The Creative Culture Of UNIQLO Will Become A Good Solution.

Recently, the XXX group released its first quarter results in fiscal year 2016, showing a sharp fall of 16.9% in net profit.

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.

The company said the group's losses in the US business continued, and its demand for the largest market in Japan, Greater China and South Korea was also severely hit by the global warming winter.

To this end, fast sales cut the whole year's forecast. The annual operating profit as of August 2016 is only 180 billion yen, far behind the market expectations of 1996 billion yen, which was expected to be 200 billion yen.

Net profit is also expected to drop from 115 billion yen to 111 billion yen, which is also worse than the market forecast of 119 billion yen.

Guo Lian securities analyst Zhu Leting said here: "Muji", GAP and UNIQLO are the main foundation of day-to-day payments, but Muji and GAP are relatively expensive.

UNIQLO has been developing rapidly in China's second tier cities in recent years. It is in line with the rhythm of urban consumption, and has crushed some brands in China. But at the same time, UNIQLO's own Japanese and American markets are shrinking. So UNIQLO is actively exploring new business models, including cooperation with Seven&iHoldings. After ordering online, you can go to 7-11 convenience store entities to pick up goods.

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It seems that the Chinese market has been the biggest bright spot of UNIQLO, which has rarely been disclosed in the quarterly report this year. But considering the larger base, the growth rate may slow down year by year.

At present, the total number of UNIQLO stores in China is close to 370, covering 86 cities throughout the country.

From the total number of stores,

H&M115 is the leading second place in the world.

With the popularity of fast fashion among domestic consumers, the sales volume of UNIQLO and H&M in China can match that of fast fashion brands in China.

According to statistics, the sales of UNIQLO and H&M 2013 in China in the fiscal year reached 125 billion yen (7 billion 575 million yuan) and 6 billion 655 million Swedish kronor (about 6 billion 407 million yuan). Only two of these brands in 2015 were over 14 billion yuan in China.

According to this data, the sales scale of the two brands is far more than that of Giordano which has been in China for many years, and its sales scale is similar to Semir's clothing.

In China, the market has long been the "engine" for the growth of these fast fashion brands. Taking H&M as an example, China's sales growth is 23%, while the sales growth of the group is 6.69%.

In the international business represented by China business, the sales revenue and operating profit of XXX group increased by more than 60% over the same period last year.

The operating profit dropped by 5.4% compared with the same period last year.

Yang also emphasized that products are king's customers' real interest.

Today's younger generation not only buys products, but also buys a spirit or pleasure, especially when facing 90's consumers. It is not suitable to be the first appeal of brands.

It should be pointed out that the products that the brand provides to consumers must be full of human feelings rather than self praise and packaging.

The essence of the fashion industry is "creativity", which is interesting, humane and distinctive, plus first-class quality, so as to create a real sense of experience.

At the same time, moving customers' pain points is the most critical price, which is cost-effective.

The era of fashion profits has passed. Facing the reality, we will have a bright future for products that meet the needs of spirit.

Faced with the increasingly low demand for clothing market, the crisis of clothing enterprises is becoming more and more serious.

Facing the overall shrinking of the market and the booming Internet, the biggest crisis facing the garment enterprises is not the current profit but the sustainability of the future business.

Yang pointed out that in the era of Internet, clothing enterprises will become more and more tired, because the changes are getting faster and faster.

Once Giordano and JEANSWEST were very popular, only ten years ago, they have become the past tense, including PLAYBOY, Montagut, Goldlion and so on. Now, ZARA, UNIQLO and H&M are popular. In another 5 years, what will the market do? In the rapidly changing Internet age, if the enterprises are not fast enough, there are two ways to go: first, sell the enterprises quickly, then invest the money in the young people and become their shareholders; second, the way out is to take risks and pform themselves.