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    Aiger'S Poor Performance, Shutting Down Shops, Stopping ZARA, H&M And Other Fast Fashion Brands

    2015/1/21 14:24:00 52

    IggZaraDesign

       Iger When China entered the Chinese market in 1995, the concept of authentic European and American fashion was blurred at that time. Similar scarcity of brands led to the development of the Chinese market, so that it even put the overall sales focus in China.

    The most brilliant time of AGG was from 1999 to 2007. At that time, its performance in China has maintained a two digit growth, while its French profitability is not strong. The development of China has made up for the brand's achievements in Europe, but now the opposite is true. From the beginning of 2013, Iger's performance began to decline. In the three quarter of 2014, the sales of Eiger reached 284 million euros, down 2.1%, while the results of the first 9 months of 2014 disclosed by the parent company Inditex group of Zara showed that net sales of 12 billion 700 million euros, up 6.6% over the same period last year, in sharp contrast to the trend of the overall sale of IgG. In order to save the declining performance, the brand has reduced 213 loss stores in China. According to statistics, as of September 2014, the agge group has 4144 branches in the world, of which 2966 are in China.

    For AGG, the biggest enemy is Zara, which has entered the Chinese market since 2005. Aiger's shop is mainly shopping malls, and the mode of shopping mall + agent makes the number of shops open in China. Therefore, when Zara, H&M and other fast fashion enter China, AI has already had a comprehensive layout in the Chinese market. Perhaps, what IgG never expected is that the Zara will appear in the form of an independent store, with large stores plus a decoration layout. Zara has attracted the attention of consumers. As for the opening of stores, IgG has already lost half of it. For the counters buried deep in the shopping malls, the independent facade of the shopping mall is obviously more attractive. The premise is to store stores under the big shop. Zara H&M and other international fast fashion brands are mainly direct, while IgG is mainly based on franchising.

    In 2012, in the media interview, CEO, in the Chinese District of IgG, once felt that he was a fast fashion brand. However, in the eyes of consumers, AGG has a certain distance from fast fashion. There is no Zara, H&M and UNIQLO fast on the goods, and the style is far from novelty of Zara and H&M. ZARA, H&M, GAP and UNIQLO are among the four most fast fashion brands in the world. Zara is the most powerful among them. The Vertical Integration (the combination of products produced or provided by the enterprises) has greatly reduced the shipping time. The average fashion brand may take 9 weeks to get the new ones, while Zara only takes 4 to 5 weeks. At the same time, the mode of Zara also enables the brand to have better and faster control in the aspects of market research, design, plate making, sample making, mass production, transportation, retail and so on, and the price of products is relatively high. In addition, Zara, H&M and other fast fashion brands have a professional buyer and designer team. This is what AGG needs to learn and learn from. After all, the invariable lady style and the lack of innovative design have been unable to meet the consumption needs of urban women.

    At present, IgG can not equate with the fast fashion painting. If we want to win back the Chinese fashion, besides optimizing the supply chain, we should also cater to the young people's dress habits as soon as possible to make changes in products and marketing.

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