The Fast Expansion Of UNIQLO Is Facing Difficulties.

In the face of the rebound of domestic sports brands, UNIQLO unexpectedly slowed down its pace.

In January 9th, the first quarter results of the fast fashion group, the fast fashion group, 2016, the company's net profit fell sharply by 16.9%.

Among them, Japanese domestic performance and overseas market performance based on Greater China were not up to standard, and operating profit decreased by 12.4% and 14.2% respectively.

Affected by this, XXX group also lowered its annual profit and revenue forecast for the 2016 fiscal year.

In recent years, the fast expansion of UNIQLO has not stopped.

The current situation of high-speed gliding.

According to the first quarter results of UNIQLO's fiscal year 2016, last year 9-11 months, the group's total revenue was 520 billion 300 million yen, an increase of 8.5% over the same period last year, and the total profit of the parent company should be 48 billion yen, down 30.2% from the same period last year.

UNIQLO has been its rapid expansion mode.

Typical, but what exactly causes the net profit to fall sharply? Behind the rapid expansion of the Chinese market, who actually grabbed the cake of UNIQLO?

However, the Greater China region (including the mainland, Hongkong and Taiwan), which has been considered growth engine by UNIQLO, has accounted for half of the total revenue from overseas markets and is not ideal.

Among them, Japanese domestic performance and overseas market performance based on Greater China were not up to standard, and operating profit decreased by 12.4% and 14.2% respectively.

UNIQLO is the main brand of fast selling group. In November last year, Japan's domestic revenue fell by 0.7% to 230 billion 900 million yen (12 billion 861 million yuan), while profits dropped 12.4% to 44 billion 800 million yen (2 billion 495 million yuan) compared to the same period last year, and the situation worsened further in December.

The decline widened to 11.9% compared to the same period last year, and the income dropped by 10.7% compared with the same period last year.

This continuous decline dragged down the first quarter of 2016, while UNIQLO Japan's same store sales decreased by 2.3% year-on-year, far from the group's expectations of 4% growth.

As for the reasons for the sharp decline in net profit, UNIQLO explained that it was weather.

The fast warming group said that the warmer winter climate last year had adverse effects on the same store sales in the Greater China region (including Mainland China, Hongkong and Taiwan), Korea and the United States, resulting in a weaker performance than those expected in the first quarter.

But it is worth pondering that if it is the weather cause, this or will continue to affect the entire garment industry, why will it affect uniqo alone?

According to press reports, domestic sports brands have been warmer.

According to the results released by several sports brands in recent years, Adidas's revenue grew 7 billion 990 million euros in the first half of 2015, an increase of 16% over the same period last year. Nike grew by 7 billion 779 million US dollars in the fourth quarter of 2015, an increase of 4.44% over the same period last year; Anta's income in the first half of the year was 5 billion 110 million yuan, an increase of 24% over the same period last year; and even the Lining who had been losing money also changed the previous situation of the upside down. In the first half of the year, the income was 3 billion 641 million yuan, up 16% over the same period last year.

In January 12th, the relevant reply received by the relevant person in charge of the electrical UNIQLO was still "caused by the unusually warm climate and the diminishing exchange earnings", and there was no further comment on the decline in net profit of the company.

Previously, foreign markets, especially the US market, were also the main reasons for the failure of UNIQLO in the past two years.

According to the relevant financial reports of UNIQLO, according to the continued loss of UNIQLO's US business, the group has readjust its new development strategy, saying that it will focus on opening new stores and expanding e-commerce in metropolis so as to enhance brand awareness.

In the Chinese market, the top executives of UNIQLO also replied to reporters that 100 new stores are being opened in the Greater China every year to expand the market, while strengthening the electricity supplier, providing consumers with quality clothing and comfortable enjoyment both online and offline.