Fast Fashion Competition

One feature of the joint mode is: clothing Brand and store property cooperation will often increase business costs and push up commodity prices. And the direct mode is to bypass all the intermediary links of the agents and sell the clothes designed and manufactured directly to the market.

The brand new MANGO store does add a lot of color to the brand. The MANGO flagship store in Shanghai 353 square cost about ten million yuan, but became the sales champion of MANGO Shanghai in the opening month. It's not just MANGO, ZARA, H&M, Uniqlo C&A and others have penetrated into the second tier cities to set up direct stores.

In an interview with reporters, H&M chief Karl-Johan Persson once said that China was the country with the largest number of stores in H&M in 2012. "Although there are plenty of opportunities in China, competition is becoming more and more intense."

H&M entered the Chinese market in 2007, now has 64 stores, and there are 2410 stores in the world. According to the Swedish commercial bank analysis, H&M's profitability in China is stronger than in any other market, and the number of H&M stores in the next three years is expected to double three times.

Inditex annual report shows that in 2008, ZARA had only 23 stores in China, and increased to 44 in 2009. In 2011, the number of new stores opened in ZARA in China reached 120, and it will expand to the second tier cities such as Harbin and Kunming. China market becomes ZARA overseas market One of the fastest growing regions in China. As the highest sales clothing retailer in Japan, most of the new stores launched by UNIQLO are located in the booming Asian market, with plans to open 100 new stores in China every year.

In fact, there are Abercrombie&Fitch and Topshop in the Chinese market, and some Chinese brands that aim at "fast fashion" are also seeking transformation of channel mode. However, the direct camp has also increased the requirements for enterprise management.

"ZARA and H&M shops are too large, and the cost of capital and manpower is high. Moreover, for ordinary enterprises, even if there is capital, it is impossible to get such a good location. China's general manager, Dan Fei said.

In fact, the pure direct camp mode is not mainstream in the domestic clothing circulation industry, because enterprises have to spend a lot of money on the store and service management, and have to lower commodity prices. Where does the profit come from? "The cost control can only be realized from the garment making link, and the control of production cost will add pressure to the garment foundry industry with the shackles dancing." Cui Hongbo, chief executive officer of Lian Zhi Da brand management, said. The fast fashion brand is not in place in management, and the cost pressure is increasing.