Fast Fashion Hits American Youth Apparel Retailing Industry

< p > new report shows that with the combination of special fashion trends and low price characteristics, fast fashion retailers are likely to continue to grow in the fragmented and competitive global apparel market.

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< p > according to the analysis of Cowen Group, fast fashion has huge business opportunities in the US market, thanks to this very fast design process and highly integrated enterprise supply chain.

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< p > in this report, H&M, Uniqlo, Zara, and Forever 21 H&M, Uniqlo, Zara and Forever four are sold in the Fashion Headwind Will Grow For Retailers. The total sales volume of these four brand retailers in 2013 is about $48 billion.

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Less than P, which accounts for only 3.4% of the global clothing market, there is still much room for growth.

The author of the report points out that "the US Forever 21 is the largest retailer in the country, and we estimate that its market share in 2013 is only 2.4%, expanding continuously, while the other three international brands are just beginning to increase in the US, and the market share is expected to increase.

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< p > Cowen believes that the fast fashion sales in the United States will grow at a compound annual growth rate of 11% before 2020.

This estimate is hypothetical that the four major brand retailers can maintain their sales level in 2013, and the number of shops will grow at two digits.

This will lead to 4.2% of the apparel market in the United States before 2020, and the total growth will be 77% in the next 7 years.

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< p > strong > a href= < http://www.91se91.com/news/index_c.asp > shopping habits < /a > /strong > /p >

< p > the two key factors that drive the popularity of fast fashion are the sale of clothes that can only be worn several times at a very cheap price, as well as a wide variety of goods sold in stores.

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< p > the report found that most of the clothing retailers do not provide consumers with the style sought. Fast fashion stores offer consumers more personal style.

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< p > the author of the report points out that this trend has made the price of men's and women's clothing gradually decline in decades.

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< p > "the core of fast fashion strategy is to rapidly reduce the price of costumes and accessories so as to attract consumers to constantly update their wardrobe to meet the fast and sometimes unpredictable trend.

They continue to shop and develop the power of e-commerce platform, so that the competition pressure of this concept will increase in the next few years.

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< p > strong > fast fashion leader < /strong > /p >

< p > > a href= "http://www.91se91.com/news/index_c.asp" > H&M < /a > is the second largest fashion retailer in the world, and has proved to be one of the greatest threats to professional retail in the US.

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< p > the company operates about 305 markets in the United States and has rapidly expanded its market share. Since 2011, sales in the United States have grown at a compound annual growth rate of 19%. In 2013, its sales volume reached 2 billion 100 million dollars, accounting for 9% of global sales.

The company has set the target of expanding the annual growth rate of 10% to 15% stores worldwide, and plans to launch 375 stores in 2014.

The US and Mainland China may be a key concentration area, which will enhance the popularity of online shopping.

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< p > Forever 21 is a low price and a wide variety of goods to help us achieve sales of US $3 billion 700 million.

The company has 600 markets around the world - including 468 in the United States, and has grown at a 7% annual compound growth rate since 2007.

Cowen rough estimate Forever 21 in 2020, the number of shop development can grow 60%.

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< p > Japanese casual wear brand Uniqlo may not be successful if H&M and Forever 21 are successful, but now it has begun to expand. Currently, there are about 17 cities in the United States, but only a small part of its 2500 global markets.

Before 2020, they hope to achieve the goal of 200 stores in the United States, which may reach 1000 cities in time.

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< p > < strong > price < a href= "http://www.91se91.com/news/index_c.asp" > differentiation < /a > /strong > /p >

The price band of "P" fast fashion product is not only significantly lower than that of the general clothing retailer, but also changes the competitive environment because of lowering the profit of goods.

The author said that since 2010, the profit of goods has been reduced by 130 percentage points.

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< p > "the compression of commodity profits is particularly significant in the youth retail industry, such as Aeropostale, American Eagle Outfitters, and Abercrombie & Fitch, which are all hurt by the fast fashion promotion activities and cause the loss of market share."

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< p > Cowen pointed out that in the face of this kind of "irresistible resistance", the survey results showed that the trend of shoppers' preference for fast fashion is "very high".

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< p > "our expert focus interviews show that the consumption of the concept of fast fashion may continue to exert significant pressure on these brand groups. From the perspective of curves, profitability and return on investment, we expect lower return on investment in the future."

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< p > Cowen also points out that because of the increasing popularity of the cheaper fast fashion concept, more and more consumers are completing pactions on the Internet, and the demand for purchases in physical shops will also decrease.

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