Old Fashion Fast Fashion Encounter Midlife Crisis ZARA, UNIQLO Replace Old Top Three

Slow motion can not win new changes, only 8 years, the old "fast fashion" crisis, in 2006 1~11 months, some of the old clothing brands ONLY, Iger, ESPRIT live in the top three, but now, the status is facing weakness, replaced by fast fashion brand ZARA, excellent clothing library, H&M and so on.

The brand is the fastest sliding brand. In 2007, its sales and profit contribution to the Chinese market has accounted for nearly 20% of the global market. Today, however, it is facing a huge crisis. The decline in the net profit of agnet is shocking. Its net profit in the Chinese market in the first half of 2007 was 56 million 660 thousand euros, which fell to 18 million 400 thousand euros in 2013. In 2007, the number of shops in the Chinese market was 2000, and the number of shops in 2013 increased to 3200. This also meant that the index of single store sales was even worse.

In addition to the brand of AGG, there are also brands like Hong Kong listed companies, ESPRIT and other brands. The ESPRIT brand has entered the Chinese market earlier than IgG. Its interim results in the first half of fiscal year 2013/2014 showed that sales in the mainland market fell by 24.5% to HK $984 million, of which retail channel sales fell by 13.1%, and wholesale channel sales dropped by 43.2%. Historical data show that its sales in China have suffered three consecutive falls: sales in 2011 ~2013 were HK $2 billion 670 million, HK $2 billion 587 million and HK $2 billion 410 million respectively.

"There is no more than two channels to push sales ahead, that is, to open stores and raise prices." Ma Gang said that ONLY, AGG and ESPRIT, which advertised fast fashion brands, entered China immediately, and became a trend vane because of lack of competition.

It's a different store. Zhang Bingliang, general manager of Shanghai lion Consulting Co. Ltd., said that the practice of previous clothing enterprises may be that the area of each store is 50 square meters, and that the brand business will succeed in 1000 stores. But now the popular way is to store 1000 square meters for each store, and do not need to open enough 50 to catch the mainstream consumer. "In view of ONLY, ESPRIT and other brands, store image for many years, marketing methods are single and unchanging."

"After the entry of these brands, Chinese consumers find that they can buy more famous brands at lower prices and have more abundant product choices." Zhang Bingliang said that before the fast fashion brand entered the Chinese market, the price of commodities was generally set at a higher level in order to obtain a higher gross profit margin. After that, the brand entered the market with more cost-effective products. The result is predictable.