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"Worth" Concerns The Company: What Should We Learn From UNIQLO?

2014/2/15 20:16:00 43

model "value" to learn, Idol "get" to salute.

At the beginning of 2014, we looked at UNIQLO again, because it did have too many reasons to be worthy of attention. It could serve as an example of how to interpret the company.

below is some of the recommended reasons for the recommendation given by the chief analyst of Skynet, Qin Ge:

reason 1: squeezing up to 50% of gross profit from a price of 1900 yen in a fleece jacket! This is enough to make "made in China" sweat with only low price and gross loss.

reason two: this high gross profit low price fleece jacket has promoted UNIQLO in three years from 1999 to 2001, and has achieved 100 billion jumps of 100 billion yen, 200 billion yen and 400 billion yen in revenue.

this is enough to make Chinese brands with high prices but no sales.

reason three: excavating standardized products from the non standardized apparel industry. With the help of the global supply chain, we use brand appeal and R & D input to reduce the risk of product development failure and maximize efficiency so as to bring the price to the limit.

Less than P, you know, the fleece jacket is not an extreme case, and the average sales volume of UNIQLO's regular products is also one million.

if the above reasons are over, we still feel that UNIQLO is not too mythical. Then Qin Ge broke the phrase in this article: "the success of UNIQLO is mainly due to cheap Chinese made and won the price war in the Japanese market, and the war before this has lasted for nearly 20 years."

P is a good company that can tide over the tide of the market and tide over the tide of time.

similar to UNIQLO, it is in line with I world network operators' "concern" company list. There are both traditional retailers such as Yintai department store and top grade discount, which are still experimenting boldly. There are also giants such as Haier and America, which are still bold in attack. There are also new brands such as aka and Hua Sheng Ji, which have strong styling style and continue to grow up.

of course, there will be many new faces, new trends and new changes in 2014. We will still insist that we do not add firewood to the mythical companies, only to cheer and cheer on the good companies that still deserve attention after the charm.

next look at Qinge that UNIQLO is a good company to watch. The conclusion is:

from the opening of the first store in UNIQLO in 1984 to UNIQLO's success in the international market, we think that in thirty years, UNIQLO focused on doing a low thing: the price war reached the limit!

if you want to think carefully, please look at the full text.

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price war? Low burst! /p >

I believe this will be the first reaction of many business people to see this topic.

Admittedly, talking about this topic in the circle of business circles full of tall and tall topics seems to be inadequate.

However, under the premise of free competition, which enterprise has escaped the trial of price? As the core regulator of market economy, price is the yardstick of all commercial activities.

The next point I want to express is that the success of UNIQLO is mainly due to cheap Chinese manufacturing, which has won the price war in the Japanese market, and the previous war has lasted for nearly 20 years. P

UNIQLO's business logic: the lowest cost

in fact, only two simple arithmetic can understand the business logic of UNIQLO:

300 thousand /30/1900 5,

46769/365/5 < 26

"1900" refers to the Japanese yen price of the fleece jacket.

The coat was launched by UNIQLO before and after 2000, and swept the Japanese and even global markets.

This coat helped UNIQLO achieve three consecutive jumps of 100 billion yen, 200 billion yen and 400 billion yen in three years from 1999 to 2001.

"300 thousand" refers to the average monthly wage of Japanese ordinary workers released by Japan's Ministry of health and labour in 2000, 300 thousand yen.

the first arithmetic means that an average Japanese laborer can get 5 uniqe fleece jackets for a day's income.

"46769" refers to the average wage of Chinese urban units employed by the National Bureau of statistics in 2012, which is 46769 yuan / year.

second arithmetic means purchasing power parity. The price of the "Chinese version of UNIQLO" fleece jacket is 26 yuan per piece.

of course, we have made many simplifications in the above estimation.

For example, we should consider the differences between urban and rural areas, the differences of tax systems between China and Japan, and the differences between residents' consumption habits.

But no one can deny that UNIQLO's clothes are too cheap for the Japanese market.

we may take it for granted that in China, it is not difficult to sell the 26 yuan fleece coats with good quality to the whole country.

Then who is confident that profits can be squeezed out of the 26 yuan label price?

"P" and UNIQLO did it. Because of this, UNIQLO is no doubt a successful company.

In the financial year ending August 31, 2013, UNIQLO's revenue exceeded 1 trillion yen, and UNIQLO's net profit also reached 90 billion yen.

The founder of Ryui Masa, with the help of UNIQLO, successfully sat the seat of Japan's richest man.

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from the opening of the first store in UNIQLO in 1984 to UNIQLO's success in the international market, we think that in the past thirty years, UNIQLO has concentrated on what low has done: to bring the price war to the extreme.

The coat of less than P > 26 yuan is still hard to achieve in China at present. But how does UNIQLO make the fleece coat with a price of only 1900 yen make profits?

the answer is very simple: even if the price is only 1900 yen, the gross profit of UNIQLO is still as high as 50%.

