Fast Fashion Brand 2016 Expansion Inventory And 2017 Business Strategy Analysis

Although the trend of fast fashion in 2016 is full of declining trend, the general direction is still full of vigor and vitality.

In addition to the international fast fashion giants such as ZARA, the focus shifted to upgrading and pformation and multi brand strategy, and the growth rate slowed down. KM, UR, hot air and other fast fashion brands are still expanding strategies, opening up stores; UNIQLO now focuses on pforming the direction of high quality clothing brands; while some brands such as MJstyle want to take the "lifestyle" route to upgrade experience.

According to incomplete statistics, in 2016, fast fashion brands ranked among China's top stores. The KM brand was the top 300 new stores, followed by MJstyle, H:CONNECT, UR and hot wind shops, leading to a significant subsidence to the three or four tier cities.

Based on the decline in sales performance of most fast fashion brands in 2016, will the fast fashion brands slow down the pace of domestic expansion in 2017? What will the experience of 2016 bring to the new year of fast fashion industry?

Data acquisition time: as of December 2016, this data was compiled according to the information published on the Internet, mainly from the WeChat public number of brand or brand entry projects.

1 / 2016 International

Extension shop situation

The following are the main stores in 8 famous international fast fashion brands such as UNIQLO, ZARA, KM, UR, MUJI, MJstyle, H:CONNECT, hot air and so on, compared with the number of new stores in China in 2016 and the number of new stores planned for 2017.

Note: the expansion of some stores in 2017 is based on growth projections.

According to incomplete statistics, in 2016, new stores were added to the major brands, with 300 stores added to the KM brand, followed by H:CONNECT and MJstyle, with 120 new stores and 101 new stores.

On the whole, the northward Guangzhou Shenzhen is still the main battleground, and the stores are mainly located in the second tier cities, of which three or four of the new stores in the two tier cities account for 30%, and some brands are obviously sinking to the three or four tier cities.

The following table is based on the number of new stores in 2016 from high to low.

In 2016, from the number of new well-known fashion brands,

KM stores are ranked first in the growth rate of 300, far exceeding the fast fashion brands such as UNIQLO and ZARA.

1, KM

China's new stores in 2016: 300

Extension area: basically distributed to the 1234 tier cities nationwide

Total number of stores in China: 419

Known for its sense of design, many men of all sizes have been rapidly spreading in the domestic market. Over a short period of two years, more than 400 shops have continued to expand at a much higher level than the industry level.

2, H:CONNECT

China's new stores in 2016: 120

Tuo Dian area: located in the 123 line city

Total number of stores in China: 220

With the close connection with Korean pop culture, the trend of zero time difference with Korea has been introduced in 1-2 weeks on average. It has expanded rapidly to 220 in China, and plans to open 140 new stores in 2017.

In 2016, the H:CONNECT H:CAF H:CAF concept flagship store was launched in the days Street shopping plaza in Longhu, Chongqing. It is the first collection shop combining K-Fashion and Korean Lifestyle in the mainland. The second shop is expected to be located in the mainland.

3, MJstyle

Newly added stores in China in 2016: 101

Tuo Dian area: located in the 1234 line city

Total number of stores in China: about 200

More than 3000 fashionable styles are launched in a row, and hundreds of new products are updated every week according to the customers' feedback of each shop. Now it has gradually become a cross-border brand covering clothing, home, coffee and simple meals.

In 2016, the 200 layout was successfully achieved, and 3 stores entering the Hongkong market were all well received.

4, UR

China's new stores in 2016: 60

Tuo Dian area: the key points are in East China and Southern China.

Total number of stores in China: more than 120

UR has opened 120 stores in the country. In 2016, UR expanded 60 stores and increased its utility area to nearly 1200 square meters.

5, UNIQLO

China's new stores in 2016: 53

Tuo Dian area: prefer tier cities

Total number of stores in China: nearly 500

Since its entry into China in 2002, UNIQLO has already opened up nearly 500 stores in more than 100 cities in China.

Although sales in China during the fiscal year 2014/2015 have increased by nearly 50%, the brand has shown signs of a slowdown in the 2015/2016 fiscal year, including a 5.5% decline in China's operating profit.

6. Hot air

China's new stores in 2016: 21

Tuo Dian area: mainly in two or three line cities

Total number of stores in China: more than 800

As of October 2016, the hot wind has been deployed in more than 800 stores in more than 150 cities across the country.

In 2016, a total of 20 square meters of children's area was opened in some large and medium-sized stores in China to meet the needs of family shopping and cooperate with the integrated wedding creative platform VORES, so as to meet the needs of consumers for wedding articles.

7, MUJI

China's new stores in 2016: 18

Tuo Dian District: in June, shops were concentrated, especially in East China and North China.

Total number of stores in China: 200

Over the past three years, Muji has maintained more than 30 new stores a year.

At present, there are more than 7000 kinds of MUJI products in clothing, grocery, food and even home.

By the end of 2016, Muji will have 200 stores in China, and the Chinese market has become the largest overseas market for MUJI products.

And will maintain a conservative strategy to open shop, make one more room.

8, ZARA

China's new stores in 2016: 15

Tuo Dian area: the key cities are Beijing, Guangzhou, Shanghai, Shenzhen and Xi'an.

Total number of stores in China: about 170

As of the first half of 2016, Inditex group has 7096 stores in 91 markets around the world, 2/3 of which are opened in the past three years.

According to the new situation of stores in previous years, the growth rate of opening shops in China was stagnant between 6%-8%, which was lower than 10% in previous years.

