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Skun Share · Detailed Analysis of Uniqlo's Shanghai Flagship Store 2011-11-28
Actually, there’s no need for me to say it. Regarding fashion and lifestyle, everyone knows that Shanghai is an important place. As for how important it is, people haven't really given it much thought. Now, allow me to tell you the specific significance of Shanghai in the mainland fashion market.
1) Case evidence: 3,300 square meters, continuous queues of customers on the evening before opening days, the world's largest Uniqlo flagship store; also, Huaihai Middle Road, where ZARA, H&M, C&A, UR, ME&CITY, and other so-called "fast fashion high street brands" gather. Affordable prices, booming customer traffic, although without noisy hawking, still reminiscent of old-time farmers' markets. When the world's top fast-fashion brands all establish their best stores in Shanghai, can you still doubt the status of Shanghai?
2) City analysis: From a consumption and market perspective, cities in neighboring countries/regions that have influence on the mainland market include Tokyo, Hong Kong, Seoul, Russia, etc. Russia, due to weather and geographical relations, may have made appearances at the China International Fashion Week (Beijing), but essentially it's just daily contact between China and Russia, similar to inviting neighbors to dinner during a family celebration. Or like down jacket trade, but limited to trade only, having no real impact on the fashion consumption of down jackets on the mainland (because weather changes functionality). Tokyo? It has a completely 'leaving Asia entering Europe' value system. Even if they start paying attention to the mainland market now, how can those accustomed to raw fish and sushi handle heavy oil and sauce? Seoul, through Korean dramas creating a Korean style, might appeal to those with innocent dreams of "minimalists", but relative to the mass market, it's not mainstream (but possibly trendy), so they make money fiercely in the wholesale market. Let me tell you a fact: I am also a "minimalist," spiritually speaking. Finally, only Hong Kong remains. Frankly speaking, regarding the cultural and value system of the mainland, Hong Kong is an elegant and noble lover, at most a concubine.
Conclusion: Whether from geography, overall consumer values and consumption characteristics, or the performance of trendy brands in staking out territories, Shanghai is truly the leader in affordable, fast-fashion consumption in the mainland market.
Entering Uniqlo on Nanjing West Road
The world's largest Uniqlo flagship store is located on Nanjing West Road, Exit 1 of Nanjing West Road Station on Subway Line 2. Therefore, subway advertising becomes an important means.
Figures 1 & 2: Momentum-building advertisements - Large-scale ads cover important subway locations to build momentum.
Figures 3 & 4: Spiritual advertisements - Video ads endorsed by Yuan Yuan Tan, stating that Uniqlo "focuses on Shanghai, highlights the world."
Figures 5 & 6: Single-item advertisements - Promoting key single items. Any promotion and spiritual appeal cannot be separated from the product as a carrier.
World's Largest Latest Flagship Store
UNIQLO Shanghai Nanjing West Road flagship store facade appearance - The decoration materials are quite valuable. A few years ago, there was a Shanghainese restaurant here, where I once indulged.
World's Largest Latest: A 3,300 square meter store, known as UNIQLO's world's largest latest store.
Queuing Customers Outside: Rare Phenomenon 1
[Queuing outside]: The photo was taken around 18:00 on May 19, 2010, which was the fifth day of Uniqlo's opening. When I took the photo, I was amazed by the number of people. A passing Shanghai auntie told me in Shanghainese: It's like this every day. (Fig. 1)
[Limited customer entry]: Two young Uniqlo staff members, one male and one female, maintain the flow of customers at the entrance (Fig. 2). After receiving instructions via walkie-talkie, they open the customer channel: customs clearance couldn't be more efficient.
Queuing Customers Trying On Clothes: Rare Phenomenon 2
[Trying on clothes queuing]: Queuing again for trying on clothes. This phenomenon is only common in H&M and Uniqlo. What causes such results? My analysis points to two reasons: A) Versatility of products (can be paired in multiple ways); B) Low price. This may have little relation to the fashionability of individual items themselves.
Queuing Customers Paying Bills: Rare Phenomenon 3
[Paying bills queue]: It seems that UNIQLO's conversion rate is very high. Basic functional products + low price + fashion marketing methods can create fashion legends. Like H&M, should we aim at catering to a small number of picky high-end customers? Or should we use basic fashionable products to satisfy the vanity of the masses and gain their faith? These two strategies, which is better, has already been decided.
