Ryui Masa, Founder Of UNIQLO, Has Become The Number One In The World, And Now It Doesn'T Make Sense.

Seventy, do whatever you want. Ryui Masa, who has just turned seventy this year, is leading UNIQLO to a new stage.

"Being the number one in the world, I thought so, and now I think it doesn't make sense." Japan's richest man, the founder, President and chief executive officer of fast retailing group, Liu Chi Jing, who is the founder and founder of UNIQLO, said in an exclusive interview with London Business Week / Chinese version in mid September. "Now is not the age of chase, quantity is important, but more importantly, corporate governance must be the best company to become the most respected company in the world. I have always wanted to make good products and work with excellent people.

Almost dressed as he did in his interview last September, he wore a black suit, blue thin shirt, a black white tie, and frameless glasses. He was 70 years old, but he looked very cheerful.

In 2011, Liu Jing, who was 62 years old, set a grand goal for herself: in 2020, the fast selling group of UNIQLO parent company wanted to become the largest clothing manufacturer and retailer in the world, with a net sales of 5 trillion yen and a profit of 1 trillion yen. In those days, the net sales of Fast Retailing were about 855 billion 200 million yen and the profit was about 120 billion yen.

8 years later, the latest 2019 fiscal year data show that sales of XXX group rose 7.5% to 2 trillion and 290 billion yen (about 151 billion 500 million yuan), while profits rose 5% to 162 billion 578 million yen (about 10 billion 750 million yuan). Although there is a gap between the original goal and the original goal, the result is a record high.

From its revenue perspective, UNIQLO lagged behind Zara and H&M. According to the brand establishment time, H&M was first established in 1947, Zara was founded in May 1974, and the latest was UNIQLO, founded in September 1974.

However, according to the latest market value in December 27th, the fast retailing group has reached 61 billion 400 million US dollars, which has surpassed H&M's US $34 billion 330 million, and is the second largest clothing company in the world, after Zara's INDITEX group's 111 billion 900 million dollars.

The results were not easy. In recent years, fast fashion has been encountering turbulence. Zara and H&M are shrinking the number of Chinese stores; GAP has fallen by more than 40% this year, with only 6 billion 60 million dollars left, and Forever21, once popular among teenagers, has filed for bankruptcy protection in the United States.

Ryui Masa's personal wealth rose with the tide. In the Bloomberg billionaire index, Ryui Masa's personal wealth has more than doubled since April 2016, reaching $30 billion 800 million in December 28, 2019, the twenty-eighth largest in the world, and Japan's richest man.

Ma Yun, co-founder of Alibaba, made no secret of his respect for Ryui Masa. He once said in a media interview, "the two entrepreneurs I admire most are those who sell coffee and sell themselves to Starbucks, and the other one is Mr. Ryui Masa. There are many clothes selling all over the world, but only he has sold it to the extreme and has become the richest man in Japan."

"The world regards me as a winner, but I don't think so. My life is actually one win or nine defeat. The winning rate is only 10%. You can't succeed overnight. The only solution is to constantly change ourselves and constantly challenge ourselves, and we must be able to see things objectively and keep introspection. "

Ryui Matsushi's business weekly / Chinese version said, "Japan's own national costume is not a dress, but a kimono. Now the clothes that everyone is accustomed to wear is actually imported from Europe and America. UNIQLO can enter the world with Western clothing. It's not easy.

The large-scale immersive art device using socks and other elements presents the art and science of sustainable life evolution.

UNIQLO has its own winning formula. Zara, the originator of fast fashion, brings 75 thousand SKU to the market every year (the smallest unit of consumer product), and the SKU of H&M is less. But the number of SKU that UNIQLO introduced in a year is only about 1/10 of those competitors.

"UNIQLO is definitely not fast fashion clothing. We integrate the basic and classic elements into some popular elements to provide consumers with more reasonable prices. We do not think that clothing has its own personality, but that each person has his own personality. He can embody his personality through the parts he chooses.

