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    Supply Chain Pformation Makes World Clothing Retailer Hegemony

    2017/1/10 12:30:00 43

    FashionH&MClothing

     Uniqlo

    According to the world clothing shoes and hats net,

    fashion

    People often classify brands, some are called fast fashion, some are called high street, others are light luxury, some are called big brands. This is from the perspective of market or consumer side.

    But from the perspective of supply side, the four largest companies in the world

    clothing

    Retailers are TJ Marx, Ross,

    H&M

    And Inditex, the former two are relatively unfamiliar to Chinese consumers. They are retail chains selling brand discounts, and the brands range from Polo to Nike.

    It can be ranked the highest in the world, indicating that the largest number of consumers in the world still prefer to name discount, but in this article, we will not start.

    We want to talk about the high street and fast fashion products represented by H&M and Inditex (Zara parent company). In fact, in a sense, because of the same price band, these two categories are hard to distinguish. Maybe we can think that fast fashion belongs to a branch of high street fashion and takes a more fashionable line.

    I think it should be collectively referred to as "popular brand clothing", because it is said that this category is for the masses of people. If we go to this level, though we still need to consider fashion trends, the real core is supply chain. Every world garment retailer is a product of the pformation of the world garment supply chain, which is rarely mentioned.

    The first generation of overlords in the fashion industry is Gap, whose peak annual sales volume is 13 billion dollars, and it is full of shops in all parts of the United States. There are several shops on the street. It is common in the Friends drama (Friends) that there are too many Gap shops to ridicule.

    The rise of Gap came from the shift of clothing production in East Asia to Hongkong, where suppliers played a key role in the rapid pfer of industries.

    China's low cost makes the price of Gap very competitive in the United States, coupled with the advertising promotion during that time, which is hardly two.

    The rise of Uniqlo in the same period was also through the mass production in China and the same SPA (production and marketing integration) mode with Gap, breaking the original complex circulation channels in Japan and rapidly rising in the Japanese market.

    Gap, UNIQLO, and then Esprit and Benetton, which were the most popular brands, provided basic clothing. At that time, these brands were guided by the sales data to make the next quarter's supply, and even Esprit thought that they could not sell goods. Only those who sold the goods did not change their products, which led to the lack of change in products and the gradual fatigue of consumers.

    The second generation of overlords is Zara, and fast fashion is regarded as a case study. Fast fashion can come mainly from the fact that Zara will need fast production to be produced in Spanish or local countries.

    This Gap is unattainable, because the large-scale clothing production in the United States has disappeared, while the efficiency of the neighboring countries is less than that of China, so the collapse of giant stars is irreversible.

    Spain's economy has been lagging behind in Europe, making the cost of Zara not too much, and its hegemony can be retained for a long time.

    The H&M model is not as fast as Zara, but its products will continue to be new, and not limited to the Nordic market, and will have a better understanding of the global market.

    One comparison is that Gap is most concerned about the local market in the United States, and its T-shirt version is basically not suitable for Asian people.

    Maybe there are too many Silicon Valley heroes like Zuckerberg in the United States, but most people in the world are not willing to wear the same grey T-shirt every day.

    Therefore, the founder of H&M and IKEA (Ikea) took the lead in Sweden's richest place. The idea is basically the same, simple, fashionable and cost-effective.

    So, will there be any mess in the future? Will there be a new overlord? I reckon it is Primark, according to the financial data disclosed: this Irish clothing retailer parent company recorded a 133.99 billion billion pound revenue in fiscal year 2016, up 6.7% from 12 billion 800 million a year earlier.

    Primark also entered the US market last year, conquering American consumers by price advantage.

    From the supply side, Primark directly skipped China. The proportion of garments produced in China is very small, which is unthinkable in the past.

    From the market side, Primark is much better than Zara and H&M.

    It will open the largest store in the best location of the city center, and the business hours can be opened from 8:30 a.m. to 10:30 pm, and the price of products can compete with Taobao's "floor price".

    In Britain, two or three pounds can buy a pair of jeans, and three or four pounds can buy a coat. The price of Primark can directly challenge the bottom line of the pound's payment.

    It has been written that the price of Primark can not reduce the price of clothing, but Primark's financial statements show that the company is not only operating normally but also profitable.

    This shows that Primark has truly opened up a new model and opened up a new market, that is, a lower price mass clothing brand market. It can directly face more developing countries, and in developed countries, because of its positioning, a large number of consumers will become their customers.

    In a country like Malaysia, H&M entered only two years ago, which is based on the decision made in the local market research.

    If Primark wants to enter these markets, it will be easier.

    It can be seen that the supply chain pformation has created the overlord of world apparel retailing.

    Among them, China's clothing production has changed the world's apparel retail structure. Now, in the new round of change, China has been successfully skipped by retailers such as Primark. Then, Chinese clothing manufacturers should think more about the way to pform the high-end garment manufacturing industry, or how they will change the world's clothing retail pattern again in the future.

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

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