Recently, according to Japan Jiji News Agency, due to the surge in raw material prices and transportation costs, UNIQLO announced that it will increase the prices of some autumn and winter products in Japan.
It is understood that the prices of wool products and down jackets in Uniqlo Japan will increase by 1,000 yen (approximately RMB 50) each. Among them, the price of polar fleece increased from 1,990 yen to 2,990 yen (approximately RMB 150); the price of ultra-light down jacket increased from 5,990 yen to 6,990 yen (approximately RMB 350); women’s cashmere crew neck sweater It will also rise from 8,990 yen to 9,990 yen (approximately RMB 500). At the same time, Uniqlo plans to improve the materials and styles of its products to retain consumers and launch them at new prices around summer.
Regarding price increases, in fact, at the end of 2021, Fast Retailing Group Chief Financial Officer Okazaki Ken stated in an interview with Nikkei that since costs such as raw materials and labor will be on an upward trend for a long time, the group will consider increasing the prices of some products. At the same time, the strategic approach of “narrowing product categories and increasing added value to reduce discounts” will be adopted.
Okazaki Ken also revealed that at this stage, the prices of major raw materials such as cotton and chemical fiber are about 1.5 to 2 times higher than before, while the cost of shipping is 2.5 to 5 times higher than before. Moreover, the rising cost trend that has begun in 2021 shows no signs of stabilizing. In particular, rising prices for crude oil and raw materials have shaken the cost structure. Therefore, in order to cope with the long-term trend of high costs, Fast Retailing will take corresponding countermeasures as soon as possible.
Public information shows that the price of polyester long fiber used in clothing in Asia reached about US$1.45 per kilogram in December 2021, a year-on-year increase of 32%.
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