Marketing: UNIQLO: Fast Fashion Killer

UNIQLO is essentially a technology company that competes with apple, not GAP, and according to Tadashi Yanai, set another goal for UNIQLO's online business before retirement.

Tadashi Yanai, chief executive of fast fashion company, recently said that the company will double its online sales volume of its core brand UNIQLO to 300 yen (US $2.7) in the next two years, accounting for 20% of its sales.

According to the 2017 fiscal year report, although UNIQLO's online sales increased by 31.6%, its online revenue reached only 140 yen, accounting for 7.5% of its total revenue, far behind its rival ZARA.

Tadashi Yanai reveals that reform will take place in two ways.

On the one hand, UNIQLO will connect global distribution channels through a new website.

On the other hand, it will strengthen its basic product line and sell exclusive products online.

In addition, UNIQLO announced in the current fiscal year that it will accelerate its pace of expansion, focusing mainly on the Asian market.

It is worth noting that the overseas income of the brand surged to 29.2% yen to 507.4 yen for the first time, exceeding the domestic level for the first time.

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When the global retailing industry is shrinking, UNIQLO is actively integrating online and offline channels.

Uchida Fumio, director of UNIQLO, points out that the brand prefers to build online orders and offline distribution models.

CFO Okazaki said the company has established a new distribution center in China and the United States to provide the same day or overnight delivery service.

The next step for UNIQLO digitization is to pfer personalization to AI steadily.

Now, the company is testing water by providing semi customized services.

Since last September, Japanese customers have been able to pick out semi finished products and adjust their sizes, colors and details, such as collar and cuff patterns.

Consumers can customize their applications and customization in UnqLo.

The UT lines on their shirts draw their unique models, which will be accessible all over the world.

Analysts believe that customized services extend the diversity of products at the least cost.

The basic model of UNIQLO specializes in a large number of functional features, making its products less fashionable than other fast fashion brands.

But as consumers design their own products, their products become more interesting and personal.

But for UNIQLO, it is more important to maintain customer data and personalize recommendation and customer management relationship.

The service can now be accessed by its users on smart phones on its application.

Through Unqro App, T-shirts can be printed online separately and gradually spread worldwide.

According to Uchida Fumio, the intelligence of application is UnqLogiq, an artificial intelligence tool that visualizations the entire supply chain.

Once an order is placed, information will enter the headquarters, which means that customers can track their purchases from production to delivery on their phones.

In fact, a large number of digital investments conform to the long-term functional value of UNIQLO.

At last year's "life art and science" fair, Yanai emphasized the importance of over feeding.

As he said, fashion trends will change overtime, but UNIQLO will meet any requirement with its incomparable function and comfort.

After launching the "rush to buy rush rights", the promotion of UNIQLO U in spring and summer 2018 was combined with some attempts by bloggers such as YouTube.

But the cooperative collections launched in recent years seem to contradict this statement.

Recently, it also has something to do with luxury brands.

The beach inspired leisure collection designed by Tomas Maier, the creative director of Bao butterfly, can now be bought online and in select stores.

In addition, UNIQLO also regularly launched "UnqLogu U", its long-term partner is the former Hermes creative director Christophe Lemaire.

However, sporadic cooperation will not guarantee the brand.

Upgrade.

As soon as we look at H&M, the fast fashion brand launched a joint design mode.

The latest ErDm X H&M collection touted high fashion at a fashionable price, but Weiss faced a cold shoulder in the Chinese market for lack of recognition.

Taking note of this uncertainty, Yanai reiterated that when he announced his retirement, the responsible person should always be young so that his products would play a good role in young people.

His successor should also have digital experience and be able to make timely decisions based on market changes.