Fast Fashion Performance Is Generally Weak, How Soon?

According to the world clothing shoes and hats net, today's world, the industry recognized the largest four.

Clothing brands are headed respectively.

Its parent company is Spain.

SA; H&M, which was born in the European region, belongs to Sweden's Hennes & Mauritz AB group; Japan's UNIQLO UNIQLO, its parent company sells fast (Fast Retailing); the United States old fashion brand GAP, its parent company is the GAP INC. of the United States.

"The four big", even though they repeatedly propagate and emphasize their own brand and product style, are actually running the business in a similar way. Simple and simple materials, the prices of civilians, the rapidly updated styles, the design of young and fashionable, the laying of expansions, the fast turnover of inventory, and the strong supply chain alliances, in essence, belong to the traditional clothing chain retailers because their business is restricted by the operation of physical shops.

Fast fashion is not only fashion, but also the speed of expansion.

However, fast fashion has expanded rapidly around the world, and its "speed sequelae" began to appear. ZARA, H&M and uniqo are generally weak in 2016.

The collapse of GAP, 2016 of the weakness of uniqo, is raising the same question:

How fast can fast fashion be fast?

First, the four heavenly kings' "winter"

Good flowers do not bloom very often.

When you leave tonight, come again.

Teresa Teng's coming again

The competition between ZARA, H&M, UNIQLO UNIQLO and GAP four fast fashion brands is actually a comprehensive competition between the parent group in product design, market pricing, customer identification, channel laying, supply chain management, global market, e-commerce and fabric technology.

At present, the number of "four big" stores in China is ranked as UNIQLO, H&M, ZARA and GAP respectively.

Perhaps the whole fast fashion industry will not forget the "cold winter" that has just passed. The year when it can be called "fast fashion" has fallen into full swing. It is also the year when "fast fashion" is the most challenging voice and reflection.

The sudden difficulty began in the winter of 2015, a warm winter in the whole world.

"Climate change, warm winter, massive overstock in winter, excessive discount and inventory clearing lead to gross profit".

"OEM mode and distribution system are being tested, quality problems are exposed, fast fashion inspection is required, and repeated quality supervision blacklist".

"Cheap, homogenous design, poor quality, and overwhelming shops become the reasons for tired of fast fashion brands".

1, ZARA

Inditex SA, the parent company of ZARA, gained 23 billion 300 million euros in the fiscal year of 2016, with a growth rate of 12%, but the growth rate slowed down significantly, while gross profit margin dropped by 0.8% compared with last year, the lowest in 8 years.

This is the negative impact brought about by the large discount of products.

2, GAP

The total sales revenue of GAP in fiscal year 2016 dropped by 1.8% compared with the 2015 fiscal year, and recorded a total of 155.16 billion US dollars.

Net profit was only recorded at $675 million, a decrease of 26.5%.

The group has suffered a 7 consecutive quarter of revenue decline, and a continuous decline in net profit since 2013.

In 2016, its flag brand announced its full withdrawal from the Japanese market.

3, H&M

In the 2016 fiscal year, the gross profit margin of H&M decreased from 59.5% to 55.2% before 5 years ago, and the operating profit rate decreased from 18.01% to 12.4%. Two indicators all reached the lowest level in the past five years, but raised the level of online e-commerce sales to 25%-30% level.

In the 2016 fiscal year, H&M opened the first place in the country, opened a new 91 store, and added a new store on an average of 4 days.

4, UNIQLO UNIQLO

The sales revenue growth of UNIQLO UNIQLO parent XXX group in 2016 slowed down significantly, from 21.6% to 6.2% in 2015, and net profit plunged 56.32% to 48 billion yen.

The time when the parent company's 9983.TYO sold in the Japanese market reached a peak rate was basically consistent with the unsalable events in the winter of 2015.

The difficulties that emerged from the winter of 2015 to the middle of 2016 were most evident in UNIQLO UNIQLO.

These difficulties, besides the climate factors that the whole industry is facing, have also played a significant role in decision-making errors. The decision-making level of the parent company of UNIQLO implemented the strategy of "product price increase" based on the devaluation pressure of the yen exchange rate in fiscal year 2014 and fiscal year 2015; secondly, the improper management of the rapid expansion of stores and the runaway of inventory control, the sudden increase in operating costs, and the slow inventory after inventory backlog.

Finally, the involvement of other global brands is negative.

