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    Fast Fashion, All The Way Down? UNIQLO, H&M No Longer Do Well.

    2016/4/22 14:54:00 145

    UNIQLOFast FashionH&M

    Recently, H&M,

    Uniqlo

    GAP and other fast fashion brands released the latest quarterly earnings report, net profits have fallen, some even fell very bad, fast selling group is affected by this, down 2016 fiscal year's annual revenue and earnings expectations.


      


    See here, do you think: how many opportunities are there for fast fashion?

    Fast fashion seems to be in the doldrums?

    The fast selling group of UNIQLO's parent company did not seem to be very successful at the beginning of the 2016 fiscal year, and the net profit of the company dropped by 16.9% over the same period last year.

    Among them, Japan's domestic performance and overseas market performance in the Greater China region were also not up to standard, and operating profit decreased by 12.4% and 14.2% respectively.

    Affected by this, the fast selling group has cut the annual profit and revenue forecast for the new fiscal year.

    For the reasons for the decline in profits, UNIQLO said that the proportion of cold clothing products at the end of the year was large, and the warm weather made the performance of the 11 and December unsatisfactory. After that, the promotional activities in February and February were expanded, resulting in a decline in gross profit.

    It is understood that before the H&M growth rate in China's market reached more than 30%, and now the growth rate is only 10%.

    Like the fast selling group, H&M's net profit in the first quarter also fell by 30% compared with the same period last year. The reason for the decline of H&M is the same as the fast selling group, which is caused by the warm weather caused by the backlog of winter clothing and the late sales promotion.

    But it's worse to count GAP.

    In March, GAP released its latest quarterly earnings report, with net profit plummeting 33% compared to the same period last year, worse than expected.

    The downturn of these three fast fashion brands is very representative. They are explaining a phenomenon: fast fashion is not so good in China.

    What competition is there in fast fashion?

      

    Fast fashion

    Why not? In addition to the impact of China's economic slowdown, competition in fast fashion is also important.

    What are the competitive pressures of fast fashion brands?

    In terms of clothing, there are many brands such as ZARA, H&M, UNIQLO, GAP, Old Navy, MUJI, C&A, FOREVER21, Newlook, CacheCache, UR, UR, Newlook, and so on.

    Underwear, JU, Oysho, 6ixty 8ight and so on.

    Even children's clothing, there are many brands stationed, such as Hongkong's good couplet HOLY.

    And in the positioning of brand tonality,

    Designer brand

    Also enter the fast fashion field, such as "color is Bra" designer underwear brand and so on.

      


    In addition, many brands launch fast fashion series, such as L2's EL DOS series, and have a large number of brands. Although there is no clear fast fashion positioning, the strategy of their products is obvious "short flat fast" fast fashion direction.

    The sharp increase in competition began in 2015 and became fashionable, especially in the Chinese market.

    In 2015, all the fast fashion brands doing business in China did the same thing, that is, re exploring the Chinese market.

    {page_break}

    Fast fashion brand reaction?

    Retail sales are bad, and fast fashion brands react differently.

    First of all, the promotion budget has shrunk.

    At the same time, for some brands, they take further expansion strategy.

    Because stores are equivalent to advertising, they still choose to open stores to penetrate the market.

    In early 2015, H&M made plans to add 400 stores to the global market. In fact, by the end of 2015, H&M had exceeded the expected tasks. UNIQLO said that 100 new stores were opened each year, and the target of 100 new stores, like UNIQLO, and so on.

    But on the other hand, many brands have slowed down the pace of expansion.

    For example, ZARA, such as GAP.

    China opening plan 2016

    In 2016, these fast fashion brands have launched their own shop plans in China.

    ZARA, in China, has opened 166 cities, a second tier cities, now temporarily maintain a tight and cautious shop strategy, the growth rate of stores in the next few years will be between 6% and 8%.

    KM will invest 600 million this year and open 300 new stores.

    H&M, 2016 is expected to open 60-80 new stores.

    UNIQLO said in 2015 that it had opened about 100 stores a year and would maintain that speed in 2016.

    C&A opened 20 stores in China in 2015 and will expand its efforts this year.

    Newlook expects to open 30 new stores in 2016.

    Mango expects to open 25 new stores in 2016.

    MUJI expects to open 30 new stores in 2016.

    UR expects to open 60 new stores in 2016.

    SPAO expects to open 50 to 60 stores in 2016.

    MJstyle expects to open 80 to 100 stores in 2016.

    Old Navy is expected to open 5 to 8 stores in 2016.

    ...

    Most of these new shops have a common feature, that is, the sinking channel, which only originally locked the fast fashion brands of the first tier cities. Now they are aiming at the two or three line cities.

    Fast fashion positioning also needs to be different.

    H&M will further occupy the market and start a "parity" wedding dress series, which will be launched this summer. MJstyle promotes the concept of "retail +", that is, the home life hall, which includes more than clothing, household products, and MJ COFFEE, where consumers can have coffee, rest and chat.

    In addition, many fast fashion brands such as UNIQLO, H&M, ZARA and so on have been playing the "green card" in order to win the favor of consumers.

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