Uniqlo is finally going to Canada.
On August 25, Uniqlo released its overseas expansion plan. It plans to open its first store at CF Toronto Eaton Centre in Toronto, Canada, on September 30. This store will occupy the 3rd and 4th floors of the shopping center. The total store area is approximately 2545 square meters.
In addition, it also plans to open a second store in Toronto's Yorkdale Shopping Centre on October 20, which is about 2,370 square meters.
In less than a month's time, two large stores were successively opened. Uniqlo seems to be fully prepared for the Canadian market.
However, Uniqlo, a fast-fashion brand born in Japan, has been cautiously expanding in major cities in the United States and Europe. It even closed all its stores in the United Kingdom. Uniqlo has 1,600 stores in 16 markets worldwide, of which more than half are in Japan, 467 are in China, and only 49 stores are in the United States.
At the same time, Uniqlo lowered its 2016 full-year earnings forecast due to the appreciation of the yen in the first half of the year.
For this time, a massive move into the Canadian market was seen as a fast-selling group trying to become the world’s largest apparel retailer by 2020.
But the question is, is it really possible?
Let us first look at what kind of market Canada is.
A recent report from Euromonitor International stated that Canadian consumers are changing.
In the past 2015, Canada’s retail sales of apparel and footwear have experienced a modest increase. However, the consumer's sense of fashion has begun to become acute, Normcore is no longer popular, and the concept of “athleisure†sports and leisure is constantly being popularized. Faced with this dynamic market, some fashion brands started to enter Canada, while others chose to withdraw.
Currently, in Canada, H&M has 78 stores and its high-end brand line, COS, also entered the Canadian market last year. ZARA has 33 stores in Canada, and MUJI, which opened its first store in Toronto in 2014, has only expanded one store in the past two years. It currently has only two stores in Canada.
In May of this year, teenager clothing chain Aeropostale announced that it would close 41 stores in Canada. The reason is that competition from fast fashion brands such as ZARA and H&M has put pressure on Canada's clothing retail market to become too competitive.
On the other hand, clothing brands from Canada are also looking for ways to grow. Artizia, which was founded in 1984, announced its listing plan recently. Aritzia’s revenue for the first half of this year was US$445 million and net income was US$38 million. It has more than 70 stores in North America. Therefore, it is also regarded as one of the strong contenders for fast fashion in the North American market.
As for Uniqlo, its sales in China are not too ugly. However, it has been losing money since it entered the US market in 2005.
We have previously discussed why Americans do not like the issue of Uniqlo. Uniqlo could not establish enough good communication with consumers in the United States - that is, consumers do not understand why they should buy this brand of clothes - is the main reason. The reasons for subdividing this include the design of the clothing, the size of the size and the American cognitive system, the location of the shop and the way to advertise.
Now, as the Canadian market that is most affected by the U.S. market, it faces the increasingly sensitive Canadian consumers. If UNIQLO cannot rethink its problems in the United States, Canada may repeat the same mistakes.
Source: Curiosity Daily
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