UNIQLO is entering the most glorious period in the history of brand, but its biggest enemy seems to be no longer Zara but uncertain weather.
The fast fashion group of Japan's fast fashion UNIQLO parent company recently released its first quarter financial results for the 2020 fiscal year. Sales fell 3.3% to 623 billion 400 million yen, or 39 billion 400 million yuan, and business profits fell by nearly 10% to 91 billion 700 million yen, or about 5 billion 800 million yuan. Xun group said sales and profit declines were mainly affected by warm winter weather and boycott in the Korean market, and lowered its 2020 earnings forecast to 165 billion yen, or 10 billion 400 million yuan.
Previously, according to the double eleven list released by Tmall, this year, double eleven UNIQLO won the men's and women's clothing sales champion again, and won the second runner up of underwear. This is the fourth women's wear champion of UNIQLO and the second men's wear champion. UNIQLO has been involved in the double one since 2012. It has sold Tmall double eleven clothing sales for TOP1 for 5 consecutive years, with single day sales from 120 million in 2013 to 500 million in 16 minutes this year. At present, the number of fans in the official Tmall flagship store has reached 19 million 610 thousand.
Thanks to Chinese consumers, the sales of UNIQLO international market for the first time in the fiscal year ended August exceeded 1 trillion yen for the first time, up 14.5% to 1 trillion and 26 billion yen, or 67 billion 900 million yuan, and operating profit rose 16.8% to 138 billion 900 million yen, or about 9 billion 200 million yuan. During the period, the sales of UNIQLO in Greater China increased by 14.3% to 502 billion 500 million yen, or 33 billion 100 million yuan, becoming the second largest market after Japan.
Weather is a worry for all retailers. Earlier analysis suggested that the relationship between temperature and retail was often underestimated by the outside world, but the former was one of the three external driving factors affecting performance.
The clothing industry has a "hidden rule": the most worthless part of clothing industry is stock, but inventory pressure is a common problem in the whole garment industry. The uncertainty of weather is also the annual clothing inventory status.
Japan's UNIQLO is in a critical bottleneck due to the dual effects of weather factors and low consumer desire for shopping. Careful observation is not difficult to find that the development track of UNIQLO has long been out of fashion. In order to distance itself from competitors such as Zara and H&M, Liu Jing is gradually turning its attention to the technological innovation and channel digitalization of products from 2016. At the same time, it accelerates the expansion of globalization, and has repeatedly stressed that the medium term vision of the group is to become the world's first apparel retailer by virtue of "digital consumer retail enterprises". At present, the market share of the group in the field of casual wear is only inferior to that of Inditex group.