The Fashion Retailing Industry Will Usher In Oligopoly Era, "Small And Beautiful" Or No Living Space.

Behind the events of Yoox Net-a-Porter, a seemingly unrelated event is a huge change in the fashion retail format. Now fashion retailing is ushering in an oligopoly era, the world's best buyer shop Colette shop.

The fashion industry seems to be more and more irregular, but in fact, the fashion retail format is undergoing profound changes. It will usher in the oligarchy era, leaving little time for "small and beautiful".

Not long ago, Colette, a landmark buyer in Paris, suddenly announced that the news of the end of the year was a shock.

The reason why people are shocked is that the declared permanent closure is not a small buying shop that indulge in self admiration and disdains to have a deep understanding of consumers. Instead, it is Colette, the head of the global buyers' shop and a constant stream of buyers.

In earlier reports, the reasons for Colette's closing were analyzed in detail. It can be said that Colette finally chose to close the store under the combined effect of internal and external causes.

First of all, founder Colette Roussaux decided to retire.

A lot of commentary ignored the difference between Colette and other buyer shops such as 10 Corso Como. The former said they would never set up a branch store, but this was the only one in the world. Although the latter was called "Italy version Colette", it adopted different strategies, and opened branches in Milan, Seoul, Beijing and Shanghai.

So Colette's operation logic is different from other buyer shops. The founder Colette Roussaux and her daughter Sarah Edelman have the power to take charge of store size affairs, especially Colette Roussaux's strong control over financial power, so that this buyer shop is different from other buyers who are eager to expand globally once they have formed their knowledge.

For such a very colorful buyer shop, founder Colette Roussaux has no intention of pferring it to anyone. Therefore, some comments have pointed out that no Colette Roussaux will also have no Colette, and Colette shop is reasonable.

In spite of the current popular practices, the founders can find another CEO who is responsible for the specific implementation. They are responsible for directing the general direction or selling them to large groups, such as Jimmy Choo, which has just found a buyer Michael Kors last week, and its founder Zhou Yangjie and Tamara Mellon have left the brand. Apart from the same name, the founder and the brand have long been out of touch.

Colette Roussaux is clearly aware of the disadvantages of selling the brand, because once acquired, the brand image created by the founder will no longer be controlled by it, but it will even affect the reputation and image of the founder.

The latest example is to sell shares to Marni founder and creative director Consuelo Castiglioni of OTB group in Italy. Her successor, Francesco Risso, is considered to have completely overturned the aesthetic tradition of Marni, attracting many of her followers.

Hedi Slimane, a creative director of Yves Saint Laurent, even changed the brand name to Saint Laurent directly. Her rock style has little to do with the elegant design of Yves Saint Laurent in the last century.

In the purely commercial operation, the main purpose is to stimulate the sustained growth of the brand, and interest is the foundation of decision making.

Therefore, after the founder leaves the brand, all changes are possible. For the founder, it also means the beginning of "losing control".

Therefore, it has been evaluated that the behavior of Colette shop is to rush back, just like a popular movie star suddenly announces the shadow and keeps the memory in the most prosperous state.

Refinery 29 commentator Christina Najjar also believes that

The success lies in its authenticity. Not only does it have 5000 pounds of dresses but also 9 pounds of mobile phone shells, but the two are cool enough, "what Colette does is not presenting a series of dream products, but displaying a series of special products that can tell stories."

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Colette can be regarded as a typical example of "small and beautiful", but the industry is increasingly uncertain about whether the market has left enough room for "small and beautiful".

Behind the founder's decision to retire, Colette is behind the profound changes in the overall format.

Now the physical retail industry is experiencing a huge impact from the online business mode, which is not very strong, and the fashion buyer shop is becoming vulnerable.

Maybe only Colette can be called "small" and "beautiful". WWD data show that Colette 2016's revenue is 28 million euros, and online sales account for about 20% of total sales.

However, according to Sarah Edelman, sales of Colette were severely damaged after the terrorist attacks in Paris in November 2015, and the volume of shops decreased significantly.

More buyer shops are troubled by poor financial conditions, and 10 Corso Como Milan has lost 100 million of its liabilities.

In July this year, the former Italy brilliant buyer shop 10 Corso Como Milan flagship store's building was changed fifth times, and the management situation was worrying.

And in a large number of emerging buyer shops, like Colette, the basic skills of the buyer's shop are enough to achieve special products and display interesting shop buyers.

Browns, a well-known London buyer, was first introduced in 2015.

Farfetch buy it.

Browns, founded in 1970, has a history of 47 years. After being acquired by Farfetch, Browns has become an independent brand operated by Farfetch.

Farfetch's latest "future store" service will also take the lead in Browns.

In China, in addition to Lian Crawford, there are also 10 Corso Como, Maria Luisa and other buyers from Milan, Paris and other places in 2013 quickly stationed in China and expand, but the performance of these buyers shop is not satisfactory.

In May of this year, Triple-Major shop, a local buyer's shop in Shanghai, also announced its closing.

In contrast to the near saturated Shanghai buyer's market, consumers who still do not match the buyer's shop model are still in the market.

Even a few well-known buyers, the profitability is not so impressive.

