Uniqlo performance micro-user thinking is the main cause

Brand is supreme, how to rebuild consumer trust

Consumers’ brand preferences are waning and brands are facing great difficulties, but this does not mean that brands have no value, but because many brand operators are not aware of the challenges that “interactive” market environments pose to brands. . In the current market environment, consumers interact, rather than passively blindly advertising; the information that consumers have in their hands can be quickly transformed into action, not just ideas that exist in the mind.

Those “fast fashion people” who once had a good time began to walk down the altar, their performance declined, and even began to withdraw. In the era of consumption upgrading, their transformation is imperative.

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In October 2016, UNIQLO's parent company, Japan Fast Retailing Group, released its fiscal year 2016 report, with a profit after tax of 127.2 billion yen, a decrease of 22.6% from last year. In addition, Uniqlo has experienced varying degrees of decline in the global market. Among them, UNIQLO's after-tax profit in the Japanese market fell 12.6%, and Uniqlo China's performance also declined.

In fact, in this type of fast fashion brand, the 2016 performance decline is not only Uniqlo, but H&M performance is also declining. Metersbonwe, which has always been "not taking the usual path," has made a profit of 1 billion yuan to a huge loss.

According to the financial report, from 2012 to 2015, the revenue of Smith Barney apparel fell for four consecutive years, which was 9.509 billion yuan, 7.889 billion yuan, 6.62 billion yuan and 6.295 billion yuan. In 2015, the net profit attributable to shareholders of listed companies was -43 million yuan. The company's first loss in the past seven years, the number of stores has dropped more than 1,500. In the first half of this year, the net profit loss of Smith Barney apparel still exceeded 60 million yuan.

The source of user's lack of performance decline

Uniqlo attributed the decline in profits to "the exchange rate was affected by the appreciation of the yen, resulting in exchange losses." In fact, Uniqlo's profitability has gradually slowed down since 2015, and the loss of the Japanese domestic market has made the same store sales growth extremely bad, even retrogressive.

Since 2014, Uniqlo has adopted a price increase strategy in response to the depreciation of the yen. Between 2014 and 2015, Uniqlo increased prices twice in a row. Although this move did indeed counteract the depreciation of the yen, it also brought a fatal blow - a drop in passenger traffic. China’s performance has declined, and there are deeper reasons. An industry insider said that the decline in Uniqlo's performance was not only affected by the price increase, but also the UNIQLO brand's style update rate was low, and the fabric innovation was not strong. The long-term consumer repeated risk of consumption was low.

In the face of the same situation, there is Metersbonwe.

Zhou Chengjian, the founder of Metersbonwe, who was deeply involved in various contradictions in 2014, once admitted that in the era of “channels are kings”, clothing companies will open stores by spending money and channels; nowadays is the era of “users are kings”. It has become a user who spends money. In order to move closer to the user, Metersbonwe began to test the e-commerce embarrassment and began to reduce channel operations. From its peak, Metersbonwe had more than 5,000 stores, but it closed nearly 1,500 stores in three years. Wangfujing, the largest direct flagship store in Beijing, which once made Metersbonwe proud, also closed down.

An industry insider said that the decline in the performance of Metersbonwe mainly stems from the impact of international fast fashion brands and the relative lag of the implementation of the transformation of Metersbonwe. The design and core consumer of Metersbonwe products The gap after 90 is constantly widening.

Uniqlo and Metersbonwe, which have always been in the corporate mindset, have not really changed the way of thinking, whether it is Uniqlo’s “simple but not simple” brand concept, or Metersbonwe’s “No Take the usual path, all are to output values ​​to users, rather than to understand the real style design needs of users. It is difficult for corporate thinking to change to true user thinking. It is the biggest challenge facing the new retail era.

Constructing e-commerce good medicine and suffering from disease

The continuous price adjustment strategy did not bring real profit to Uniqlo, but it made UNIQLO miserable. At this point, the 2016 financial report gave UNILOLO a slap in the face of the idea of ​​maintaining prices through price increases.

In the face of performance pressure, Fast Retailing Group lowered its sales target for 2020 to 3 trillion (about 30 billion US dollars), and when the 2020 target was first set in 2012, the figure was 5 trillion yen.

Liu Jingzheng, CEO of Fast Retailing Group, once admitted in an interview with the media that it is wrong to adopt a price increase strategy, and will continue to adjust prices to improve performance on a global scale. At the same time, Uniqlo is also conducting online and offline linkage business.

