Traditional Retail Models Such As Department Stores Are Dying.

With the rapid development of high technology and social media, the global luxury fashion retailing industry will be faced with severe challenges in 2017.

According to the world clothing shoes and hats net, recently,

Based on the survey of more than 660 million online products worldwide, Edited, a big data company, predicts that the fashion retailing industry will have a price war next year.

Edited analyst Katie Smith pointed out in the report that as the millennial generation of consumers is becoming more astute, in 2018,

We will try to attract more consumers with preferential prices. For example, consumers can get extra discount by cancelling free return services, and supply chain costs will be further pparent. Artificial intelligence and other high technology will become the key to win the market share of the major brands.

Katie Smith stressed that with the coming of 2018, the responsibility of fashion retailers is no longer just selling goods, but to make consumers aware of the brand's own product value, and the product is no longer the only carrier to deliver consumer value, but a part of service experience.

Shireen Jiwan, founder and chief executive officer of Sleuth, a brand consultancy, said that during the past ten years, the explosive growth of consumers and the long-term impulse buying made consumers' desire for shopping almost saturated. In the face of the rising inflation and housing prices, the millennials were eager for products with high price and low cost.

Wendy Liebmann, chief executive officer of retail strategy consulting firms WSL, believes that retailers should pay more attention to establishing emotional connections with consumers on the basis of price war when they create the best experience for consumers and become the latest buzzword of retailers.

VF group's brand Vans marketing director Bobby Gascon said that from the very beginning, Vans has deliberately targeted consumers to become a community, through sponsoring the American Music Festival Warped Tour, skateboard competition and creating Vans Park skateboard global Championships to enhance the cohesion between brands and consumers.

Thanks to this, Vans has become the main driving force for the growth of VF group. In the third quarter ended September 30th, group sales rose 5.4% to 3 billion 510 million US dollars, net profit fell 22.5% to $386 million, and Vans recorded double-digit growth in all regions of the world.

According to Edited's research, luxury brands with historical background and mature value will be the biggest beneficiaries in the wave of Chinese consumers, millennials and Z generation, though in the past three years.

The average price rose by 15.4%, but the industry's retail market will continue to outpace other categories.

According to a report released by Deutsche Bank last week at the fashion luxury summit Fashion&Luxury Summit sponsored by Italy consulting firm Pambianco, the global luxury industry's total revenue in 2017 is expected to reach 250 billion euros, driven by the growing demand of Chinese consumers.

Among them, the millennial generation is the main customer group of luxury consumption, accounting for 27% of the total number of luxury consumers. By 2020, this proportion will rise to 33%, and the younger generation of Z will account for 8%.

According to the Pambianco study, the current generation of luxury goods consumers account for 25%, and this proportion will rise to 40% in the next 5 to 7 years.

Take the largest black horse Gucci in luxury industry as an example, with its nearly one month intensive marketing campaign, Millennial consumers gradually become their biggest audience.

Gucci's parent company chairman and CEO Fran OIS Henri Pinault, speaking at the event, said that millennial consumers had become more important in choosing luxury brands than in history and product quality.

By combing the timeline of Gucci events, we found that the frequency of Gucci digital creativity projects was almost once a month.

According to the annual fashion report compiled by the global fashion search platform Lyst on more than 100 million search contents of 80 million consumers, Gucci once again defeated all competitors in the industry to become the most influential luxury fashion brand this year.

Among them, Gucci's Logo T-shirt is a hot search product in June this year, and its Marmont handbag is the most expensive luxury handbag.

Fran? OIS Henri Pinault revealed that after a series of creative changes, the proportion of consumers under the age of Gucci 35 has greatly improved in the past 3 to 5 years.

Thanks to this, Gucci has won the luxury industry for 7 consecutive quarters. According to Kai Yun group's third quarter earnings report, Gucci sales surged 49.4% to 1 billion 550 million euros, all product categories recorded two digit growth, and sales in Asia Pacific region, including China, rose 33% over the same period last year.

Behind the rise of new business and creative marketing, traditional retail is losing momentum.

According to data from Fung Global Retail&Technology, a retail think-tank, since January 1st this year, the total number of retail businesses in the United States has closed more than 6700, exceeding 6163 in the financial crisis in 2008, creating a new record.

At present, at least 300 retailers have filed for bankruptcy.

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Some analysts pointed out that the main reason for the large-scale retail business in the US is the rise of e-commerce and fast fashion.

Leslie Wexner, chief executive of L Brands, a virgin parent company, admitted in an interview that the traditional retail mode such as department stores is dying, stores and so on are not ideal, and the number of retailers is increasing every day.

