UNIQLO'S Achievements Are Unique In The Chinese Market.

The fast selling group of UNIQLO parent company recently handed in a brilliant 2019 fiscal year report card. In the cold winter of the fast fashion industry, why does UNIQLO "outshine others"?

Data show that as of the 12 months of August 31, 2019, XXX group's annual revenue of 22905 billion yen, an increase of 7.5% over the same period, the total operating profit of 257 billion 600 million yen, an increase of 9.1% over the same period. Although fast selling group's revenue growth is less than last year, but due to strong performance in UNIQLO's overseas market, and GU brand (XXXX group's brand) revenue and profits grew significantly, the group's 2019 fiscal year revenue and net profit all set the best performance in the past year.

The Chinese market has always been the most important part of fast selling group. In the 2019 fiscal year, UNIQLO achieved a profit of 502 billion 600 million yen in the Chinese market, an increase of 14.3% over the same period last year, and operating profit of 89 billion yen, an increase of 20.8% over the same period last year. Among them, from the domestic electricity supplier development, the company's online sales increased by 30% over the same period last year. At present, UNIQLO's revenue in China has accounted for 21.9% of the total revenue of UNIQLO, and the Chinese market has become the second largest market after Japan. Due to the steady growth of the Chinese market, XXX group separately counted the data of Greater China in the financial report.

In the past three years, the fast fashion industry has shown a trend of differentiation and development. Forever21 has gone bankrupt, ZARA and H&M have maintained low growth, and GAP splitting business has saved itself. At present, UNIQLO has more than 700 stores in China, and in August this year, UNIQLO even opened 12 stores in China.

According to the China Commercial Daily reporter, many consumers have a strong interest in UNIQLO's brand. Many consumers shopping at UNIQLO store told the China Commercial Daily reporter that in the domestic fast fashion brands, UNIQLO can be ranked first in terms of service, product design and quality, and the clothing style is simple and versatile. "Every time you change your new clothes, you should come to UNIQLO for a stroll." One consumer said so.

It is worth mentioning that, because of the success of the Chinese market, XXX group expressed the expectation of achieving the same or greater growth with the Chinese market in the layout of the India market. It is reported that in October 4th this year, Xun marketing group opened the 1 shop of UNIQLO in New Delhi, capital of India, and was officially stationed in the country. After the India 1 store, Xun marketing group will open two stores in New Delhi and suburban cities. Ryui Masa, chairman and chief executive officer of fast marketing group, said that opening up three stores in almost the same period is "proof of the importance of the India market".

However, it is hard to say whether UNIQLO can reproduce the success of the Chinese market in the India market. Relevant experts of the China clothing association said in an interview with the China Commercial Daily reporter that as early as a few years ago, ZARA, H&M and Gap had entered the India market successively, but their performance is not satisfactory at present. At the same time, because there are some restrictive policies in the India market, UNIQLO's market expansion is not as easy as it is in the Chinese market, and whether it can be integrated into the India market is hard to say.