Analysis Of "Fast Fashion" The Secret Of Success &Nbsp; "Fast Fashion" Has Become A Category Killer.

Recently, about ZARA "

Zou Yi, general manager of WWW5A five.

"Fast fashion" strong invasion

"Fast fashion" is booming in the global development. In March 2011, ZARA's parent company Inditex group bought a $324 million building on Fifth Avenue, and will start a ZARA flagship store.

Almost at the same time, UNIQLO's parent company, Japan's Fast Retailing, signed a 15 year lease agreement with over $300 million, and plans to open a new UNIQLO store in the autumn.

Prior to ZARA, there was a smaller shop in Fifth Avenue. The new store will be a flagship store, and will be next to Tiffany, Bottega Veneta, Prada and so on.

This is not only a business strategy for ZARA, but also a microcosm of its global expansion.

Following the big brand shop, it not only represents the "fashionable fashion" brand of "fast fashion" brand, but also contains some aristocratic flavor.

Today, global consumers are applauding for the fast fashion development, not only for their low price, fashion design, open shopping environment, etc, but also for the fast fashion's wealth effect.

In the 2011 Forbes global richest list, LVMH group Bernard Arnott entered the top 4 of the list with us $41 billion, followed by ZARA's Amancio Ortega ranked seventh in the list of rich people, and Liu Qun Jing of the Qilu library ranked 122. The two garment companies rapidly developed with the "fast fashion" business mode and left many high-end brands behind.

Contrasting with the rapid expansion of "fast fashion" is some negative news of high-end fashion brands closing. Versace announced that it closed its stores in Japan and gradually reduced the existence of the Japanese market. PRADA and CHANNEL have announced layoffs. GUCCI's Alexander McQueen has been shut down in stores in some important markets in Japan and Russia.

The fast fashion represented by ZARA, H&M and UNIQLO has been able to describe the development in recent years.

Take ZARA as an example, from 2006 to China, from 23 stores in 2008 to 75 stores in 2011, the Asian market in the 2010 contributed 15% of the global sales to the parent company, and ZARA achieved a leaping development. This trend will continue. (Initex said that 2011 will continue to expand and stores will cover 30 cities to 42 cities in China).

Nourishing "fast fashion" soil at that time.

The rise of "fast fashion" is supported by its consumer groups, which is the most consuming group in China's special demographic structure.

At present, China's social wealth form and market structure have appeared as gourd forms. From top to bottom, they correspond to the rich, middle, rich, middle class, quasi middle class, well-off, middle and lower levels.

The quasi middle class built a part of the gourd belly, and this part is made up of 80 and 90.

There are many labels for post-80s and post-90s, and the common ground for fashion and pleasure is the opportunity for the rise of "fast fashion".

Compared with the "fast fashion" of foreign countries, luxury goods are different from luxury goods. Domestic luxury goods and "fast fashion" almost dance at the same pace.

The growth rate of luxury consumption in China's emerging market is the fastest in the world. Nowadays, almost every luxury brand wants to have a share in China.

The fast growing sales in China are not to be underestimated. The quasi middle class buys "fast fashion" on weekdays, and occasionally enjoys the noble quality of traditional luxury goods with the rich and the rich.

This is China's unique consumption characteristics, and it is also the most important factor for fast fashion to consider it as a key market.

The strong development momentum of Zara, H&M, UNIQLO and other brands has led to the differentiation and pformation of domestic casual wear.

Some domestic leisure brands, such as mus, and Semir, are forced to seek to expand their consumption groups under the pressure of competition, instead of emphasizing young, unique and personality, instead of emphasizing the expression of fashion elements.

This change is no longer simply defined by the age and income of the consumer, but from the deeper contents of its lifestyle and values.

This requires retailers to create a brand without a simple "brand" to promote, but to shape the brand image with its cultural connotation, the consumer is not a brand, but a way of life, no print is a success model.

Such brands create different lifestyles and ideas for consumers, so they need large and full goods, similar to small department stores, and a flagship store may have tens of thousands of business areas, equivalent to the scale of a comprehensive department store.

{page_break}

Analysis of "fast fashion" success password

The secret of the success of "fast fashion" is simple, that is, to catch up with the fashion trend of top brands, properly integrate into their design elements, and compress the leading period of clothing. ZARA is usually 15 days, H&M is 21 days, and GAP is 90 days.

In 2008, when Spain's Inditex outperformed GAP for the first time in its business earnings, it was widely regarded as a great change in the fashion industry, marking a small number of ZARA winning over a small number of GAP.

It is precisely ZARA that has left the rest of the same camp far behind. Even in the Chinese market, the performance of ZARA is obviously better than that of H&M, UNIQLO and other fast fashion brands.

European and American "fast fashion" wins by "fast"

Of course, there is always another side of the coin. The cost of ZARA is higher than that of H&M.

H&M uses a week ahead of ZARA to save 30% of the cost. H&M has 65% of its products in some low-cost countries in Asia, while ZARA has 85% of its products in countries other than China.

But even though the price of ZARA is higher than that of H&M, consumers are happy to accept it.