This is also the reason why UNIQLO brand concept is positioning "LifeWear service life", Ryui Masa told business weekly / Chinese version. "Fast fashion" is only in pursuit of temporary fashion, but it can not be worn for a long time, and it can only wear for a year at most. We never make disposable clothes.

I want to make clothes that suit my personal life style, beyond the age and can be worn for a long time, that is to say, Timeless clothes.

We are not IT or digital companies. Instead, we want to become a company that effectively utilizes IT and digital technology. Digitalization and IT are the modern infrastructure.

Compared with competitive brands, they are always at the cutting edge. UNIQLO specializes in the use of innovative technology, combined with design and quality, so that each piece of clothing is durable but not expensive.

In recent years, the knitting knitted dress made of three dimensional knitting technology with automatic needle, 3D and full molding technology is taken as an example. In just 70 minutes, a seamless seamless knitted dress can be processed at one time without cutting and sewing. The whole body and two sleeves are woven together by one thread, greatly reducing the fabric waste problem which is difficult to avoid before weaving technology, and the product is more comfortable and comfortable. This 100% wool, 3D worsted Merino rib dress costs only 399 yuan.

This innovation is not a special case. In 1998, UNIQLO improved the existing technology and launched the "gross fleece" coat with high gross profit and low price. This product has promoted UNIQLO's three level jump to break 100 billion yen, 200 billion yen and 400 billion yen in the three consecutive years from 1999 to 2001.

Afterward, UNIQLO continues to introduce innovative technology products, including HEATTECH warm underwear series, Ultra LightDown high light down garment series, AIRism comfortable underwear series, fast drying elastic trousers and Dry-EX high performance sweat absorbing and dry fabric. Almost all these scientific and technological fabrics set off a global campaign for fabric renovation.

In terms of quantity, UNIQLO launches 1000 costumes all year round, but it does not crowd into the "fast" ranks. But for local consumers in China, UNIQLO is a brand that can bring surprises and freshness to consumers all the year round.

On the world brand Expo site display, through enlarged cufflinks, sleeve cage, collar and other shirt design details

Shanghai's flagship store in the summer has just completed the sale of UNIQLO and KAWS's last cooperation series UT. After that, people have welcomed the concise and stylish Uniqlo U series. In less than a month, when the autumn is crisp, the designer's J.W Anderson cooperation series is reoccupied with people's wardrobe.

UNIQLO has also launched a new Hybri series of high-performance composite jackets, which use new moisture absorbing and heating materials, and high-quality feather filling to warm the body parts. HEATTECH warm underwear is also the fastest product in the "double eleven" activities before winter. These are not simple marketing activities to be completed, behind the efforts of innovation and R & D team.

Rebekka Bay, creative director of New York research and development center in UNIQLO, admitted in an interview that "UNIQLO is unique in its different markets, with its own innovation centers. Each center or studio has special concerns.

The innovation center of Losangeles branch focuses on cowboys. The Paris R & D team is currently responsible for leading the design of Uniqlo U by Christophe Lemaire, a fashion designer, to explore the future Life Wear foundation.

She added: "all the designers and architects in Japan, the United States and Denmark share the same concerns. It is quite interesting that new styles of clothing are born through new materials or new production techniques.

In broad sense, we understand people's aesthetic changes with reference to the market trend. In detail, we investigate consumers' current clothing demand through surveys, and then link them with fabrics. The ultimate goal is to focus on how to use new materials to improve people's quality of life.

Xun marketing group set up a "jeans Service Innovation Center" in Losangeles, successfully developed new jeans washing process, which can reduce the 73%-94.9% water consumption of jeans in the washing process.

"Innovation is to understand the way of life of consumers and walk at the front end of their needs. How to develop the consumption of the 41 needs that exist deep inside, but are not yet known.

In the view of Rebekka Bay, UNIQLO is developing new luxury products, "brand new luxury is convenient. We don't need to invest time to think about what to wear and how to achieve good folding effect. Our solution is quality high-end products, making life more convenient. "

Fast marketing group has become a highlight in the latest earnings report for young consumers, more fashionable and cheaper brands GU. The brand's 9 month operating profit reached 28 billion 100 million, an increase of 139.2% over the previous year, the best performance in the past year, operating profit reached 11.8%, accounting for 1/10 of the group's operating profit, providing a more diversified source of income for the Japanese retail giant.