These cumulative negative effects, with a sudden warm winter, concentrated on the outbreak. An interview employee described the scene at that time: "almost every shop has been filled with stock, the shop is cold, and consumers are indifferent to the discount stimulus".

At that time, the management adopted a sharp reduction in sales prices, strict management costs, clenched teeth, and continued to quickly open new stores to help consume inventories, while using domestic online sales activities to achieve full channel "flood discharge".

This winter, it's a bit cold.

The strategy of fast fashion has been invincible in the past 10 years. However, the scale is always inversely proportional to the speed. But when the giants are bigger and bigger, can fashion be fast enough?

Our closest UNIQLO provides the best analysis sample:

Two. The danger and danger of UNIQLO

In October 12, 2017, Fast Retailing, the parent company of UNIQLO, announced its performance in fiscal year 2017. By the end of August 31, 2017, the company achieved an operating income of about 1 trillion and 860 billion yen, an increase of 4.2% over the same period last year, operating profit of 176 billion 414 million yen, an increase of 38.6% over the same period last year, and the net profit of the parent company should reach 119 billion 280 million yen, up 148.2% from 6288.HK.

This performance has reached a record high, which has given investors a lot of surprises. The performance of the 2016 fiscal year is simply "declining to the point". After a year, it turned out to be a strong "salted fish". In addition, the fast growing UNIQLO store data made the management more heroic, and vowed to win the "iron throne" of the world's first clothing sales enterprise.

On the day of the resumption of trading, the 6288.HK of the fast selling group rose 8.79%, the highest increase of 16.56%, and the rapid sale of 9983.TYO (9983.TYO) on the Tokyo stock exchange, which closed up 5.5%.

On the basis of the ownership interest of each 0.01 Hongkong fast forward securities listed on the Tokyo Stock Exchange ("East Exchange"), the paction price in Hongkong is about 1.99% higher than that in the Japanese market when considering the ownership of the listed shares of the Tokyo Stock Exchange ("East Exchange").

In March of 2014, the fast selling group of UNIQLO parent company made the second listing on the main board of The Stock Exchange of HongKong Limited (Hongkong stock exchange) in the form of HDR.

The listing of pre depositary securities does not involve issuing new shares or placing old stocks. Listing is mainly to gain popularity, so as to implement the marketing strategy for developing the mainland market.

After so many years, the popularity of its main brand, UNIQLO, is indeed increasing in China, and the number of stores is increasing. By the beginning of October 2017, a total of 561 branches (official website statistics) have become the largest number of foreign clothing brands in China.

The "double eleven" activity of the annual electricity business event is approaching. UNIQLO has ranked first in the clothing sales of Tmall mall in the "double eleven" activities for two consecutive years. In 2016, it was a record of less than 10 hours of inventory being cleared.

Nowadays, the clothing brand of UNIQLO is quite different in the capacity and monthly sales volume of Tmall mall.

It is believed that the sales champion of clothing category should continue to be hit in the "double eleven" ceremony in 2017. There should be no suspense. How much new sales can be created by single day sales can bring many expectations and surprises to investors.

This is also the reason why I think the 6288.HK is pleasantly surprised.

Management's rapid response to the crisis and implementation of UNIQLO Fast Retailing's performance quickly reversed in 2017.

As if the crisis has passed, there is no threat. The actual growth in performance has proved to encourage management to continue to stride forward in the past direction.

The lyrics of Teresa Teng's "coming again" quoted in the beginning are in turn understood. For the rising industry development (the industry space is not yet saturated), the bad year is not always seen, and it will come and go quickly, but does it mean that "cold winter" will not come again?

Next, I would like to analyze the potential threat of 6288.HK, which may be more difficult than we think. Next, if we want to continue to achieve good results, we may have to consider the following problems.

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1, saturation or saturation!

1) local market

According to the results of the 2017 fiscal year of the parent company's fast selling group, the sales in Japan almost stagnated. In the first half of the year, the revenue of 455 billion 100 million yen was only 0.3% increase compared with that of the whole year, while the total revenue of 810 billion 700 million yen increased by only 1.4% over the same period last year. The growth rate of this year's growth is slower than that of the two digit number over 10% years. From this point of view, you know that saturation is actually occurring.

In Japan, the number of stores in UNIQLO has been around 840-850 for a long time, so it is difficult to increase sales through opening stores.

