UNIQLO Strengthens China'S Dependence And Keeps On Opening Shop Actively

Japan's fast retailing of "UNIQLO" operation in April 11th released the consolidated financial results (International Accounting Standards) in September 2018 of ~2019 in September 2018, and net profit rose 9% to 114 billion yen, a record high.

Focusing on China as the main force, "UNIQLO" has performed well overseas, while Japan has been affected by the warm winter climate.

UNIQLO's dependence on the Chinese market is becoming more and more significant.

At the April 11th earnings briefing, Okazaki Ken, chief financial officer (CFO) of Fast Retailing, pointed out that Japan's "domestic QQ" had a big decline.

In Japan, the monthly sales of UNIQLO business in February of September 2018 ~2019 declined again after 3 years.

Discount sales increased, gross profit margins declined, and fast forward sales profit forecast for fiscal year 2019 (up to August 2019) was expected to drop by 10% to 260 billion yen.

UNIQLO has been actively opening stores since it opened shop 1 in Japan 35 years ago.

UNIQLO has "hot fleece" and other hot products, and has established an overwhelming position in Japan.

However, due to the influence of minority production, the domestic market in Japan tends to be saturated.

At present, the number of stores in Japan has been reduced by about 30 compared to 5 years ago.

XXX hopes to turn into a new enterprise using IC tags and AI, but has not really completed the pformation.

Nevertheless, the performance is still at a record high because of the growth of overseas UNIQLO.

UNIQLO maintains high growth in China. It expects sales in the Chinese market to exceed 500 billion yen for the first time in fiscal year 2019.

In China, Hongkong and Taiwan, the number of shops in the Greater China area exceeds 700, and strive to reach 1000 in 2021.

Liu Jing, President and President of fast marketing, is confident that "China's clothing market has a demand of 50 trillion yen, and will definitely not slow down".

However, China's business growth in the same industry is slowing down.

In order to reduce its dependence on the Chinese market, Xun will take India as the "third arrow" after Japan and China.

The company is scheduled to open shop 1 in Delhi this autumn. It is believed that the number of shops in India will expand to the same level as that in China after 10~20.