Fast Fashion Brand Competition Is Heating Up

< p > < strong > International < a href= > http://www.91se91.com/news/index_c.asp > brand > /a > rapid expansion in China. Last year the growth rate exceeded two figures: < /strong > /p >

"P" recently, the fast selling group of UNIQLO parent company went to Hong Kong in the form of pre entrusted securities, causing the industry to discuss the trend of "fast fashion" expansion.

Reporters combing the domestic and foreign fast fashion development situation found that although last year's overall economic environment is not ideal, but UNIQLO and H&M business growth in China is more than two digits.

In contrast, fast fashion brands in China still seem to have failed to find a good way out.

The industry said that the current fast fashion brand competition is fierce, the market structure has been relatively stable, domestic brands can not expand in a short time, the pressure will be greater and greater in the future.

< /p >

< p > < strong > UNIQLO and H&M are digging gold in China. < /strong > /p >

In recent days, XXX group went to Hong Kong to launch its listing. In response to the listing reasons, it said it did not aim at financing, but because "with the rapid growth of Asian markets in China and other countries, the company is committed to concentrating on developing Asian businesses to enhance the visibility of investors and customers in the region". P

Thus we can get a glimpse of the importance of the Chinese market for UNIQLO development.

< /p >

< p > in fact, with the popularity of fast fashion among domestic consumers, the sales volume of UNIQLO and H&M in China can match that of fast fashion brands in China.

According to statistics, sales of UNIQLO and H&M2013 in China in fiscal year amounted to 125 billion yen (7 billion 575 million yuan) and 6 billion 655 million Swedish kronor (about 6 billion 407 million yuan).

These two brands, which were more than 14 billion yuan in China last year, are far more than Giordano, which has been in China for many years. Its sales scale is similar to Semir's < a target= "_blank" href= "http://www.91se91.com/" > dress < /a >.

< /p >

Less than P, domestic sales have long been the "engine" for the growth of these fast fashion brands.

Take H&M as an example.

China's sales grew by 23%, while the group's sales grew by 6.69%.

XXX group's international business, represented by China's business, has increased by more than 60% over the same period.

In contrast, Japan's domestic profit margins were 5.4% lower than those of gross profit margins.

< /p >

< p > in fact, due to the fast growth of the domestic market, these fast fashion shops also show amazing speed.

According to the monitoring data provided by China intelligence network, the number of new stores in H&M, UNIQLO, GAP and ZARA in 2013 was 60, 77, 34 and 20 respectively.

Baleno's parent company, one of the representatives of fast fashion, saw a net loss of 333 stores in the first half of last year.

According to incomplete statistics of China business intelligence network, the number of these four fast fashion brands expanded to 155 in 2014.

< /p >

< p > < strong > fast fashion pformation lack brand soul < /strong > < /p >

< p > compared with the rapidly developing fast fashion brands abroad, domestic brands have been trapped by inventory pressure in recent years, and their performance is worrying.

According to the express results of Smith Barney's clothing performance, net profit fell 49% and revenue fell 17% last year.

Another brand of Semir clothing, though reversing the decline in revenue and net profit, has a 7 billion 340 million yuan operating income and a net profit of nearly 910 million yuan, up 3.92% and 19.12% respectively over the same period, but it is still difficult to compare with the development speed of the above fast fashion.

< /p >

< p > besides, the performance of Baleno and Giordano, once popular, is not optimistic.

Baleno's parent company's interim earnings report showed that sales in mainland China fell by 21.83% compared with the same period last year, while Giordano's 2013 profit report showed a 19.73% decline in net profit over the same period.

< /p >

< p > in fact, since last year, fast fashion brands in China have begun to seek pformation.

Take American Apparel as an example.

In the form of "one store one story", it strengthens the experience service in the store, and Giordano and Yu Yi begin to focus on the opening and application of O2O shopping and strengthen the interaction.

However, people in the industry still believe that although the fast fashion brands in China are already aware of the need to operate O2O and reduce the size of suppliers, the gap with international fast fashion brands is still very large.

< /p >

< p > Xu Junsong, an industry researcher at the China Information Network Industry Research Institute, said that domestic a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > the company failed to truly establish its own brand soul, and it is the key to imitate the multinational brand in design and business mode.

From the three major technologies of clothing color, style and plate technology, there is still a big gap between domestic clothing companies and international fashion fast fashion brands.

At the same time, with the rapid rise of Internet sales, clothing industry's inventory and supply chain problems are also exposed.

< /p >

< p > Xiong Xiaokun, a light industry researcher of CIC, said that at present, the competition of fast fashion brands is fierce, the market structure has been relatively stable, and the expansion of domestic brands in a short time is one of the main problems facing the pformation of domestic brands.

Besides, it is difficult to relocate the brand and change the design style.

< /p >