Interpreting Ethno Behavior In UNIQLO

No product can please everyone.

Sociologist James Harkin's business best seller, "small crowd behavior", almost half of them are taking Gap example, using it to explain why it is impossible for everyone to make clothes.

When you look at the newspapers and TV industry that is spread to the public, or the Procter and gamble and Unilever every family, it is really not very good. In a time when users' needs are changing, the mainstream seems to be a mediocre pronoun.

But this is not always the case.

The cover story tells a different story.

Ryui Masa was inspired by Gap to create UNIQLO, but now idols are no longer idols. But UNIQLO, who also claims to "make clothes for all", is making rapid progress.

Judging from the growth rate of nearly 3 years, the company has already surpassed ZARA, H&M and Gap.

Good performance has also led Liu well to beat Sun Zhengyi, Softbank CEO, who has returned to Japan's richest place after two years. This situation is unthinkable in China at the moment: how can a "clothing house" in a physical store surpass the Internet that clamours for "overthrowing everything"?

As I mentioned in the last two phases, the rise and fall of the real economy can better reflect the health of a country's economy.

Therefore, Ryui Masa's experiment has become a realistic story.

In our view, UNIQLO is doing something risky.

The company is in the key node of global expansion.

In an exclusive interview, Liu well denied the past labels used by UNIQLO, such as fast fashion, technology companies and cool ones. Instead, the entrepreneur is trying to turn UNIQLO into a lifestyle brand.

The risk judgement is that over the past 3 years, products like +J and UT have added a lot of personalities to it. But according to UNIQLO's earnings report, the main driver of its revenue growth is the market outside Japan, while the growth of these new markets is similar to that of the HeatTech thermal series.

This is basically a product without individuality.

That is to say, the risk of UNIQLO is that it raises a problem that it tries to pass.

The product is to capture some niche market, but it is actually a brand that relies heavily on the mass market - like all big companies that meet innovative challenges, they have to keep their main businesses and hatch something different.

Another reason for the story of UNIQLO lies in the fact that mass production must mean mainstreaming. Conversely, does small and beautiful really need no scale?

Let's take a look at a business story of this company.

Producing Eames chairs

It is a typical small Beauty Company. It is not a company that relies on scale like IKEA or UNIQLO. Its positioning is very small. Its mode is to find similar high-end niche customers in the world to maintain its scale.

However, the company is having problems with the expansion of the Chinese market. In turn, the lack of scale has led to too long the reflex arc of its capacity, which has affected the consumption experience.

This story tells us that even the niche market still needs the support of scale, and the big heat from 0 to 1 also mentioned this: finding a niche market and trying to monopolize it in order to scale.

HBO and the economist are good examples of niche finding in the niche market. Global expansion and information technology will help.

Niche market is not small, from this point of view, like UNIQLO exercise their balance skills is very necessary.