The Decline Of Fast Fashion Brand Performance Seems To Be The Drawbacks Of Business Models.

One is willing to fight, the other is willing to stand, so as to describe the commercial complex.

The relationship is most appropriate.

Nowadays, the commercial complex, which occupies the whole city, occupies an important pportation port in the southeast and northwest of the city. The good location in these ports is generally occupied by fast fashion brands, such as UNIQLO, H&M, GAP, Pull Bear and so on.

With the increasing number of commercial complexes, these fast fashion brands are also being led to expand, and business and fast fashion are more difficult for them.

But the brothers also have to settle accounts. Fast fashion brands have encountered problems through the rapid development of these years.

In the current commercial complex overdraft business value itself, all kinds of formats homogenization serious, fast fashion also slowed down.

As Asia's largest

Retailers, fast fashion chain giant UNIQLO parent fast selling group 2016 new financial year net profit fell sharply 16.9%.

Apparel retailer H&M's net profit in the first quarter was 2 billion 550 million Swedish kronor, down 30% compared to the same period last year.

Gap group released 2015 fourth quarter earnings in March 15th, showing net profit of $214 million, down 33% from the same period in 2014.

Of course, the decline in the performance of these fast fashion brands is not the result of the commercial complex, but the former business model seems to have shown the drawbacks. The operation and maintenance of the commercial complex itself is more difficult and a long-term cultivation process.

Business complex is difficult to attract investment, and enterprises in operation are difficult to operate and maintain.

In the early stage, the commercial complex launched various preferential policies to attract fast fashion brands to enter, but it is unknown whether the operation and maintenance can get more profits later.

Fast fashion brands are much better developed in Asian countries than in European and American countries, especially in China and Southeast Asia.

"Fast fashion brands can easily enter China and Asian markets with the influence of international brands, not only playing the advantage of fast fashion products, but also offering products that are in line with the Asian market, closer to the actual needs of local consumers and enhancing consumer stickiness."

General manager of Ying Shi Group Research Center, Zhang Ping, President of the RICS, China commercial real estate Specialized Committee, believes that

Judging from the current location standard of fast fashion brands in Chengdu, it is mainly located in the commercial complex, and few shops will be selected in traditional commercial blocks.

After the completion of IFS, UNIQLO of Zhongshan square in Chunxi Road moved to IFS.

It may be due to the cost of store, but it is undeniable that the relationship between fast fashion brand and commercial complex is very subtle.

From the development of fast fashion itself, there are many problems.

"With the changing consumer demand and increasing complexity, the past flagship products can no longer meet the demand. Under the background of the whole economic slowdown and the rising cost of labor and rents, the competition for fast fashion is becoming more and more intense," said Ms. Zhang Ping, general manager of Ying Shi Group Research Center and RICS, chairman of China commercial real estate Specialized Committee.

In the future, with the continuous development of Commerce, fast fashion is not wise enough to rely on simple shops to stay in the commercial complex to expand its performance.

The author thinks that fast fashion brands should open up diversified network sales channels, open up more development models, quickly explore businesses into three line cities, and choose carefully when they are staying in commercial complexes. It is worth mentioning that there are challenges in the three or four tier cities.

Ms. Zhang Ping, general manager of the research center of Ying Shi Group and the chairman of the RICS, China commercial real estate Specialized Committee, said: "the first problem facing fast fashion in the three or four tier cities is slow development of stores, which is contradictory to the demand of fast fashion for" fast ".

On the one hand, because the information openness and pparency of the three or four tier cities are not as good as the second tier cities, it will increase the initial research time for fast fashion brands to enter the new city siting. On the other hand, the three or four tier cities' commercial real estate market is not developed and the talents are missing, so the brand operators can not find the appropriate store address quickly, and at the same time, they will also encounter difficulties in negotiations with the property owners for rents and operations.

Moreover, the consumption level of the three or four tier cities is obviously less than that of a second tier city. Relatively low consumption level is another difficult problem for fast fashion stores to operate in the three or four tier cities.