Uniqlo China will raise salaries for employees starting from Beijing, Shanghai, Guangzhou and Shenzhen
Uniqlo China announced that it will implement salary adjustments starting from October 2023.
The targets of this round of salary increase are mainly full-time employees and interns in stores in Beijing, Shanghai, Guangzhou and Shenzhen, as well as the backbone employee group. After this salary adjustment, the average annual salary increase of employees can increase by about 28% compared with before the salary adjustment, and the maximum increase can be about 44%. Uniqlo China said it may expand salary increases to other mainland Chinese cities besides Beijing, Shanghai, Guangzhou and Shenzhen in the future.
In July, Uniqlo was on Weibo’s hot search list after an intern complained that it “uses college students as cheap labor.” In previous reports, Jiemian Fashion learned from multiple messages in the Xiaohongshu comment area that the hourly wages of part-time employees at Uniqlo at that time ranged from ten to twenty yuan, which was comparable to the part-time hourly wages of fast fashion brands such as UR and ZARA. quite. A Uniqlo intern once told Jiemian Fashion that the salary of part-time Uniqlo employees is mainly based on the local minimum hourly wage.
Jiemian Fashion searched on social platforms and found that since September, discussions about Uniqlo employee salary increases have appeared on platforms such as Xiaohongshu. A Uniqlo employee posted that the hourly salary of interns in Beijing, Shanghai, Guangzhou and Shenzhen will rise to 30 yuan, and the salary of regular employees will also be adjusted according to different ranks. The monthly salary of junior (PN), intermediate (AP), and senior (SP) employees will be increased by 1,000 yuan each. yuan, 1100 yuan and 1200 yuan.
The last recruitment information of Uniqlo Shanghai store interns directly recruited by BOSS shows that the hourly salary of interns is 30-36 yuan. If they are converted into regular employees, the monthly income before tax for junior (PN), intermediate (AP) and senior (SP) employees They are 7,000 yuan, 7,500 yuan and 8,000 yuan respectively. The above salaries will be implemented from October 1st.
Uniqlo Shanghai store recruitment information
In the fall of 2022, Fast Retailing, the parent company of Uniqlo, increased the average hourly wage for part-time workers in Japan by 20%. In January 2023, Tadashi Yanai, the founder of Uniqlo and chairman of Fast Retailing Group, announced that he would increase the annual income of full-time employees in Japan, with the starting salary increasing from 255,000 yen to 300,000 yen (approximately RMB 15,380).
Greater China, which includes mainland China, Hong Kong and Taiwan, is Uniqlo’s second largest market outside of Japan. In the 2022 fiscal year as of the end of August 2022, Uniqlo’s Greater China revenue accounted for 25% of the group’s total revenue, second only to Japan. Uniqlo’s 39.5%.
Although Greater China’s performance performed poorly during the epidemic – Greater China’s revenue in fiscal 2022 increased only 1.2% year-on-year, and operating profit fell 16.8% year-on-year, it has ushered in a significant recovery after the epidemic. In the third quarter of fiscal year 2023 as of the end of May, UNIQLO Greater China recorded substantial growth in both revenue and profit. Among them, same-store net sales in mainland China increased by more than 40%, higher than expected.
According to data revealed by Wu Pinhui, global executive director of Fast Retailing Group and CMO of Uniqlo Greater China, in an interview with China News Service in April, Uniqlo has more than 900 directly-operated stores in more than 200 cities in China and will open 80 stores in 2023. -Continuing to open new stores in China at a rate of 100 – this is the rate of store openings that Uniqlo has maintained in China since 2005, and it has not changed during the epidemic.
Net profit of 18.6 billion! Fast Retailing Group, the parent company of Uniqlo
Sales in fiscal year 2023 exceed 70 billion
Fast Retailing Group, the parent company of Uniqlo, announced its fiscal year 2023 results on October 12. In the 12 months to the end of August this year, Fast Retailing Group’s comprehensive income increased by 20.2% year-on-year to 2.76 trillion yen (equivalent to approximately RMB 135.4 billion). , a record high, consolidated operating profit increased by 28.2% to 381 billion yen (equivalent to approximately RMB 18.6 billion), and profit attributable to owners of the parent company increased by 8.4% to 296.2 billion yen (equivalent to approximately RMB 14.5 billion) .
During the period, Uniqlo’s overseas business accounted for more than 50% for the first time, and sales increased by 28.5% year-on-year to 1.44 trillion yen (equivalent to approximately 70.3 billion yuan), of which revenue in Greater China increased by 15.2% to 620.2 billion yen (equivalent to approximately 70.3 billion yuan). (approximately RMB 30.4 billion), operating profit was 104.3 billion yen, a year-on-year increase of 25%.
Fast Retailing Group stated that although sales in Greater China were sluggish due to the impact of the epidemic in the first half of the year, the recovery in the second half of the year exceeded expectations, and the full fiscal year achieved a record high performance. In other overseas markets, such as South Korea, Southeast Asia, India, Australia, North America and Europe, both revenue and profit increased. However, in the Indonesian market, due to factors such as the impact of import restrictions in the second half of the year, gross profit margins fell, and profits fell slightly.
In fiscal year 2023, Uniqlo Japan’s revenue increased by 9.9% to 890.4 billion yen, and total operating profit was 117.8 billion yen, a year-on-year increase of 9.2%. Full-year same-store net sales increased by 7.6% year-on-year, gross profit margin decreased by 1 percentage point year-on-year, and the ratio of sales, general and administrative expenses to revenue improved by 0.6 percentage points year-on-year.
The total revenue of the GU Division in fiscal year 2023 was 295.2 billion yen, a year-on-year increase of 20.0%, and the total operating profit was 26.1 billion yen, a year-on-year increase of 56.8%. With the substantial growth in revenue, the ratio of sales, general and administrative expenses to revenue has been improved by strengthening cost control, and the operating profit margin has increased by 2.1 percentage points year-on-year.
The Global Brand Division recorded total revenue of 141.6 billion yen in fiscal year 2023, a year-on-year increase of 15%, with total profit of 500 million yen, but operating losses expanded to 30.�� yen (loss of 700 million yen in the previous year). In this regard, the company explained that it was “due to the impairment losses incurred by the French brand Comptor des Cotomniers in closing loss-making stores and business restructuring-related expenses.”
Looking forward to fiscal year 2024, Fast Retailing Group stated that it will actively pursue accelerated global growth while returning to its essence, implementing basic business principles and principles, and strengthening its operating foundation. It is expected that the group’s total comprehensive income in fiscal year 2024 will reach 3.05 trillion yen. The parent company has Profit attributable to employees will reach 310 billion yen.
In terms of the total number of stores, it is expected that by the end of August 2024, the number of stores in Japan’s UNIQLO division will reach 800 (including employee franchise stores), the number of overseas UNIQLO division’s stores will reach 1,744, and the number of GU division’s stores will reach 1,744. The number of stores will reach 480, and the number of stores in the global brand division will reach 636. The total number of stores under the group’s brands will reach 3,660.
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