Fast Fashion Brands Attack The Chinese Market

Famous French Clothing brand The latest performance report released by Eiger showed that the group's turnover in the two quarter was 263 million euros, a slight increase of 0.7% from the European domestic market. However, the performance of the Chinese market was not satisfactory, and sales fell by 2.2%. Prior to that, the Chinese market has always been an important position of Iger.

This is far from the growth rate of the annual turnover of two digits in the last century in 80s. Beijing Business Daily reporter learned that in the 80s of last century, relying on chain store mode, IgG developed stores to many countries such as Western Europe, China and India. In Central Europe, Russia and the Middle East, the group quickly conquered the market by proxy.

France, 1994 Iger The group set up a branch enterprise in Shanghai, the British model Clothing Co., Ltd., and opened its first store in Shanghai in 1995. In 1997, IgG has opened 723 retail stores in China, with annual sales exceeding 900 million yuan. But in the first half of this year, sales in China recorded a 2.6% decline.

Director of brand research center Lin Yi Fan It is believed that every clothing brand has a life cycle, and the golden age of Iger has passed, and is entering the brand aging period. Lin Yifan said that most clothing companies are actively seeking change through strategies such as multi brands and acquisitions. The brand activity of AGG has been far behind. Although there are six brands in Iger's banner, its product series and style are relatively identical, and its audience is single. Similar to silk fashion, agge also does little marketing promotion, and brand recognition is decreasing year by year.

In the light of brand positioning and sales channels, Iger has begun to reduce the inventory adjustment and development strategy by integrating brand and rational production. Earlier this year, Iger cut 117 stores.

Correspondingly, fast fashion brands such as ZARA and H&M attack the Chinese market in a big way. According to statistics, this year, H&M plans to open 50 stores and GAP 35, and UNIQLO has made bold claims to open 100 stores.

At the same time, domestic garment enterprises are accelerating brand integration and expansion through multi brand strategy and acquisition and merger. Prior to this, Semir bought 2 billion yuan for GXG, and nine clothing brands (601566, stock bar) and Bosideng clothing brands also had brand acquisition intention.

In the industry view, in the face of fast fashion encirclement and suppression and the accelerated integration of domestic clothing brands, not only are the supply chains and designs of agogue, Esprit, ONLY, Vero Moda and other garment brands all left behind significantly, their stable development strategy also makes the brand performance ratio lower and lower.

Reporters visited a small town in Florence, Wuqing, Tianjin, and found that although the clothing of Esprit after the discount was only tens of dollars, there was still a shortage of tourists in the store. Earlier, Esprit also launched a self rescue plan.