Malinda Sanna, founder of consulting and research firm Spark, explained that the continuous decline of the retail sector has been replaced by the main consumer. The target consumers of this traditional mode are generally over 55 years old.

Rich products and discounts have been unable to attract new consumers. Businesses need more innovative solutions to attract young consumers' attention.

In the face of the fact that retailers are closing large stores in large areas, Edited believes that consumers' demand for offline services is being pferred to fast delivery. Consumers are increasingly keen on the convenient return policy and immediate receipt. Therefore, retailers should pay attention to the input and training of warehousing and logistics personnel while reducing their staffing.

In response to this trend, the luxury fashion select shopping centre Farfetch, headquartered in the United Kingdom, launched "90 minutes" service with luxury brands such as Gucci and Saint Laurent in the world's ten largest cities including Paris, London, Tokyo and New York this year. It is regarded as the most efficient fashion delivery service so far.

According to Farfetch insider, to fashion headlines, the service will be further popularized to mainstream luxury brands and cities in the world, so that more consumers can enjoy this ultimate shopping experience.

Some analysts said that the two cooperation is more important to achieve an attempt to get through the barriers between online and offline businesses.

In order to better solve the conflict between online and offline retail mode, it is advocated that the "new retail" that blurs the boundaries between the two models will become the most popular topic this year.

Under the new retail scenario, the shackles of traditional retailing have been broken, and all the contacts and scenes can be pformed into a place to provide services and experience.

As the leader of the new retail concept, Farfetch founder and CEO Jos e Neves, in an interview with fashion headline, said that online and offline integration is the inevitable trend of market development in the future.

At present, the electricity market accounts for 15%, although the development speed from 0 to 15% has a great impact on the real economy, but analysts speculate that the electricity supplier will touch the ceiling when expanding to 25% or so, and the main consumer behavior of the future consumers will still take place in the physical store.

Therefore, the trend in the future is to make better use of online services for offline entities, so as to realize the era of "post full channel" and "enhanced retailing".

Emanuel Chirico, chief executive officer of Calvin Klein and Tommy Hilfiger parent company PVH group, believes that retailers need to create diversified shopping experiences online for consumers to stimulate consumers to make impulsive consumption.

Amazon, a global electricity supplier, has also begun to invade fashion retailing through technological innovation in recent years.

In June this year, Amazon announced the launch of the beta Prime Wardrobe "trial and buy" service to make up for the lack of online shopping.

It is reported that the Prime Wardrobe service will cover more than 1 million kinds of goods.

As one of the members of Amazon Prime, the service not only sends two-way freight free, nor does it charge extra service charges.

You can order at least 3 pieces and 15 clothes at most.

The order fee will also enjoy the corresponding discount according to the number of users who decide to leave. Finally, 3 or more orders will enjoy a discount of up to 20 percent off.

But at present, the service is in the testing stage, and only invite some members to experience it.

"Prime Wardrobe" covers brand names including high-end brands such as Calvin Klein, Hugo Boss and Theory, as well as popular Adidas, J.Brand, Milly, Parker, J.Brand and Amazon's proprietary clothing brands.

At present, Amazon's own clothing brand has reached 14.

Amazon CEO Bezos believes that in the next few decades, the retail industry will not change three points. First, customers like low prices; second, customers prefer faster delivery; third, customers want more and faster choices.

This is exactly the same as Edited's expectations.

To satisfy consumers' demand for quality and personalized shopping experience, Katie Smith recommends that fashion retailers use new AI applications such as chat robots, voice activated devices, and so on.

In addition, the "experiential retail" in offline stores is also very important. For this reason, the US high-end chain store Nordstrom will provide manicure services in the shopping malls, while the Prada flagship store in New York has a special performance space. Lululemo will provide consumers with free yoga lessons. Farfetch's Browns buyer shop has set up a relaxing meditation room for consumers.

Some analysts have pointed out that new retail has become the core battleground for brands to truly Contact consumers and achieve brand value. Under the driving force of big data, brands can better understand consumer needs, including explicit demand, implicit demand, and the demand that has not been stimulated, so that the brand can truly create personalized products and services around consumers.

Edited also stressed in the report that next year will be an important turning point in reshaping and consolidating relationships between retailers and consumers. Whether fashionable or luxury brands, the existing retailers will face the danger of being eliminated by consumers. Instead, retailers who meet the needs of consumers and try to understand new trends will have the chance to go further.

Technology driven and consumer shopping experience as the core will become a new way for sustainable development of fashion retailing industry.

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