Japanese Clothing Brand MUJI MUJI Has Become The New Favorite Of Domestic Consumers.

The first quarter of the 2017 fiscal year was released in the first quarter of the first quarter of May 31, 2016. The company's revenue in the first quarter increased 13% to 87 billion 536 million yen, and net profit rose 27.2% to 7 billion 671 million yen.

The mainland China market is still the main engine of growth in the good plan. Sales in the first quarter of the 2017 fiscal year increased by 18.9% to 13 billion 384 million yen. If fixed exchange rates were calculated, the growth rate would be 28.8% and 4.7%, respectively.

Even in the extremely depressed Hongkong market, the sales of the company still increased to 3% HK $3 billion 680 million, and the fixed exchange rate and the comparable sales increase were 1.6% and 6.5% respectively.

Southeast Asian markets in mainland China, Hongkong, Taiwan and Korea totaled 21 billion 978 million yen in the first quarter, an increase of 13.9% over the previous year, with fixed exchange rate growth and comparable sales growth of 5% and 22.8% respectively.

As of the first quarter of May 31, 2016, China's mainland, Hongkong, Taiwan and South Korea's operating profit increased by 16.4% to 4 billion 503 million yen, or 39.4%, representing a contraction of 40.4% over the same period last year.

China's growth in the mainland market is also slowing at the same time as China's economic growth is slowing down rapidly and mainland consumption is sluggish.

The Japanese brand is still the industry leader.

Retail and

Tang Xiaotang, founder of No Agency, an industry research consulting and speculation agency, said that the middle class is now widely recognized in China's retail market, and Muji is undoubtedly one of the most representative brands.

According to the report released by the Credit Suisse last year, China's middle class population reached 109 million, while the good quality plan's MUJI Muji on the mainland is undoubtedly the brand that hit the 109 million population.

"The retail industry is particularly affected by China's macro-economy," Tang Xiaotang said. Despite the inherent advantages of Muji in positioning, it is hard to avoid slowing growth in the mainland.

However, he said,

The product mix still helps the brand to gain the leading position in the mainland market. "Home products can help the brand increase the unit price and profit margin of the customer, while increasing the supply rate of low profit food categories can increase the flow and brand loyalty."

No doubt, whether it is Muji design, value orientation, and coverage.

The product range of home and food is the most favorite brand character of the current Chinese consumer lifestyle change.

For this reason, Muji has also been expanding in China in the past year. In fiscal 2016 and fiscal year 2015, the number of net imports of MUJI products in mainland China was 32 and 28 respectively, and this year it plans to increase by 40. The number of stores in China is expected to reach 200 by the end of February 2017.

take the reverse into consideration

The latest quarterly report with H&M and the same period showed that the sales fixed exchange rate of the group's mainland China market was only 3% in the two quarter of May 31st. Although the company's marketing group has not disclosed the specific performance of the Chinese market in the quarterly report, the company is now in a dilemma and has a bleak future.

Business is shrinking, and Hongkong and Taiwan in Greater China are selling back because of weak local economies.

As of the first quarter of May 31, 2016, the operating profit of the good plan business increased 19.6% to 11 billion 423 million yen, from 16.6% of the continuous operation business profit to 11 billion 427 million yen, with a profit margin of 13.1%, an improvement of 40 basis points compared with the same period last year. Gross profit recorded a 15.2% increase in the first quarter to 42 billion 866 million yen and a gross margin of 49%, an increase of 90 basis points compared with the previous year.

In the first quarter of the year, Japan's local market revenue was recorded at 59 billion 186 million yen, an increase of 11.9% over the same period last year, and operating profit increased by 23.7% to 7 billion 135 million yen, accounting for 62.5%.

It is worth noting that the market in West Asia and Oceania, which has 45 stores, is very strong in the first quarter. The market includes four countries, namely Malaysia, Thailand, Singapore and Australia. Among them, the Australian market has surged by 35% in the same quarter, the sales increased by 214.5% according to the fixed exchange rate, the sales in the same market of the Singapore market also rose 24.2%, and the same market sales in Thailand also increased by 12.6%.

In the first quarter of this year, the total sales of southwest Asia and Oceania increased by 18.9%, a year-on-year increase of 6 stores.

The overall revenue growth in 2017 was expected to increase from 9.4% to 336 billion 500 million yen, the expectation of maintaining the overall operating profit of 10.3% in fiscal year 2017, and the 1.4% increase in operating profit in Southeast Asia and the 19.6% increase in operating profit in the domestic market.

On Friday, the good quality plan closed at 25520 yen, up 2.57%, which has risen 3.56% this year, far exceeding the 17.60% decline in the Nikkei 225 index, and the main competitor of the company, which is expected to release its three quarter results next week, has fallen 35.82% this year.