ZARA, H&M, UNIQLO And Other Fast Fashion Brands Fall Collective Price Reduction.

It used to be 699 yuan for a suit coat, and only 499 yuan for this year. Customers found that the new style price of fast fashion brand ZARA was much cheaper than before. This is the first time that ZARA has cut down the new price in the 6 years since it entered China.

In Hangzhou department store, fast fashion brand H&M also quietly lowered the price of new products.

On the official website of UNIQLO, the flannel shirt of the autumn section just went public, and soon it started a special shop price.

This fall, several fast fashion brands seem to have chosen new clothes to cut prices in advance.

By contrast, many in the mall

The price of brand new clothes is generally higher than that of last year.

Insiders said that this time

Collective price reduction, in addition to their own market strategy, the decline of the entire garment industry and the economic environment is also an important driver behind it.

Fast fashion for the first time in many years

Every year, Miss Zhang will have a look at the two quarter of spring and autumn.

The coat, however, she found yesterday that the new suit jacket at ZARA shop in Lixing mall only cost 499 yuan, and in her memory, the suit coat has maintained a price of 699 yuan for several years.

Her findings were confirmed by the store staff, whether they were women's wear or men's wear.

This year, some of the autumn wear prices are indeed cheaper than before.

Some classic style men's wear last year sold 899 yuan / piece. This year's color and style changed slightly, but the price dropped to 699 yuan / piece.

This is the first time that this fast fashion brand has entered the Chinese market to reduce the new price.

It is not just the ZARA family that chooses to cut prices fast.

And loyal customers found that another fast fashion brand H&M also quietly lowered the price of new products.

In the H&M store of Hangzhou department store, the price of sweaters in the past year is 299 yuan / piece. Now the new price of the new autumn dress is 199/, and the women's suit coat is only 300 yuan, and the price of other new products is not expensive.

In the impression of the old guests, H&M's suit coat is generally more expensive than the other Danish fashion brand on the 2 floor, but now it is cheaper.

On the official website of UNIQLO, the flannel shirt of the autumn section just went public, and soon it started a special shop price. The original price was 199 yuan / piece, and the special price was 149 yuan / piece.

In addition, some designated men and women's trousers, household clothes and down garments are also limited in special activities.

Similarly, the domestic fast fashion brand Vic also has a cotton sweater with a price of 199 yuan / piece, and the special price is only 68 yuan / piece. During the National Day holiday, the price of some flannel shirts dropped from 129 yuan / piece, 99 yuan / piece to over 68 yuan / piece during the National Day holiday.

In the past, many brands were taking advantage of the new price increase, and the initiative price reduction like this was the first time in recent years, an industry insider said.

A shopping mall in Hangzhou learned about the sales figures of various brands, and found that the sales performance of some brands on the National Day holiday did not meet the expected target, and the sales of two Japanese brands even declined, and the other fast fashion brands were flat and not growing.

Take advantage of cost advantage to occupy other brand markets

According to ZARA insiders, the fall in new products this fall is mainly influenced by exchange rate, brand strategy and economic environment.

ZARA is a European brand, and the change in the exchange rate between the RMB and the euro is one of the factors that affect the pricing of ZARA in China.

In addition, more importantly, the impact of this year's global economic downturn, the company's brand marketing strategy has also been adjusted accordingly, the price adjustment is also intended to lower the difference between competitors.

Shi Jie, chairman of the fashion company limited, said that the entire clothing industry has been affected by the economic downturn this year, and the sales pressure is high.

No matter whether the fast fashion brand is a low price in a physical store or a high-profile online special offer, it is taking advantage of its size and cost to seize the market.

As a leader in fast fashion brands, many domestic apparel companies are embarrassed by the production cost control of ZARA and other brands.

This year's situation is more special.

The industry has been plagued by domestic and foreign cotton prices upside down, and the quota of imported cotton has basically run out. The cost of raw materials of domestic enterprises has a lot of pressure.

Many domestic clothing enterprises and export enterprises are facing the pressure of rising prices of raw materials and manpower.

ZARA marks the origin of the products, from Bangladesh, Turkey, India, Sri Lanka to Morocco, Portugal and Spain, and China produces only a small proportion.

The production cost of raw materials and manpower in China is higher and higher, while production costs in Bangladesh, India and Vietnam can be lower.

Fast fashion brands also have cheaper rental costs, some domestic brands say.

Because the market is growing rapidly in recent years, fast fashion brands abroad are competing to open stores in all parts of China.

Because of the strong popularity, many shopping centers, commercial real estate even willing to use special low rent to introduce it, or even avoid part of the rent, these are all the envy of domestic brands.

Once the sales increase is not up to expectations, the fast fashion brand, which reflects fast and fast in style, production and sales, is also facing the risk of inventory, so it can only lower the price for the market.

Some domestic brands, which lack the cost advantage of rent, are facing greater pressure on inventory. This year, the United States has even turned off the flagship store in Shanghai.

The price tag of many clothing brands has gone up quietly.

Unlike the fast fashion brands such as ZARA and H&M, which directly reduce the price of the tag, many clothing brands in the mall are reluctant to lower the price this year, but the discount is much higher than in previous years.

This newspaper has reported that at the end of August, shortly after the autumn dress just started, Yi Nian company has announced that its brand ENC, PRICH, Scofield, ROEM, TEEINE WEEINE, E-LAND and autumn dress are 10 percent off.

Many clothing brands choose not to increase the price of new products or slightly increase their prices. If the average price of last autumn's clothing rose by 15%-20% last year, it may be only 12%-15% this year.

According to the insiders, ordinary clothing brands rely more on sales channels such as shopping malls, and the production cost control is inferior to that of fast fashion brands.

Their tag prices are still rising this year, in order to cope with rising costs.

This year, we are faced with the high inventory risk that sales are lower than expected. Since the beginning of autumn listing, shopping malls and franchised stores have launched activities such as clothing sale frequently, so as to get the funds back as soon as possible.

Shi Jie noted that at present, the categories of fast fashion brands are mainly concentrated in basic funds, such as suits, jackets, flannel shirts and so on.

Some fashionable styles are still very strong, and soon they will soon be broken and sold out.

This is also a strategy that is worth learning from other brands: to ensure sales with basic funds, we must produce products with more personality and style.

This will not only maintain stable customers, but also make it difficult for guests to compare prices with other brands, even if they are expensive.