Visitors To Japan Increase, Chain Store ABC Mart Benefit

In the past two years, the number of visitors to Japan has continued to record high. After reaching 10 million 360 thousand in 2013, the number of visitors in 2014 has exceeded 13 million.

Many Japanese retailers benefit, including large ones.

ABC Mart.

Although ABC Mart began expanding into e-commerce in late 11, the offline stores are still dominant.

In recent reports, it has been learned that ABC Mart can gain a higher profit, on the one hand, it is benefited from the increasing number of tourists visiting Japan. On the other hand, it can not do without the company's own business strategy, including product development and the grasp of consumption dynamics.

Targeting foreigners and the female market

Located at Harajuku street, Tokyo.

Shops, Adidas, NIKE, New Balance and other world famous brand sneakers and running shoes row upon row.

At the end of last year, on the evening of the working day, the shops were full of visitors from Europe and America and Asia.

A Thailand woman who came to Japan to travel said, "this is cheaper and more style than Thailand.

Though I bought it yesterday, I came here today. "

The person in charge of the shop told reporters that foreigners had higher unit price than Japanese customers, so it was not a matter of promoting sales. Many people even bought 3~4 pairs of shoes.

The shops recommended by the Asian tourist guide have an introduction to ABC Mart Harajuku.

Noguchi Mi, President of ABC Mart, said, "Harajuku stores accounted for about 1/3 of foreign customers on Saturday, and Osaka's Xin Hai Qiao shop even had more than 5."

This situation is not limited to Tokyo and Osaka, including Hokkaido and Fukuoka. About 100 of the 780 shops in Japan are frequented by foreign customers.

The reason for this is that there are more stores in Japan supporting UnionPay payment and new tax exemption policies, which have stimulated tourists' consumption.

Another reason why ABC Mart can ride tourists to Japan is the favor of women for sports shoes.

About two years ago, there was a fashion trend of sports shoes in the world.

At that time, the president of the wild mouth once said, "our company is on the road."

This trend has grown with it. "

Because of this fashion trend, the company's existing stores are doing well even after the consumption tax was raised in April 2014.

As of February 2015, sales increased by 13% over the same period to 201 billion 300 million yen, and profits increased 19% over the same period to 40 billion 600 million yen.

Although there were revised profit estimates last summer, it is undeniable that turnover has continued to record high.

Obtain trademark authorization and build independent brand

In the total business volume of Japan, the growth brought by foreigners is only 2%~3%. The trend of women's sports shoes has only begun to recover in the past two years, so the main reason for the profit is ABC Mart's own strong strength.

The first key word is "PB".

British Hawkins and Vans, which are sold in ABC Mart, are famous shoes brands abroad.

In fact, these are the products that ABC Mart has independently designed, manufactured and sold after the trademark has been authorized.

Such private brand goods account for half of sales.

The remaining half belongs to NIKE and New Balance and other international brand goods (NB), but they are not simple NB.

"These are the products we developed with the manufacturers, so the 6~7 of these international brand goods is not sold by other stores."

The president explained.

The proportion of private brand goods is about 75%, and gross gross profit is almost 6 higher than that of other companies.

Although it is a retailer, the profit margin can be as high as nearly 20%.

Grasp the trend of consumer market

The second key word is "field strength".

Almost all the staff, including the head office staff, came to the store to sell shoes at the weekend.

"It is important not only to understand the POS data (electronic sales data), but also to understand the reasons and processes for customers to buy," said the president.

Only by visiting downtown and various shops in different districts can we know the difference between the best sellers and the products.

In addition, we can see the sales figures of all stores and all staff members.

Although no reward has been set, public performance will stimulate everyone's competitiveness.

The third key word is "actively open shop".

The president of the wild mouth asserted that there are now 780 stores in Japan, which will grow to 1.5 times to 1200 in the future.

The current policy is to continuously increase 50 stores a year.

In the autumn of 2014, ABC Mart opened shop in Station Mall, the first time in the large department store in front of the station.

There are few sports shoes shops in department stores, so there will be demand.

The price of customers is higher than that of other stores.

Other new businesses are also advancing, and the company plans to set up stores that specializes in running shoes.

Asics, who had not yet been on the shelves, began to cooperate in 2014 to build new market demands.

The sports shoe craze will end one day.

Before that, ABC Mart tried to diversify existing brands and businesses.

After the upsurge of early twenty-first Century, the company shop suffered considerable losses.

Different from that time, now ABC Mart has added other types of shoes, but the mainstream is still sports shoes.

Can ABC Mart's retail myth continue in the future? Let them speak with their strength.