Dairo Murata, a securities analyst at JP Morgan chase, said: "from the previous fiscal year, it seems that GU has cut the number of projects and started to pay attention to the trend of the public, which is a turning point for the brand.

"According to Bloomberg intelligence analyst Catherine Lim," XXX has the ability to improve the operation of the entire supply chain and to launch faster products. "

UNIQLO is also working hard on corporate social responsibility. "Buy less and buy well" is becoming a shopping guide for the Millennials. They pay more attention to environmental sustainability in the fashion industry, and become a moral standard for enterprises.

Sustainability has become the top priority of this year's fashion industry and apparel industry to discuss: Kai Yun group announces its commitment to achieving full carbon neutralization; LVMH is more sustainable and further cuts in carbon emissions to ensure that all raw materials will be fully tracked by 2025.

On the topic of environmental protection, UNIQLO started preparations seven years ago. As of August 2019, the total merchandise recycling program in UNIQLO's sustainable plan has more than 3 million 600 thousand recycled garments.

In 2016, based on changing the concept of jeans and the concept of sustainable development, XXX set up a "denim innovation center" in Losangeles, successfully developing new jeans washing process, which can reduce the water consumption of jeans in the washing process.

The technology has been applied to jeans produced and sold in China in 2019. Of these, two jeans have been certified for water saving, and the reduction of water consumption in the washing process ranges from 73% to 94.9%.

In September 2019, London's "Life Wear service life art and science: functional aesthetics" global brand exposition, UNIQLO announced the joint research and development with Japan Dongli group made of polyester fabric made from recycled plastic bottles to manufacture Dry-EX speed drying clothing series, through a unique recovery and identification system, achieved the traceability of PET bottle recycled fiber, and research and development products are expected to be available for sale in 2020.

Nikkaku, President of Dongli group, said in an interview: "marine garbage is a global problem. One of the reasons for marine plastic pollution is PET plastic bottles. So we want to do everything we can to reduce PET plastic bottles into the sea, so we joined forces with Mr. Liu Chi Cheng to open this project."

Earlier in July 18th, UNIQLO and the Song Qingling foundation of China jointly launched the Miao embroidery culture heritage project in Shanghai, embodying the modern humanistic spirit of traditional culture, encouraging young people to innovate through clothing power, and creating more job opportunities for embroidered mothers. At the same time, the Miao embroidery project is combined with the "full commodity recycling" project of UNIQLO.

In the launching ceremony, Pan Ning, chief executive of UNIQLO, said that Miao embroidery projects incorporate the essence of traditional culture into contemporary people's lives, enabling consumers, especially the younger generation, to feel the aesthetic value and connotation of costumes and create more possibilities for a better life.

Perhaps this is the reason why UNIQLO has been pushing ahead in Japan's domestic market in recent years. On the morning of October 4th, hundreds of people gathered in the UNIQLO store of a shopping mall in New Delhi, India.

The first 500 consumers downloaded the company's apps, and would have the chance to get a T-shirt and 200 rupees discount tickets free of charge when shopping.

At this time, it is only a few weeks away from the biggest festival in India and the advent of Diwali, which is a good time, because India consumers often go shopping before the Lantern Festival.

"I like the design and graphics of UNIQLO T-shirts. For me, H&M may be cheaper, but the quality of UNIQLO is better," Sehaj, a 20 year old college student, said in an interview.

Peter Bodman Boardman, managing director of NWQ investment management company, said in a recent interview with the NBC financial channel (CNBC) that the fast selling group's entry into the India market is an excellent opportunity. In his view, the high cost performance products of UNIQLO are attractive to consumers in India.

