Uniqlo's Development Journey in China

by wgyuvs8a on 2012-03-09 09:00:23

Although Uniqlo has been committed to global business expansion, about 90% of the group's sales are still in the Japanese market. However, in recent years, with the increase in the number of overseas direct stores, the sales ratio has begun to change. By the end of August 2009, there were 750 directly operated stores and 20 franchised stores in Japan, with a total sales revenue within Japan of 538.2 billion yen; there were 92 overseas direct stores, among which the number of Asian stores doubled to 76. Therefore, the overall operating revenue from the overseas market increased to 28.8% of the total income, amounting to 37.7 billion yen. Currently, Uniqlo's overseas markets include mainland China, Hong Kong Special Administrative Region, South Korea, Singapore, the United States, the United Kingdom, and France. Among these, China ranks first in the number of directly operated stores with 33 stores, followed closely by South Korea with 30 directly operated stores. Although most of Fast Retailing's sales performance still comes from Japan, from the growth rate of market sales in recent years, the overseas market is clearly higher than that of Japan, showing great potential for development.

Development History in China: After setting up production management offices in Shanghai and Shenzhen in 1999, the number of clothes produced by Uniqlo in China has been increasing year by year. Currently, Fast Retailing has 70 factories producing clothing for Uniqlo, all located in Asian countries. Among them, products made in Chinese factories account for 80% of the total. Since the official entry of Uniqlo brand direct stores into the Chinese market in 2002, it has achieved rapid development. In 2006, Fast Retailing started setting up production management offices in Vietnam and Bangladesh, marking the transition of the Chinese market from a manufacturing base to a core sales market. Accompanying this shift in business strategy, Fast Retailing (China) Trading Co., Ltd. was established at the end of 2006 in Shanghai, mainly responsible for the sales and related work of Uniqlo branded clothing in China. As of August 2009, Uniqlo had 33 directly operated stores in China and one online flagship store.

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