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    Fast Fashion Performance "Slow" Will Usher In The Development Of Inflection Point

    2016/4/20 9:38:00 30

    UNIQLOH&MFast Fashion BrandGapClothing Retail MarketMango

    "Fast fashion" also has a "slow" down time.

    Recently, the reporter noted that the world's large fast fashion brand.

    Uniqlo

    Parent company fast marketing group,

    H&M

    Group and other latest financial data show that its global market performance has declined to varying degrees.

    After several years of rapid development of fast fashion brands, shop expansion was once a panacea for keeping its performance growth, and also brought impact to the traditional department stores, but many industry insiders told reporters that with the fresh sense of retreat and the upgrading of consumption structure, "fast fashion" will also usher in a turning point.

    Fast fashion collective landslide

    As Asia's largest apparel retailer, fast fashion chain giant UNIQLO parent Xunmei group started a bad start this year. Its total profit in the first half of fiscal 2016 amounted to 99 billion 300 million yen, down 33.8% from the same period last year, and the total pre tax earnings amounted to 82 billion yen, down 49.9% from the same period last year.

    The performance of UNIQLO brand of fast selling group is also unsatisfactory, and its profits in the Greater China region and the Korean market have been reduced.

    The world's second largest clothing retailer, H&M 2016, also suffered a major decline in its first quarter results.

    H&M reported that the company's net profit in the first quarter was 2 billion 550 million Swedish kronor, down 30% compared to the same period.

    Public information also showed that the Gap group's 2015 earnings report revealed that its net profit in the fourth quarter of last year was US $214 million, a 33% drop compared with the same period in 2014.

    Many industry insiders told reporters that the collective decline of fast fashion performance was related to the overall macroeconomic downturn.

    Zhao Ping, a researcher at the China Council for the promotion of trade, said that the clothing industry belongs to the "purchase of commodities", which will be greatly affected by the economy.

    Help straws to save themselves?

    It is worth noting that after the fast fashion entered the Chinese market in 2006, it was once considered to be a booster for the weak clothing retail market.

    Zara first entered the flagship store in China in 2006, and then entered the Chinese market in 2007. Italy's fast fashion brand Mango followed by the first store in China. Gap was relatively late, and it was announced in 2010 that it entered the Chinese market in 2006.

    In fact, in 2000 ~2007, China's clothing retailing industry was dominated by department stores and supermarkets, and the invasion of fast fashion brands was known as the "life-saving straw" in the clothing industry, and it also strongly attacked the traditional department stores in China.

    The fast fashion brands represented by Zara usually do not go to department stores, but are open to the crowded streets and even the front of department stores. With low price and fashion as the main characteristics, they can please the huge consumption crowd. In 2012 ~2015 is the concentrated stage of fast fashion.

    After several years of rapid development, has fast fashion reached its critical point?

    Garment industry observer Ma Gang said that the fast fashion brand entered the Chinese market in a completely new way, and opened shop quickly, which brought fresh feeling to Chinese consumers. But now the freshness has receded, and the increase of revenue in the form of opening shop has also encountered the ceiling, which will cause the decline of the performance nowadays.

    Zhao Ping also believes that after the upgrading of the consumption structure, consumers will pay more attention to the quality of products, and the relatively fast fashion brands with relatively low quality are hard to attract high-end consumers.

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