MUJI In China'S Substantial Growth In The Second Half Of The Year To Add 28 Stores

MUJI Muji fine parent Co., Ltd. today released the first half of August 31st earnings report, the total income of 147 billion 448 million yen, up 19.3% over the same period last year, net profit is a huge increase of 49.7%.

The Ryohin Keikaku Co. Ltd. plan for the first half of the year has maintained a high growth rate, and the 23.1% quarter growth in the two quarter has been substantially increased compared with the 16.1% in the first quarter. It shows that the company is outstanding in terms of the strong demand of the Chinese market in the unfavorable situation of the global economic recovery, Japan's consumption tax increase and the depreciation of the Japanese yen.

There is no doubt that Ryohin Keikaku Co. Ltd. is the main project. Clothes & Accessories The rapid expansion of the brand Muji Muji in the Chinese market greatly benefited the group. In the first half of this year, the group's China based East Asian market revenue increased by 62.4% to 39 billion 11 million yen, leading all markets, much higher than the 7% increase in the Japanese domestic market.

According to Satoru Matsuzaki, President of Ryohin Keikaku Co. Ltd., the company's Muji Muji has been developing smoothly in the Chinese market. Under the slowdown of the Chinese economy, it continued to maintain its strength, but continued to maintain its strength. He said the brand's same store sales grew by 20% in August.

Because of Muji's Muji's concise, black and white main color and distinctive design style, in China's social network, some "Duan Zi" and "net red", which rely on account marketing, will be adopted. The brand Teasing is known as the "frigid" brand, and the same store sales growth of the brand in the Chinese mainland market is a miracle for all retailers and markets in the world, let alone Muji Muji. At present, there are 132 stores in the mainland market of China. There are 132 stores.

In view of the "horror" growth in China's mainland market, the Ryohin Keikaku Co. Ltd. plan will greatly increase the annual target of new stores in mainland China from 30-35 to 50 in 2017. In addition, the company made a 20% reduction in the price of Muji MUJI products in the Greater China region in August this year, so as to enhance the competitiveness of fast fashion brands, such as Zara and H&M. By the end of August, the company had operated 183 stores in the Greater China market. Hongkong and Taiwan operated 15 and 36 respectively, plus 14 in South Korea, and 197 in East Asia (except Japan). However, the company will really exert power in the second half of the year, and plans to add 28 new stores in the mainland market, a net increase of 4 in the first half.

Compared with the high income growth in the East Asian market, operating profit growth is even more "horrific". As of the first half of fiscal year 2016 fiscal year Ryohin Keikaku Co. Ltd., the operating profit of the East Asian market surged 95.2% to 7 billion 842 million yen, which was only 4 billion 18 million yen in the same period last year, and the total operating profit of the East Asian market accounted for 48.8% of the total operating profit of the group, which is only inferior to that of Japan after August 31, 2015. market 54.5%, and the market share of revenue is only 26.5%, it can be imagined that the group's "violence" accelerated the expansion of the Muji market in China mainland market, and the group's competitors, Uniqlo parent Fast Retailing Co., Ltd. fast marketing group also accelerate the expansion in China, showing the importance of China to the two most important clothing brands of complex neighbors.

In the first half of fiscal year 2016, the Ryohin Keikaku Co. Ltd. profit margin increased by 21.6% to 70 billion 926 million yen, gross profit margin 48.2%, an increase of 90 basis points compared to the same period in the first half of fiscal year of August 31, 2015. The operating profit recorded a 38.1% increase to 16 billion 71 million yen, a 10.9% percentage increase in operating profit and a 37.9% increase from continuing business profit to 16 billion 275 million yen.