China's Clothing Market Normal: Price Promotions

Recently, some consumers found fast fashion brands. ZARA The price of new products in autumn this year has been significantly reduced, with a maximum decline of 34%. In order to further understand the situation, the reporter visited several ZARA stores in Hangzhou.

Reporters found that the new season ZARA women's tops cost more than 199 yuan, 299 yuan, some sweater coat price is only 399 yuan, while women's clothing autumn winter coat is about 499 yuan, and some down coats price is around 999 yuan. Miss Zhang, who was shopping at ZARA's big shop, told reporters that similar funds were available. clothes Last year and this year, prices were quite different. This year's price tag of 499 yuan for women's wear last year sold for 699 yuan, while the price tag of 699 yuan for men's suit coat in previous years would take 899 yuan to get there.

It is reported that this is the first decline in the ZARA brand since its entry into the mainland market six years ago, with the largest decrease of around 40%.

　　 Fast fashion brand Lowering prices

In September, the new fast fashion brand's new autumn clothing group was put on the shelves. ZARA's loyal fans found that the new season began to quietly reduce prices, and many new products were about 100 yuan less than the old ones in previous years. In October 4th, netizens "Zhang Xiao Di 616" updated micro-blog and said, "do you think ZARA has cut prices this year?"

In view of the price reduction, consumers are more welcoming, and the term "ZARA price reduction" has become a hot word in the Internet. Netizens "change your name to allow you to not recognize the Xuan adults". After they heard that, they updated micro-blog, saying they wanted to organize a group to rush to buy.

Coincidentally, fashion brand UNIQLO also entered the road of reducing prices to protect the market. In September 20th, consumers saw that UNIQLO hundred flannelette shirt shirts were launched with a special price of 99 yuan for sale, and the original price of 499 yuan down season clothing was limited to 399 yuan. It is rare for UNIQLO to adopt a low price promotion method for seasonal hot products.

　　 clothing Brand von micro-blog (micro-blog) has recently reduced the price of some flannel shirts from 129 yuan to 99 yuan to 68 yuan, the price range is close to 50%, covering more than half of the 200 new series of flower styles. Similarly, another fast fashion brand of flannel shirts has also cut down the price of flannel shirts to 99 yuan in the latest round of promotions, which will advance the autumn shipment to mid season.

　 H&M response: no price adjustment received

Talia usually likes to visit H&M and ZARA. After a recent visit, she said on micro-blog: "there seems to be a downward trend in prices. Let's take a look at the discount of the summer wear. It's almost at the level of the opening sale. 10 yuan and one piece are all exaggerated.

In addition, many netizens said that H&M, ZARA and other brands had a price reduction phenomenon. When visiting the ZARA store in Hangzhou, reporters asked the waiter why some of the classic prices this year were lower than last year's. The waiter said, "this is priced by the company. We are not particularly clear about it." "

The reporter contacted Amy, head of H&M's public relations department. She told reporters: "we have not received any instructions from the (superior) Company for the recent claims that a large number of H&M products have been claimed by the media."

　 Self depreciation is actually forced by the environment.

For these phenomena, the industry analysis, fast fashion brand active price reduction or related to exchange rate factors, at the same time, consumption is weak, part of the high storage pressure is also the brand "reduce the price" the main reason.

According to media reports, ZARA parent company Inditex achieved a net profit of 432 million euros in the first quarter of this year, an increase of 30% over the same period last year. Its sales increased by 15% compared with the same period last year, reaching 3 billion 420 million euros. However, this beautiful figure has benefited from ZARA's expansion in emerging markets and expansion of its stores. In the home of ZARA, the impact of the European debt crisis is still undiminished, especially the decline of Spain's domestic economy, which is more obvious for ZARA. In July, the Spanish government increased the value added tax point of Inditex group by 3%. Faced with cost pressures arising from the rise in value added tax, Inditex said it would not raise its prices.

In addition, the frequent expansion of competitors in the mainland market may also be the reason why ZARA and other brands reduce their prices. For example, Forever21 has entered the mainland market in a high-profile manner. The H&M sub brand Monki and COS have decided to open stores in the mainland of China. Topshop is also exploring the mainland market in cooperation with boutique boutiques.

Industry analysts said that the price of foreign clothing brands such as ZARA and UNIQLO in the Chinese mainland market, of course, also has the impact of the economic environment, but the habit of consumers is also a reason for not to be overlooked. Daniel, general manager and senior management consultant of Italy Management Consultants Ltd., said in micro-blog: "price reduction and promotion, this is China (mainland). Clothing market The normal situation is also a reality that any brand must face. ZARA and H&M can not avoid it. " Mao Lijun, assistant director and marketing director of LKK Rococo design group, said on his micro-blog: "fast fashion brands always use promotional tools, not because of other consumer habits."