Fast Fashion Clean Inventory Domestic Casual Wear Or Welcome Black July

P, a fast fashion giant ZARA, has launched a 1 month promotion campaign in China.

The move is regarded as the signal of China's "a target=" _blank "href=" http://www.91se91.com/ "clothing" /a "market slowdown" negative effect "expansion, and will make domestic casual wear enterprises face further competition pressure.

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< p > < strong > 50 percent off clear inventory < /strong > < /p >

< p > "this promotional campaign has been drawn up for 1 months. The main purpose is to clean up the stock products.

The company will decide whether to extend the promotion season according to inventory clearance.

The source told reporters, "ZARA sales promotion mainly involves spring and summer" a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > part of autumn and winter clothing.

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< p > ZARA, known for its efficient supply chain and small batch quick supply, has always been a model and benchmark for inventory management.

The launch of large-scale promotional activities for the ZARA China market, a rare scale promotional activities, but also shows that the slowdown in China's clothing market caused a "negative" effect of expansion, the global leader can not be "spared".

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< p > great wisdom investigates some ZARA stores in Beijing. At present, the company's promotional activities enter the third day, and most of the products are sold at 50 percent off prices.

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< p > in ZARA store in Shuangjing, Beijing, the whole area of operation is pformed into a special sale area.

The shop attendants told the wisdom that the store only had some special products in addition to some new products in the women's wear area.

It revealed that at least in Beijing, all ZARA stores have been pformed into "special sale" shops.

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< p > in the men's wear area of ZARA stores, the price of products in spring and summer is mostly in the range of 99-300 yuan, and the price of 99 yuan T-shirts is even lower than that of the domestic second-class leisure men's brand.

Due to the slow change of men's clothing season, most of the stock products are "basic funds".

Great wisdom in ZARA store men's wear area heard many women phone male relatives or friends, invited to come to fitting clothes, hot sales.

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< p > in the women's clothing area, great wisdom did not find new products with marked signs. Most of the products were sold at 50 percent off, but many products still sell for more than 300 yuan.

Because the price level of ZARA women's clothing is more, the atmosphere of special sale is worse than that of men's wear.

Coupled with women's clothing, the demand for fashion is higher in the season.

Great wisdom has noticed that the sales of women's clothing in ZARA stores are obviously "cool" in men's clothing sales.

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< p > < strong > domestic casual wear or welcome to "black July" < /strong > /p >

The market positioning of < p > ZARA is interpreted by the industry as "high fashion" parity, which is essentially different from the mass parity represented by H&M.

To put it simply, through the "reference" and the further interpretation of the seasonal design of luxury fashion brands, ZARA provides the most timely "parity" luxury fashion to the general purchasing power consumers.

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< p > positioning determines ZARA product strategy.

In order to embody the luxury products of the product, its product design, pattern and material cost are higher.

At the same time, we need a certain price threshold to reflect the "higher quality" of products.

Therefore, in the past, the price of ZARA single item was about 500 yuan -1000 yuan, obviously higher than H&M, and the price of domestic casual wear brand.

So many domestic consumers do not think ZARA is a parity brand.

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Less than P, ZARA launched a large-scale sales promotion activity, which was directly linked to 50 percent off goods, which is a "cross-border" market. Especially after the discount of men's clothing products, it can be classified as the mass parity brand category.

Will directly impact on the domestic casual wear brand.

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< p > great wisdom has noticed that after ZARA launched this promotional campaign, other competitive brands on the same floor as ZARA, especially men's wear brands, have begun to follow up and deal with ZARA's "offensive" promotion strategy.

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< p > in Beijing VIVA shopping center, fast fashion competitor C&A has launched a special sale area, and men's wear brand CK and other brands have also launched a substantial reduction.

Women's clothing brands are less affected, and Vero Moda has not followed up any initiatives.

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< p > market participants tell us that in the clothing category, ZARA's inventory is directly influenced by fast fashion casual wear brands and some men's wear brands.

Women's clothing is demanding because of the seasonal change of fashion, and the competitiveness of inventory products is relatively weak. "ZARA impact" is not obvious.

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< p > at the regional market level, ZARA is mainly targeted at China's second tier market. The domestic two or three line casual wear and fashion menswear brand have not been positively impacted, but first-line brands such as Smith bond and Semir apparel will face challenges.

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"P >" at present, the domestic apparel industry is still in the inventory stage, and the Chinese retail market has not yet improved.

Global fast fashion leader ZARA discount, second line international brand and domestic first-line brand stock will increase, the market share will be lost.

The source said, "in order to maintain as many market share as possible, second tier international brands and domestic first-line brands will have to sacrifice gross margins."

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< p > the American barrack clothing manages the domestic second line market through the direct shop, the company secretaries Han Zhongwei has told the great wisdom early, the company direct shop profit nearly to the company achievement nearly half.

Insiders told great wisdom that sales in May were still unsatisfactory.

The opening of ZARA's rare scale promotions may exacerbate the pressure of American Apparel management.

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< p > Semir dress recently announced that it intends to acquire GXG, the fashion menswear brand, because the pricing of GXG men's clothing in spring and summer is mostly concentrated in the 100-300 yuan section, and the main channel is to locate a second tier shopping mall channel.

ZARA starts with the discount season, and will compete directly with GXG. GXG may be trapped in the "price spiral".

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< p > a brokerage analyst in Beijing told us that at present, the domestic leisure wear industry inventory is in quantity, and the proportion of stocks in spring and summer is higher than that in autumn and winter.

"2013 spring and summer orders, the United States apparel, Semir clothing orders year-on-year negative growth shows that the company still has a considerable backlog of inventory.

ZARA launched the scale discount marketing activities, and the products of Semir and costumes will be greeted.

At worst, there may even be a "black July" situation with double pressure on profit and inventory.

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