Fast Fashion Brands Such As UNIQLO Are Hard To Follow.

In the first 9 months of July 19th, UNIQLO's fast selling group fell by 46.4%. As the main brand, UNIQLO grew in both Japan and overseas, but profits declined.

Coincidentally, H&M, ZARA and other fast fashion apparel entered the Chinese market in a strong way, quickly occupied the market share, but also encountered the "Waterloo", which was repeatedly troubled by the quality of the negative reports.

Parent company profits plunged 46.4% in the first three quarters

The fast fashion group of Japan's fast fashion UNIQLO group announced today's sales figures for the first three quarters of the year ended May. During the period, the group's sales revenue rose by 6.4% to $12 billion 480 million, but pre tax profits fell sharply by 46.4% to 617 million dollars, and business profits fell 23% to 1 billion 270 million dollars.

After releasing the sales figures for the first half of the year, the group decided to

The products were sharply reduced to attract consumption and boost sales, but sales figures in the previous September were reminding the group that a sharp reduction in sales would not be of much benefit to the increase in profits.

The fast retailing group said that UNIQLO would reintroduce its previous simple pricing mechanism, allowing the price rise mechanism in the past two years to allow

This fast fashion brand has lost the price advantage in the market competition, which leads consumers to accept and turn to other brands. The group hopes to restore the favor of consumers with a simple pricing mechanism.

In addition, the group also hopes that the sales volume of the network channel will increase to 30% of the total sales in the future, and is actively carrying out the pformation of the logistics distribution system, and plans to open new logistics centers in other parts of Japan, as well as overseas locations such as the United States and China.

UNIQLO is a special case.

In the fast fashion camp, it is not just to reduce the price to reverse the situation.

Sweden's fast fashion H&M group also said it would follow the market trend to further price adjustment and return to the strategic position of "affordable fast fashion" to win the favor of consumers. Even so, it is hard to say that it can save the declining trend.

In recent years,

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Fast fashion brands have swept the domestic market in an alarming fashion. They are popular for their low price, light luxury, and fast product renewal. They are hot at the same time, but their problems are also exposed quickly.

One of the reasons why fast fashion can win is that its price is low, but the low price often corresponds to the quality of worry.

ZARA, H&M and other fast fashion brands have repeatedly boarded quality blacklists in recent years, and are frequent customers on the blacklist of the industrial and commercial and quality supervision departments.

In the face of increasingly fierce market competition, fast fashion, in order to ensure the price of "close to the people", can not only keep consumers' brand popularity at the same time, but also strive for greater profit margins at the same time, and can only take the cost of compression.

In order to ensure their meager profits, the order generation industry and commerce can further reduce the cost, and the quality crisis caused by cost reduction is easy to highlight in this link. It is not surprising that ZARA, H&M, GAP and other brands have repeatedly cracked the quality crisis.

In addition, most fast fashion brands locate their products in affordable fashion.

We must maintain very high fashion sensitivity and quick market reaction. Under such extreme pressure, designers are often trapped in inspiration and can only imitate, plagiarize and borrow big names.

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This will ensure that fashion is designed to attract more consumers to blindly consume with the luxury of gimmick, but fast fashion brands will also pay high fines for top brands.

The more serious consequence is that the fast fashion brand lacks the unique original design and lacks the building of the brand soul. With the unique and irreplaceable market appeal, the weak design makes the fast fashion brand development stamina insufficient.

Fast fashion meets cold traditional clothing brand is difficult to continue

The rapid growth of fast fashion has begun to show signs of weakness. The fast fashion apparel market has also become saturated. All brands are considering adjusting the product mix to turn the tide of high growth.

By contrast, the traditional low-end clothing brand in China is experiencing nine cold years, and its decline is not cold for a day. The past development mode has laid a curse on today's crisis.

Because the traditional clothing brand does not pay attention to the study of consumer demand and timely adjust the strategic direction, it makes consumers form negative stereotypes of these brands.

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Take these brands for example.

The style is single and the brand is solidified. It is defined as "student clothes" by consumers. This undoubtedly reduces the number of potential consumer groups and affects sales volume. In addition, the positioning of products based on casual wear makes consumers have limited choices and limited wear occasions.

These old brands, which are suitable for home, travel and sports clothing, are often hard to get on in formal occasions.

It was fashionable at this time.

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Such brands cover multi age consumer groups, suitable for many occasions such as school, workplace, leisure and so on, and their market competitiveness is self-evident.

Traditional low end

Often plunged into the same mire: after the rapid opening of the sales market, unrestricted channel expansion was started, and the number of stores was raised in the development model of franchisees, in order to increase the limit of sales.

Under the joining agent system, the initiative of ordering system is in the hands of a large number of franchisees. The disadvantages of the bottom-up group goods are not only the lack of brand spirit, but also the lack of core competitiveness of the brand. The most direct problem is the short-sighted effect. Franchisees tend to research and develop Shanzhai products because of their direct risks. The result is that they produce a large number of explosions and lack of personalized positioning. This is contrary to the concept of individuality and diversity that young people are pursuing.

The result of a multi set, mass production and consumer unfeeling is a large backlog of stocks, a decrease in net assets and limited online development.

tradition

Brand long term brand operation mode can not keep up with the change of fashion trend.

From design to production to sale on the market, it usually takes 2-3 months or even longer.

Compared with the fast fashion brand, it can complete the whole process from design to shipment in about two weeks.

Compared with the fast fashion brands that create the myth of "15 day cycle" supply chain, the traditional brand that comes out quarterly according to the season is naturally slightly lost in fashion and popularity.