Online e-commerce sales increased by 15.6% over the same period last year, accounting for 6% of total revenue.

In this way, we can analyze that in the case of no increase in customers, the promotion of the proportion of network sales is only the pfer of customary consumption in physical stores to online consumption. For Japan, the experience of saturated market is that the online and offline business is a long way to go.

In the future, even if the proportion of network sales to the level of reference can be increased to 30% according to the group plan, it will only take customers from the entity to carry out online sales, and where will the new customers come from? The physical stores will be reduced to the goods collecting, experiencing and changing the size channels. Compared with these functions, the expensive rental cost under the line will be wasteful and inefficient.

2) overseas market

From the point of view of business, if the Chinese market is saturated, other mature markets will also be done. If the Chinese market is not saturated, it will be enough to focus on the Chinese market.

Therefore, the author thinks that the situation of the domestic market should be emphasized.

At present, there are more than 1000 overseas UNIQLO branches, and the parent company's sales management plan is 2020, doubling this figure. As early as October 2017, UNIQLO has operated 561 stores in over 120 cities in 29 provinces of China's mainland (including municipalities and capital cities).

It has already reached the speed of opening 100 new stores a year, but according to Pan Ning, head of the Chinese District of UNIQLO, its policy is to speed up the pace of laying shop in two to three years in order to achieve the goal of 1000 stores in 2020, that is to say, the average data in the next three years will be increased by about 40-50% compared to the existing shop opening rate.

Perhaps the optimism of Japan's headquarters management has nurtured the upper level of the whole company, even though it has not shown any concern in the face of the saturation of the Japanese market. The situation in the Chinese region really appears to be "very small." Pan Ning said: "the number of the middle class in China is still expanding, and UNIQLO has more than 850 stores in Japan, yet it has not yet reached saturation point.

China's land area is 20 times that of Japan, so it is impossible for China to reach the so-called critical point in the short term.

However, from the statistics of the newly opened stores in the first 1-6 months of 2017, there are only 35 new stores opened by UNIQLO in China. The actual speed may not be in line with the group plan, and there is still considerable pressure in the second half of the year.

From the existing distribution point, the author has studied the potential second tier cities. Mature or more mature commercial areas, crowded shopping centers and business circles have basically been completed. Perhaps it is difficult to maintain at least 100 new figures per year.

The future probability will continue to expand in the second tier cities by "flagship store" or choose to go directly to the three or four tier cities more directly than the other three brands.

It is worth pondering that the success of UNIQLO UNIQLO in China over the past 6 years has reached 561 stores. Is it not related to the development of commercial real estate in China since 2010? As a tool to attract people and attract family consumption, UNIQLO UNIQLO can always meet the needs of owners of Mall Stores for mutual benefit.

Today, the commercial and commercial real estate of a second tier city is basically finalized, and it can no longer achieve the simple strategy of shopping mall to UNIQLO.

The location of the commercial city (600306, stock bar) and business circle of the three or four tier cities is different from that of the second tier cities.

The competition between the three or four tier cities is definitely a hard nut to crack.

The analysis of consumer goods and retail centers of Roland Begg management consulting firm "in the Chinese market, the more the two or three tier cities sink, the local consumer demand and acceptance may not be enough to support such expansion speed, and the consequent result is the cost increase caused by expansion, and the profit margins and single store performance."

A and clothing leading companies have been retreating from the second tier cities to the three or four tier cities to realize the strategy of encircling the cities.

The reputation of the United States is still alive, and Semir is one of the best. Giordano's first half of 2017 has proved that the shift of business focus has achieved initial success.

The brand recognition of B and three or four tier cities to UNIQLO is far less than that of the famous brands in China.

Hai Lan's home (600398, stock bar) never depreciates, mainly in low-end men's clothing, and the main opening shop market is mainly in three or four line cities and below some township areas.

The company found its main consumer here.

C, the newly established fast fashion brand in China recognise the facts and directly seize the opportunity in the three or four tier cities.

International brands begin planning expansion plans two or three years after entering the Chinese market, but they need to investigate the Chinese market first and then discuss with the company headquarters, so the local brands react faster and better grasp the needs of the local market.

International fast fashion brands can not be directly grafted to the three or four tier cities by selling experience of a second tier city, because the consumption level, consumption habits and consumers' cognition of international brands in the two regions are quite different.

