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    Channel Sink "I" See Fast Fashion Will Move Towards The Three Or Four Line City

    2016/5/10 20:16:00 21

    Channel SinkingFast FashionThree Or Four Line City

    In the case of a weakening retail environment, fast fashion seems to be getting mixed up in China. But looking at their earnings in recent years, it is easy to see that fast fashion has also experienced an inflection point in China.

    Profits fell, financial crisis, environmental pollution and other issues gave them a head start. Once regarded as "secret food and cake" by the major shopping malls, they are now being marginalized by more and more shopping malls.

    With the launch of the first quarter earnings report of all fast fashion brands, besides ZARA's continued growth momentum, the brands such as UNIQLO, H&M and MUJI began to grow feeble.

    The start of new fiscal year of UNIQLO 2016 was not smooth. The net profit of the company fell by 16.9% over the same period last year. The decline in the Greater China region was even worse than that in Japan. H&M2016's net profit fell 30% in the first quarter. GAP2015's fourth quarter earnings showed a sharp fall of 33% compared to the same period last year. While Zara was slowing down, the sales of the stores increased by 15% over a month or more from February 1st to March 7th.

    The rapid change of fashion retailing has also led to the split of fast fashion performance camps.

      

    Uniqlo

    Bad news came out repeatedly. Due to the deterioration of the second quarter profit, the profit dropped 55.1% to 47 billion 40 million yen in the first six months as of February 29th. After the first quarter of January, the annual income forecast was reduced.

    The company said its operating profit is expected to fall by 27% to 120 billion yen.

    Lower than the previous forecast of 180 billion yen.

    At the same time, the company expects to remain unchanged throughout the year.

    The company expects its turnover to grow by 7% to 1 trillion and 800 billion yen.

    In August 1, 2015, Muji also began to cut 20% prices for more than 260 categories of goods in China. At the end of March this year, Spain's fast fashion Mango announced its reduction in its leisure series by 15%.

    It is reported that Zara can break through the siege in China, a very important reason for the independence of the head is that it has always had a set of sales and operation mode, not blindly follow suit. When other fast fashion brand stores are opening more and more, Zara has chosen to slow down the shop.

    From "ten big"

    Fast fashion brand

    In recent 4 years, we can see that in 2013, ZARA is the only fast fashion brand that has been slowing down its opening in China.

    In 2015, the group opened 330 new stores in the world.

    By the end of January 31st, the total number of stores in the 88 markets of the world has exceeded 7000, of which 79 are Zara net stores, with 13 in China and 2000 in total.

    This year, the Group expects to invest 1 billion 500 million euros in 400-460 new stores and will enter five new markets in Vietnam, New Zealand, Paraguay, Nicaragua and Aruba.

    In addition, thanks to the strong performance of last year, Zara parent Inditex group has successfully entered the market capitalization of only about 80 companies around the world.

    Last year, the company's market value increased by more than 30%, far exceeding the world's largest luxury group LVMH's about 80000000000 market capitalization, almost 2 times that of H&M, a rival company.

    According to the CEIC global database, China in 2015

    Apparel Retailing

    The number of outlets in a city is as high as nearly 800.

    In the overall downturn of the retail environment, it is urgent for us to reexplore the Chinese market.

    And sinking the store to the two or three tier city may be another way out.

    Pan Ning, CEO of Greater China in UNIQLO, said in an interview: "the future must be infiltrated into two or three or even four line cities."

    Indeed, at present, the fast fashion market in China's second tier cities has been saturated.

    The researchers said: Zara slow down shop is a prediction for the future retail environment in China, which is worthy of reference by other brands.

    Choosing to slow down shop opening speed will not have much impact on Zara, which is already well known in China, and has a mature Tmall flagship store. On the contrary, it will enable the whole group to avoid the risk of radical opening as early as possible.

    It seems that slowing down shop is a good choice at the moment.

    While opening stores, the fast fashion brands also did not ignore the investment in online stores, such as UNIQLO, Zara, GAP, C&A, Forever21, MANGO and other brands in Tmall and Jingdong.

    In addition, more and more brands are actively trying to implement multi brand strategy in China to meet the increasingly differentiated and differentiated purchasing needs of Chinese consumers.

    For example, Zara's Zara Home home and MS. Oysho underwear brand, the first sports series of the formal listing of Gymwear, H&M into the wedding market, the uniqo sister brand GU and so on.


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