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    How Hot Is Commercial Real Estate?

    2015/2/14 10:03:00 39

    UNIQLOFast FashionZARA

    In 2014,

    clothing

    Despite the cold wave, the fast fashion brands are still expanding.

    According to statistics: as of December 31, 2014, there were 86 new stores opened by UNIQLU, and the total number of stores reached 343, H&M opened 60 stores, and the total number of stores reached 236; ZARA opened 12 new stores, and the total number of stores was 149; there were 28 new stores and 28 stores in the number of shops, 128 new stores opened in GAP, 23 stores in the new stores, 94 stores in the new stores, 9 stores in the newly opened shops, and stores in UNIQLU;

    The total number of stores in MANGO, New Look and Forever21 were 40, 19 and 8 respectively.

    UNIQLO leads the list again.

    How hot is commercial real estate?

    Reporters in the store inventory found that almost every newly opened fast fashion shop, behind are accompanied by the opening of a shopping center.

    Obviously, the rapid expansion of fast fashion brands is not without cause. It is the product of the overheated commercial real estate market in China.

    Last year, the world's largest

    Commercial real estate

    CBRE, a service company, analyzed the construction of shopping centers in 180 cities around the world. The report shows that China's shopping center is currently the largest in the world.

    Of the 180 cities surveyed, half of them are in China.

    In recent years, domestic consumption of luxury goods has continued to decline, which has been flagging and sluggish due to the rise of overseas purchasing, the three consumption reduction and anti-corruption.

    In contrast, the fast fashion brands taking the parity route are popular among the public and become the chips that attract retail customers.

    As a result, the emerging shopping centers have made good places, and offered favorable conditions to attract fast fashion. Even many old shopping centers are giving priority to fast fashion brands when upgrading and reloading their brands.

    So, to a certain extent, the rapid development of China's commercial real estate has created opportunities and conditions for the rapid expansion of fast fashion in China.

    Channel sink, spread to two or three line cities

    With a little observation, it is easy to see that in the past two years, the number of new fast fashion brands in the new first tier cities has far surpassed that of the north.

    Consulting firm CB Richard Ellis used the sinking style to describe the development trend of fast fashion brands in China in the evolution of China's retail industry structure.

    The so-called sinking pattern is from the development strategy of taking the first tier cities as the core to the new front-line and the two or three line cities.

    Similarly, this change is also largely related to changes in the expansion strategy of commercial real estate.

    Along with the gradual saturation of the core retail business circle of the first tier cities, the economy began to develop towards the mainland. Developers like the Wanda, Yintai and the Mixc have all shifted their focus to the second tier cities since 2009. They have created more choices for the fast fashion brands.

    According to the world bank Richard's research department, the average increase in the second tier cities in the past three years

    Retail area

    Every year, 2 million 700 thousand square meters are expected to increase by 5 million square meters per year between 2013 and 2016.

    The average annual increase in the two cities of Beijing and Shanghai from 2011 to 2012 is only about half of that from 2009 to 2010, and most of them are in the vicinity of the city.

    This makes the fast fashion brands, which are based on the commercial complex, also naturally spread to the two or three tier cities.

    Force O2O, open all channel marketing mode

    In addition to continuing to race on the line, in 2014, all the fast fashion brands began to rush to the busy market, O2O and set up a full channel marketing mode.

    In 2014, Zara and C&A were launched on Tmall, GAP launched the online store into Jingdong, while UNIQLO official website first promoted the virtual fitting function.

    Previously, H&M and other brands or other shopping websites, or insist on the main official website shopping.

    Compared to the worry of the "fitting room" of e-commerce, fast fashion brands prefer to find a balance between online and offline profits.

    In the face of high costs, fast fashion brands who enter the network need not bother to build physical stores to cover the Chinese market, especially the two or three line city market. They not only save the location of shops, but also have no need to worry about the quality of service.

    What is more attractive to fast fashion brands is the big data generated by the network platform, which will become a real and effective market reference.

    Insiders say that as one of the most important markets in fast fashion, China not only has a large number of consumers, but also more importantly, for international enterprises, the Chinese market is evolving into an experimental arena that can predict the best way to make profits online.

    It is worth learning from the fast fashion data development capability.

    A fast fashion executive reveals that all stores will have an early meeting every day, which will collect the quantitative data, that is, the sales analysis report of the day before, and the intuitive feedback from the salesperson to the consumer, and report it to the headquarters.

    Once a product is finalized, the design drawings will be directly distributed to the manufacturer.

    In this way, we can ensure that we do not face too much inventory pressure, and we can get the most direct test from the market.

    Frequent black list, product quality is weakness.

    An important factor in the success of fast fashion is "fast", but the price is the uneven quality of products.

    ZARA, H&M and other commodities frequently check the blacklist and make some consumers lose confidence in it.

    According to relevant reports, in the first half of last year, the national inspection and quarantine department seized 12305 unqualified imported garments. Among the 5 brands with the highest number of unqualified batches, 4 were "fast fashion" brands, namely, FOREVER21, ZARA, H&M and MANGO, and 107 cases failed.

    In March last year, ZARA was named twice by the regulatory authorities due to its color fastness which did not meet the national standard and fiber content was not qualified.

    At that time, media statistics showed that this was the fifteenth time since ZARA entered China in 2006.

    In recent years, H&M has been repeatedly exposed to quality scandals due to its unqualified pH value, color fastness, fiber content and product identification.

    Last year, the Chinese Consumers Association announced the results of the 70 fast fashion clothing comparison test, the pass rate was only 64%.

    Such exposure is numerous.

    According to insiders, the core competitiveness of fast fashion products lies in the fashion and renewal speed, and the upstream quality control will be slightly worse.

    Data show that ZARA supply chain cycle is 10~15 days on average, H&M takes about 20 days, while most garment enterprises need 6~9 months or even longer.

    In the long run, the pursuit of speed and sacrifice of product quality is undoubtedly dangerous for the development of enterprises.

    Fast fashion brands should still have a good balance between speed and quality in the development process, and truly establish a good brand image.


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