Uniqlo Plus Suburban Store Plans to Enter Commercial Real Estate

Starting in 2002 in Shanghai, Uniqlo quickly opened 136 stores in the Chinese market in the past 10 years. Obviously, this market in China has become the largest gold rush place in Uniqlo. While expanding the number of stores, Uniqlo is also trying to introduce a large-scale, self-owned shop away from the urban areas into China, revealing the ambition of Uniqlo to enter commercial real estate.

This market in China has apparently become the largest gold rush spot for Uniqlo. While expanding the number of stores, Uniqlo is also trying to innovate. At present, a large-scale shop away from the urban area is being introduced into the Chinese market, and behind this model is also revealed. Out of ambition for land development and commercial real estate.

According to statistics, starting in 2002 in Shanghai, Uniqlo quickly opened 136 stores in the Chinese market in the next 10 years and is expected to exceed 500 in the next five years.

“Drive-IN of Caoan Highway opened on May 26, which is the first in China. In the future, we will continue to increase in cities such as Beijing, Guangzhou and Shanghai.” According to Pan Ning, Managing Director of Fast Retailing (China) Trading Co., Ltd., this store on Caoyang Road covers an area of ​​2,900 square meters. Surrounding the textile and apparel and gift market, it will gather in the center stores and be the most popular and complete in the season. commodity.

In the eyes of Penning, relying on the automobile industry to help the array, the marketing mode channel to the suburban one-stop consumption has been widely popular in Japan, Europe and the United States, and will also be an outbreak of vitality in China.

In fact, the Japanese brand Uniqlo originated from this kind of suburban store. Until 1998, Uniqlo maintained its business model mainly in the suburbs around the main road. After 1998, UNIQLO attempted to advance into Japan's big brand in Harajuku, the most prosperous area of ​​Tokyo and the most popular district in the fashion community. After starting its first store in downtown Tokyo, it gradually moved to include Tokyo and Osaka. These cities in Nagoya penetrate. Formed a development model that originated in the suburbs and flourished in the country.

In the Chinese market, Uniqlo capital city center stores have begun to be deployed to second-tier cities. Changsha, Taiyuan, and Kunming are all in full swing. By the end of February, Uniqlo has had 136 branded direct sales stores in the Chinese market. According to the prediction of Penning, the physical store can better present the products and their ideas. In the next five years, Uniqlo's stores in China are expected to reach 500 to 600 stores, and self-drive stores will be mainly opened in first-tier cities such as Guangzhou and Beijing. After 5 years of struggle, this large suburban shop is expected to account for about 20% of total sales.

“This kind of investment has advantages over investment and rent in metropolitan centers. In addition to our own Uniqlo products, we will introduce catering, daily chemical, pharmaceutical, and home appliance and other ancillary facilities. Accompanied by this is Uniqlo in business. Real estate considerations." Penning introduced, when UNIQLO owns not necessarily land property rights, may be the right to borrow, leasing rights, in short, UNIQLO's dominant site-based business model, not only will attract businesses, but also lead a A new consumption model.

Due to fierce competition in the industry, Penning declined to disclose the amount of investment in the first self-drive shop and said it would be cheaper than the center store. An open figure is that Uniqlo’s investment in the 2,300-square-meter flagship store on Nanjing West Road amounted to US$30 million.

At present, China has become the market that UNIQLO attaches most importance to. Yan Xiangzheng, Chairman and CEO of Fast Retailing Co., Ltd. has publicly stated that in the next 10 years, the Chinese market will have a sales share that exceeds the Japanese market, reaching 100 billion yen (approximately US$ 10.7 billion). ). In UNIQLO’s 2012 growth forecast, overseas markets are expected to create sales of 16 billion yen in the first half of the year, accounting for 20% of total revenue, and the Asian market led by China is expected to reach 70%.

Compared to the radicalization in physical stores, Uniqlo is very cautious about the current domestic e-commerce market. “We now have platforms for Taobao and Alibaba, but the group has no plans to build its own online sales platform,” Penning said.

Due to his friendship with Ma Yun, as early as 2009, Uniqlo formed a strategic partnership with Alibaba and Taobao. Unlike other brands, Uniqlo’s selling price is the same as that of physical stores, and the discounted series is almost synchronized. When it's a long holiday, it's possible for an online store to do a promotion in front of a physical store.

It is reported that UNIQLO's online sales accounted for less than 10% of the total amount. At present, the entire e-commerce industry is facing a dilemma of loss, and this may be the root cause of the ignorance of Uniqlo.

The reporters posted their 2012 goals in the hallway of Uniqlo’s office: They are brave and march forward courageously. Penning did not specifically explain how big the goal was, but only revealed that sales would increase by 90% in the first half of the year.

It seems that the confident Uniqlo has already prepared to invade the Chinese market.

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