Fierce Competition Of Fast Fashion Giants

H&M has now taken the lead in selling the cosmetics line H&M Beauty on the Swedish market of group headquarters, and will launch large-scale sales in 900 stores around the world this fall.

This expanding sales model from clothing to daily chemicals is approaching Japan's brand Muji.

Such a bold attempt is the first among the largest fast fashion groups in the Chinese market.

It also seems to reveal a new dimension of competition between fast fashion and big stores.

In the past year, 11 fast fashion brands opened a total of 264 stores in Huaxin. Among them, H&M has 60 stores (245 stores), 80 UNIQLO stores (335 stores), 16 ZARA stores (159 stores), and GAP 10 stores (89 stores).

At present, Asia's largest clothing retailer Xun marketing group has indicated that in the next 5 to 10 years, China will take the place of Japan to become the most powerful force in the company's sales, and plans to expand in the Greater China region with the speed of opening 80~100 stores every year for 10 years, so that the total number of stores will reach 1000.

Martha's early entry into China failed.

The rapid rise of the pulse shows that the sales of the three biggest competitors have been refreshed.

According to the Euromonitor International (Euromonitor information) obtained by reporters, in 2013, among the ten leading enterprises of the popular adult casual wear, Bestseller (with VERO MODA, ONLY, JACK & JONES) ranked the first, third fastest fashion giants.

Other brands, Inditex group (with ZARA and other major brands) and H&M ranked 3.5%, 3.1% and 2.3% respectively.

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Many brands focus on the strategy of low and medium end market, and the main brands of the three international fast fashion groups are relatively single. In China, almost all of the core brands are supporting the majority of their performance. In 2013, Xunmei, Inditex and H&M group gained 6 billion 690 million, 5 billion 870 million and 4 billion 830 million yuan of retail income respectively in China. In the past financial year, only UNIQLO Greater China contributed more than 12 billion RMB sales.

Recently, the four quarter and full year earnings report of GAP (Gapu group) was flat, product slow sales and slow progress in the international market caused management headache.

The only gratifying thing is that the Chinese market is still reassuring, which has prompted its statement that "the core China region in Asia Pacific, which accounts for 9% of revenue, is still the focus of the company's development".