It is noteworthy that, despite the capital strength of the domestic women's clothing, hitji international, as a partner, the 10 Corso Como also ended in Beijing, China. In February, it closed the store in Beijing SKP due to serious losses.

The change that the fashion industry is experiencing is structural, and the shopping habits of consumers have changed a lot. The wave of the new technology wave is no longer something that individual power can resist.

In sharp contrast to the depressed situation of physical buyer shops, it is the crazy growth of luxury online retailers.

According to the latest 2017 first half financial report of the world's largest luxury goods supplier Yoox Net-a-Porter (hereinafter referred to as YNAP), its first half sales exceeded the 1 billion euro mark for the first time, a record high.

Let's take a look at the latest performance data of YNAP. In the 6 months ended June 30th, YNAP sales surged 15.3% to 1 billion 30 million euros, and net profit rose 9.3% to 20 million 600 thousand euros.

Among them, YNAP's second quarter sales rose 15.2% to 519 million euros.

The report shows that, thanks to Net-a-Porter and Chlo's special series, Mr Porter and Gucci and Tod's cooperation series, Net-a-Porter and Mr Porter's multi brand sales in the quarter grew 12.8% to 553 million euros, accounting for 53.5% of total sales.

The multi brand sectors, including Yoox and The Outnet, rose 19.9% to 381 million 700 thousand euros, accounting for 36.9% of total sales.

During the period, Yoox launched an exclusive series with Bianca Balti, Fausto Puglisi and Arthur Arbesser. Outnet has launched Stella McCartney, Roberto, Outnet, and Puglisi.

The online flagship store, including Giorgio Armani and Valentino, grew by 12.2% to 95 million 500 thousand euros in the first half of the year, contributing 9.6% to total sales.

During the period, YNAP grew in all business sectors in the Asia Pacific and North American markets. Driven by strong performance in Hongkong and Mainland China, sales in the Asia Pacific region surged 29.9% to 178 million euros in the first half of this year.

The group CEO Federico Marchetti was satisfied with the results of the first half of the fiscal year at a conference call, and revealed that the luxury car brand Ferrari will start in 2018 to set up an online flagship store in YNAP.

In the first half of this year, the group's online sales platform achieved 394 million visits, compared with 343 million in 2016, 3 million in active customers, and 2 million 600 thousand at the end of June last year.

In addition to YNAP, Farfetch, which recently entered into partnership with Kangtai Nash group, is also strong. The domestic electricity giant Jingdong spent about $400 million last month to become its largest shareholder.

ASOS, Boohoo.com and other fashion business providers also have a discount and efficient mode to impact the fast fashion brands such as physical shops, even ZARA with physical shops, and become the spoiler and subversive of the traditional fashion industry.

However, some analysts predict that online luxury and fashion products also have their own ceiling, with a maximum market share of only 20%.

Many views therefore believe that the spring of the physical shops will always come back, and consumers will return to the physical shops only a matter of time.

Some consumers have indeed shown a tendency to return to physical store consumption. However, the potential danger of this view is that future consumers will not be the players in the old pattern, but the new oligopoly with more technical ability and more capital to realize "new retail".

More importantly, under the innovation of technological conditions, barriers to the fashion industry will be forced to open.

This industry, which has always been willing to shut itself in fashion circles, is now facing a big reshuffle of its industry pattern.

Due to the invasion of more external competitors, such as Amazon, Jingdong and Tmall, the traditional fashion retailing industry can be described as internal and external troubles. The competitors will not only be the online platform appearing in the industry, but also the giant global electronic business platform of the Big Mac. The latter's ambitions for retail sales are just showing.

Unlike many years of physical shops, the savage growth of e-commerce platforms is rapidly enriching their wings and strengthening their technological capabilities.

YNAP continued to increase its investment in technology and operational capacity this year. In the first half of this year, capital expenditure amounted to 80 million 200 thousand euros, compared with 48 million 100 thousand euros in the same period last year.

The group is consolidating its technological capability, including artificial intelligence, and has opened a very futuristic technology center in London. As of the end of the year, the group will open new offices and distribution centers in Dubai, and expand its capacity in Bologna's Interporto logistics line, while continuing to set up a logistics hub in Milan.

Moncler has also become the first brand to enter the new platform based on AI data.

According to YNAP earnings data, the group will continue to conduct full channel construction to further strengthen the mobile terminal. In the first half of the year, mobile terminal revenue has exceeded PC, accounting for more than 50% of total sales.

Under the impending line of impact, the new "new retail" oligopoly player is most likely to have a big data fashion business, rather than a retail entity in crisis.

Farfetch's "future store", Amazon's Amazon Go supermarket, Alibaba's unmanned supermarket, the experience shop of the Chinese fashion business Temple store, the electricity business test water entity retail seems to be more daring, but the entity shop wants to win the market space on-line but has many difficulties.

How to maintain growth in a difficult retail environment is not a simple problem.

20 years of Colette will be closed, and YNAP's performance will be a record. Behind the seemingly unrelated events is fashion.

Great changes in state.

The fashion industry is becoming more and more oligarchic and centralized. YNAP can impact on Colette, and Amazon can also become a competitor of ZARA. The oligarchs can expand the market share on the ground, but "small and beautiful" may not have room for survival.

For more information, please pay attention to the world clothing shoe and hat net information report.