The wealth value of Japan’s richest man, Tadashi Yanai, rose to US $ 41.6 billion. This was driven by a surge in Uniqlo’s daily clothing spending amid the covid-19 pandemic.
Quoting Forbes, Saturday (5/12), Yanai’s wealth was driven by a 114 percent increase in Fast Retailing shares since March 2020. He has more than doubled his wealth when Fast Retailing shares fell in March 2020 due to the Covid-19 pandemic.
Fast Retailing has several fashion brands, such as Uniqlo, Theory, Helmut Lang, J Brand, and GU. JP Morgan Senior Analyst Dairo Murata said that the jump in Fast Retailing shares occurred because the company had a new strategy that focused on everyday clothing that was preferred by people who work at home.
“Sales are good because the product line is in line with the demands of those who live at home. Fast Retailing always promotes the concept of life wear and sells clothes that suit the style of working from home,” said Murata.
Uniqlo has more than 3,600 outlets in Asian Markets
Uniqlo has more than 3,600 outlets in 26 markets in Asia, North America and Europe. Even though its shares rose, Fast Retailing’s profits plummeted due to the Covid-19 pandemic.
The company recorded revenue fell 12 percent to 2 trillion yen or US $ 19 billion as of August 2020. This caused Fast Retailing’s net profit to fall 44 percent to US $ 853 million.
The decline occurred because outlets were closed during the Covid-19 pandemic. The management admitted that they nearly closed half of their 748 outlets in China in January and only reopened in April 2020.
Then, the number of outlets closed in Japan reached 311 out of 817 outlets at the end of March 2020. Then, outlets in Japan only re-opened in early May 2020. .
Luckily, specifically Japan, Uniqlo is still recorded a net profit rise 2 percent. Uniqlo Japan’s sales are underpinned by e-commerce, which rose 29.3 percent as of August 2020.
“The spread of covid-19 has driven value changes and prompted us to research our way of life. The meaning of clothing also changes as we witness a strong shift away from what to wear. to beautify or emphasize social status, “said Yanai.
Fast Retailing expects revenue to rise 10 percent in 2020. In addition, net profit is forecast to jump 83 percent.
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