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    Fast Fashion Brand In 2016 Encountered Unprecedented Crisis In China

    2016/5/6 0:11:00 68

    Fast FashionChinaCrisis

    In the past few years, fast fashion brands have successfully captured the Chinese market and become the biggest winners in the domestic apparel market. But in the middle of 2016, fast fashion brands encountered unprecedented crises in the domestic market.

    Around 2006,

    ZARA

    H&M and UNIQLO represented many fast fashion brands entering the Chinese market, opening up the revolution of China's commercial real estate, and losing many local mediocre but expensive local brands.

    2008 to 2012 is the craziest stage of fast fashion.

    Many Chinese consumers pass through the shop and can't help itching. When the most exaggerated time, many of the 80's wardrobe 80% is fast fashion brand. Now many people only choose discount products occasionally, and feel the quality is general.

    10 years later, in 2016, over the age of 30, the demand for quality gradually surpassed the thirst for freshness. While the "post-90s" also patronized fast fashion, there was obviously no fanaticism.

    The industry bottleneck of declining industry

    The fast development of fast fashion brands is slowing down. In the case of luxury price reduction, overseas shopping, light luxury, fashionable brand counter attack and designer brand rising, the competitiveness of fast fashion brands and their competitiveness in the minds of consumers are gradually decreasing. This is the so-called decline of popularity.

    Consumers' awakening and abandonment

    Fast fashion has exploded in low price, fast speed and diversified products in the period of economic downturn in China, but the market environment and consumer demand are changing. It is difficult to recover the trend of development several years ago.

    The vicious mode of quickly satisfying, discarding and consuming again is the embodiment of fast fashion only focusing on profits, putting it to the best and reckless consequences, and making the majority of consumers more indulged and unrestrained. Too much greed has become the characteristics of the times.

    But now consumers are beginning to change. This is the real dilemma of the fast fashion.

    Consumers' new consumption concept is beginning to awaken, and the choice of personality and practicality becomes more and more tired of poor quality and cheap goods.

    More and more people are withdrawing from this cycle of consumption of mediocrity and no longer buying cheap, mass produced clothing.

    With the rise of the new middle class in China, more consumers will choose to go out shopping or buy clothes with higher quality and higher design level.

    Next, the fast fashion brand will suffer from the loss of customers and the weakening of core competitiveness.

    Rent crisis and closing regulation pressure still exist.

    For the mall side, the fast fashion brand is the panacea for the absolute absorption of powder.

    But now there are many options.

    Fast fashion

    With the rise of catering, new entertainment formats, scene business and lifestyle ecosystem, shopping malls are increasingly motivated to charge higher rents to fast fashion brands that once used to be cheap.

    Even though some of the fast fashion brands have received 1-1.5 million yuan / square repair, but in the current period of low fashion retailing, the blind expansion of shops, large shops and expensive rents are bringing serious crises.

    For example, in Chunxi Road, Chengdu, there were as many as 21 fast fashion brands in the heyday, leaving only about 15 now. Rent pressure is the key to the withdrawal.

    Increased competition or collective slowdown in shops

    Competition has suddenly increased. From 2015, fast fashion, especially in the Chinese market, is no longer good.

    2016 all the fast fashion brands doing business in China do the same thing, that is, re explore the Chinese market.

    Many brands are slowing down the pace of expansion, such as the leader ZARA, the growth rate in China is stuck between 6% and 8%, less than 10% in previous years.

    You know, only ZARA, which slowed down shop in China last year, has seen a 15% profit growth.

    Perhaps, in the next 2016 days, many fast fashion brands will reconsider the plan to open shop in China this year, at least the card will be more stringent.

    Finally, to sum up, it is like the 500-5000 mainland China that was squeezed out of the market by fast fashion brands.

    Clothes & Accessories

    Brand is the same.

    Come out and mix it up.


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