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    How To Solve The Stumbling Block Of Fast Fashion Development?

    2016/11/18 11:05:00 86

    Double 11UNIQLOBrand

    Just past "

    Double 11

    "

    Uniqlo

    The flagship store of Tmall has been sold out of the store.

    This is the history of "double 11", the first time that UNIQLO sold all the goods, and it started less than half a day in the "double 11".

    According to relevant information, around 0:30 on November 11th, UNIQLO ranked the top seller in the popular industry, with suning.com, Nike, glory and millet behind.

    This year, "double 11", UNIQLO created 2 minutes and 53 seconds to sell a record of 100 billion yuan, becoming the fastest break of Tmall's entire category.

    brand

    However, behind the "double 11" Carnival, it can not be ignored that the former fast fashion tycoons are facing the pressure of declining performance. "Cheap", "imitating big names" and "quality worrying" have become a stumbling block for fast fashion development.

    The performance of UNIQLO parent company is down.

    Despite the decline in profits for the whole year, UNIQLO was the only region in the Greater China region to perform better than expected in the second half.

    Last month, UNIQLO's parent company released its 2016 financial report for the year ended August 31st, showing overall sales revenue growth, but its profit fell by more than 50%.

    The company's revenue increased by 6.2% to 17864 billion yen, gross profit increased by 1.9% to 864 billion 900 million yen, but operating profit decreased by 22.6%. Net profit attributable to parent company was sharply reduced by 56.3%.

    Operating profits plummeted 22.6% to 127 billion 300 million yen (8 billion 200 million yuan), the first decline in five years of fast selling business profits.

    Prior to that, the first half of the 2015 fiscal year released by XXX group showed that as of February 29, 2016, the net profit of the group declined by 55.1% compared with the same period last year, only 47 billion yen (about 2 billion 800 million yuan).

    Despite the decline in profits throughout the year, UNIQLO was the only region in the Greater China region to perform better than expected in the second half of the year. At present, UNIQLO has more than 400 stores in China.

    While in the second half of the year, the performance of UNIQLO in the United States has improved, but it has recorded a decrease in the store's value and expanded its operating losses throughout the year.

    It has been reported that UNIQLO has been promoting its business through price cuts. Ryui Jungryui, chairman of fast marketing and CEO, emphasized that UNIQLO will return to the simple pricing mechanism. Consumers do not agree that new products are equal to high prices. The fashion retail environment is very difficult now, and the price increase in the past two years has proved to be a mistake.

    According to the plan, XXX group will expand its total number of global stores to 3336 in fiscal year 2017, including 837 Japanese UNIQLO stores, 1104 overseas UNIQLO stores and 1395 brand stores, including UNIQLO international stores.

    And with the growing trend of electricity providers, Xun marketing group has revealed that the company's network e-commerce sales accounted for 5%, and this level will be raised to 30% in the future.

    To this end, this year's "double 11", UNIQLO conducted a "new retail" test water, from November 1st to November 13th, consumers purchase "double 11 selection" choose shop from the mention, can be online more than 400 stores to pick up goods quickly.

    From November 14th onwards, UNIQLO Tmall official flagship store will also open its own stores to offer services, thereby solving the problem of long delayed delivery.

    In addition to UNIQLO, according to the relevant earnings data released by various brands in 2016, the performance of Gap, H&M and other fast fashion giants continued to decline.

    H&M group's earnings report showed that the global sales of the company in September only increased by 1%, the lowest growth rate in the past year.

    At present, H&M group has been declining for five consecutive quarters.

    Meanwhile, the gross profit margin of the H&M group fell by 190 basis points to 54% in the three quarter, compared with 55.9% in the same period last year.

    In the Chinese market, H&M created a 82% sales growth in 2007, but last year the figure dropped to 16%.

    It is understood that last year, Gap planned to close more than 1/4 of the same name retail chain stores, announced this year that it will shut down 75 Old Navy and Banana Republic stores outside North America.

    The old fast fashion Mango also plans to close stores in 450 stores in 2016.

    Not only that, some well-known fast fashion brands of clothing commodities have also been published by the state quality of quality inspection of the unqualified list, the quality of the problem is worrying.

     Fast fashion, if you want to regain the market, need to focus on accelerating the pformation and upgrading of products.

    Consumer aesthetic fatigue seeks individuality

    Consumers are more individualized and innovative, more focused on product quality, and the appeal of fast fashion is not as good as before.

    "Designers of traditional clothing companies will design new styles for each season, and fashion vendors will be different. They will design, process and publish new products at any time, as long as there are new trends.

    They only need to catch the fashion trend of top brands and integrate into their own design elements so that they can easily make their clothes. "

    This is the definition of fast fashion brand. From design concept to store sales, the whole process takes only ten days. Low price and continuous new products are the main reasons for attracting consumers to fast fashion chain stores.

    The fast fashion survey from authoritative organizations shows that among the consumer groups who buy fast fashion products, young white-collar consumers are the majority, and most of their income is between 5000 and 8000 yuan. Consumers who frequently buy fast fashion products occupy 40.98%.

    But with the explosive development of fast fashion brands, the speed of fast fashion has been exposed since last year.

    Consumers are fleeing from the fast fashion consumer cycle, that is, buying cheap clothes - discarding cleaning - buying again.

    After the freshness is gone, consumers are more interested in individuality and novelty, more emphasis on product quality, instead of simply focusing on prices, making the attraction of fast fashion worse than before.

    Foresight Industry Research Institute pointed out that for the parity clothing brand, this "fast" positioning has begun to malpractice. Fast fashion brand is trying to get out of the fast track of parity, and develop a higher class market. However, the development of sub line products is still at the stage of testing water for fast fashion brands. Based on cost control factors, brands are unwilling to supply products with more quality fabrics and design costs for a long time.

    Industry experts say that fast fashion brands are expanding rapidly in the global scope. While harvesting a large number of consumers' consumption and profits, they are also positioning their own brands in the framework of mass consumption. This is undoubtedly the biggest hidden danger of the development of enterprises under the trend of increasingly personalized consumption.

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