The most representative brand of domestic cutting-edge brands is MJstyle.

MJstyle has said that it can compete in the three or four line market with the international fast fashion brand, and its price advantage and service advantage lie in it.

In 2016, MJstyle ranked the first fast fashion brand in China with 101 new stores. In the first half of 2017, it continued to rank first in 37 new stores.

The speed of expansion is far higher than that of the 68 H&M2016 in the same period and the 21 in the first half of 2017, which is also higher than that of 53 in 2016 and 2017 in the first half of 2017.

From 2006 to the first half of 2017, the analysis results of domestic new stores show that, compared to UNIQLO UNIQLO continues to insist on expanding the stores in the second tier cities, more than 30% of H&M's newly opened stores have chosen to test the water in the newly opened Commercial Plaza in the three or four line cities.

(Note: MJstyle, the parent company of Shanghai, is a joint venture invested by Ping Hai real estate investment and IDG capital. It was founded in 2011. It takes an independent young route, mainly in Europe, America, Japan and Korea, and attracts a large number of young fans with the localization strategy of Japan and Korea fashion and fabrics.

Single product launches more than 3000 items in one season, and there are new products every Tuesday. Consumer stickiness has been maintained at a high level.

)

2, up or down? Is it fatter or lighter?

Fast fashion brands have always been targeting the trend of civilian consumption and the ordinary people can also have their own products. The product has been updated rapidly, and the old products have been adopting the strategy of price discount sale to speed up their stock taking. In addition, fast fashion brands with similar designs and converging categories have been repeatedly forced by consumers to compete for low prices.

So in the minds of consumers, they have been labeled with low price, homogenization and discount promotions for a long time.

In view of this, the parent companies of the four major brands have changed the positioning of consumers through their new brand models to enhance brand identification, enhance the viscosity of consumers, change consumers' habitual thinking, and prevent competitors from falling into a simple price competition to reduce gross margins.

The strategy of Hennes & Mauritz AB, the parent company of H&M, is to set up a new mid end and high-end brand to improve the overall sales price, and try to reverse the consumer's impression of the low price of branded products.

Among them, the H&M Studio series launched by H&M brand is an evidence of steering.

As early as 2007, H&M's parent company Hennes &Mauritz AB set up a sub brand COS, taking a simple and practical high fashion fashion line.

Minimalism and frigidity are important signs for distinguishing other brands, and the average price of products is more than twice that of H&M.

It enjoys a high reputation in designers, artists and fashion circles.

The positioning of Other Stories is a light luxury accessory line between H&M and COS. It is more stylish and fashionable than H&M, and it is not as cool and artistic as COS. It is mainly aimed at fashionable and simple urban women. Compared to other brands of the group, the price range of Other Stories is from $10 to $400, which is more reasonable than that of high-end brand COS.

The parent company Hennes & Mauritz AB announced the establishment of eighth new brand Arket after the announcement of its first quarter results in 2017 years. It is the third high-end brand within the group. The main brand is "classic style". It has worked hard in terms of fabric version and quality, and has taken the concept of "anti fast fashion" to dominate the brand.

Compared with H&M and its parent company's continuous development towards the high-end line and the way of thinking, UNIQLO UNIQLO and its parent Retailling (Fast Retailling) have chosen to embrace more grass-roots consumers and set up a sub brand GU excellent.

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Fast Retailling announces the 2016 fiscal year's earnings report. Ryui Masa, chairman of the group's board of directors, said that the group will vigorously develop fast fashion brand GU in the future, making it the second largest brand after the UNIQLO of UNIQLO.

Although UNIQLO UNIQLO is known as "parity", the average selling price of GU is 30% to 40% cheaper than that of UNIQLO, and the material usage is more "ordinary". Unlike the unidirectional UNIQLO, which is a practical and comfortable style, GU is keeping up with the fashion trend, and timely sells the "seasonal products" to cater for the "quick replacement" habits of certain consumers.

The main selling targets are students who are not yet able to afford their spending, workers who are working in the early stage and young women who change clothes quickly.

However, in the course of GU's practice, it is found that its very low price attracts the middle-aged housewives, mothers and teachers in Japan.

GU's CEO teak governance, "the company has set long-term goals for the next ten years. Our sales target is 1 trillion yen. GU will not be just an ordinary company."

GU has 350 local stores and 11 stores overseas.

