods” at an affordable price.
A high-quality, fashionable big-name design can be purchased for only 99 yuan. It’s hard not to be tempted!
In addition to upgrading clothing, Uniqlo has also made great efforts in store design. The largest flagship store in Ginza, Tokyo, was directly opened into a multi-functional pavilion integrating shopping, buying flowers, reading books and viewing exhibitions.
Landed by the famous Japanese architect Sou Fujimoto, the four-story all-concrete structure reveals the most original and pure beauty.
The internal space retains the beauty of the architecture. It is a patio design that runs from the first floor through the fourth floor. Superfluous elements are eliminated, and the exposed column and beam structure and mirrored ceiling create a unique style.
Shopping in such an industrial and futuristic space is a visual and psychological pleasure.
Writing this, the editor instantly understood why people love to buy Uniqlo.
To borrow a sentence summed up by one of his die-hard fans: “Among the current clothing brands, there is almost no second brand that can do such a good job in terms of marketing, price, quality, design and store display.” That’s it.”
The cost-effectiveness, versatility, and styles that fit Asian body shapes have all made it the “king” among fast-moving brands.
Anyway, every time I encounter a super sale and move home a piece of clothing with its original price tag exposed, I feel an inexplicable sense of accomplishment and feel that I have made a profit.
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