Is The Development Of Fast Fashion Apparel Near The Ceiling?

"The 11 largest in 2017

The clothing brand has 547 stores in mainland China, up 15% in 2016, including MJstyle, A|K, Xi Yu, UR and other local fast fashion.

There are 336 brand extension shops, accounting for 61% of the total retail stores in 2017.

"Investment guests".

According to the world clothing and shoe net, under the shadow of "bad news", declining performance and quality blacklist, is the development of fast fashion apparel near the ceiling?

The answer is: no! In 2017, the top 11 fashion brands were 547 in mainland China, 15% higher than in 2016.

From the number of new stores in the 2015-2017 11 fast fashion apparel brands, the speed of local fast fashion development has surpassed the international fast fashion. Among them, MJstyle, A|K and West have been expanding more than 50 in the past two years, and the overall trend is upward.

In international fast fashion, except for UNIQLO and NEW LOOK, the development speed of other brands has been declining, and the potential for sustainable development in late stage is obviously insufficient.

Local fast fashion & international fast fashion, who is faster?

In 2015, the local fast fashion development speed lagged behind the international fast fashion; in 2016, the two sides were evenly matched; in 2017, local brands succeeded in "counterattack", and the number of new stores accounted for 61% of the total, leaving the international fast fashion behind.

In recent years, local fast fashion apparel brands have devoted themselves to upgrading brand image and store experience, and their product design, price positioning, and marketing strategy have "understood" Chinese demand, which has greatly reversed the "declining trend" of fast fashion apparel industry.

Such as:

[A|K] create "lifestyle experience venues", through light, music, color and other elements, create light luxury art atmosphere to meet consumers' "heavy experience" needs;

Xi Yu opens up a leisure area to enhance comfort and pleasure, giving consumers enough time to experience and understand brands and products in depth.

What is the change of fast fashion clothing brand to expand the main battlefield?

From the perspective of urban distribution, the concept of "fashion consumption" in Shanghai, Shenzhen and Beijing is more advanced. The scale effect of business is obvious. It is still an important track for fast fashion brand development in 2017. Compared with the North going deep, Guangzhou has less new supply, and its consumption is more "niche", which is not attractive to popular fast fashion brands.

Tianjin, Xi'an, Suzhou, Wuhan, Hangzhou and other new front-line cities in recent years, consumption continued strong, business growth faster than the national average level, become the fastest fashion brand outside the first tier cities in the best choice.

Judging from the distribution of urban grades, thanks to the continuous supply of new supply, the attraction of new front-line and second tier cities to fast fashion brands is more than that of first tier cities. The three or four line cities have significant demographic dividend, and commercial real estate has larger operational space, and the attraction of fast fashion attracts more and more attention.

The basis of city classification is: first financial and new front-line City Research Institute, "2017 China city business charm list".

Among them, "new front-line cities" include: Chengdu, Hangzhou, Wuhan, Chongqing, Nanjing, Tianjin, Suzhou, Xi'an, Changsha, Shenyang, Shenyang, Shenyang, convergence,

Specifically, in 2017, the most fashionable fast fashion brands in all levels of cities were (10 and above) in turn.

First tier cities: UNIQLO, MJstyle, NEW LOOK;

New first tier cities: MJstyle, NEW LOOK, UNIQLO, UR, H&M;

Second tier cities: MJstyle, UNIQLO, UR, NEW LOOK;

Three line cities: MJstyle, H&M;

Four tier cities: MJstyle, H&M, UNIQLO.

According to the big business data center, 60% of new fast fashion brand stores opened in 2017.

Visible, fast fashion brand is still shopping center "standard", the investment fever is not diminished.

From the point of view of investment, fast fashion clothing brand has the advantages of strong appeal and large renting area, which is conducive to the rapid upgrading of shopping malls and the opening up rate, so as to attract more high-quality merchants to enter and shorten the cultivation period of the project market.

At present, fast fashion is still an important force in the apparel market.

The speed of international fast fashion shops is slowing down, the aura is gradually fading away, the local fast fashion continues to expand, and the market share is further "divided", and the development potential is strong.

In order to get rid of difficulties and break through, what efforts have been made by fashion fashion brands in 2017? Who will be the main player in shopping malls in 2018? Who is likely to be eliminated?