XXX group plans to have 50 overseas GU stores in 3 years, and increase the number of overseas stores to 1000 in ten years.

It can be seen that Fast Retailing is trying to copy the path of the growth of UNIQLO UNIQLO to the sub brand GU. GU excellent is actually a castrated version, a price reduction version, and a low profile version of UNIQLO UNIQLO. The homogeneity tends to be serious, the brand differentiation is poor, and the two boundaries are blurred.

The growth of xungang group will depend on the growth of the channel and the continuous capital expenditure of the store. With the rapid expansion of the new shop, it is inevitable that a certain amount of stock will be set up in the physical store. Will the bigger bulk Fast Retailing be faced with greater risk once the inventory control is mishandled? Will the sub brands with strong price independent development affect the crowding out effect of the main brand UNQLO?

3, digital pformation or digital channels?

XXX said its business strategy is focused on upgrading the company's "globalization" and "digitalization" level. The goal of the future is to increase the electricity supplier's proportion from the current 5% level to more than 30%, and enhance the consumption experience through all channels.

In fact, the key policy of the group is still to speed up its occupation in the Asia Pacific region and explore in Europe and America, that is, increasing the number of shop outlets is a direct goal.

Insiders have commented that "UNIQLO's adherence to offline business is very consistent with its positioning of the electricity supplier."

According to the author's experience and research, through the use of four brands of China's official website found that, in fact, UNIQLO did the best, the most popular ground, in line with the local consumers shopping habits on the website, but fast Marketing Group on UNIQLO's network sales focus on Taobao's Tmall mall, did not drain customers or accustomed to their own official website consumption.

And its sub brand GU is not even in the official website of China. The official website of the imported brand is directly pferred to Tmall's flagship store of GU brand, so the focus of its operation is not here.

On micro-blog, UNIQLO has more users' attention than the other three, forming absolute advantage.

The mobile phone client, the four brands of official APP shopping experience is very poor, no one satisfied with the author, frankly feel that the "four big" missed many business opportunities brought by the mobile Internet era, and these opportunities will be left to other competitors to create potential threat to them.

The author only intuitively thinks that it is not a Tmall flagship store that represents a network sales capability. Instead of being a APP, it keeps up with the mobile Internet era.

Evidence shows that these fast fashion giants seem to lack the thinking of the Internet, especially the "user thinking" under the Internet era, and are accustomed to making decisions with the traditional "product thinking". For the time being, they do not see the existence of the "cause" in the Internet and mobile Internet.

The author is particularly puzzled. In fact, UNIQLO has already done a good job in this field in China, and has done a good job. The number of fans who have been trained and accumulated is also far ahead of the other three. It has initially pformed into a strong Internet sales company with both online and offline businesses. Why not take the market here as a test field for pformation, and invest a lot to catch up with the network and increase the occupancy rate? Maybe it is the decision maker's inertia management thinking. Maybe there are many reasons.

4. Curse of the winner of Winner's Cruse!

In the 2015 fiscal year, Fast Retailing published a medium-term vision that it would achieve sales of 5 trillion yen in 2020, more than ZARA parent Inditex SA (ITX.MC) and H&M parent Hennes & Mauritz AB (HMb.ST), becoming the world's largest apparel manufacturer and zero seller.

After 2016 financial year setbacks, it reiterated in its annual report that keeping the goal of becoming the world's first apparel manufacturing retailer remained unchanged, but reduced the sales revenue target in 2020 to 3 trillion yen sales revenue.

In the 2017 fiscal year, the medium-term vision announced after a record high performance is that as a "digital consumer retail enterprise" to become the world's first apparel retailer, we are committed to expanding the overseas UNIQLO and GU leisure fashion brand business to achieve this goal.

Here is a story. When Ryui Seiso was interviewed, he was asked, "why do we always set the goal of winning the world's first goal for Fast Retailing?"

He explained: "it was because when he was a child, his strict father didn't praise him very much. He often rebuked him for all sorts of trivial problems. He always taught him to" be the first and the first to be able to do everything ", and as a child, he always expected to be praised by his father.

Ryui Masa, who was born in 1949, is already 68 years old. He plans to retire in 2 years, so the idea of personally realizing this desire should be stronger and stronger.

Those who understand the boss's mind may be more aggressive in expansion and seek opportunities for promotion.

This is human nature.

In short, in the medium-term vision of fast selling, we see that the path to achieve this goal is to expand faster than rivals in overseas markets.

