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    Why Did UNIQLO Become The Most Frustrated Fast Fashion Brand In 2016?

    2016/12/25 13:40:00 88

    Fast FashionBrandUNIQLO

     Uniqlo

    According to the world clothing shoes and hats net, 2016 is the world.

    Fast fashion

    The bottom of the brand.

    Gap, the US brand of the group, has declined for seven consecutive quarters.

    brand

    Old Navy announced that it would fully withdraw from the Japanese market, and the Swedish brand H&M third - quarter net interest rate reduced by 9.2% per year.

    However, the biggest decline is

    Uniqlo

    The fast selling group, which belongs to XXX group, lost 8 of its net profit in the second half of 2016, triggering a heated debate in the market.

    Once known as the "parity sales myth", let founder Ryui Masa reunite with Japan's richest uniqe for many years. Why did it become the most frustrated fast fashion brand in 2016?

    The market is saturated, and new rivals grab the market at a lower price.

    The growth of fast fashion industry is becoming slower. Johnson, President of the US Consumer Research Institute, said in an interview with the New York post in June this year: "fast fashion is saturated to the top." Forever 21, H&M and Gap are now struggling in the recession.

    In addition to the fierce competition, the economist also called the aggressive new players threatening the big brands.

    For example, the price tag of a British dress, price, is about NT $120, about H&M 1/3.

    It not only increased its annual turnover by more than 95% in 5 years, but also beat the local brand Zara in Spain.

    In addition, the attitude of consumers has also changed significantly.

    First of all, from "investment consumption" to "invest in yourself", instead of buying fast fashion products that are popular but are lost in the past, it is better to spend money on improving their posture.

    Therefore, 2016 has become the golden period of sports brand, for example, Adidas has raised its financial forecast by 4 degrees, and its share price has risen more than 60% throughout the year.

    Moreover, the negative labels of over consumption, non environmental protection, cheap labor and environmental pollution, which have been criticized for many years, are totally contrary to the values respected by the new generation.

    UNIQLO is not unaware of threats, but every step turns very hard.

    Push the sub brand, but because the customer group overlaps erosion profit.

    For example, it launched a cheaper sub brand GU 10 years ago, which is exactly the same as that of rival Gap in 1994.

    Gap's plan at that time was: let the lower price, ordinary fabrics but the style of young and bold "Xia Si" Old Navy to meet the Red Sea market, "upper Si Gap" has the margin to enhance the brand image, and to raise the selling price.

    GU really has no expectations. Business interests grow more than 34%, and it is thriving in the group. But UNIQLO is also following the footsteps of Gap: over the past 20 years, because of the overlap of customers, Old Navy has eaten part of the battlefield of Gap and has formed a huge profit erosion effect.

    In fact, UNIQLO did not see the lesson from the past, but also made a strategy to raise prices.

    But this has failed.

    In 2014, Ryui Masa announced that UNIQLO would increase its price by 5% and increase by 10% in 2015. In addition to reflecting changes in exchange rate, the more important factor is that "selling price should reflect the fair value of commodities".

    However, consumers did not pay the bill. The volume of passenger traffic in UNIQLO in the first half of 2016 was reduced by 6.3%, forcing Liu well to admit that the decision was wrong: "consumer confidence in commodities is worse than we expected."

    "

    In fact, in 2008, UNIQLO came to the famous designer Wang Daren to collaborate across the knife, and launched a series of "Designer Series". This year, he signed the former designer of Hermes as the art director.

    This move is similar to H&M in the same industry.

    In recent years, H&M group has continued to introduce high priced brands, such as COS, to save part of the profits.

    However, in the good strategy of A brand, B brand does not guarantee success.

    It will produce subtle chemical effects because of the original location of each company.

    According to the second half of this year's earnings report, even if consumer response is cold, UNIQLO's revenue is still growing by 6.3%, while the total overseas revenue has grown by only 3.1%. Obviously, the international market has not yet paid the bill.

    When fast fashion can no longer be faster than "fast", how should we fight this war? UNIQLO is still an excellent company. But now, we need more innovation to break through the dilemma.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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