UNIQLO Is Shifting Its Focus To The Electricity Supplier Market To Expand Its International Market.

Japan

Retail giant

To shift the focus to the electricity supplier market in order to expand the international market, its same store sales growth rate has slowed down.

The year-end report of Japan's fast retailing company, the parent company of UNIQLO, shows that sales of UNIQLO's physical retail outlets are in a difficult period, but UNIQLO's

Business is on the rise.

Next, UNIQLO will increase investment in supply chain management and big data to further promote the sales performance of e-commerce.

This is very important for UNIQLO because the return rate of clothing products is quite high.

The following data indicate that UNIQLO's electricity supplier market is the driving force for its overall performance:

Japan's domestic revenue growth deceleration: in the first 12 months of August 31, 2016, the total revenue of UNIQLO increased by 2.5% over the same period last year, totaling more than 7 billion US dollars, while the same store sales increased by 0.9% over the same period last year, which is significantly slower than the 9% revenue growth in 2015 and the same store sales growth of 6.2%.

The international market performance is also unsatisfactory: UNIQLO's international market revenue increased by 9% over the same period last year, totaling more than 6 billion US dollars.

However, according to the annual report of 2015, UNIQLO's international market revenue increased to a record 46% last year.

The performance of the electricity supplier market is a bright spot: the sales of Japanese electricity suppliers in UNIQLO grew by 30% over the same period last year, reaching US $405 million, but UNIQLO did not announce the performance of its international electricity supplier market.

In order to restore the overall sales level of UNIQLO, Japan's fast marketing company is shifting its focus to the electricity supplier market.

It is worth mentioning that UNIQLO is making great efforts to renovate its e-commerce distribution center, aiming to get more customer feedback, combine current fashion trends and store more popular goods inventory.

The first modified distribution center in UNIQLO opened in Tokyo in April this year. The company also plans to add new distribution centers in other parts of Japan, including in China, Europe and North America.

These measures of UNIQLO can also help fast selling companies achieve the goal of increasing the share of e-commerce sales from 5% to 30%, and accelerate the expansion of UNIQLO's international market.

Predicting trends and making full use of customer feedback can help UNIQLO to locate customers more accurately, especially in the international market.

Optimizing supply chain is crucial to any retailer of clothing retailing.

Although customers increasingly like to shop on e-commerce sites, it also brings a thorny problem to UNIQLO: it is alleged that the return rate of e-commerce of UNIQLO is nearly 40%.

When UNIQLO tried to recover the downward trend of sales of physical stores, the expansion of distribution network could help UNIQLO to deal with returns more quickly and quickly redistribute the returned products.