Luxury Goods Will Be Willing To Put Aside Their Honorable Status To "Fast Fashion" Closer?

Fast fashion is a good sign that can be sold everywhere. Fast fashion news is rising, but the earnings of luxury brands are facing a number of recent performance setbacks.

And luxury brands will be willing to lay down their honorable status and move closer to fast fashion?

When you visit the major high level stores on weekdays, you may have noticed that the most frequent traffic is concentrated in UNIQLO.

There are few customers in H &M shops and Gucci and Prada.

From the fast fashion and luxury brand's earnings report, it is noticed that fast fashion news is rising steadily, but the earnings of luxury brands are facing a number of recent achievements.

In fact, no matter how luxury is disregarded fast fashion, he still needs fast fashion to bring his moving flow.

Luxury in winter

Gucci: revenue plunged 7.9% in the first quarter

Although the brand management of Gucci (Gucci) has undergone dramatic changes in the past year, it is still powerless to return to the sky. The Italy brand continued to sink. By the end of March 2015, Gucci income fell by 7.9% on a fixed exchange rate basis, much lower than the analyst's 3-6% decline.

Prada: profits plunged 44% in the first quarter

Hongkong's luxury group Prada (Prada) has been on the decline in the first quarter since its first annual profit return in 2011.

As of the first quarter of April 31, 2015, net profit fell 44.2%, down to 58 million 745 thousand euros from 105 million 300 thousand euros in the same period of last year, and earnings per share fell 43.9%, from 0.041 euros to 0.023 euros from the same period of last year.

Fast fashion spring

UNIQLO: revenue surged by 131%

Asia's largest apparel retailer, its main brand

(Uniqlo) income in the European market reached 203 million euros in December before March 31, 2015, up 131% from the previous fiscal year.

From a loss of 3 million 400 thousand euros in the same period last year, it turned into a profit of 2 million 200 thousand euros.

H&M: profit increased by 36.4% in the first quarter.

The world's second largest clothing retailer, Hennes &Mauritz, announced that its post tax profit in the first quarter of fiscal year 2015 has increased by 36.4%, from 2 billion 649 million kronor in the 2014 fiscal year to 3 billion 613 million kronor, or about $423 million, exceeding the market's expected SEK.

Zara: net profit rose 28% in the first quarter.

Driven by the weakness of the euro and the expansion of new stores, the fast fashion brand Zara parent company Inditex2015 achieved the 28.3% growth in the first quarter of the fiscal year, the biggest increase in more than two years.

In the first quarter of April 30th, the net profit of the world's largest apparel retailer increased to 521 million euros from 406 million euros a year ago, exceeding the market forecast of 5.05-5.10 billion euros.

Strong contrast between luxury and fast fashion

According to Forbes, the number of luxury stores in the first quarter of this year has been constantly increasing. The number of Prada stores in China has been adjusted from 49 in 2014 to 33, and the number of Armani stores has also declined, reducing 5 to 44, while Chanel stores have only 11 stores, which is half the number of stores.

According to the report of Shanghai's Jones Lang LaSalle, fast fashion giants showed signs of rapid expansion.

UNIQLO opened the most and opened 100 new stores; H&M will open 80 new stores in China this year, and Zara expects 60.

Who first extends his arms? Luxury or is fast fashion?

It's a good sign that you can sell wherever you go, and they obviously don't need to take the initiative to give you a hug. The luxury brand will be willing to put aside its honorable status and move towards fast fashion. That's also impossible.

In fact, the real behind the scenes promoter is him, the shopping mall itself.

Taobao, Jingdong and more and more Internet sales have been hit by a growing number of e-commerce sales, and shopping malls have lost a large number of customers.

With the advent of luxury winter, some high-end brands have been gradually closed.

In order to drive the flow of people, even now the level shopping mall should introduce fast fashion brand.

In some cases, stores demand fast fashion brands store next to luxury stores.

Gucci is usually opposed to opening stores near Gap, but in fact, luxury retailers need fast fashion with attractive traffic.