Fast Fashion Brands Compete To See Several Joys And Worries.

Fast fashion contention: GAP closed shop ZARA profits rose

Swedish

H&M recently announced its two quarter sales growth of 10%, down from 15% in the first quarter.

In the past year, the number of H&M stores has increased by 354, with a total of 3639 stores.

In contrast, the fast fashion leader is still at the forefront of the industry.

The first quarter results of the 2015 fiscal year announced by the parent company Inditex in early June showed a net profit of 521 million euros, an increase of 28%, the highest in the past two years.

In the quarter, the company added 63 stores and plans to open new stores in 50-60 countries by 2016.

Unlike the profitability of many domestic apparel groups, ZARA's parent company 2/3's revenue comes from ZARA.

Fast fashion as

A subversive business model has emerged, and "fast" has always been the most competitive strategy among competitors.

However, when GAP (Gapu) plans to close 175 stores, the growth of H&M same store sales has slowed down, but ZARA has hit a new profit in the first quarter, and UNIQLO has improved its annual performance target.

Behind the "fast", there are still too many details to determine success or failure.

"The average number of clothes that consumers choose in the hundreds of clothes is limited, and the demand for dressing on different occasions is a rigid demand."

"Discount is very skillful, too low will hurt the brand and consumers who have already been shopping, but the lack of attraction to stimulate shopping."

Competition intense performance camp fall

Fashions born in the US

Retail brand GAP (Gai Pu) recently announced that it will close 175 stores in the year, including 500 stores and 300 Outlet stores, and will also lay off 250 jobs at headquarters.

In fact, GAP has closed 175 stores in the North American market in recent years.

GAP is still pushing the second tier brand Old Navy to prevent a downward trend.

Last year, GAP brand store sales fell 6% year-on-year, which is the thirteenth consecutive month of same store sales decline.

Its other brand Old Navy grew by 5%.

This month, Old Navy has just opened a store in Yau Tang shopping center, which occupies about 1500 square meters, and is the ninth brand store in China.

H&M, a fast fashion brand in Sweden, recently announced its two quarter sales growth of 10%, down from 15% in the first quarter.

In the past year, the number of H&M stores has increased by 354, with a total of 3639 stores.

By contrast, fast fashion leader ZARA is still at the forefront of the industry.

The first quarter results of the 2015 fiscal year announced by the parent company Inditex in early June showed a net profit of 521 million euros, an increase of 28%, the highest in the past two years.

In the quarter, the company added 63 stores and plans to open new stores in 50-60 countries by 2016.

Unlike the profitability of many domestic apparel groups, ZARA's parent company 2/3's revenue comes from ZARA.

Japan's clothing retail brand UNIQLO is also in the doldrums.

We will find a good way to grow.

Its parent company Xun Marketing Group's latest report shows that the consolidated income in the first half of fiscal 2015 increased by 24.2% over the same period last year.

In the same period, the annual operating profit target was raised by 11%.

Same store sales continued to grow by 12.3% in May.

The same fast fashion brand has already split its performance camp.

The cold experience of the fitting room will drive away customers.

The so-called fast fashion, characterized by fast loading time, parity and keep up with the trend.

After subverting the whole garment industry, besides the speed, the trend and the price, user experience has become a key link in the fast fashion competition for the market.

H&M has entered the Beijing market until now. The change of consumption habits has changed the impression of users who are paying more and more attention to shopping experience.

Stores that used to be full of clothes and customers tried clothes everywhere were selling hot gimmicks.

Many consumers reflect that in the H&M shop, whether it is fitting or checking out, queuing is a common occurrence. Although the storefront is large enough, there are too few fitting rooms, and there is time to wait for more than ten minutes to line up.

Reporters at the shop last weekend even met the men in the fitting room shouting loudly in order to maintain order. They were also very impatient when telling consumers that they could only try on 5 clothes.

The consumer told reporters that he was going to try on 6 clothes, because the salesperson's attitude was not good enough to directly reduce the purchase quantity, just take away the T-shirt skirt to pay the bill.

Reporters through the public comment website, many users comment on H&M's service quality and shopping experience is not satisfied.

One of them, a netizen named Xiao Ting, commented: "a shop often accompanied by friends (Xidan joy shop) is almost the same as the zoo environment. The low-end service and environment are as low as the quality of customers and waiters, and rub around your side. Besides the good location, the price is still relatively low, which is considered as the price of cabbage in Xidan, but the quality is super worthless."

Another meow meow vivi said, "the most recent season, there are more discount products.

Go in and follow up the vegetable market, just like the old ladies in front of the specials.

Originally, the visitors of the Joy City store have been very large, especially at weekends and promotions.

The dressing room queue leader, many people directly took the pants to find a more subtle place to try on, resulting in the place is not smooth, more and more feel H&M special LOW.

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The details are left in a single coat hanger scale, speed up shopping.

Reporters visited H&M stores in Sanlitun, Xidan Yuecheng store, Wanliu store, and 6 stores in the city, and found that although H&M store is large, the gap between hangers and hangers is very small, and the whole feeling is very crowded and messy.

