International Fast Fading Brands Fall Into The Paradox Of "Wuming" And "Cheap"

ZARA and H&M China encountered "quality door".

28, three well-known international fast and disappear

On this day, another news about H&M also swept through the sky: after the blacklist of quality check on ZARA seven, H&M was also identified by the AQSIQ as an unqualified product.

On the 27 day, the AQSIQ announced its recent reports on children and infants.

AQSIQ pointed out that Haines Morris (Shanghai) Commercial Co., Ltd. production of "H&M" baby coat detection of the lower part of the fiber composition and content is not qualified.

Fellow sufferers

The unqualified product detected by the National Textiles and clothing product quality supervision and Inspection Center (Guangzhou) is not qualified for the H&M product. The problem of fiber composition and content in the hem is not qualified, and this problem has occurred on Zara many times.

In December 2009, the Beijing Consumer Association released the results of the inspection and inspection. "ZARA", a coat coat containing 50% down, and 40.5% of the measured cashmere content. At the end of 2010, the Beijing Consumers Association announced the results of the comparative test of the down garments. "ZARA" coat of a coat is again empty.

Although Zara has not responded positively to these questions, Zara has finally responded to the recent public criticism of Beijing's Consumer Association's letter to sa La Commerce (Beijing), which ignores the quality of products and ignores the interests of consumers.

China consumer daily pointed out that ZARA Spain responded by saying that the company's quality control department is investigating this.

This is the first time that Zara has responded to the media after being unqualified by the relevant departments for the seventh time. Before that, the relevant media chief of SA La commercial company in Shanghai once told reporters that Zara did not accept any media interviews.

Similarly, because of the repeated exposure to quality problems in China, local media in Spain also began to pay attention to this matter.

However, H&M is also not ready for consumer questions about quality.

A public relations official told reporters that the media leader is in charge of the opening of new stores in Changsha. The response to such problems needs to wait until after labor.

The cost control dilemma of fast fading brands

Luo Gang, director of social supervision and consumption guidance department of Beijing Consumer Association, told reporters.

Obviously, these fast fading brands ignore the importance of this problem.

Cui Hongbo, chief executive officer of Lian Zhi Da brand management, pointed out that ZARA and H&M also face a very serious problem, "they lack bargaining power."

Cui Hongbo told reporters that these fast fading brands, because of the competitive environment, once the price is fixed, the product line will no longer be able to adjust the price.

In order to maintain consumer enthusiasm, product prices remain unchanged.

This means that if they want to make profits, they will be required to reduce their costs.

"The business cost of the cost is uncontrollable. With the rapid increase of business cost in recent years, these retail giants have brought great challenges.

Cui Hongbo pointed out that this is even more frightening than the rise in production costs.

Because of the sales mode, the strategy of these fast fashion brands is to open a shop in the core business circle and to pay a higher rent than other brands.

Even in the top commercial streets such as Fifth Avenue, we can see these fast fading brands.

After being stationed in China, these brands quickly seized the first tier commercial outlets in the first tier cities, and have now extended their tentacles into the core business district of the two or three tier cities.

"The only cost they can control is the cost of production," Cui Hongbo admits. These brands take advantage of the global market to import large single culture for OEM OEM enterprises and reverse the bargaining power of these foundry factories through large-scale orders.

With the rise of raw material costs and labor costs, the only control that these factories can take to amortize risk is the cost of the product.

A H&M garment supplier told reporters, "in order to ensure the price they need, we can only solve it by looking for other fabrics, but often because of the fabric changes, the effect of clothing is also different.

"

Unlike the complete OEM of H&M, Zara has its own factory, but apparently the cost pressure has begun to look for OEM's factories.

According to the survey data from CIC, 50% of Zara orders were handed over to the OEM factories in 2010, 70% of which were completed in Europe and 30% in Asia. With the acceleration of these brands' expansion to Asia, the share of orders made in Asia has been increasing.

The essence of fast fading brand is pursuit of cheap goods, Cui Hongbo told reporters, but due to cost control reasons, these fast selling brands are unconsciously trapped in the paradox of Wumart and cheap.

"They can control production costs well, but they often ignore the feelings of consumers.

"Cui Hongbo pointed out that these fast fashion brands are summarized as high-end stores, mid-range goods and low-end services.

Perhaps faster brands should be more focused on consumers, Cui Hongbo pointed out, otherwise their troubles will come.

Product quality problems caused by rapid expansion

The fast rising brand emerging in the financial crisis can now be distinguished from luxury brands.

Luxury goods are only now in Europe, and the mainstream brands in other countries are no longer in the shape of luxury brands.

These fast expanding fast fading brands are also eyeing the emerging market in Asia.

INDITEX, the parent company of ZARA, pointed out in its annual report that China will be the key market for their development. In the same way, H&M also expressed the importance of attaching importance to the Chinese market in the quarterly report.

According to CIC's data, ZARA has developed 8 stores in Beijing for more than a year, and H&M has developed 5 stores in less than a year.

"The good response of the Chinese market has made them determined to accelerate the pace of expansion.

"Li Xuerong, a senior researcher at CIC, told reporters that these brands will intensify efforts to expand the two or three tier cities in China.

Because of the potential of emerging markets such as China, ZARA seems to be impatient.

"Unlike the speed of development in Europe and the United States, they need to accelerate the pace of China's development, and their good sales results in China have accelerated their determination to expand.

"In the coming years, fast selling brands will continue to exert their strength in the Asian market, and the quality of products will be accompanied by them.

"They are in the prime of life, and the quality of these products may not be prominent," Cui Hongbo told reporters. Once the horse race is over, the brand reputation will be a fatal blow to the international brands after the development of all the brands in the industry.

It may be difficult to see the difficulties in the prosperous time, but if we neglect the problem of product quality for a long time, "the power of consumers can not be ignored. They can vote with their feet."

"After fresh experience, consumers may abandon these reputable enterprises.