Core Viewpoint - Fast Retailing Co., Ltd. (parent company of Uniqlo) reported a revenue of 26,167.08 billion yen (approximately 127.2 billion yuan) for the first three quarters of the fiscal year 2025, reflecting a year-on-year growth of 10.6% [1] - The Greater China region, which includes mainland China, Hong Kong, and Taiwan, is the only market showing negative growth, with a revenue decline of 2.29% [1][2] Financial Performance - Overall revenue for the first three quarters was 26,167.08 billion yen, with a net profit attributable to shareholders of 3,390.99 billion yen, marking an 8.4% increase [1] - The revenue growth rate remained consistent with the previous fiscal year, while the net profit margin decreased compared to the 31.2% in fiscal year 2024 [1] Market Segmentation - Fast Retailing categorizes Uniqlo's global markets into five regions: Japan, Greater China, Southeast Asia, North America, and Europe [1] - The Greater China region's revenue was 5104.91 billion yen (approximately 24.8 billion yuan), which is a decrease of 2.29% year-on-year [1][2] Challenges in Greater China - The mainland China market has experienced continuous revenue decline, with a reported decrease of about 4% in the mid-term report and a 5% decline in the third quarter [2] - Factors contributing to this decline include low consumer sentiment and product offerings not meeting local demand [2] Product Strategy Adjustments - Uniqlo is focusing on sustainable materials and local cultural integration in product development [5] - The brand is also innovating with fabric technology, which is seen as a key direction for its development [5][6] Channel Strategy Adjustments - Uniqlo is shifting its strategy from rapid store expansion to enhancing the quality of existing stores, planning to close or renovate about 50 stores annually over the next three years [7] - The company aims to improve single-store revenue by 1.5 times through optimized locations and store designs [7] Local Market Adaptation - The "individual store operation" strategy allows Uniqlo to tailor its offerings to local market demands, particularly in lower-tier cities where price sensitivity is higher [8] - The integration of online and offline channels is crucial for meeting consumer needs more precisely [8]

Group 1 - The core argument of the article highlights the unexpected success of "ugly shoes," particularly Crocs and Birkenstock, which have gained popularity despite initial criticism, with Crocs outperforming the Dow Jones U.S. Shoe Company Index for four consecutive years [2][18] - Birkenstock has seen continuous double-digit revenue growth for nine consecutive quarters, demonstrating that "ugliness" can translate into commercial success [3][18] - The rise of Birkenstock was significantly boosted by its appearance in the movie "Barbie," leading to a 110% increase in search volume on fashion platform Lyst [6][18] Group 2 - Both Crocs and Birkenstock share a foundation in practicality, with Birkenstock focusing on foot health and comfort, while Crocs emphasized comfort and ease of cleaning [7][9] - Crocs experienced a 300-fold increase in revenue from 2003 to 2006, driven by word-of-mouth among professionals like chefs and doctors [9][18] - The operational strategies of Crocs and Birkenstock differ significantly, with Crocs adopting a high-volume, low-cost model, while Birkenstock maintains a focus on scarcity and high-quality production in Germany [23][24] Group 3 - Crocs has shifted production to third-party manufacturers, allowing for flexibility and rapid response to market demands, but this has also led to a high incidence of counterfeiting [24][11] - In contrast, Birkenstock controls its production closely, with 95% of its products made in Germany, which helps maintain brand integrity and pricing power [24][25] - Birkenstock's average selling price has consistently increased, with a high full-price sell-through rate of 90%, indicating strong brand positioning in the market [28][18] Group 4 - The article emphasizes that the key to success for these brands lies not just in their "ugliness," but in the additional value they provide to consumers, creating a narrative that resonates with their audience [29][32] - Birkenstock's commitment to traditional craftsmanship and European materials enhances its brand value, distinguishing it from mass-produced alternatives [32][33] - The luxury positioning of Birkenstock has allowed it to thrive in a market where scarcity and exclusivity are highly valued, contrasting with Crocs' volume-driven approach [28][18]