Fast fashion brands have suffered a blow due to the epidemic. Previously, Inditex Group closed its inactive stores due to poor performance. Uniqlo, however, announced price cuts across its entire line of products in Japan during its performance recovery period.
Japan’s Fast Retailing Group, the parent company of UNIQLO, recently announced that the price of its entire line of UNIQLO products will be reduced by about 9% in Japan starting from the 12th of this month. However, this price reduction does not involve all overseas markets, including China.
This is a large Uniqlo store in Ikebukuro, one of Tokyo’s main business districts. Although Tokyo is still under a state of emergency for epidemic prevention, the number of customers entering and exiting this store this weekend is very impressive. . In response to Uniqlo’s price reduction, many consumers think it is good news. Uniqlo’s regular customer base even said that the 9% price reduction is very attractive and may increase their purchases in the future.
This price reduction should be said to have increased Uniqlo’s favorability among Japanese consumers, but outside the Japanese market, the situation may be different. Since this price reduction does not include all overseas markets including China, some skeptical voices believe that Uniqlo’s move is unfair to overseas markets.
The Chinese market is the overseas market that contributes the most to UNIQLO’s performance. It is expected that the sales in the Chinese market will account for about half of UNIQLO’s overall overseas market in fiscal year 2021.
As of the end of February this year, 900 of Uniqlo’s nearly 1,500 overseas stores are located in the Chinese market. This number has exceeded the total number of 807 stores in Japan. As for whether the pricing strategy in overseas markets will change in the future, the reporter tried to contact Japan’s Uniqlo yesterday, but has not yet received a reply from the other party.
“According to the information released on its official website, the reason given by Uniqlo for the price reduction is that Japanese law stipulates that starting from April this year, the price marked on the product must be tax-included including consumption tax. Price.
Uniqlo plans to directly change the current tax-exclusive price to a tax-inclusive price, which means that for products also marked as 1,000 yen, the actual payment of consumers will be From 1,100 yen to 1,000 yen, resulting in a 9% price reduction.
However, some Japanese media interpreted that Uniqlo did not choose to change the number indicating the price; The purpose of direct price reduction in disguise is to enhance Japanese consumers’ purchasing desire.
With the prolongation of the epidemic, working from home has become more popular, and UNIQLO products with comfortable wearing as their selling point are popular in Japan and China The sales performance of the market is particularly strong. As of February this year, the sales of UNIQLO’s local stores in Japan have maintained growth for nine consecutive months.
Financial report expectations also show that UNIQLO’s sales in China this year Market sales are expected to continue to grow significantly. Thanks to its hot sales in domestic and foreign markets, Uniqlo’s parent company, Fast Retailing Group, became the world’s largest clothing group by market value at the beginning of this year. While gaining huge profits from overseas markets , Uniqlo should obviously also think about how to balance the pricing ideas of the Japanese domestic market and overseas markets.
American fashion brand Gap plans to sell its Chinese business, involving nearly 200 stores
It is reported that the American fashion group Gap Inc. (Gap) is weighing a variety of potential options, including the sale of its Chinese business, due to poor sales performance.
According to unnamed people familiar with the matter, Gap is studying various sale options with an advisory firm and making preliminary contacts with potential acquirers to understand their interest in the business. Currently, the two parties are still in relevant discussions In the early stages, Gap Group may also choose to continue operations. A Gap spokesperson declined to comment.
The Chinese market has always been one of the key development targets of Gap Group. The Group In 2015, it stated that it hoped to double its sales in the Chinese market within three years and become the world’s second largest market after the United States.
Gap Group entered the Chinese market in November 2010 and established its Greater China headquarters in Jing’an District, Shanghai. Gap products cover adults, children, and infants, becoming the first American retailer to provide clothing to Chinese family consumers in a single store.
Currently, Gap Group has nearly 200 stores in Greater China. In addition to physical stores, consumers can also purchase products through Gap’s official Tmall flagship store and official WeChat mini program.
Gap Group was founded in San Francisco, USA in 1969 and is known worldwide as synonymous with classic American style. The group owns well-known clothing brands such as Old Navy, Gap, Banana Republic, Intermix, Athleta, Hill City and Janie and Jack.
According to Bloomberg, the United States remains Gap Group’s largest market, and revenue from Asia continues to growShrinking, accounting for only about 5% of its total revenue.
As early as February last year, Gap Group’s casual fashion brand Old Navy (which entered China in 2014) announced that it would completely withdraw from the Chinese market and focus more on North American business.
In September last year, Dutch fast fashion brand C&A sold its Chinese business (C&A China) to Beijing-based private equity investment company Zhongke Tongrong.
H&M Group suspends new orders to Myanmar suppliers
The world’s second largest clothing group – Swedish Hainsmo Rees Group announced it was suspending orders from suppliers in Myanmar.
As we all know, the current situation in Myanmar is tense. Myanmar trade unions are calling for the expansion and extension of the scale and duration of strikes to protest the military’s seizure of power. This will undoubtedly cause a heavy blow to the manufacturing industry.
H&M Myanmar General Manager Serkan Tanka said that in view of the current practical difficulties and uncertain situation in Myanmar, the company’s operational capabilities in Myanmar are limited, including raw material import, manufacturing and logistics transportation. All encountered serious challenges.
The unrest in Myanmar lasted for a long time. The people went on strike and protested on a large scale. The social chaos also disrupted the normal operation of the local clothing manufacturing industry. The Swedish clothing giant H&M Group’s business in Myanmar has been greatly affected. Recently, H&M Group announced that it would suspend new orders from Myanmar suppliers.