The train of thought is also very simple, and the sales of shops are also increasing, and the sales of stores are increasing. The number of stores is reduced, which is far away from the target, and it can be done directly. The 2017 fiscal year is only 1 trillion and 860 billion yen. By 2020, it plans to sell to 3 trillion yen, and the compound sales growth rate reaches 20%. As mentioned above, the author has mentioned that in China, the UNIQLO of the UNIQLO scheme can open 1000 stores in 2020, that is to say, the average data in the next three years will increase by about 40-50% compared to the current opening rate.

If this kind of expansion plan beyond the past peak is not considered to be too radical, then it is not necessary to question roughly the way to achieve personal desire by way of rapid obesity.

The author directly judged that such a path that has been maintained by Xun has made it possible for the opponent to win even if he wins. The crown will be very heavy, and the process of lifting it will be very exhausting.

Qin had Wu King, who died when he lifted the tripod.

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Three, fast fashion invisible opponent

Traditional enterprises are suffering from the "dimension reduction" attack of Internet companies, which has become an indisputable fact.

The "invisible" of the author does not mean that they do not know or do not pay attention to these new competitors, but express that the two do not compete on the same dimension, though they do not directly conflict, but they can increasingly be threatened or restricted by the direction they have entered.

The siege is the most direct feeling for me.

It may not necessarily be a threat to Fast Retailing, but in this era, a garment manufacturing giant rooted in the Internet or mobile Internet will surely be born.

Who will harvest these traditional chain store giants?

1, ASOS: super fast fashion

A new force has sprung up. In recent years, Europe has been called the "super fast fashion" mode. Under this mode, ASOS is the most famous brand. Unlike traditional clothing chain retailers, ASOS is a pure Internet business enterprise.

Through the Internet to get all kinds of information about fashion trends, or "copy" big brand design inspiration, the ultra fast fashion brand can constantly update products, and promote the frequency and probability of consumers shopping.

ASOS has more than 4000 new products per week, which can produce products in 2-4 weeks, while ZARA and H&M are 5 weeks, while traditional retailers are 6-9 months.

Short inventory, on-line replacement of goods, "zero seconds" close to fashion.

These data alone have rolled out all fast fashion brands.

This ultra fast fashion mode can not only cater to the needs of consumers, but also avoid the defects of traditional retailers: the shortage of products or the drop in profits and profits due to overstock.

ASOS will first design small quantities of products and conduct market tests to determine the needs of the market.

If the market reacts well, it will generate more products at a very fast rate.

Here we see a possibility, "if you are quick, I am faster than you".

2, NetEase strict selection: the same manufacturers, lower prices

To understand Yan Xuan, we first need to know what the ODM business model is.

The manufacturers cut off the intermediate links and sell them to the consumers directly, while the Internet provides an intermediary platform, which is the ODM business mode.

To put it simply, using the international brand name of UNIQLO and Muji as an example, some manufacturers who have undertaken UNIQLO and Muji production orders in the past (OEM), because of the accumulated experience in past cooperation, have mastered the technology of production and design, and can directly produce the version of "similar" but not OEM and quality products.

Internet companies provide platforms for manufacturers of finished products with mature and complete production design, so that they can directly connect consumers.

These products are made from the same manufacturers and materials as the well-known brands, but the final selling price is the 1/ 2 of these brands, even close to 1/10.

Why did the fire rise? I believe you can find many explanations and understandings on the Internet.

Some people think that they rely on the NetEase network platform. Some people think that the experience is very good for customers. Others think that the manufacturers who choose strictly are representative. Others also praise the integration ability of the strict selection team.

The world's leading new economic industry data mining and Analysis Agency AI media consulting has evaluated NetEase's strict selection mode: enjoy the quality of low price.

Here I see a key noun: quality.

Ding Lei once said that he decided to make NetEase a brand, but not a platform.

Because only by making a decision to build a brand can we penetrate and monitor the whole process and ensure the quality.

Quality products and cost-effective products are recommended to consumers through their own internet platforms.

The depth of participation in the commodity supply chain and the pursuit of strict standards or high requirements in every link is the value of NetEase's strict selection.

Rather than strict selection of qualified manufacturers to provide ODM, it is better to be strict in the production design process of these manufacturers. Finally, the brand is "strictly selected" and sold on its own network platform, thus forming a mode of "self production and self sale".

