UNIQLO Will Raise Its Price By 10% From July.

Japan's largest

Companies and UNIQLO will raise prices for another two years, which is likely to lead other Japanese companies to follow up.

As report goes,

Japan's fast retailing company recently announced that 20% of new products sold in UNIQLO after July will be raised.

The overall price increase of new commodities will be around 10%.

UNIQLO said that different products, sales and raw materials are also different.

Some commodities may only increase by a few percentage points, and some will exceed 20%-30%.

At the final statement meeting held in Tokyo, Okazaki Ken, chief financial officer, said, "as an enterprise has been making continuous efforts, it has to make this decision because of the increase in costs."

The increase in cost is mainly reflected in the increase in raw material prices and labor costs.

Purchase prices of rare and precious materials such as wool and cashmere continued to rise.

In addition, UNIQLO products have 60%-70% in China.

Production, China's labor costs also constitute a pressure on production costs.

Another force that forced UNIQLO to make price rises is the depreciation of the Japanese yen.

It has been reducing the impact through the use of forward exchange rates, but with the depreciation of the yen entering normalization, it has been unable to compensate for it.

In 2014, UNIQLO made the first comprehensive increase in prices for new products in autumn and winter, and the overall price rose by about 5%.

In the past 5 fiscal years, the overall operating profit margin of XXX Group continued to decline, and in 2014 it lowered its revenue forecasts for two times.

Although Japan is still the main market of UNIQLO, with the growth of local market, UNIQLO is shifting its focus to overseas markets.

The continued growth of overseas business has largely restored UNIQLO's confidence.

At the same day, uniqo announced that it would increase its operating profit from 180 billion yen to 200 billion yen (about RMB 10 billion 320 million yuan) for this year, raising 11% on the basis of the original.

As for the possible impact of price increases, Ryui Masa, chairman and chief executive of Xun marketing group, said that the price and quality of products will be improved while the added value should be improved, so as to minimize the negative impact of price increases on sales.