How Did The International Fast Fashion Brand Go In 2017?

According to the world clothing shoes and hats net,

In 2017, international warming, luxury and popularity, tide brand counter attack and designer brand rise.

The speed of development of major brands is slowing down, and the sense of existence and competitiveness in the minds of consumers are gradually decreasing, and are also facing major problems in China.

The new crisis and development inflection point.

Several key words to see how fast the 2017 international fast fashion brands have been.

Launch new brand, derivative product line

H&M group has launched two new brands in recent years.

In September this year, the first flagship store of the new brand Arket was officially opened in London, England.

The group also announced that another brand new /Nyden will be launched next year. The goal of the Millennium generation is more clear.

At present, H&M group has 7 brands.

In May of this year, ZARA HOME opened a new flagship store in Nanjing West Road, Shanghai. There are a wide range of products in the store. All products are synchronized with the global ZARA HOME.

In the 2016 fiscal year, ZARA HOME achieved good sales growth, sales increased by 16% over the previous year, higher than 13% of ZARA, and the highest rate of brand growth of Inditex group.

Since last April, when ZARA HOME entered Tmall mall, its fans increased by 300% a year.

The make-up of Forever 21 is already red in the industry.

This year, Forever21 continues to increase its code and open up Riley Rose, a beauty collection store, and has opened 10 stores in just three months, if the market is positive.

Forever 21 intends to further expand the Riley Rose store network next year.

Sales of fast fashion brands began to slide in the past six months. The launch of new brands will help stimulate their performance as soon as possible.

The most notable effect can be concerned about the COS brand of H&M group, which has become a new driving force for H&M group.

In addition, the main purpose of choosing new brands and expanding their brand matrix is to get rid of the fast curing fashion and the deteriorating brand image.

New brands are more flexible and more flexible.

The homogenization of fast fashion brands is becoming more and more serious. While harvesting a large number of consumers, it also largely erased the brand personality and become the biggest hidden danger of development under the trend of increasingly personalized consumption.

By developing new brands and derivative lines, this way of seeking change may be a new choice and market trend for young consumers.

Closing shop tide

The latest news is that ZARA parent Inditex group plans to sell 16 shops under its name at Euro 400 million.

Moreover, ZARA's growth in China has slowed to 10% in the past few years to 6%--8%.

In February this year, ZARA closed its first flagship store in China for the first time.

H&M abandoned the goal of adding 10% to 15% new stores in China every year.

In July this year, H&M Xidan Joy City store ushered in the fate of the shop.

H&M its store expansion and profit growth form the effect of "half is seawater, half is flame", and the profitability of single store is declining.

Between 2015 and 2017, GAP group closed hundreds of stores in the North American market, which accounts for 79% of the business, and in Asia and Japan.

According to Ike Boruchow, an analyst at Wells Fargo Bank, the GAP has ended more than 600 stores since 2008.

In September 2017, GAP group announced that it will close 200 in the next 3 years.

At the beginning of 2017, the UNIQLO parent sales group closed 4 domestic stores.

Forever 21 has closed its flagship store in Japan and flagship store in Tongluowan, Hongkong this year.

C&A closes the first flagship store in Chunxi Road, Chengdu.

There are few stores in the Chinese market for MANGO.

Marks&Spencer withdrew all Chinese entity stores.

On the other hand, many brands have chosen to slow down the pace of expansion.

Near the end of 2017, there were only 2 new stores in GAP, 3 new stores in Forever 21, and 9 in ZARA.

Over the past ten years, fast fashion brands have sprung up like commercial real estate in the first and second tier cities.

However, in recent years, the local fast fashion has entered the war situation, resulting in intensified competition, the emergence of fashion business, the high cost of physical shops, and the fresh sense of fast fashion among consumers.

The shadow of fast fashion brand "close shop" has not stopped since it opened in 2017.

Fast fashion retail, especially in the Chinese market, is no longer easy to do.

All fast fashion brands doing business in China are doing the same thing, that is, re exploring the Chinese market.

Decline in performance

Inditex group, the parent company of ZARA, which was once the leader in performance, began to encounter bottlenecks in 2017.

