UNIQLO Is Ready To Enter The Canadian Market.

Yesterday,

Its overseas expansion plan has been released.

It plans to open its first store in CF Toronto Eaton Centre, Toronto, Canada at the end of next month.

The location of the 3 and 4 floors is about 2545 square meters.

In addition, it plans to open second stores in Toronto's Yorkdale shopping center in October 20th, which is about 2370 square meters.

In less than a month, two large stores have been opened, and UNIQLO seems to have made full preparations for the march into the Canadian market.

However, UNIQLO was born in Japan.

The brand has been expanding cautiously in the major cities of the United States and Europe. It has even closed all its stores in the UK.

UNIQLO has more than half of 1600 stores in 16 markets in the world, with 467 shops in China, and only 49 shops in the United States.

At the same time, due to the impact of yen appreciation in the first half of the year, UNIQLO reduced its 2016 annual revenue forecast.

For this time, the rapid march into the Canadian market is seen as a fast selling group's attempt to become the world's largest apparel retailer by 2020.

But the question is, can it really work?

Let's first take a look at what kind of market Canada is.

A recent report pointed out that Canadian consumers are changing.

In the past 2015, clothing and footwear retail sales in Canada were at a moderate growth rate.

But the fashion smell of consumers is becoming acute. Normcore is no longer popular. The concept of "athleisure" sports and leisure is constantly being popularized.

Faced with this dynamic market, some fashion brands began to enter Canada, while others opted out.

At present, 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, but in 2014, Toronto opened its first store in MUJI. In the past two years, only one shop has been expanded. It has only two stores in Canada.

In May this year, Aeropostale, the clothing chain of youth clothing, announced that it would close its 41 stores in Canada.

The reason is that the fast fashion brands such as ZARA and H&M have suppressed the competition in the Canadian apparel retail market.

On the other hand, clothing brands from Canada are also trying to gain growth.

Artizia, which was founded in 1984, has unveiled its listing plan. In the first half of this year, Aritzia's revenue was $445 million, and its net income was $38 million. It has more than 70 stores in North America.

So it is also regarded as one of the fast competitors in the North American market.

As for UNIQLO, its sales in China are not very ugly in 2015.

However, since its entry into the US market in 2005, it has been in a state of loss.

We have discussed why Americans do not like UNIQLO.

UNIQLO is unable to establish enough good communication with consumers in the United States, that is, consumers do not understand why they want to buy this brand of clothing.

The reasons for this subdivision include the design of clothing, the size of the size, the unity of the American cognitive system, the location of shops and the way of advertising.

If UNIQLO can not rethink its problems in the United States, Canada may be able to repeat the same mistakes.