"Fast Fashion" Rushing To Surround The Chinese Market

The Chinese market attracts a lot of international fast selling fashion brands like magnets, MANGO, ZARA, H&M, UNIQLO...

Scrambling to enter the Chinese market, in downtown business district, in a shopping mall, you meet the first one, turn around and find another one.

The "fast fashion" represented by these famous international brands quickly entered the Chinese fashion market and quickly conquests the city. With the rapid new product shelves and the big price design of parity, they won the favor of a large number of young consumers.

With the rapid growth of the number of stores, "fast fashion" has moved from "workplace newcomers" to "senior employees".

According to the Boston consultation study, Chinese consumers spend about 1150 yuan per person per year on clothing, only 1/5 of American consumers.

There is no room for improvement in the promotion space. Boston consulting predicts that sales of Chinese clothing will reach 800 billion yuan in 2015.

Coveted the huge market not only international brands, local brands are also competing with international counterparts, the clothing market is becoming more and more colorful, and more exciting competitions are also being staged.

Grab: rapid expansion of competition "acceleration"

Fast selling fashion brands are busy opening new stores in China.

China is already the fastest growing market for all overseas markets for the Spanish fast selling fashion brand ZARA, which entered China in 2006.

According to its annual report of Inditex group, the number of ZARA stores in the Chinese market has increased from 23 in 2008 to 120 in 2011, and the total sales volume of the whole Chinese market even surpassed that of last year.

Sweden's famous fast selling fashion giant H&M will also welcome the quicker shop in China.

The brand that entered China in 2007 now has more than 60 stores in the Chinese market. From the scale of its total 2410 stores worldwide, the Chinese market is still waiting for explosive growth.

Persson, chief executive of H&M, said in an interview with the Wall Street journal that China will be the country with the largest number of shops in H&M in 2012.

According to the Swedish commercial bank analysis, H&M's profitability in China is stronger than that in any other market, and in the next 3 years, the number of H&M stores in China will increase two times.

It is also the European brand C&A, which entered the Chinese market in 2007. It has opened 27 stores in four years. C&A obviously feels that it is not fast enough. Therefore, its next plan is to open more than 150 new stores in the next four years.

There is also UNIQLO, which has clearly become a "spokesperson" for fast selling fashion in China.

In China, a larger target consumer group means higher sales and better profits.

Last September, UNIQLO's parent company, Japan's Fast Retailing, announced an ambitious global market expansion plan, which plans to open 200 to 300 stores a year outside Japan, with the ultimate goal of becoming the world's largest clothing retailer.

Most of the new stores planned by UNIQLO are targeting the booming Asian market, especially in China. It plans to add 100 new stores in mainland China and 30 new stores in Taiwan, China.

The expansion of UNIQLO is "well prepared". Ryui Masa, chief executive of fast retailing company, said that the number of middle-income consumers in China and India and other Asian countries will increase by 1 billion to 2 billion in the next ten years. Fast selling companies are taking measures to seize this golden trend.

Another fast selling fashion brand that is hard to ignore is MANGO. In Spain, MANGO is the second largest export company in the country's textile industry, while in China, MANGO is the earliest European and American fast selling fashion brand.

In 2002, when most people did not know what "fast fashion" was, MANGO came to China. It took MANGO ten years from the first shop run by distributors to 200 retail outlets in 80 cities in China.

Compared with the competitors, although the number of shops in the lead, but the opponent's aggressive or MANGO pressure.

"The development in these ten years is not very slow. We do not blindly pursue rapid expansion. Every step of MANGO is steady and steady."

However, Dan Dawei, chief executive officer of MANGO clothing (China Limited) Greater China, revealed that the next round of new store plans for MANGO: "in the next three years, MANGO will open 500 more in China.

It is easy to see that these fast selling fashion brands generally adopt the SPA mode, that is, Speciany StoreRetailer of PrivateLabelApparel, which is also one of the secrets of "fast fashion" to win quickly.

The SPA model was first founded by GAP, a clothing retailing giant in the United States. In short, the brand opened a direct store and managed directly, from order production to distribution and sales. There was no intermediate link. In this mode, the brand clothing would connect production with retail, directly facing customers, which not only saved time and cost, but also ensured profits. At the same time, it also enhanced communication with consumers.

The most important performance of fast fashion in China is to set up more direct stores.

Reporters learned that although MANGO entered the Chinese market the earliest, but before 2008, MANGO's retail outlets in China were almost all franchised stores. With the rapid outbreak of the Chinese market and the rapid arrival of competitors, MAN-GO adjusted its distributor strategy, and soon opened the first batch of outlets in Beijing and Shanghai. China became the only market in Asia except MANGO in Japan.

Although MANGO still insists on its distributor line which is different from other fast selling fashion brands, it has shown its importance to the Chinese market in proportion.

According to Dan Dawei, in addition to the Spanish local market, the proportion of MANGO in the global franchise stores and direct stores has remained at 73, while in China it is half and half. The increase in the proportion of direct outlets means greater input in human and financial resources.

He stressed that the Chinese market is too big and develops too fast. To keep pace with the pace of the Chinese market, it is necessary to have a better understanding of the local market and find suitable partners.

Therefore, MANGO's channel strategy is inclined to open more direct outlets in the second tier cities, while in the three or four tier cities, franchisees operate more.

Everyone is running faster and faster in the Chinese market where cakes are bigger and bigger. No matter what comes first, it will take a look at whose acceleration is fast and whose endurance is good, who will be able to get the biggest piece of cake.