Retail Consumption Industry Collective Downturn Fast Fashion Can Not Escape Enemy Fate

Although fast fashion brands are shrinking globally, the Chinese market is still a battleground for fast fashion brands. In the case of saturated stores in first tier cities, fast fashion brands are aiming at the two or three tier cities.

In the industry's view, the overall decline of fast fashion brands is actually affected by the overall downturn in the retail sector.

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Enjoying the bonus of the market, but it is not enough to fight against the slump in the whole retail industry, "Ma Gang, a clothing industry expert, told the Beijing Morning Post reporter that after several years of rapid development, the fast fashion brand has entered the bottleneck stage, the number of channels has been saturated, and the freshness and enthusiasm of consumers no longer exist.

"Fast fashion brand has entered the Chinese market in a completely new way, and has opened up shop rapidly, which has brought fresh feelings to Chinese consumers.

But now the sense of freshness has receded, increasing revenue in the form of open shop expansion and encountering the ceiling, which will result in the decline of performance.

The sharp decline in performance forced many fast fashion brands to increase their strength.

In June 2015, GAP announced the closure of 175 stores in the North American market, accounting for about 1/4 of the total number of retail stores in North America.

Fast fashion brands in the US

It also announced that it would close the flagship store in Glasgow, Scotland.

While the North American market closes stores and layoffs, GAP is expanding the Chinese market.

GAP said that there will be 40 new stores in China this year.

UNIQLO also said that it will maintain 80 to 100 stores a year in China.

Speed.

H&M expects to open 60 to 80 new stores in China this year.

ZARA, who has opened 166 stores in China, says that it is temporarily maintaining a "shrinking and prudent" shop strategy. The growth rate of stores will be between 6% and 8% in the next few years.

These new shops are mainly concentrated in two or three line cities.

Ma Gang pointed out that in order to maintain the growth of performance, fast fashion brands only expand the number of categories and shops.

When the stores in the first tier cities are saturated, new stores can only be opened to the two or three tier cities.

This kind of channel sink will be faced with the puzzling effect of reducing efficiency.

"At this stage, it is neither the best nor the worst."

Xiang Sheng, executive director of Xiang song capital, pointed out that in the background of the downturn in the consumer sector, the fast fashion brand's expansion in the trough period may increase the impact on current profits.