In the nine months ending October, Inditex group's net profit rose 6% to 2 billion 340 million euros, or much lower than the 11.5% in the first half of the fiscal year, and the gross profit margin further dropped to 57.4%, indicating that the group's profitability is being hit.

H&M recently released its initial performance in the fourth quarter, of which sales fell by 4% to 58 billion 450 million kroner, or about $6 billion 950 million, far below the company's expectations.

On the day of its performance, H&M opened its stock price plunging 15% to its lowest level since 2009.

By the end of November, in the 2017 fiscal year, H&M Group recorded a 3% increase in sales.

GAP group has experienced 7 consecutive quarters of sales decline.

The limitless scenery of several years before fast fashion is already dim.

Since the beginning of 2016, the number of fast fashion brands in the world has shown a weak growth. The most valued profit growth has experienced varying degrees of decline.

Though they habitually attribute their causes to exchange rate effects, as well as price reduction promotions, weather and other factors, the root cause is deep.

The fast fashion industry only pays attention to profits, does what it takes, reckless consequences, and makes consumers unrestrained, so that excessive inventory has also slowed down the growth rate of performance to a certain extent.

Customers who have experienced "excessive consumption" will naturally get tired of this way. Of course, consumers are less enthusiastic about buying than they used to be.

Environmental scandals continue

This year, the Danish media broke out that H&M was found to have burned 60 tons of unsalable clothing in Denmark since 2013, averaging 12 tons per year.

H&M has been accused of using chemicals and pollutants in clothing production for many years.

The market development foundation released a report this year, pointing out that the cheap raw material, viscose, which is widely used by H&M, ZARA, Marks&Spencer and other fast fashion brands, is seriously polluted by the environment, and has caused damage to environment and ecology in Asia.

In the report, more than 12.8 people signed a petition calling for fashion retailers such as H&M and ZARA to stop buying raw materials from polluting factories reported.

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The documentary "The True Cost" is a complete description of the harm of fast fashion to the world, not only about environmental issues, but also the exploitation of labour by capitalists.

Fast fashion brands have made great efforts in environmental protection in recent years, hoping to turn public awareness and maintain their brand image.

H&M's environmental conscious action series (Conscious Collection) has become a permanent series, and the old clothes recycling project has not been dragged down.

TOPSHOP's affiliated group Arcadia, Marks&Spencer and ASOS publish the information and data of the company and factory on the Internet, try to be pparent and dilute their brand influence.

Unfortunately, fast fashion friendly environmental protection is better than a scandal.

Force line

In this year's earnings report, the H&M Group expects that online sales will increase by at least 25% a year, and will surpass the entity business in 2030.

So we saw that the H&M group, which built its own website hm.com to develop online business, confirmed that H&M and H&MHome will enter Tmall in 2018. This is also the first official online channel in China except the official website.

Monki of the group also entered Tmall to test the water before that.

In addition, H&M brand official website has entered 6 new markets this spring.

According to statistics, this year's double eleven shopping carnival, UNIQLO occupy the first sales of women's clothing, just a minute to break the sales of one hundred million.

Meanwhile, UNIQLO also conducted the first new retail test for this year's double 11: the first more than 500 stores in the country supported Tmall's first order and store's own mention, giving customers a better sense of integration of wired and offline, and providing more scenes and buying channels for dual eleven consumption.

In September this year, Gap participated in Tmall super brand day for the first time. Its sales grew by more than 27 times over the same period last year. The number of children's clothing in the whole day ranked first, men's clothing second and women's clothing seventh.

In fact, Gap also started working with e-commerce platform early to get through the whole channel of delivery and marketing.

Last year, Gap integrated Tmall mall in China to implement a full channel strategy.

Since the beginning of this year, Inditex group has gradually entered online services in Southeast Asian countries and India. At headquarters in Spain, Inditex group is also expanding its electricity business.

Inditex has sold 16 stores in Spain and Portugal, and the proceeds will be used to expand the business scale of the group's brand.

As we all know, the scale of China's electricity supplier market is already the world's first and still maintains the trend of rapid development.

Customers' behaviors and expectations are changing, and online sales are becoming more and more popular. Chinese consumers have become accustomed to consuming the relevant brand's e-commerce channels.

