Ryohin Keikaku "Briefing on the East Asian business: evolution, deepening,..."

研报英文原文证据摘录

Ryohin Keikaku "Briefing on the East Asian business: evolution, deepening,..."

istic, it is expanding its

businesses with the aim of being a company that supports the lives of all middle-class Takahiro Kazahaya

Analystresidents of urban areas in view of large individual consumption values and the

takahiro.kazahaya@ubs.com

expanding middle class population, which are making the market attractive, and

+81-3-5208 6226

consumer behaviour emphasising individuals' values.

Kazuki Oike

Associate Analyst

Key strategies include: 1) sales channel strategy: continuous small-scale renovations, kazuki.oike@ubs.com

development of flagship stores, maintaining store freshness through scrap-and-build +81-3-5208 6964

initiatives, and increasing the EC ratio; 2) product strategy: leveraging the potential of

sales of household goods and food through strengthening local planning and local

production, which began in 2018; 3) marketing strategy: categorising customers and

strengthening integrated marketing to cater to various customer categories, while

pushing forward with product marketing, flagship store marketing, and CRM activities

(membership has surpassed 50mn). In terms of the organisation, locally hired officers are

increasing, with six out of nine executive officers being Chinese and approximately 30

directors, of whom only one is Japanese.

The company indicated that its initial priority is to restore sales per store to pre-COVID-

19 levels and to raise the EC rate from the current 20% to 30%. Regarding its store

expansion strategy, the company disclosed its basic strategy of setting Uniqlo as its

Highlights (¥b) 08/23 08/24 08/25 08/26E 08/27E 08/28E 08/29E 08/30E

Revenues 581.4 661.7 784.6 891.0 980.6 1,054.4 1,129.4 1,202.6