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    The Latest News Of The Fast Fashion Brands Has Become The Biggest Winner Of The Chinese Market.

    2017/6/1 11:49:00 79

    GapUNIQLOH&M

    According to the world clothing shoes and hats net,

    Gap

    Last week, the group released its first quarter earnings report in 2017. In the 3 months ended April 29th, group sales were basically flat 3 billion 400 million US dollars in the same period last year, while net profit rose 12 .6%, but sales in Asia, including the Chinese market, recorded the biggest drop.

    H &M also released the group's April results in May, with sales up 7 yoy% year-on-year, but lower than the annual growth target.

    and

    Uniqlo

    In the first half of the 2017 fiscal year, the parent company showed that although sales increased by only 0.6%, the pre tax profit growth was nearly 80%, and the performance of the mainland and Southeast Asian markets was particularly strong.

    ZARA has not yet released its latest earnings report in 2017, but in its 2016 earnings report as of January 31st this year, its revenue and profits showed double growth, but gross margins fell to the lowest level in the past 8 years.

     Gap

    Four fast fashion brands have different performance.

    Gap group released the first quarter 2017 earnings data show that group sales basically flat with last year's record of 3 billion 400 million U.S. dollars, profits rose 12.6% to 143 million U.S. dollars.

    As the most important indicator of retail sales, the same store sales have improved significantly, compared with the same period last year, a 5% increase of 2%.

    From the perspective of the whole group, sales in North America and Canada increased by 2 .8% over the same period last year.

    However, sales in Europe were reduced by 13.3% due to the weak tourism industry caused by terrorist attacks.

    The largest decline in sales in Asia, including the Chinese market, fell by 20.5%.

      

    H&M

    Released in April, the core financial data show that, according to local currency, group tax revenue sales in fiscal 2017 fiscal year increased by 7% compared with the same period last year.

    As of April 30th, H &M group had 4474 stores worldwide.

    There are 10 new outlets in mainland China, including Ordos, Yinchuan, Dongguan, Yiwu, Xi'an, Dazhou, Weihai, Xianyang, Xuzhou and Yibin, with a total number of stores reaching 405.

    The annual growth target of H & M is 10%-15%, and its CEO has said that according to the current sales trend, it is difficult to achieve this goal.

    UNIQLO's parent company announced the first half of fiscal year 2017 from September 2016 to February 2017.

    The results showed that the sales performance during the financial period increased by 0 .6% compared with the same period last year, and the gross profit margin increased by 1.5% over the same period last year.

    However, the pre tax profit of the company achieved a big leap forward growth, which was nearly 80% higher than that of the same period last year.

    In the earnings report, the mainland and Southeast Asian markets were particularly strong.

    The growth of China's market performance is attributed to the improvement of gross margin and the improvement of sales and administrative expenses.

    UNIQLO noted that sales in the Greater China region were growing rapidly, but no specific figures were given.

    In addition, the growth of electricity supplier sales has reached two digits.

    Zara's parent company, Inditex SA, the world's largest clothing retailer, has released its core financial data for the 2016 fiscal year, although its sales performance is strong, but gross profit margin has dropped to its lowest level in the past 8 years.

    From 57.8% last year to 57%.

    However, it can be seen from the figures that gross margin has indeed declined compared with ours, but it still performs well compared with the industry level.

    UNIQLO's future performance in the Chinese market continues to look good.

    "I personally believe that Gap has shown a trend of decline and decline."

    Roland Begg, global partner and vice president of Greater China, Chen Ke, an international management consultancy, said in an interview with Nandu that Gap was the first brand that came along with the economic recovery of the United States.

    According to its brand strategy, Gap is positioned as a high-end brand, and its other brand Old N avy is positioned in the middle and low end to drive more consumers and generate more purchase aspirations.

    "But the problem is that the Chinese market is no longer the US market in the early years.

    The image of Gap makes people feel more like a brand bought after 70, but now 85 or 90 are not willing to wear the same clothes after 70.

    In addition, the price of the brand is not low, and there is no advantage in horizontal comparison with other fast fashion. Generally speaking, there is no obvious bright spot.

    Relatively speaking, UNIQLO's performance in the Chinese market is commendable, and even its future performance has been well looked at by analysts.

    Chen Ke said that UNIQLO's clothes are famous for its simple basic funds, and the overall quality is good, and the cost performance is also high.

    Besides, some design elements have been added to meet the demand of some people for fashion.

    "Consumers are actually dependent on such high-quality, cost-effective products, and there is also demand for basic funds.

    These two aspects of UNIQLO are very outstanding.

    This is something that can't be replaced by some brands and designer brands.

    As for the decline in ZARA profit margins, Chen Ke believes that it is understandable.

    "The reason is that in the past few years, the brand has won a small amount of money and quick response.

    But with the development of e-commerce, the emergence of some small brands and designer brands has led to the fact that the advantages of ZA RA are no longer so prominent.

    It has to increase the discount rate or increase promotional activities if it does not change greatly in the average price tag.

    In addition, Chen Ke also said that the target consumers of fast fashion are young, while younger customers are accustomed to the way of shopping by electricity providers to some extent. They are more sensitive to price. Under such circumstances, ZA RA can hardly stimulate consumer demand if they do not engage in some activities.

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

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