Does UNIQLO Defeat Zara By Speed?

According to the world clothing shoes and hats net,

(Uniqlo) Fast Retailing Co. is providing the newest store for its stores.

Style, to sell customized products to consumers, I believe speed will help the brand beat Spain's clothing giant Zara.

The new design and distribution center of XXX group in Tokyo industrial area was officially opened in March 16th. Tadashi Yanai, a wealthy billionaire, said in an interview that the group plans to make products from

The production cycle to delivery is shortened to about 13 days, roughly the same as that of the Zara brand of Inditex, the world's largest clothing retailer.

He said that the new design center will help UNIQLO expand direct sales to consumers and customized clothing products, and improve the efficiency of delivery in Tokyo.

"We need to speed up," Ryui Masa said. "We need to deliver the products we need quickly."

Liu Jingzheng, chairman of fast Marketing Group

As the largest clothing retailer in Japan, the group plans to raise its total revenue by nearly 70% in August 2021, reaching 3 trillion yen (about 26 billion US dollars).

Although this is not enough to exceed the Inditex group with sales of 25 billion US dollars in 2016, Ryui Masa said the fast selling group focused on selling clothes that meet the daily needs of consumers, which will help boost its revenue growth.

"Zara sells fashion, not caters to the needs of our customers. The products we sell will be rooted in people's daily life, and they will listen to consumers' feedback."

The growth of overseas markets, especially the Asian market, will account for about 2/3 of fast forward group revenue in the next four years, up from about half of the current market.

Ryui Masa said that UNIQLO will open 100 new stores in China and open 100 new stores in Southeast Asia.

Inside the library of Uniqlo City Tokyo office building, XXX group.

UNIQLO is located in the new office building in the Ming District of the Gulf of Tokyo with more than 1000 employees, including designers and marketing teams, as well as warehouses and distribution facilities.

Ryui Masa believes that concentrating resources to one place will help improve operational efficiency.

"High quality daily clothing that provides basic funds for anyone at any time and anywhere will make us a leader in the industry," he said. "We want to deliver the products that customers need quickly, which is the business purpose of Xun marketing group."

The sales performance of the group declined in the last fiscal year after revenue growth exceeded 20% for three consecutive years.

Because UNIQLO increased product prices due to rising raw material costs, sales growth dropped to 6%.

After slowing revenue growth, the company changed its original pricing strategy and expressed its commitment to provide the lowest price possible, and was forced to reduce its 2021 revenue target from the previous 5 trillion yen to 3 trillion yen.

So far in 2017, XXX group's share price has fallen by 14%, making it the last second of the Nikkei 225 Index constituent stocks, second only to the Toshiba Co (Toshiba Corp.), which is in deep trouble and shares plunged 35%.

Automated operation

The company hopes to achieve automated operation as far as possible, including tracking products from packaging to distribution, and using artificial intelligence to predict sales patterns.

Ryui Masa said he plans to copy office facilities in overseas markets in the next three years.

Office of Uniqlo City Tokyo, new office building of Xun Marketing Group

Speed is more important.

Ryui Masa used to think that production cycles were slow, because the company sold everyday clothes.

Chelsea Tan (Chelsey Tam), an analyst at Morningstar Investment Services, Hongkong, said.

"Your production cycle can be longer than that of Zara, but it is important to improve efficiency."

Ryui Masa said that XXX hopes to expand the category of customized products for consumers in three years.

Fast selling group was originally a small menswear retailer in Yamaguchi, western Japan. Ryui Masa accepted his father's business in 1984 and turned the company into the largest clothing manufacturer in Japan.

In the US market, fast selling group has so far been hard to make profits.

The group will close two or three stores of urban shopping centres and shift some of its stores to high-end business districts to enhance its brand image.

Ryui Masa said that the number of stores will therefore decline.

Chelsea Tan believes that UNIQLO did not understand the preferences of American customers and provided the wrong size and style for American consumers.

"If the stock is reasonable, you may have great potential because UNIQLO sells basic clothing," she said.

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