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    Fast Fashion Brand Performance Generally Decline, How To Break The Cold Winter?

    2016/5/8 10:19:00 46

    Fast Fashion BrandPerformanceBrand Strategy

    On the first day of the small holiday, at 3 p.m., a woman in the H&M shop in the Hangzhou department store stood in a promotion area for a long time in the H&M shop. Finally, she left.

    The reporter saw that the blue sign on the shelf was written on the discount information, "one pair of pants bought second pieces 50 percent off", the corner also had the "big sale" 3 words printed on the red promotion card.

    However, there are few customers in the shops than those outside the mall.

    Fast fashion has always thought that the warm winter last year is the main culprit, resulting in a lot of winter clothes can not be sold; the other is the impact of the exchange rate, and the consequences of the discount sale, for example, GAP has been listed as "no discount not to buy goods".

    The H&M is not cool. The earnings reports of several big companies in the past few days are not very good. The trend of the fast fashion is all at a glance. Once the main customers, the "post-80s" are losing, while the younger "post-90s" and "00 after" are no longer like their predecessors.

    Recently,

    H&M

    In the 2016 fiscal year Q1 earnings report (December 1, 2015 ~2016 February 29th), the company's net profit was 2 billion 550 million kronor, 30% lower than the same period last year.

    As soon as the earnings report came out, H&M was tucking away by Morgan Stanley, who thought they had been expanding their stores to boost sales.

    That is to say, with the opening of new stores, sales volume is rising, but profits have been declining.

    UNIQLO, which has been regarded as the myth of the industry, is also considered to be the turning point.

    The first half of the 2016 fiscal year of its parent company's fast selling group showed that, in the first 6 months of February 29, 2016, the net profit of fast selling group dropped 55.1%, which was also the first half year net profit decline of the group in the past 5 years.

    The worst is still the GAP group, which sees the group from its March earnings report.

    Net sales

    The value fell 6.3%, while same store sales fell 6%.

    GAP's year-on-year turnover of stores and online stores for at least one year has been declining in the past 8 quarters.

    The only thing that looks good is ZARA. Its parent company, Spanish apparel retailer InidtexSA group, has sold 20 billion 900 million euros in fiscal 2015 (up to January 31, 2016), up 15.4% over the same period.

    At the same time, the group

    Net profit

    It also has a 15% growth rate, the highest in the past three years.

    In the beginning of the 2016 fiscal year, from February 1st ~3 7, excluding the exchange rate factor, sales increased by 15%.

    Although ZARA performs well, the industry still believes there is risk.

    "Its pricing is also affected. The price of one thousand or two thousand yuan in autumn and winter clothing is facing many challenges. Moreover, although ZARA has many shops in China, the sales in the Greater China region is not too big."

    An insider said privately.


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