Fast Fashion Brands Sink To Two Or Three Tier Cities In China

According to the data released by Ying Shi Group Research Center, the number of the five traditional fast fashion brands in China reached 892 in 2014, of which the second tier cities accounted for the highest proportion, and the proportion of three tier cities was gradually approaching the first tier cities. The three line cities accounted for the highest proportion in the 180 new stores, while the total number of new stores in two or three line cities was more than 3 times that of the first tier cities.

Why does the traditional fast fashion brand appear to sink? In view of Zhang Ping, general manager of Ying Shi Group Research Center, the main reason is that its attraction is hard to stimulate consumption potential in the first tier cities.

Zhang Ping said that the biggest advantage of traditional fast fashion brands lies in the level of commodity prices and the speed of updating styles, which makes them face more challenges in cost control and product design.

Although the first tier cities have larger market capacity than the two or three tier cities,

It is also more critical. It has higher requirements for the renewal speed, design style and service experience of the products. These indirectly increase the cost of the brand, and compress their profit margins, resulting in frequent problems such as quality, environmental protection, plagiarism and so on, which greatly reduces the attractiveness of consumers.

At the same time, with the acceleration of many international fast fashion brands entering China and the emergence of local fast fashion brands, the traditional competitive advantage of fast fashion brands in Chinese market has been broken, resulting in further diversion of consumer groups.

In the future, these traditional fast fashion brands are expected.

It will continue to sink and extend to the non core business circle and the three or four tier cities in a second tier city.

"Because of the relatively low permeability of the brand to the cities under three lines, there is little pressure to operate, which is very beneficial to the rapid opening of the market.

As soon as the fast fashion brand adjusts its business strategy actively, making goods closer to the needs of Chinese consumers, serving better and more affectionate, it will get larger room for development.

Zhang Ping said.

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The United States has the highest level of professional basketball match NBA in the world, and Adidas's focus in the North American basketball market is also here.

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Adidas CEO Herbert Heiner said at the press conference: "this cooperation can help us immediately increase the exposure of Adidas as a sports brand in the United States, and 11 years of cooperation will make NBA and Adidas synonymous in the field of basketball."

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