Clothing brands need to lay more channels to seize market space. Compared with offline shops, the cost of electricity providers is relatively low.

In addition, the decline in performance of physical stores and backlog of inventories may help them solve inventory problems to some extent.

The series is called "good or bad".

In July, Gap and WeChat launched a series of joint design projects, which were sold online and offline.

In November 2nd, H&M officially launched 2017 designer cooperation series H&M * ERDEM in China.

However, there was no crazed queuing in the past days.

This time, H&M has also reduced the number of joint outlets nationwide from 14 last year to 5.

In March of this year, when UNIQLO announced the new joint venture with Loewe creative director J.W.Anderson, the media predicted that this would be the most desirable joint venture in autumn and winter in 2017.

However, some "pick people" styles seem to limit many sales.

Fast fashion has frequently launched joint name to stimulate consumption, but the situation of looting has rarely seen before. Consumers have become weak in the joint series and gradually enter the observation period.

To create a topic is only temporary. It is better to cater for the Chinese market and Chinese consumers to do some research and development and brand promotion and dissemination. With the help of IP drainage, more designers should consider the choice of designers. In short, they should be closer to Chinese consumers.

Plagiarism

Topshop's HALO Bow Slides is very close to the latest series of Rihanna x PUMA.

Forever 21 has been accused of trademark infringement by Puma, Gucci and Adidas this year.

Because he used blue - red - blue and green - red - green stripes, and Gucci to death.

Forever 21 has been prosecuted for less than 50 times in the past four years.

Last year, more than 20 independent designers, Po, came out with their plagiarized works, accusing the products of ZARA group's Inditex group and copying their works.

This year, ZARA is also suspected of copying the functional equipment brand ACRONYM, which was founded in Germany in 2002. A series of shoe design also has the tendency to plagiarize Adidas's popular shoes.

Now the problem of fast fashion brand plagiarism has become an open secret. Luxury brand new conference has been less than two weeks in the past, and the new elements can be found in a fast fashion display window.

Under the new constraints of fast fashion and short time, it is difficult to invest a lot of time, energy or investment in the original, so the problem of plagiarizing big brands has been created. The profit of plagiarism is often higher than that of compensation. This phenomenon has been repeatedly banned.

Quality crisis

The website of AQSIQ announced that in October, the information of imported substandard industrial products was released. Nearly 4000 garments of ZARA were destroyed due to the color fastness and pH value, which accounted for 41.18% of the total unqualified information of the month.

In addition, 3 consecutive months since May of this year, 343 pieces of imported ZARA brand clothing were destroyed due to unqualified detection.

In May this year, H&M had nearly ten thousand pieces of clothing fastness unqualified and destroyed or returned.

Prior to this, the AQSIQ released information on July 7th, H&M, ZARA, TOPSHOP and other imports of children's clothing and adult clothing is not qualified.

With the upgrading of consumption, more and more consumers' demand for clothing has not only stayed at the cost performance level, but has been pursuing better quality and more personalized style.

And fast fashion is the low price fashion line, so the quality of products is sacrificed first.

Due to the huge consumption base of fast fashion, the single quality problem is not likely to have a devastating impact on it. However, the long-term "excessive consumption" will affect the reputation and trust of customers, and even affect the loyalty and repeat purchase rate.

Conclusion

Fast fashion is catching up with China in good time, accompanied by the huge expansion of China's commercial real estate and the rapid growth of retail space.

After ten years of rapid expansion of gold, the sequelae began to focus on the outbreak, and the outside world began to fade fast fashion clothes, but also made the days of fast fashion not so easy.

In recent years, the development of fast fashion brands is also hindered by the environment of consumption upgrading. Consumers' new consumption concept has begun to awaken, making their choices of personality and practicality. Their consumption has become more and more cautious and their loyalty has been getting lower and lower.

In the face of this situation, fast fashion brands are not waiting to die. UNIQLO continues to work in cross-border cooperation. H&M will focus on high-end vice cards in the future, while ZARA will focus on online channels.

Faced with the complex situation, fast fashion brands are striving to find new market breakthroughs.

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