Fig. 1: Cash register on the first floor; Fig. 2: Cash register in the men's clothing area on the third floor;
High Number of Items per Customer
[High number of items per customer]: Essentially, this explains Uniqlo's business model, a significant feature of all fast-fashion brands. So, the logic of fast fashion is: affordable price -> fashion -> high number of items per customer -> fast turnover -> GMROI maximization -> large market share (queuing phenomenon).
Creating Fashion - Product Mix 1: Functional Products + Complete Categories + Spiritual Products
[Product mix]: Characteristics of Uniqlo's product mix - functional and basic products + complete category product structure (deepening key categories) + spiritual products (+J)
Fig. 1: Functional knitted cardigan area; Fig. 2: Well-stocked denim area; Fig. 3: Dress area collaborating with New York designers; Fig. 4: Traditional advantage category - printed T-shirt area; Fig. 5: Men's refined pants area (basic styles, called refined pants, not a packaging issue, but a lifestyle concept issue);
Creating Fashion - Product Mix 2: +J Reinforces the Value of Simple and Refined Products
[+J]: Does the emergence of +J cater to the trend of crossover (interdisciplinary) needs in the fashion industry? Although Uniqlo's simplicity is in line with Jil Sander's simple refinement, I always believe that compared to Uniqlo's basic product line, +J's higher-priced line products are very selective. A friend once said: +J suits those who appear plain but are rich inside, as for the majority who appear rich but are plain inside, then forget it. However, +J has perfectly conveyed Uniqlo's fashion values of simplicity and refinement, whether it makes money or not is another matter.
Figs. 1-2: +J product line area; Figs. 3-4: Prices of some +J categories.
Creating Fashion - Product Mix 3: Regionalized Goods / 88 Yuan T-Shirts
[Regionalized goods]: For the opening of its largest global flagship store, Uniqlo launched products suitable for the Shanghai region: the Shanghai pop culture project, inviting local Shanghai and international artists to design and develop T-shirts, promoted at 88 yuan, sold on Uniqlo's official website for 79 yuan. This creative idea by the Japanese probably comes from the British Empire. When Burberry entered the Japanese market, they specifically authorized Japan's San-Ya Company to develop the blue label and black label series.
Creating Fashion - Fashion Marketing 1: Five-star Cast
[Star endorsements]: The recruitment of five different stars surely cost a lot. Hiring stars is easy, but spending money wisely isn't. In the past, MB's star strategy, from Aaron Kwok to Jay Chou, bridged the entertainment appeal resources of stars. Nowadays, people care more about which kind of clothing suits them among what the stars wear. Each star represents a way of dressing, a representative "customer prototype"/customer segment.
Creating Fashion - Fashion Marketing 2: Time-limited Low-price Promotion Strategy
[Time-limited low price]: Time-limited low-price strategy. Two printed T-shirts for 149 yuan; jeans for 99 yuan; collared POLO T-shirts for 88 yuan. Time-limited sales from May 15, 2010 to May 31, 2010. It seems that Uniqlo's strategy of sacrificing gross profit aims to win a battle of market share within half a month of opening. I suddenly thought: This promotional approach is extremely similar to Vancl's online promotion, low price, bundled promotions. This might explain why Vancl's performance increased from 30 million yuan in 2007 to 300 million yuan in 2008 and 600 million yuan in 2009 in just three years. The question is: Is low price a necessary condition for success, but not a permanent guarantee? When others use the low-price strategy skillfully, what should we do?
Creating Fashion - Visual Marketing 1: Increasingly Elaborate Windows
[Increasingly elaborate windows]: As fashion consumption evolves from the youthful Coca-Cola culture to the coffee culture of the bourgeoisie, to the tea culture of maturity, to the health supplement culture of the elderly, fast-fashion brands (affordable, quick) can only use increasingly bright, light-hearted, and exciting elements to attract the new generation of consumers in the fast-fashion era. When Uniqlo and others try various tricks to attract people, what should we do? Meanwhile, H&M does it excellently and elaborately too.
Creating Fashion - Visual Marketing 2: Lively Theme Zones A
[Lively theme zones]: Placing models in transparent barrels, suspended from the ceiling, and slowly rotating (see Figures 1-3 above). What a novel theme scene! When standardized theme zones fill each brand and everyone continues tirelessly, customers begin to experience aesthetic fatigue. At this time, Uniqlo's rotating aerial show indeed captivates. Fashion, entertainment, without novel elements, wouldn’t it be lonely?
Creating Fashion - Visual Marketing 2: Lively Theme Zones B
[Lively theme zones]: Another set of models ascending and descending between heaven and earth. Installation art? Or a straightforward description of postmodernism? Anyway, it attracts customers: originally, Uniqlo understands Mao Zedong's thoughts, guerrilla warfare. Mr. Yanjing, did you pay Mao Zedong's franchise fee?
