UNIQLO Is In A Difficult Position Overseas, And Its Profit Is Slash.

Japan's cheap clothing brand UNIQLO raised its price in 2014 to support Prime Minister Abe Shinzo's efforts to boost the sluggish economy: even with cheap confidence, even cheap clothing suppliers can set prices.

But Andouble's expansionist policies were hard to revive. UNIQLO chose to cut prices last year and again increased the discount in the first two months of this year.

The fast selling of UNIQLO's parent company has now become an increasingly bleak business prospect. Indirect costs remain high, consumer enthusiasm is cooling and price declines drag down corporate performance.

"It doesn't look good, it's bad."

The chief executive, Liu well, told reporters after the company announced its quarterly results on Thursday.

The Bank of Japan unexpectedly implemented negative interest rates in January, intended to revive businesses and consumers, but failed to boost sales and stock markets, and failed to prevent unpopular yen appreciation.

Over the past six months, UNIQLO's losses in the US market have widened, and the company has closed some stores.

These resulted in a cut in operating profit to 23 billion 400 million yen ($215 million) in the three months ended February, less than half the market expected.

The company has slashed its annual forecast for the second time this year, and now focuses on cutting production costs.

In the 10-12 quarter of last year, Japan's economy was shrinking due to export slump and sluggish consumption. Some analysts expect the economy to shrink again in the first quarter of this year, which will plunge Japan into another recession.

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Like Japan's chain restaurants and other retailers, fast selling is also struggling to attract more consumers, as consumers are looking for discounts.

Its parity brand GU is a rare bright spot.

"If wages are about to rise, consumers will be able to accept some kind of raise.

but

There is no increase, so the propensity to save is strong, "says YoshikiShinke, chief economist at the first Institute of life economics.

Ryui Masa's Fast Retailing launched a large-scale overseas expansion.

He said he plans to open 100 stores in the United States in the next few years.

But fast selling, especially UNIQLO, is in a difficult position overseas, because competitors such as Gap are already deeply entrenched, and are facing price competition for fast fashion brands such as Zara such as H&M and Inditex.