According to two Annual Reports 2010, ZARA is obviously faster than H&M in terms of operating income or net profit growth rate.

From the perspective of expanding markets and stores, ZARA has entered more markets than H&M, but stores are less than H&M, proving that in every flat market, every market can stand on its feet, reflecting its potential for further development.

H&M is obviously better at developing in the existing market, while GAP, the largest clothing retail companies in the United States, is more conservative than H&M. Its annual revenue growth is also slow.

In 2010, GAP opened 4 stores in China, 4 years later than ZARA, 3 years later than H&M.

Of course, GAP is also making up for the disadvantages of backward development through e-commerce. Choosing to build self built network platform does not follow the existing Taobao platform such as UNIQLO, which is obviously more time-consuming and laborious.

The relative price of ZARA, H&M and GAP entering China is lower than that of foreign countries, which is understood as a compensation for its later entry into China.

But in reality, consumers prefer to buy ZARA over the price of 50% Western European countries, and even think that high prices have become one of the attractions of ZARA.

Even after repeated "quality gates", ZARA's reputation is still good. It is obvious that ZARA has a brilliant sense of fashion and a fast business model.

Japanese "fast fashion" UNIQLO wins service and quality

"Fast fashion" itself is the product of European and American culture, while UNIQLO is the best inheritor in Asia, but on the basis of it, it has also been pformed.

In the years when UNIQLO first entered China, the expansion speed was slow and the market performance was awkward. After the adjustment, UNIQLO found its own position, just like its name, returning from the clothing products that originally emphasized sales people can wear to the product 100% and meticulous service, that is, the Japanese DNA in Ryui Maguchi.

The product has finally come down to the characteristics of high cost performance and easy to match. It emphasizes the rational consumption concept of quality of life as well as Muji.

Brands such as ZARA, H&M and GAP are all respected for their business models through the word "fast", while Japan's UNIQLO has changed on the basis of it.

Make use of the meticulous service and comfortable fabric that Japan is good at, build a basic suit for all people.

The quality and quality of UNIQLO's emphasis include technology with a typical Japanese character.

Even if UNIQLO's original idea was to imitate GAP, eventually UNIQLO did what GAP could do.

In 2010, UNIQLO's revenue rose to 62 billion 624 million yuan after ZARA, an increase of 18.9% over the same period last year, which is higher than that of ZARA.

UNIQLO pays more attention to quality than ZARA parity, and slightly lower net profit to 4 billion 741 million yuan, but its growth rate is worth noticing, up to 23.86% year-on-year.

UNIQLO has been popular with consumers because of its unique parity and quality. At the same time, its unusual promotion mode, such as the global promotion of its online FLASH alarm clock in 2008, has made a lot of fire.

{page_break}

The "fast fashion" alternative development of online development

The trend of "fast fashion" has not only happened online, but also the development of "fast fashion".

Www.asos.com, the most popular English fashion shop in the UK, is rising rapidly. It is also recognized by consumers as "fashion and parity". At present, the sales scope of ASOS is limited to the United Kingdom, and its domestic influence is very large, but foreign consumers know little about it.

China's domestic "fast fashion" has developed rapidly in recent two years, and the age of everyone is even known as China's Liu Jing Zheng and China's Amancio Ortega.

The development trend of all customers is good, but whether it can become the representative of China's "fast fashion" still needs time to test.

Because of its development, it has also encountered bottlenecks. Even if we want to be domestic CONVERSE and domestic NIKE, simple imitation is obviously unable to develop for a long time.

"Fast fashion" has become a category killer.

ZARA on the first floor, after visiting the two floor H&M, then to the third floor, UNIQLO, this classic shopping line is believed to be new to us.

In the face of all kinds of branded products, consumers' attachment to "fast fashion" has gradually become a category killer.

The "fast fashion" mode itself provides a comprehensive product category for consumers. Taking UNIQLO as an example, accessories, bags and household clothes are all available, which makes consumers no longer patronize other stores after shopping.

The fashion retailers in fast fashion camp no longer express their practical properties, but emphasize their attitude towards life and their way of life.

It is the scale effect of big stores that the trend of "fast fashion" in shopping centers has gradually become the trend of killer category.

Therefore, for shopping centers, attracting "fast fashion" as the main store / sub main store will not bring much sales to the shopping mall, just as it can not expect WAL-MART to promote the hot selling of its small shops around.

Of course, for fast fashion retailers, they are no longer attached to shopping malls, which can bring greater flexibility. By virtue of their size and influence, they can choose any venue that meets their passenger demands. For example, Nanjing's de Kee square passes through the subway passage, and UNIQLO stands among many restaurants.

The internal driving force of "fast fashion" entering China is to believe that China will bring more sales, faster growth and higher profits to them.

But as ZARA and H&M sell products of second class quality at a price higher than 50% of Western European countries, they will eventually lose a group of consumers who advocate quality.

Chinese clothing retailers should learn from ZARA, H&M and UNIQLO not only "fast", but also need to carry out R & D, operation, terminal and information logistics system behind them.

Facing the external impact, we believe that China's garment industry will grow in the process of change, and gradually focus on large enterprises and become the first international enterprise in the world.