Why did revenue-falling fasteners rebound rapidly? A weakness turning into strength brings fortunate turns as well.
Hello, this is Koyama.
Recently,
there are various profitable campaigns, such as sales.
For example, Rakuten Mobile is launching a campaign targeting 3 million people
where monthly fee of 2,980 yen is free for a year.
From April, they are offering this campaign.
Putting aside the fine print,
having a year of free usage is
a very generous move, isn’t it?
Concentrating on Rakuten Mobile alone
might feel a little uneasy for the line, but…
For example,
people who constantly watch stock charts on their smartphones
and run out of data every month
might consider keeping a secondary device as an option.
This is a good option to have.
As of the time I’m writing this, Rakuten Mini device
is available with a campaign that makes it 1 yen if you apply for the plan at the same time.
(Until 8:59 AM on June 17 next week.)
First, it seems like a spread-the-word strategy, but
how they’ll recoup profits by giving away devices for 1 yen
is something I’m worried about.
By the way, iPhones are not officially supported, but
some eSIM-enabled models seem usable,
and I know people using Rakuten’s eSIM in an iPhone XR.
They said, “The internet works in Tokyo as usual.”
Other campaigns include APA Hotels
promoting “Don’t lose to Corona!” and
they’re holding a campaign where one night stays cost 2,500 yen until the end of June.
If you’re worried about needing a quiet place to focus on work,
using a place like this is one option, isn’t it?
Now that tourism and business travel demand has sharply declined,
hotels other than APA Hotels are also available at affordable prices,
and there seem to be quite a few.
Regarding food, Amex
has campaigns where paying with Amex at certain supermarkets gives 20% cashback,
and many shops offer takeout discounts as well.
“Due to the pandemic, incomes have decreased,
and for those who are worried about not being able to accumulate investment funds,
there are probably many people who feel the same, but
by using these campaigns and
trying to cut expenses first,it might be a good idea.
If you cleverly use discounts and sales,
daily costs can be significantly reduced.
Savings that take too much effort or time can be negative,
but just by knowing the information,
you can reduce costs without lowering your standard of living.
Having the mindset to obtain valuable things at the lowest possible price
is not unrelated to succeeding in investments,
either.
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Uniqlo’s exemplary image
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However, even without focusing on saving,
many people may feel that recently they go out less and spend less money.
For example, money spent on clothing has decreased.
With mainly telework, people are not as particular about outfits,
and many may think, “UNIQLO is enough.”
Is that correct?
In a world where dressing up is less common,
Life Wear = “evolving everyday wear,”
becoming just right for people who feelUNIQLO’s quality at a good price is what many want.
In the past,
there was a perception that Uniqlo was cheap with poor quality and bad color sense,
but that isn’t the case anymore.
Clothing with quality that meets price seems to be
readily available.
I don’t personally read them, but
women’s fashion magazines also
sometimes feature them,
and the image of “Uniqlo = poor quality and tacky”
is a thing of the past.
Due to coronavirus-related restrictions and income declines,
the global apparel industry is said to become even tougher,
but
Uniqlo, with its affordable prices and stable quality,
might be especially in demand in this kind of era.
For those who want clothing with reasonable quality but cannot spend much,
Uniqlo is a good fit, isn’t it?
In fact, due to COVID-19, stores temporarily closed,
sales fell, but they are already recovering.
Regarding May sales for domestic stores,
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On average, about 20% of stores were temporarily closed,
which affected results, but
summer goods sales were strong,
and many stores that operated exceeded the previous year’s sales on many days.
(Source:
https://jp.reuters.com/article/health-coronavirus-fast-retailing-idJPKBN23A043)
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and it is written.
Also, Fast Retailing’s stock price rose by more than 20,000 yen since April.
Of course,
the benefit of the Bank of Japan’s ETF purchases is undeniable.
The BOJ indirectly holds about 20% of Fast Retailing’s shares,
making it effectively a state-owned enterprise,
though this is a stretch to say.
By the way, for Uniqlo
there was a fortunate aspect in this pandemic.
That is, many infections were concentrated in regions with
lower infection rates and quicker recoveries than the West,
in Asia, where stores were numerous.
A Reuters article states:
Of Uniqlo’s 2,260 stores globally,
just 51 are in the United States.
Its inability to make strides
in the world’s biggest clothing market
has long been seen as an Achilles heel,
but for the time being
it may prove a blessing.
(Source:
https://www.reuters.com/article/us-health-coronavirus-fast-retailing-ana/big-in-china-and-tiny-in-the-us-fast-retailing-seen-weathering-pandemic-idUSKBN23936X)
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To put it simply,
Among the global 2,260 stores, only 51 are in the United States,
and in the world’s largest apparel market
failing to advance has been an Achilles heel for Fast Retailing,
but now it may benefit from that factor.
So despite the small presence in America,
it turned out to be fortunate.
If there were more Uniqlo stores in the US and it sold better there,
the recovery might have been slower.
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Universality and the use of technology
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Additionally, Fast Retailing actively adopts technology.
Just last week, Uniqlo opened in Harajuku, and in a store with 240 displays,
an experimental store showing a commitment to actively leveraging technology.
And speaking of Uniqlo, self-checkout is also a feature.
For those who have used it,
you’ll recognize that Uniqlo’s self-checkout is
quite excellent.
A tag called
FID (radio frequency identification)
is used, and
when you place items on the counter,
Self-checkout at supermarkets and convenience stores
usually requires scanning each barcode,\n
and can feel a bit tedious,
but not having that hassle makes checkout times feel much shorter.
It fits well with the current trend of avoiding close contact with people
as much as possible in today’s world.
In a world where you cannot predict what will happen due to the pandemic,
the concept of “ultimate everyday wear” andembracing technology to adapt to changing times
make it clear that this is a company
that can respond flexibly to the era.
Given the significant contribution of the Nikkei stock average,
the movements of Fast Retailing cannot be ignored.
Thank you for watching until the end today as well.
Takashi Shimomura