1900 yen, 26 yuan, 50% gross profit. In keeping with these data, we will try to figure out the development strategy of UNIQLO:

While the SKU of other clothing brands of the same size can exceed 10000, in the 90s of the last century, just as China made its way to the world, UNIQLO did not lose all its manufacturing business to China, and when China's demographic dividend gradually subsided, UNIQLO is considering pferring its production base to Southeast Asian countries. There are only about 70 factories in UNIQLO, compared with 1000 of other garment giants, and flour materials have always been the top priority of UNIQLO product development. After the fleece coat, UNIQLO has introduced cashmere sweaters, HEATTECH, ultra light down garments and other popular fabrics based on fabrics. The goal of "P" UNIQLO is to produce basic clothing that everyone can wear; UNIQLO has only 1000 garments available every year.

it is easy to see that all development strategies of UNIQLO focus on one thing: dig out standardized products from the non standardized apparel industry, use the global supply chain, use brand appeal and R & D input to reduce the risk of product development failure, maximize efficiency, and thus bring the price to the extreme.

to understand the above background, let's sum up the secret of UNIQLO's success: it is nothing more than an efficient explosive machine.

Unlike Taobao, which sells hundreds of thousands of dollars in sales, the sales volume of UNIQLO's gods can reach hundreds of millions of dollars, but only a few years before it can happen.

But the average sales volume of UNIQLO's regular products is also in the scale of one million pieces.

Low, which is really a pain point for UNIQLO until now.

Ryui Masa repeatedly mentioned in his annual report that he should enhance the brand reputation of UNIQLO.

In the Japanese market, UNIQLO stores are upgraded from suburban shops to urban street stores, and now to department stores.

The area of the mainstream store has also been upgraded from the initial 500 to 800, 1600, or even 3300.

In the international market, UNIQLO directly raised the highest price and opened up the global flagship store in New York, London and Shanghai with a single store cost of tens of millions of dollars.

When the brand image is established, it will radiate to the surrounding areas.

the brand image is upgraded, but the 1900 yen Jimmy coat is the same.

Today, UNIQLO can give us too many interpretations. After all, such a big brand can not rush into the world.

If the word "low price" is too negative, then it is impossible to generalize the core competitiveness of UNIQLO with "efficient single product push capability".

from this point of view, the success of all successful consumer brands is based on the price war.

ZARA, for example, is essentially a pipelined replicating fashion machine, which is fighting price war with the traditional fashion industry.

Less than P, for example, Taobao can save the traditional agents of circulation industry, and e-commerce has the ability to fire all traditional businesses.

so the price war itself may not be a matter of too much importance. But if we want to win the price war continuously, the only way out is to find a more efficient business model suitable for our own play.

The business model that can persist in price war for decades is definitely not Low.

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factory brand: define the new bottom line of price

UNIQLO defines the bottom line of the Japanese market.

Then, who will define the price bottom line of various industries in China?

before analyzing the price war of domestic electricity suppliers, it is necessary for us to delineate the boundary of our discussion.

The price war of appliances category P < 3C is not in the scope of our discussion.

These are big opportunities in big industries, and brands and channels have long been powerful.

For the electricity supplier, this is also a big input and large output market, only the giants are qualified to play.

At present, there are only two enterprises that have been smashed by $one billion investment: Jingdong and millet, which represent the channel type and brand type e-commerce players respectively.

Other businesses either get out of the house or get into a big tree.

The price war in cosmetics such as cosmetics, health products and so on is also not in the scope of our discussion because the selling price of these industries has nothing to do with the cost of P.

For household appliances brand, we are concerned about its channel efficiency.

For clothing brand, we study its markup rate.

But for cosmetics, it is hard to say what the significance of these indicators is.

We believe that consumers' emotional appeals to these brands are greater than functional appeals.

Nine pieces of nine packets of mail are invented and developed by the cosmetics industry.

But to this day, there are no nine successful nine brands.

the industries we are concerned about are mainly those that have basic functional requirements, and the industries that have not yet been established in the upstream brand competition, such as shoes and clothing bags, mother and baby food, home building materials and other categories.

after studying the development track of a large number of categories, we find an interesting phenomenon, that is, when a industry is developing at a high speed, it will inevitably be accompanied by a rapid decline in prices.

And when the development of the industry is relatively mature, prices will also stabilize.

any industry, the reference object at the beginning of the line is the corresponding traditional industries, and the price is undoubtedly the most important reference index.

In most industries, e-commerce has larger cost advantages than traditional industries.

As a result, test makers in these industries have the ability to sell products cheaper than traditional industries.

We define it as the first stage of the price war: the traditional industries of e-commerce, and the genetic superiority of e-commerce.

but when the online market was detonated, the influx of a large number of sellers made the price war no longer confined to the competition among formats, but the competition within the format, between sellers and sellers.

The price war in this era will become white hot, and the limit of price decline will represent the limit of the electricity supplier.