From the point of view of urban distribution, North Shang Guang Shen is still the main battleground of all fast fashion brands, including Beijing, Shanghai and other cities.

From the point of view of the distribution of cities, fast fashion brands in 2016 are still dominated by a second tier city, but many brands are already in the four line and below.

This fast fashion brand accounted for 30% of the new stores in the three or four tier cities, higher than the 2015 figures, and the fast fashion brands were sinking to the three or four tier cities.

Two, 2017 famous fast fashion brand expansion plan and development strategy

The following table is based on the number of new stores planned for each brand in 2017 from high to low.

In 2017, according to the number of new and fast fashion brand new stores, the fast fashion brand KM store development plan ranked first again, reaching 468, far ahead of the expansion plans of several other fast fashion brands.

1, KM

In 2017, 468 new stores will be planned, and the new KM shops will cover the core provinces and cities of the country, and at the same time, the channels will sink in small and medium-sized cities.

Development strategy: take the lead of new retail thinking to take the lead in the retail industry to boldly attempt the operation of fans community, combine traditional industries with the new sharp trading practices, take the product as the core, force the C end, focus on building a fan community, and promote the whole industry chain with the end crowd effect.

2. Hot air

There are 176 new stores planned for 2017 (160 planned stores in 2016, based on 10% growth forecasts).

Development strategy: in November 2016, the first overseas store opened in Singapore, and the Malaysia store will open in February 2017.

In addition, the COFCO coffee maker brand Nespresso has set up a coffee leisure area in the hot air national boutique experience shop.

At present, there are coffee shops in the shopping mall of the 12 major cities in the country, and consumers can enjoy coffee in the hot air experiential shop for free, and buy Nespresso professional capsule coffee machine at the same time.

3, MJstyle

China plans to add 150 stores in 2017:

Development strategy: integrating family elements and community culture, integrating simple meals, coffee and children's toys into the store, and upgrading the whole category.

At present, MJstyle has set up a coffee area in Wanda store in Suzhou and Wanda MALL store in Nan Cang.

Next, the Shanghai control Jiang Hui Hui square shop will have a simplified western style catering. Like IKEA, the traditional fashion will bring consumers some comfort in shopping centers.

4, H:CONNECT

New stores planned for 2017: 140

Development strategy: continue to adhere to the current fashion for Chinese fashion men and women to bring the latest trend of aesthetic enjoyment, with the trend of fashion as the main, and take the design route.

5, UNIQLO

China plans to add new stores in 2017: 100

Development strategy: the establishment of the cowboy R & D center in the United States, DenimInnovationCenter, will provide technical support and fabric research support for the jeans brand JBrand and the cowboy product line of UNIQLO.

6, UR

New stores planned for 2017: 60-100

Development strategy: the future operating area will be 800-1500 square meters.

The development area is a mature, growing and high-end large scale community in the first tier cities, mature business circles and growing business circles in the second tier cities, and mature business circles in the three line cities.

7, MUJI

China plans to add 50 stores in 2017:

Development strategy: continuous cross-border continuation of MUJICafe and MUJIBooks combination, will further expand the retail store's catering category in the future.

The same price will be achieved in three years. In addition, it plans to sell fresh food from Muji brand in 2017.

8, ZARA

2017 China plans to expand shop number: 16-18 (according to 6%-8% growth forecast)

Development strategy: to strengthen the integration of sales channels, ZARA group's performance gains mainly benefit from the group's online expansion strategy.

In the first half of 2016, the 11 online sales areas that have been newly launched have already laid out 39 markets, and will continue to invest in offline stores in the future, and intensify the integration of sales channels.

And slow down the expansion of physical stores in the future, focusing on the development of e-commerce.

Three, from the past to the present, the three characteristics of fast fashion development in 2016 are:

1, the general trend of development, it is inevitable to decline in performance.

Almost all

They are immersed in the mire of "declining performance".

For example, GAP and other fast fashion giant performance continued to decline, GAP sales decline for seven consecutive quarters.

2, grasping products and ingratiate themselves with young consumers.

Some fast fashion brands have introduced their relatively high-class product lines into the Chinese market, and have opened up the line with the public product line, providing only part of the stores.

In this way, we try to change the Chinese market and attract different levels of consumer groups.

3, the whole industry channels sink, and continue to move towards three or four line cities.

According to the urban distribution of fast fashion brands in 2016, store expansion continued to sink to the three or four tier cities. This phenomenon is not only in the fast fashion area, but also the entire garment retailing industry is facing the whole industry channel sink.

Four, the present is the future. What is the opportunity to catch fast fashion in 2017?

1, increase online investment.

Taking UNIQLO as an example, its parent company's future goal is to increase the electricity supplier's proportion from the current 5% level to 30%, and enhance the consumption experience through the full channel approach, providing online ordering and offline store's convenient pick-up service within 24 hours.

2, connect fans group

2017, the fast fashion interaction year, in fact, all retail brands have seen the tremendous power brought by the internet fans in these years. But in view of the difficulty of shipping and the difficulty of the implementation of the huge volume of industrial layers, the young KM brand is still the most popular brand of interaction. In addition to creating different content output from WeChat and micro-blog, it is also the first to take the lead in the fan community.

3. Adopt multi brand strategy.

In the future, more and more brands are trying to implement multi brand strategy in China to meet the increasingly differentiated and differentiated purchasing needs of Chinese consumers.

For example, ZARA's ZARAHome home and Oysho lady underwear brand.