Many earrings have disappeared in the jewelry area, leaving only the price tag.

In addition, if you want to look at labels or collars when choosing size models, they will be difficult to find if they are densely packed.

In contrast, UNIQLO is labeled with S, M, L and XL on each coat hanger, and is distinguished by pink, blue, red and silver. It looks very easy to identify at a glance. Even if the clothes hanging on the shelves are dense, it can also find the required size in a short time.

Reporters found in UNIQLO, except for limited promotional items, some of the clothes were processed. Staff would explain the reasons for the price reduction and mark the stains or breakage on the clothes.

When I check out, I will remind you again of the problem of clothing. Please ask the customer again to confirm whether to buy it.

Some netizens said that in the H&M shop, sometimes it was necessary to find a shop assistant to consult the size or style, but could not find anyone. Even if he had asked, he would also like to ignore it.

Product layout gives more reasons for shopping.

In terms of product layout, fast fashion brands are also different.

Although women's wear, men's wear and children's wear are all sold on the product line, their proportions and importance vary.

In UNIQLO Xidan store, ladies wear and

The proportion is roughly equal, there are a small number of children's clothing, and there are underwear or household clothing series in the three kinds of product lines.

As a result, there are not many women and men shopping together.

Some female consumers will also buy Women's wear, men's wear and children's clothing at the same time.

In the ZARA Xidan store, which has just been reopened, it does not divide the region by sex, but distinguishes it from the customers of the purpose and age group. When entering the door, it is in line with the young fashionable style of the mainstream customer group and the price is relatively low.

A layer of inner area is a shopping area for light familiar ladies. The two layouts are white collar women's clothing, and the three floor is men's wear and children's wear area.

In the children's wear area, many young women will also choose to buy the size of the 164CM version of the "big child edition" size. Some smaller mothers will be able to match their children with their parents.

In addition, ZARA children's wear is from style design and flower color.

Look, they are more beautiful and very rich in style.

Most of the products in the H&M store are women's wear, with a small number of men's wear and children's wear. They are basically fashionable for young women.

In the GAP shop, although there are women's wear, men's wear and children's wear at the same time, several products are not very different from the style. The same size trumpet can be worn for ladies. The size can be worn for men, and the size can be given to children.

However, consumers believe that such clothing can easily be replaced by other brands of similar clothing.

In fact, the average number of clothes purchased by consumers on hundreds of clothes is limited, and it is mostly icing on the cake. The demand for dressing on different occasions is rigid demand.

A fast fashion brand online store shows that ZARA 40% is women's wear, men's wear and children's wear are flat, accounting for 29.5% and 30.5% respectively.

Most of the H&M products were women's clothing, accounting for 51%, children's clothing accounted for 33%, men's clothing accounted for only 16%.

Ms. Xu, a young consumer, said that alone or with her friends, she went shopping and bought lots of clothes, but she didn't bring one to her lover and children.

Consumer psychology is hidden behind price sensitivity.

After comparison with ZARA, the price of clothing is relatively high, and most of the single products in summer are 300-500 yuan, some of which are nearly 1000 yuan in autumn and winter, the price of H&M is relatively low, 100-200 yuan is not very rare, some products in autumn and winter are over 500 yuan, UNIQLO products are relatively low, 70-200 yuan is more, and GAP products are relatively high, but they are often sold at 40 percent off.

Chinese consumers have always been considered highly price sensitive, but the factors that affect consumer price sensitivity include product quality and brand itself, the same substitutes, whether they are rigid demand, unique personality, practical use value and so on.

In addition, similar to the price beyond the psychological price of consumers, too low psychological price will not be easily bought.

Therefore, the discount is very skillful, too low will hurt the brand and consumers who have already been shopping, but the lack of stimulating the attraction of shopping.

Open ZARA official network store, the home page shows great "discounts", the discount channel is first displayed in autumn and winter style, the discount is about 33% off, 25% off, some overcoats are sold below 50 percent off.

Both spring and summer clothing are involved in discounts, which are sold in 35% off.

On the front page of H&M's official online store, more than 600 items of merchandise were valued to the lowest in June 23rd, to 50 percent off.

Reporters found that a large number of discount goods and 50 percent off of the majority, 200 yuan less than a lot of dress, and many of the tops of the price is less than 100 yuan.

However, there was an industry data showing that ZARA's discounted goods sold out in about two months in 50%, while H&M sold 20% in the same period.

In the sales cycle of the new shelves, ZARA averaged 40 Yu Tian sold out and H&M 150 Yu Tian.

Therefore, the "quick" of ZARA is to develop new products rapidly, buy shelves on a small scale, and replenish goods only after they are sold out.

H&M's "quick" is actually a quick replenishment, that is to say, the same products are put on shelves in large quantities.

The cycle of GAP clothing from design to store is 10 months, about 3 times that of ZARA and H&M.

GAP's new executive has said that the cycle should be shortened to 30 weeks, but it will still be about two times the competition.