According to statistics compiled by the United Nations last week, during the unrest in Myanmar, the police and military have killed more than 50 civilians in order to quell demonstrations and strikes. H&M expressed its shock at the Myanmar military’s use of force against demonstrators and said it was suspending new orders in Myanmar.
The situation in Myanmar has seriously affected H&M’s supply chain and operating capabilities. According to Reuters, H&M Myanmar general manager Serkan Tanka said in an email: “While we will not take any immediate action to solve the problems that need to be solved for the long-term development of our supply chain in Myanmar, we have currently suspended supplies to Myanmar. “This is due to the actual difficult and uncertain situation in Myanmar today, which has limited our ability to operate in Myanmar, including serious challenges in manufacturing and infrastructure, raw material imports and finished product transportation. .”
H&M has approximately 45 direct suppliers in Myanmar. It has been purchasing products from Myanmar suppliers for seven consecutive years. This suspension is entirely due to the turbulent political situation in Myanmar. To. In Myanmar’s main city of Yangon, shops, factories and banks have been closed. A shy and paralyzed society cannot make international trade cooperation proceed smoothly. This is a very big blow to Myanmar’s economy.
It is reported that Myanmar has a total of 600 major factories. These factories can provide jobs for about 450,000 Myanmar people, among which the garment manufacturing industry is the largest contributor to Myanmar’s economy. important parts of. Strike games make it difficult to operate these factories. What is even worse is that because of the attitude of the Myanmar military, the future situation is full of uncertainty. In order to protest the military’s seizure of power, Myanmar’s trade unions are calling on the people to expand and extend the scale and duration of the strike. This will undoubtedly cause a new round of heavy damage to Myanmar’s manufacturing industry. And now that the military is killing demonstrators, it has thrown a hazy gray cloth over Myanmar’s future.
When will the unrest end? Serkan Tanka, general manager of H&M Myanmar, said that H&M is also very concerned about the situation in Myanmar and is currently conducting dialogue and consultation with United Nations agencies, diplomatic representatives, human rights experts, trade unions and other multinational companies to guide the company on how to make decisions in the future.
Guirenniao: owed 163 creditors a total of 4.093 billion
On March 9, *ST Guiren (603555.SH)- Guireniao Co., Ltd. issued an announcement on the progress of its reorganization. The announcement showed that as of March 5, 163 creditors had declared their claims to the administrator, with a total declared amount of RMB 4.093 billion.
Guirenniao also issued a risk warning. The court has ruled that Guirenniao has entered the reorganization process, but there is still the risk of being declared bankrupt due to failed reorganization. If Guirenniao is declared bankrupt, the company’s stock price will face the risk of being terminated from listing.
The financial report shows that in the first three quarters of 2020, Guirenniao achieved operating income of 847 million yuan, a decrease of 27.57% from the same period last year, and a net profit loss attributable to shareholders of the listed company of 2.59 billion, the year-on-year loss further increased.
On January 28, Guireniao disclosed its 2020 performance pre-loss announcement. Due to factors such as the epidemic, intensified market competition, debt defaults and further combing of terminal sales channels, Guireniao expects that in 2020 Net profit is approximately 379 million yuan, and non-net profit is approximately -416 million yuan. The halo of the No. 1 A-share sports brand is no longer there.
Due to hitting the delisting risk warning red line, Guirenniao changed its ticket abbreviation to *ST Guiren on May 6, 2019. As of now, Guirenniao’s market value has gone from over 40 billion yuan at its peak to less than 1.6 billion yuan today.
At the same time, due to tight liquidity, Guirenniao has been unable to repay PPN and bank loans. At present, the company’s loan principal in various banks totals 1.410 billion yuan, all of which are overdue. The boss, Lin Tianfu, went from being the richest man in Quanzhou with a net worth of 19 billion to becoming a “laosha” with a debt of 3.4 billion. Received court summons and consumption restriction order 5 times in a row.
According to the financial report released by Guireniao on September 30, 2020, the company’s current total assets are 3.563 billion, liabilities are 3.404 billion, and the asset-liability ratio is as high as 94.67%. Among current liabilities, short-term borrowings are 1.255 billion, accounting for 37%.
On June 21, 2019, Lianhe Credit Rating adjusted the long-term credit rating of the company and bonds from AA to AA- for the first time. Later, it continued to be downgraded by rating agencies. So far, Guirenniao’s credit rating Grade C. Due to continued losses and huge debts, Guirenniao’s shares may face the risk of being terminated from listing.
�The market value has gone from over 40 billion yuan at its peak to less than 1.6 billion yuan today.
At the same time, due to tight liquidity, Guirenniao has been unable to repay PPN and bank loans. At present, the company’s loan principal in various banks totals 1.410 billion yuan, all of which are overdue. The boss, Lin Tianfu, went from being the richest man in Quanzhou with a net worth of 19 billion to becoming a “laosha” with a debt of 3.4 billion. Received court summons and consumption restriction order 5 times in a row.
According to the financial report released by Guireniao on September 30, 2020, the company’s current total assets are 3.563 billion, liabilities are 3.404 billion, and the asset-liability ratio is as high as 94.67%. Among current liabilities, short-term borrowings are 1.255 billion, accounting for 37%.
On June 21, 2019, Lianhe Credit Rating adjusted the long-term credit rating of the company and bonds from AA to AA- for the first time. Later, it continued to be downgraded by rating agencies. So far, Guirenniao’s credit rating Grade C. Due to continued losses and huge debts, Guirenniao’s shares may face the risk of being terminated from listing. </p
