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    UNIQLO Profits Plunged 46.4% In The First Three Quarters Of The Year, And Fashion Declined.

    2016/8/18 13:33:00 41

    UNIQLOFast FashionBrand

      

    Uniqlo

    Sales figures for the first three quarters were released today, during which group sales revenue amounted to US $12 billion 480 million, but pre tax profits fell by 46.4% to US $617 million and operating profits fell 23% to 1 billion 270 million US dollars.

    UNIQLO attributed the problem to the loss of exchange, but it is undeniable that even in the past two years in China, there was a huge profit drop in UNIQLO.

    Fast fashion

    brand

    The business is really not as good as before, and is entering a new turning point.

    2008 to 2012 is the craziest stage of fast fashion.

    In those days, many Chinese consumers came into the shop and couldn't help itching. Most exaggerated times, many 80% of the 80's wardrobes were fast fashion brands. Nowadays, many people only choose discounted 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.

     UNIQLO profits plunged 46.4% in the first three quarters of the year, and fashion declined.

    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 today there are many choices, and the rise of fast fashion restaurants, new entertainment formats, scene business and lifestyle ecosystem has made it more and more important for shopping malls 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.

     UNIQLO profits plunged 46.4% in the first three quarters of the year, and fashion declined.

    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 just like the 500-5000 Chinese local clothing brands that were squeezed out of the market by fast fashion brands.

    Come out and mix it up.

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