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

In 2013, CBRE released the evolving pattern of China's retail industry:

"From the total number of stores, China has become an international fast fashion.

The most important overseas market.

Among them, China is

UNIQLO is the largest overseas market in the world, and is the largest overseas market of H&M and C&A Asia.

Since 2002 when UNIQLO landed in Shanghai, China, the world's fast fashion brands poured into China.

The characteristics of designing big brands, simple materials, and the price are close to the people.

The four years from 08 to 12 years can be said to be the most fashionable and craziest period, and profits have skyrocketed.

Many Chinese consumers in the 80's go shopping. It is understood that the most exaggerated time, many 80's home closet 80% is fast fashion brand.

After tasting the sweetness, fast fashion must make the "fast" go away, and immediately increase the number, and open a crazy shop mode in China to show their determination to seize the Chinese market quickly.

Time flies, and fashion is everywhere in China.

According to the "2015 China commercial real estate development trend report", in 2014, fast fashion brands opened 274 new stores in China.

Last year, ten fast fashion brands opened up more than 330 stores in Huaxin, and now the total number of stores in China has exceeded 1400, up 27.5% over the same period last year.

Among them, UNIQLO has the largest number of stores in the fast fashion industry in China, about 440; the second ranking H&M is about 245 stores in China, while Zara stores are about 166.

According to statistics, UNIQLO opened 91 stores in China in 2015, 73 for H&M, 85 for Newlook and 13 for ZARA.

As can be seen from the above picture, the fast fashion brand of foreign capital has been expanding in China.

Of the 10 fast fashion brands in the statistics, more than half of the brands were expanding their stores in China last year.

Among them, the growth of New look was the most obvious, from 19 in 14 years to 85 in 15 years, and 66 stores were added to China in the past year.

With the recent launch of the major fast fashion brands in China in 2016, it seems that there is a trend of collective slowdown.

In the ten fast fashion of journalist statistics, 6 brands including UNIQLO, H&M and New Look reduced the number of shops opened in China.

The giant UNIQLO plans to open fewer than 100 stores in China, and Zara continues its strategy of opening up last year. Its growth rate in China is between 6% and 8%, less than 10% in previous years.

Over 3 of the fast fashion brands chose to keep the number of stores growing.

It is worth mentioning that several local fast fashion brands, such as hot air and MJstyle, are growing strongly.

Hotwind hot air was first established in Shanghai in 1996. Now it has more than 700 brand sharing shops. The sales network covers more than 130 large and medium-sized cities in Shanghai, Beijing, Shenzhen, Guangzhou, Nanjing, Chengdu and Chongqing. It also forms strategic alliances with many well-known commercial real estate brands, such as Hang Lung, Joy City, raffles, Wanda and Jusco.

MJSTYLE is the brand of Shanghai Jian Shang Clothing Co., Ltd. and has more than 1500 square meters of MJStyle30. The company plans to set up 2000 MJStyle entities in the world in the next 5-10 years.

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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 has repeatedly reported bad news. Due to the deterioration of the second quarter profits, profit fell 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 earnings forecast was reduced, but it had to be lowered again.

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 the number of ten fast fashion brands opened in China in the past 4 years, it can be seen that since 2013, ZARA is the only fast fashion brand that has been slowing down its opening in China.

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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 statistics database of CEIC's Department of global data, in 2015, China's clothing retail outlets intensified, especially in the first tier cities such as the north and Guangzhou Shenzhen. The number of outlets in a city can reach 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 Oysho women's underwear brand, the first campaign series Gymwear's official listing, H&M entry into the wedding market, UNIQLO sister brand GU, etc.