Luxury Is Fading, And Many Fashion Trends Have Been Raised.

In January 11, 2016, Dongguan, which once led China's manufacturing industry to become brilliant, was prosperous.

A notice was announced to all employees that the factory will be closed in February 1, 2016.

As the top world famous brands such as Prada, NIKE, GUESS, LVMH and TIMBERLAND.

And the casual footwear manufacturer, Dongguan Xing ang footwear industry, issued a notice that the company would cut down its employees in full due to the serious reduction in customer orders, and lay off employees in accordance with statutory procedures, and compensate employees for severance payments.

 

In the past two years, the luxury brands such as LV, Prada and Gucci, which regard the Chinese market as "banknote printing machine", are not easy.

According to the annual China luxury report issued by the wealth Quality Research Institute of the luxury authority Research Institute, 83% of the luxury brands in 2015 have various forms of customs clearance in China. This trend will continue, and more than 95% of the luxury brands will close some stores strategically in 2016 and further strengthen the pformation of existing stores.

NIKE, Prada and other luxury and light luxury brands today are out of line, and fast fashion ZARA, KM, UNIQLO and other rapid development is not related.

The road of luxury brands being down

In the years when China's economic growth was at its peak, China launched a luxury brand with huge amounts of money and how to consume it. The luxury brand that produced well and has a long history has solved this problem. Buying thousands of clothes and accessories has become a great pleasure for the wealthy. Besides, owning them is also a status symbol.

Plus China had a lot of cheap labor at that time, so the luxury brands worked with Chinese manufacturers to sell products from the "made in China" assembly line to the Chinese.

With the innovation of Internet technology and the acceleration of globalization, China's new developing market is being coveted by brands around the world.

The fast fashion brands represented by ZARA, UNIQLO and KM have gone to China to attack the market share of the middle class in the first and second tier cities with low price and no big name design style. The products of high quality and low price have enriched people's lives and enabled more people to enjoy the baptism of International trend.

Besides the impact of economic slowdown, social values and market competition, the rise of labor costs in China is also an important reason why luxury brands are difficult to maintain in Chinese factories.

According to recent data from Boston Research Institute, the labor cost of China's manufacturing industry accounts for 12% of the total cost, which is much higher than that of Indonesia's 1%, India's 4% Thailand's 5%, and even the previous large-scale pfer of manufacturing to mainland China's Taiwan area 7%, while the labor cost of the United States accounts for only 14% of the total cost.

Cheap and inexpensive, the situation is irreversible.

In 2015, Adidas global business leader Glenn Bennett (Glenn Bennett) said in an interview with Reuters, "almost no brand in the sporting goods industry can achieve" fast ".

If we can do more quickly in the product cycle, it will occupy a great competitive advantage in the industry. "

However, things are not so simple. The H&M, which is famous for its speed, has a very good response in its sportswear market. Its classification is very thin, its price is cheap, its sizes are more choices, and it is cheaper than Adidas and NIKE, so it is popular in the market.

The production cycle is long, the technology can really achieve better, but in this era of quick pursuit and low price, once the trump card Adidas and NIKE were quickly taken away by fast fashion brands, customers were not difficult to understand.

Fast fashion recruitment system "enemy"

On the occasion of the decline of luxury goods, a lot of fast fashion have raised their banner to contribute to revitalizing the physical retail industry.

Fast fashion has developed an agile and fast supply chain, integrating practicality and fashion, and successfully entering the market with a very attractive low price strategy.

The ZARA, the famous fashion designer, has an average of 20 minutes to design a garment, and has designed 25000 products every year. It has been loved by urban white-collar workers. KM, its display style and luxury display are the same. Consumers can buy products that are anti seasonal popular trend only with a small amount of money. They are rich in variety, cheap and quality, conform to the modern young people's pursuit of cost-effective shopping concept, and 2015 strong UNIQLO, specializes in fabric research, constantly innovating, playing the full advantage of the fleece, and combining with the needs of consumers, so that the changing fleece is favored by consumers.

In addition to the lack of market strategy and the ability to assess the situation, luxury brands are not very concerned about the needs of mass consumers.

When the market is weak, people with high consumption ability are getting smaller. Nowadays, there are two ways to face the development of luxury brands. They either suffer from the long waiting period of economic stabilization, or condescend to choose new customer groups to change their marketing strategies, such as learning the spirit of "fast fashion".