But the challenge for UNIQLO to enter the India market is still small. According to McKinsey Co and fashion review website Business of Fashion's report in 2018, "by 2023, India's traditional clothing still accounts for 65% of the total market share of India's clothing consumption," which means India consumers may hardly be able to quickly change their style of dress.

In addition, any foreign company with more than 51% ownership must purchase at least 30% of raw materials in India. H&M started its business in India as early as 2015, and Zara settled in India earlier in 2010.

UNIQLO has had a lucky time compared with its competitors. According to McKinsey, India will become the sixth largest clothing market in the world by 2022.

According to a report from Care Car eRatings4, the value of clothing industry in India has exceeded 6 trillion and 500 billion rupees, more than two times that of 2010. Ryui Masa said: "my expectation of the potential of the India market is just as high as that of China."

The government of India also announced in August 29th that the relevant regulations on foreign direct investment (FDI) in various industries should be relaxed. In this regard, Tomoohiko Sei, chief executive officer of India subsidiary of UNIQLO, told reporters that "no matter how much the procurement standard is made by the India government, we will expand production in India with the goal of making clothes with India companies and people."

Different from the Chinese market, UNIQLO joined the local female designers, launched the traditional clothing "Kurta" series, and made a breakthrough in the India market with other apparel enterprises through the thorough localization.

Believe that the shop will never disappear, Liu Jing is telling the business weekly / Chinese version that digital channels are indeed a means of communication, but this can not be the ultimate goal of enterprises. The footprints of physical stores in overseas markets are really the expansion of UNIQLO.

As a result, UNIQLO opened the first store in Holland in Amsterdam in September 2018, opened the first Danish store in Copenhagen in April 2019 and opened the first store in Italy in the fashion capital of Milan in September of the same year.

2019 annual report of fiscal year shows that overseas UNIQLO sales for the first time broke through trillion yen, reaching 10260 billion yen, an increase of 14.5% over the same period last year, operating profit of 138 billion 900 million yen, an increase of 16.8% over the same period last year, both of which surpassed Japanese soil performance.

Among them, sales and profits in Greater China, Southeast Asia and Oceania have double digit growth; Europe also has a good performance under the strong performance of Russia.

America's operating losses have shrunk considerably, but South Korea's sales and profits have declined. Bodman analysis shows that the Korean market accounts for about 3% of fast selling revenue, though this figure is not large, but it is still impressive.

Why is Ryui Masa facing the biggest challenge? "The biggest issue is the successor." He replied, "from the inside, women are more talented managers, but women must be more ambitious. If a female leader starts to say that I only want to be a minister, I am sure it will not work.

In fact, this work is more suitable for women, they are persistent, pay attention to details, and have an aesthetic sense. " This year, Ryui Masa appointed senior vice president of fast marketing group Akai Tamaki as CEO of UNIQLO Japan, the first female CEO in the history of UNIQLO. He also wants to increase the proportion of female executives to more than half of the total.

For investors, the management of gender diversity is also the focus of attention at the moment. Matthews Asia analyst Catherine Collins (Kathlyn Collins) said that especially for consumer companies, it is more important to have executives who are similar and matched with core customers in these companies.

Matthews Asia is a San Francisco based fund managing about $30 billion of assets.

When clothing rents and secondhand clothing resale markets are booming, they must not be despised by garment manufacturers. According to a consumer survey conducted by Statista, the value of the second-hand clothing market in the world will reach US $28 billion by 2019. The garment manufacturing industry has to be prepared for the new opening of the apparel industry.

Ryui Masa said, "I think the only way to deal with secondhand clothes is to create new products that are more attractive than second-hand clothes. I sometimes wonder if I can create a channel for selling second-hand clothes.

Asked Liu well twenty or thirty years ago whether he wanted to go to UNIQLO to have today's results? He thought for a while and replied with a smile. "At that time, I had thought about this problem, but at that time, I thought the reality was very serious. Even if I worked for a lifetime, I could probably only open to 30 shops (now the fast retailing group has 3589 stores, including 2196 of UNIQLO), or at most the scale of about $30 million. So if you want to, if you insist, you can do it. "