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Fast Fashion Brands Are Springing Up To Speed Up China'S Pace Of Distribution.

2013/10/25 10:20:00 24

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scale expansion is the theme of apparel retail chain brand unchanged. 
 with the 2002 a href= "http://news.sjfzxm.com/news/list.aspx Classid=101112107105" > UNIQLO "/a", the first store in Huaihailu Road, Shanghai, has been opened for more than 10 years. Fast fashion brands have been expanding strongly in China. Since 2012, the expansion of fast fashion brands in China has accelerated signs. 
 the latest research report released by World Bank Richard Ellis shows that with the rising rent of retail property in the first tier cities, the demand for the two or three tier cities is rising. The mainstream international fast fashion brands are gradually changing from the first tier cities to the second tier cities to the two or three tier cities. 
 experts believe that although the consumption power of the two or three tier cities is increasing and the total population base is large, these cities are vast, and the gap between different regions is still very large. If the fast fashion is blindly pursuing the growth of the number of stores, it is likely to repeat the mistakes of domestic sports goods. 
 > six fast fashion brands open shop busy > /strong > /p >
"P", although the current domestic retail expansion has slowed, especially luxury goods, department stores impacted by e-commerce and many domestic clothing brands have encountered difficulties, even the phenomenon of the door, but the international fast fashion brands have chosen "against the market" expansion. 
According to the data of the P World Research Institute, the six international fast fashion brands: UNIQLO, GAP, a href=, http://news.sjfzxm.com/news/list.aspx, Classid=101112107107, ZARA, /a, H&M, C&A and MUJI have reached 651 stores in China. In June 2013, the number of newly opened stores in China reached 275, accounting for 42.2% of the total number of new stores in 2012, and a fast fashion brand opened in the two and a half days on average. 
Chen Zhongwei, executive director of P in China, told reporters that fast fashion caters to the aspirations of the younger generation of Chinese consumers. They usually launch new products in a year, and consumers can keep up with the fashion trend abroad without having to pay the high price. Under the support of vigorous demand, fast fashion brands can grow against the background of the overall slowdown in the retail industry. 
 at the same time, the high rent and the choice of property in the first tier cities bring more rent pressure to the fast fashion brands with larger demand for rental area, forcing them to expand to the two or three tier cities. 
 Chen Zhongwei told reporters that the first tier cities based on Beijing and Shanghai have always been the first stop for fast fashion brands to enter China. However, with the increase of the number of brand stores in the core business circle, and the increasingly tense rental area and the increasing rents, as well as the expansion of the residential population, the urban sub center and the community oriented business, more and more fast fashion brands are expanding to the two or three tier cities. Showing a trend of "peripheral" development, most fast fashion brands only retain or build flagship stores in the core business circle. 
 according to the above report, from the beginning of 2012 to June 2013, there were 207 new stores of the four international fast fashion brands, including 55 new cities, accounting for 26.6% of the total, 82 new cities in the second tier cities, 39.6% of the total, 70 new cities in three tier cities, accounting for about 33.8%. 
 accelerating store opening or keeping hidden worries /p >
 the manager of the commercial real estate department of a Real Estate Company told reporters that because the two or three line cities are facing a large number of new shopping malls, these new shopping centers often offer attractive leasing conditions in order to introduce the international fast fashion brands. Some shopping malls are also offering a zero rent and preferential way according to the sales point, which provides the conditions for the fast fashion brand to shift its strategic focus to the two or three line city. 
 in fact, the expansion of clothing brand is not strange. In recent years, domestic sports brands have adopted the strategy of "Crazy" shops and channel sinking, and now they are shrinking the front line to save themselves. Whether or not fast fashion will repeat the same mistakes and investors worry. 
Huang Wenjie, executive director of Guangdong provincial Circulation Industry Association, told reporters that fast fashion brands are essentially different from popular clothing brands. For example, sports brands develop new products according to the season, and fast fashion tends to be refined to p every month or even every week to push new products. Such a rapid pace of development also means that fast fashion has higher requirements for scale expansion. These brands have already been saturated in the first tier cities in China, and the market competition is fierce. Because of the need of scale expansion, they have to expand the two or three line city market. 
 "compared with the performance of most brands in the domestic market, the penetration of fast fashion brands is still low, and the level of expansion is still relatively healthy at this stage". Chen Zhongwei told reporters, but due to the short development time of the new business circle in the two or three tier cities and the lagging behind infrastructure facilities, it is not enough in the short term to provide enough fast fashion brands for the large number of consumers who have purchasing power, or lead to poor store management. 
 Huang Wenjie also believes that although the consumption of two, < a href= "http://news.sjfzxm.com/news/list.aspx Classid=101112107108" > three line city < /a > is increasing, and the total population base is larger, these cities are vast in area, and the gap between different regions is still very large. Fast fashion brands in the two or three tier urban layout can not copy the practice in the first tier cities. Attention to the selection and reasonable control of the size of the shop is the key, if the layout of the store does not match the local consumption power, loss or even close shop is inevitable. "After all, brands will have to face the problems brought by store rentals, labor costs and material costs. If fast fashion brands blindly pursue the growth of stores, it is likely to repeat the mistakes of sports brands and enhance the profitability of single stores."