Here, we see the possibility that if a garment with the same material is sold for 169 yuan in UNIQLO, it will sell 99 yuan in NetEase's strict election. The difference is that one brand is called UNIQLO and the other is called Yan Xuan.

Will rational consumers try once?

3, Yamada Toshio: slow fashion, high quality.

In Japan's local clothing industry, an enterprise star appeared: Yamada Toshio, who founded Japan's first Japanese made Internet brand Factelier.

The word "Factelier" is etymological "factory" and "atelier", meaning the combination of factory and studio.

Born in 2012, the factory direct delivery mode based on virtual and real integration, Factelier is already a new Japanese garment industry with an annual turnover of over 1 billion yen. In 2017, the sales growth was expected to reach 300%.

I believe that I will feel a little bit impressed by the author's description of NetEase's strict election. Yes, in fact, he used the ODM business model.

Paying attention to interaction with customers makes the repurchase rate exceed 50%, while only offering a small experiential shop under the line as a customer's service point, and buying goods will operate on its official website.

Yamada Toshio once expressed his differences with UNIQLO UNIQLO during his visit. In his eyes, UNIQLO sold ordinary quality merchandise at a low price, and the department store sold fifty thousand yen merchandise. UNIQLO could sell fifty thousand yen by cutting costs, and it could still make profits.

What he is going to do is to sell a clothing that can be compared with the quality of high-end high-end department stores. He describes it as a process of "value creation", that is, when consumers pay fifty thousand yen, they can buy clothes worth one hundred thousand yen in department stores.

He thinks consumers need not have too many clothes, but they must have several good clothes that can last for a long time.

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UNIQLO UNIQLO may provide Mr. Yamada Toshio's best quality merchandise, which is "high priced" (relative to UNIQLO itself) with high added value, but UNIQLO is no longer the original UNIQLO.

Here we see the path of upmarket's upmarket brand, and the upmarket market has been dominated by the new business model of the emerging enterprises.

Four, conclusion

The author has carefully studied the trend of the listed stocks of the four fast fashion brands belonging to the past few years, and summed up the characteristics. In the past, the market looked at the ability of these traditional clothing retailers to expand. Due to the recognition of the fast fashion business mode, as long as they could continue to grow in sales, there was no big problem with the product and inventory turnover, the scale was expanding, capital expenditure was in continuous use, and efficiency was maintained, which basically recognized the rise of its stock price. The estimation of its value was essentially an estimate of the number of stores, growth of sales, or the degree of saturation of the industry market space or industry, which had nothing to do with the proportion of net profit.

In the future (or beginning), the market is becoming more and more saturated, more and more will be returned to consider. If we can get a considerable proportion of net profit in the traditional business mode, whether traditional enterprises can face the impact of Internet clothing enterprises, and whether they can pform themselves into a new mode that combines Internet channels and entity stores.

No matter what path, we will make a breakthrough in the pformation of formats. How to make these traditional enterprises lighter, faster, more effective and less risky to operate is the comprehensive requirement of this era.

The current PE of 6288.HK is 31 times, and the PE of the ASOS company introduced by the author is about 72 times.

If investors see that XXX group begins to pform its various meaningful measures, the path of its market value rise in the future can be realized by raising valuation.

If not, the price earnings ratio of 31 times will be expected to be the upper limit. If the market value is to increase, it will depend on the speed of development and its stability.

As the top ten heavyweight stocks of the Nikkei index 225, the performance of fast selling has been greatly linked to the performance of the Japanese economy and the changes in the yen exchange rate. The former is due to the fact that Fast Retailing has more than half of its free floating shares held by the Bank of Japan. The Japanese central bank is likely to become the second largest shareholder after the founder. The large purchase of the Central Bank of Japan once had a distorted effect on market prices and liquidity. The potential selling in the future may cause many investors to worry.

The latter is due to nearly half of the fast selling overseas business. A large number of overseas assets, once the appreciation of the yen, will generate exchange earnings. If the Japanese yen depreciates, it will generate exchange losses (these examples have experienced in the past business process), resulting in unstable fluctuations in net profit.

World martial arts, only fast, but fast and slow relative, fast fashion, fast not only fashion, or expansion speed, but the expansion speed margin effect is not significant, he is relatively fast.

This is like the old legend. When the brave defeated the dragon, he became a new dragon.

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