We call it the second stage of price war.

, therefore, the development of e-commerce in an industry is the process from the limit of traditional industry to the limit of e-commerce.

The difference between the two represents the difference between the two formats in terms of operational efficiency.

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Less than P, for example, home textiles, food, underwear and other categories, in recent years, the growth rate is very eye-catching.

The prices of these categories of commodities also decline at a rate of over 10% every year.

The huge difference of online and offline channel efficiency makes e-commerce in these industries have great imagination.

men's wear and women's wear basically ended the price war at the industry level.

After years of price declines, the price of men's clothing has initially stabilized.

This shows that the price war in men's clothing industry has reached the limit, and the male business is expected to enter the maturity stage soon.

After entering the second stage of price war, all industries are faced with a puzzle: who defines the bottom line of the industry price? P.

if the other factors such as brand premium are not considered, the decision makers of the bottom line will of course belong to the factories on the line, because they are at the top of the industrial chain.

All kinds of items have a large number of factory brands on the line, and factory brand touches have also shown very strong destructive power.

For men's clothing, many factory brands have emerged in shirts, jeans, casual pants, T-Shirts, coats and down garments.

The rapid rise of their online industry once caused panic on the platform, because these brands constantly refresh the bottom line of the price, making the competition environment of the industry deteriorate rapidly.

in 2013, factory brand also touched the limit of price, and the trend of men's clothing price decline was stopped.

But the bottom line shared by these brands has become the "lifeline" of all brands.

In this price band, brand can achieve sales, but it can't earn money, let alone further price reduction.

But if prices are raised, sales of brands will fall.

this is the sadness of the factory brand playing with fire.

we should learn from UNIQLO what /p >

UNIQLO is an integral part of the explosive community.

So if you want to play with exploding money, UNIQLO is definitely a good learning target.

But UNIQLO's explosions are the product of efficient collaboration from the fabric research and development, product design, production logistics to terminal array, shopping guide promotion, and so on.

Can you make a 26 yuan fleece jacket? If not, it can explain why P has played for decades, and the more it plays, the more money it makes and the more money it makes.

today, UNIQLO's capability circle has exceeded the basic fund, and the success of g.u. is the best proof.

g.u. is a low-cost fast fashion brand under UNIQLO, similar to the brand positioning of ZARA, H&M and Forever21.

But the price of g.u. is only half of that of UNIQLO.

990 yen jeans, Polo shirt, dress, 490 yen T-shirt, sweater, these are g.u.'s flagship category.

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in the face of such a frenzied low price, g.u. brand can also make profits.

In the 2013 fiscal year, g.u. brand achieved sales revenue of 83 billion 700 million yen and operating profit of 7 billion 600 million yen, operating profit rate as high as 9.08%.

Therefore, UNIQLO not only can use this game to push up the explosive money, but also can use it to make fast fashion.

with UNIQLO's own words, after studying and practicing the SPA mode for more than 20 years, UNIQLO's grasp of every aspect of the apparel supply chain has been perfected.

So as long as the business model is established, whether it is a small amount of basic funds or a variety of fast fashion, UNIQLO can find the corresponding supply chain solutions.

Compared with P, the overall level of competition in the domestic consumer goods industry is still very low.

Online traditional industries, manufacturers, brands, and channel providers are mostly disjointed, with their respective functions, but without division of labor.

In the electricity supplier industry, most brands just moved the supply chain offline.

It is the brand that combines brand and channel together, and some brands are trying to penetrate the upstream supply chain.

The factory brands we mentioned repeatedly, though their products are competitive in price, can hardly constitute a comprehensive competitive strength of a brand.

it can be predicted that competition will continue to escalate with the consumption of all kinds of dividends in the electricity supplier industry.

The conventional survival of the fittest will force the merchants to penetrate the upstream and downstream of the supply chain.

Only when the enterprise has sufficient control over the whole chain of the supply chain, he has the condition to establish a supply chain solution based on the business model.

At that time, he had the ability to study uniqo in an all-round way.

as for how to fight price war, it is entirely the business's own choice.

UNIQLO is unswervingly chosen to take the low price to the end.

It lives very well.

[author profile] Yang Qin , chief data analyst of data center of the world network commerce.

Financial professional, was in charge of data analysis business in an electric business enterprise, joined the world network business in 2012, focused on the research of e-commerce industry.

We advocate a bottom-up and business oriented analytical approach, widely covering domestic and foreign consumer goods and retail industries, and have a deep study of clothing, home appliances, cosmetics and other industries.

world network commerce data center , China's first electronic commerce professional research institute based on data is concerned about consumer goods, retail, Internet and other related industries, online and offline, domestic and foreign market, and strive to provide an objective and useful research report from the most comprehensive perspective.

At present, a sound financial and business database has been set up, and many research products such as reports, cases, interpretations and topics have been launched, which has been widely recognized by professionals both inside and outside the industry.