All of this can only be annotated with one word: lively. Of course, the cost is not trivial, but would the richest man in Japan worry about this?
Creating Fashion - Visual Marketing 3: Fashionable Shopping Props
[Fashionable shopping props]:
Black grid transparent handbags, light and fashionable. This satisfies the need for fashionable pleasure during the shopping process. When I asked the salesperson: Can I buy this bag? The salesperson smiled charmingly: Sir, this is not for sale, many customers have asked the same question as you. Creating a fashionable shopping experience for customers.
Being able to make the fashion experience during the shopping process reach this level, Uniqlo is indeed extraordinary. Next time, when you go to Shanghai, you must try using this shopping bag to carry clothes.
Creating Fashion - Visual Marketing 4: Clear Zone Indicators
[Clear zone indicators]:
Not only large stores need clear zone indicators and explanations. Medium-sized stores (150-300 square meters) also need clear zone indicators.
Also, regardless of whether it's ZARA or H&M, whether it's Shanghai, Shenzhen, or Hong Kong, have you ever seen a separate store with men's and women's restrooms on each floor? No? Shanghai Uniqlo flagship store has them. This reflects strong confidence: precise judgment of the number of customers and their longer stay times.
Creating Fashion - Visual Marketing 5: Comfortable Personnel Image
[Comfortable personnel image]:
Whether it's the crowd guidance officers at the entrance, cashiers, or fitting room staff, these window departments (those requiring direct interaction with customers) of Uniqlo staff exude a harmonious and friendly demeanor: they don't necessarily have to be handsome or beautiful, but they certainly look comfortable.
Creating Fashion - Visual Marketing 6: "Wasting Away for Clothes" - Display Shelves
[Display shelves]:
A row of appetizing thighs. Leading with color, this is the essential value of leggings/tights. Uniqlo's display staff must fully understand this principle. Rather than placing them flat and boring on racks, displaying them in a line like this is the most spectacular. Of course, the customer flow below is even more spectacular.
Also, from this display, can you see Uniqlo's product structure and key items for leggings?
Let's make our categories come alive with displays.
Creating Fashion - Thoughtful Services:
[Thoughtful services]:
Each floor's restroom is bright and clean, ensuring worry-free shopping (Fig. 1); customers can easily grab shopping baskets upon taking the elevator up, considering customer movement patterns and habits (Fig. 2); product inquiries help customers find what they want (Fig. 3); hemming services available here (Fig. 4); will some small issues make you hesitate? Instructions on what Uniqlo can do for you are posted on the fitting room walls (Fig. 5); of course, if you need to return or exchange items, you can quickly locate where to do so (Fig. 6).
Walking into Huaihai Road, a Cluster of Fast-Fashion Brands
H&M: Liveliness is a Customer Need
Recently, H&M's combination of all products seems to resist and negate "big-box goods." Beautiful, tempting summer ocean windows (Fig. 1), elegant retro facade themes (Fig. 2), childhood clotheslines (Figs. 3, 5), bed props used to echo the windows (Fig. 4), green walls with white wall paintings (do you remember the high wall murals of H&M at Langham Place in Hong Kong, Fig. 6). What a lively and creative store! H&M is indeed changing.
ME&CITY: Not That You're Bad, But Others Are Too Good
Rich and vivid wall surface indicators (Fig. 1), though lively, small fonts forget the purpose of "indicating"; wall murals (Fig. 2), learning from H&M? Denim area floors and columns (Fig. 3), sufficiently denim, indeed lively; scene areas are also lively (Fig. 4); windows are also abundant, but abstract (Fig. 5), don't believe me? Compare with H&M just steps away! ME&CITY's problem is: having a group of people who learn others' techniques and pursue art, but end up with - art remains art, products remain products. When others aren't playing abstract art anymore, you're just starting to stumble, let alone they're right at your doorstep. Huaihai Road store, hope you're not the second Hangzhou Fengqi Road store.
Huaihai Road: Fast-Fashion Brands Cluster, Who Will Win in the Future?
Uniqlo Taobao Flagship Store, Women's Spring and Summer Clothing on Taobao, Original article source: http://www.baiduhou.com/uniqlo/96.html Please indicate the source if reprinted! Relevant themed articles: http://hi.baidu.com/wgyvus4w/blog/item/b75a6420901c7951251f14ea.html http://hi.baidu.com/wgyvus4w/blog/item/80c5402cbe6ac33c96ddd852.html http://www.diglog.com/story/technology_internet_677645.html