Uniqlo said that it is constantly striving to achieve online consumer interaction and conversion, encouraging consumers to actively participate in online and offline interactions, improve the overall fan base in the Uniqlo online ecosystem, and realize the O2O fan economy.

Before the “Double Eleven”, Uniqlo conducted the “2016 Double Eleven Consumer Expectation” survey by Ansopa Group, and concluded that online/offline synchronization discounts and increased delivery speed are the conclusions of most consumers. In response to the needs of consumers, Uniqlo has formulated the “New Retail Experience Economic Strategy” in this “Double Eleven”, with multiple store preferential policies such as online and offline selected product synchronization discounts, store self-raising and Alipay “surprise”. In order to pass such measures, users will feel that UNIQLO's innovative services are being upgraded.

Although Uniqlo achieved sales growth in Greater China in the 2014/2015 financial year, its sales growth was close to 50%. In the past two years, the “Double Eleven” has also been ranked among the top in the apparel category, but the brand has already shown in the 2015/2016 financial year. There are signs of a slowdown in growth. The financial report showed that the profit margin of Greater China fell by 5.5%.

The relevant person in charge of Uniqlo said that the market trend and the customer's demand must be considered by Uniqlo, so that Uniqlo will choose to meet the market trend and customer demand, and maximize the communion with its own marketing concept and brand positioning. .

And Metersbonwe, while closing the store, is also testing O2O. However, the test of Metersbonwe seems to be not so successful. In 2010, Metersbonwe's state-buying network was officially launched. As of now, the voice of the state-owned network seems to have disappeared.

Just as many traditional costumes were not acclimatized in the initial e-commerce test, the styles, prices and discounts on different channels were difficult to coordinate, and Metersbonwe’s new measures did not achieve results.

Can't catch users, can they be born again?

In order to remove the gloom brought by the price increase to Uniqlo, Uniqlo began to reshape the brand and re-emphasize the brand concept.

Uniqlo said that it will always adhere to the "LifeWear Applicable Life" brand concept, providing consumers with clothing that is suitable for everyday wear with simple style, superior quality and classic taste, while also innovating in service and consumer experience, creating consumers. A center of experience economy. Still staying in this kind of corporate thinking, not just to understand the user's needs of the Uniqlo, whether it can really achieve its expected sales targets, it remains to be seen.

Uniqlo also said that "globalization" and "digitalization" will be the future development direction. Uniqlo will collect and analyze commodity trends globally through the Product Design Center (R&D) to further enhance its product development capabilities and strengthen its portfolio of products to reduce the impact of climate change.

At the same time, Uniqlo placed its expectations on overseas markets for the first time. According to the relevant person in charge, “After last year, the total number of overseas Uniqlo stores exceeded Japan, we expect that the income from overseas Uniqlo will be expected to surpass Japan Uniqlo in the next or next year.” The official also said that Uniqlo will use the network. To achieve digital innovation, connect planning, production, logistics, sales and other links, create new industries, change consumption methods, and provide consumers with more convenience and comfort.

If Uniqlo's e-commerce business is successful, then Metersbonwe's e-commerce business is not perfect. The power to turn the tide has not changed the performance of the United States' continuous loss. Zhou Chengjian handed the scepter to his next generation, hoping that the next generation will inject new blood into Metersbonwe.

On the evening of November 21st, the clothing company brand Metersbonwe's parent company, Smith Barney, announced that the company's chairman and president Zhou Chengjian recently submitted his resignation report and applied to resign from his company's chairman, director and board of directors. There are committee members of each special committee and the company's president. After resigning, Zhou Chengjian will not hold any position in the company. Zhou Chengjian’s eldest daughter, 30-year-old Hu Jiajia, will take over the position of chairman and president of the company.

A source close to Metersbonwe revealed that Zhou Chengjian resigned as the chairman and president of the listed company, but still served as the chairman and president of the holding company Huafu Holdings, which is equivalent to retreating from the stage to the scenes. The controller is still him. Zhou Chengjian's decision-making effect in these few years is not good, and with some negative rumors, it is more suitable for her daughter to come out to preside. "Millions of reforms in the past few years have mostly been partial marketing. They found that they could not continue to do so and they did not have the determination to land. As a result, Zhou Chengjian is in the fashion industry. He represents traditional businessmen. At the recent Zhejiang Business Conference. Zhou also said to the former subordinates that the spirit of Zheshang should be handed over to the next generation."

I hope that this young returnee will bring a new experience to Metersbonwe.

Editor in charge: Li Xuetian

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