Core ideas:
The ownership of the group is concentrated, and the actual founder holds real power. Fast Retailing Group was founded in Japan in 1963 and changed its name to Fast Retailing Group in 1991. It was first listed on the Hiroshima Stock Exchange in July 1994 and was listed on the main board of the Hong Kong Stock Exchange on March 5, 2014 through depositary deposits. the largest shareholder of the group is the chairman, CEO and the only executive director of the group, Mr. Yanai, who holds a total of 43.58% of the company.
Ultra-high performance-to-price ratio, SPA management system, global brands form the core competitiveness. Fast Retailing Group with its main brand Uniqlo products to become the world's leading, Asia's largest clothing retail company. Fast Retailing locks the group's core competitiveness through a series of strategies: (1) locking the top suppliers through its small SKU large orders and low prices, and driving the company's performance with the resulting cost-effective popular style products; (2) Fast Retailing's SPA business model ensures the group's production and operation efficiency; (3) the group strives to build UNIQLO, looking forward to attracting more loyal consumers through the brand.
Uniqlo brand Japan continues to improve the image of its stores, expanding rapidly overseas based on Asia. (1) Uniqlo continues to increase the size of its local business and starts the employee agency store model; (2) capturing the similar size and culture of consumers in Asia, Uniqlo is expanding rapidly in the Asia-Pacific region, led by China.
Focus on Asia to build a new brand of GU. (1) Fast Retailing has launched the global brand business since 2004, and the proportion of multi-brands to total revenue except Uniqlo is relatively stable. (2) the Group strives to make its own cheap and fast fashion GU as the second pole of the group's growth.
Financial analysis: extension expansion leads to a rise in costs, and the supremacy of performance-to-price ratio leads to a lower gross profit margin than that of peers. (1) the group's operating income has continued to grow by 20% in the past three financial years. Its performance in Uniqlo in Japan is stable, and overseas market revenue has been growing at an annual rate of more than 40% in recent years. However, due to its rapid overseas expansion, the group expense rate has increased, and its group profit margin has been affected to a certain extent. (2) compared with its competitors INDIETX (ZARA) and Himm, Fast Retailing's gross profit margin is relatively low because of his product performance-price ratio, and his low gross profit margin makes his profit margin and ROE lower than those of his competitors.
Fast Retailing's comparative analysis of Hailan House: different business models lead to huge differences in profit margins. Compared with Hailan House, Fast Retailing's profit margin and ROE are significantly lower than Hailan House. This is mainly due to (1) because of its "credit" business model in which small and medium-sized suppliers bear inventory risk, the company itself does not have to bear inventory risk, which makes the gross profit margin of Hailan House is significantly higher than that of Fast Retailing Group. (2) at the same time, the large amount of accounts payable brought by this credit mode makes the leverage ratio of Hailan House obviously higher than that of Fast Retailing, resulting in its ROE higher than that of Fast Retailing Group. Although compared with Fast Retailing's high-quality and high-functional products, the small and medium-sized supplier model of Hailan House still makes it have a gap in product R & D capability and product quality, but considering its short history of more than ten years, we believe that through the continuous transformation of supply chain and operation management, it is expected to become China's "Uniqlo" in the future.