H&M, UNIQLO And Other Fast Fashion Shops Are In Essence In The Pformation.

In August 18th, H&M, the second largest clothing retailer in the world, released its sales figures for July, and achieved double-digit growth for 10 consecutive months. The group's pre tax sales increased by 16% over the same period last year. In addition, it has maintained UNIQLO in 80-100 stores every year for several years. H &M continues to target 400 stores this year (mainly for the US and Chinese market).

China

The industry boom has not yet been fully improved, and the closing tide is not yet over, but the fast fashion giant is still expanding its business in its own way.

Why can we set up shop in such a reverse market?

One is that China's clothing industry is collectively trapped in the plight of overcapacity and the decoupling of development design from consumers.

The two is closely related to the fast fashion mode. As we all know, the core strengths of fast fashion giants such as ZAR A and H&M are fast response design and supply chain, in place marketing, and attracting consumers by various categories and fashion sense.

However, it is noteworthy that in fact, after the first few years of rapid expansion, the fast fashion giant had initially weakened the "alternative" feeling of the Chinese clothing market.

For example, to do business, whether it is ZAR A or UNIQLO, it seems that they are going to open the official flagship store, enter Tmall platform, and then line the same price line.

UNIQLO has also recently been exposed to Jingdong's rapid withdrawal from Jingdong platform after more than a month's operation.

The fast fashion giant's electricity supplier is no longer what it was when it entered China.

At the same time, with the increasing number of fast fashion stores, although the fast fashion brands represented by UNIQLO, ZAR A and H&M are still the darling of many shopping centers in the country, the degree of favor will weaken sooner or later.

For example, when the fast fashion brands such as H &M entered Tianhe business circle, shopping malls had no lack of "temptation" such as free rent, subsidy and decoration.

But now?

When I recently chatted with a well-known commercial real estate boss in Southern China District, he had made it clear that even the fast fashion such as UNIQLO did not provide a supplement.

If the rent is not provided or the subsidy is provided, the brand will not have such a great incentive to sell clothes well.

At present, more and more clothing brands are moving towards China.

Brand "learn from experience" to pform, in fact, the present living environment of the latter and the state of being in a state of power that entered China several years ago is not the same.

But then, why do they still maintain such a strong growth momentum in China?

We can see that the rapid expansion of fast fashion stores, we should also see how these two or three fast fashion brands have changed and innovated in China.

For example, in the Chinese Plaza store opened by UNIQLO this month, I saw that the flooring of the shop is wooden flooring, the passageway is wider and the sense of collocation of clothes is also enhanced.

The store was named by the new shop of UNIQLO, and it was to be known that the wooden floor would only appear in the flagship store of UNIQLO, and only some thousand square meters of standard shops such as China Plaza would be used for tile floors.

This shows that UNIQLO is actually upgrading consumer shopping experience.

At the same time, they also upgrade their brand image in the eyes of consumers.

Looking at the fashion industry, there are actually several different ways of development.

One is to take designers as the center and take the original route; the other is to take consumers as the center and push the brand closely to the needs of consumers. The third way is to influence consumers through the most popular concept of fast CO PY.

In the first stage, fast fashion is the third way to go.

But now they are also changing, and slowly begin to test the water on the second route to make an extension of the brand and product line.

For example, this month, UNIQLO announced its global cooperation with Disney, opening up a special store in UNIQLO's stores to create a concept store, providing Disney, man Wei and Star Wars theme products.

In September, consumers could see the concept store they built with Disney in the largest store in UNIQLO, Shanghai.

H&M has just announced that it will launch a new brand in 2017, and will launch a global expansion plan for its brand COS. The expansion of 36 CO S stores will be completed by the end of this year, and 7 new stores will be in Asia.

CO S is a minimalist style. It only designs two series a year, and the price is obviously above H&M.

The first COS store in Southern China opened in Shenzhen in June.

And in May this year, H&M has announced that it will launch the autumn winter series of make-up H&M Beauty in September.

This is the era of personalized consumption. The fast fashion giants clearly realize that the single brand or format mode is hard to meet the market demand.

Through the market influence of the parent brand, the development of sub brand and subsidiary product line will be promoted. This trend will be more and more fast fashion giants in the next two or three years.