Strong expansion, what is the bottom line of these brands?

UNIQLO

Exploring personalized and new retail sales will increase to 1000 in 2020.

Brand characteristics: high tech fabric technology as a fulcrum, practical and functional basic products, compatible with multi scene needs.

Development achievements: 645 stores in mainland China.

For 3 consecutive years, Tmall ranked 11 in the top two women's wear.

In the 2017 fiscal year, the performance of the parent company's fast selling group rose sharply, and its net profit increased by 148.2% to 6 billion 985 million yuan, a record high. Among them, the Sales Department of UNIQLO's overseas business increased by 8.1% to 41 billion 490 million yuan in 2017 compared with the previous year, and its operating profit increased by 95.4% to 4 billion 280 million yuan.

- innovative initiatives in 2017 -

Explore product personalization

In March 2017, the official website was able to enable users to independently choose their collar styles and cloth patterns according to their shape and preferences.

In September, in Japan, "semi custom goods" prepared for consumers of non standard stature were introduced. Consumers can adjust their sizes and colors to buy the most suitable clothes after selecting half finished products.

New retail service innovation

In July 2017, we launched the "smart store" in 100 stores nationwide, and introduced the "smart buyer" big screen with built-in induction system, including the four sections of "new product selection", "preferential purchase", "fashion wear" and "interactive play", so as to increase the conversion rate of 15% shopping.

In 2017, double 11, upgrading the online and offline integration service, will focus on improving the consumer experience.

The service of "the list of the net shop, the fastest store in 24 hours" is completed, and the consumer can enjoy the value-added service under the line for the delivery of the goods. According to the trial experience, the color and size of the same goods can be changed and the length of the trousers can be modified free of charge.

- the development strategy of 2018 -

Deep ploughing science and technology, new retail innovation, 100 new stores in China

XXX group will create a new business mode of "digital consumer retail companies".

Deep tillage technology provides a solution for optimizing the way of human life.

To promote new retail innovation, we will extend the "smart buyer" to all the stores in China within 1-2 years.

Building a new production system will take only 10 days from the production to the store after the reform.

In terms of expansion, UNIQLO will open its stores in the mainland of China, and plans to increase 100 stores a year. The number of branches in China will increase to 1000 in 2020.

A|K upgraded to "lifestyle experience venues" layout of the 123 line city

Brand features: the quality of international light luxury and the price of cloth. The design center is headquartered in Milan, and has launched nearly 8000 latest international fashionable styles every year.

Development achievements: the clothing of Zheng Shi, the parent company, has maintained more than 30% sales growth for 6 consecutive years. It has worked with developers such as Yong Wang, Yintai, Longhu, Baolong, convergence, Xinyue and so on. Since its establishment in 2013, it has opened more than 120 stores, and has been spread over many provinces and cities throughout the country, expanding 50 stores in 2017, increasing the usable area by nearly 15000.

- innovative initiatives in 2017 -

New upgrade to "lifestyle experience venues"

At the beginning of May 2017, A|K's newly upgraded "lifestyle experience Pavilion" was first located in Taizhou Xingguang Plaza, covering an area of over 400. Since its opening, the average daily traffic of the stores has reached 500.

The appearance of the newly upgraded store creates a relaxed and unique style of light luxury. The store focuses on the use of contrasting colors to create a vibrant environment. It creates a quiet and private shopping environment through the decorative elements of music, artistic lighting, modern wood furniture and black iron interlacing. It brings consumers a sense of luxury and quality and provides a visual enjoyment with a high degree of beauty.

- development strategy for 2018 -

New retail sales, layout of 123 line cities

In the current concept of new retail is frequently mentioned, in addition to laying emphasis on offline shop development, A|K has embarked on the online Tmall store, striving to create a full line shopping experience for consumers.

For example, to create a fitting room with internet gene and theme, using the "offline fitting, online sale" form, so that consumers can self timer, show and see the exhibition in the store, and get 1 to 1 professional image guidance; all goods in the store can be directly scanned for purchase orders, and consumers can choose to directly pick up or express to the home.

A|K will also create intelligent interactive space by creating the scene of the space environment, the resonance of consumption circles, the infectivity of the shop atmosphere and so on. It will create a creative and fashionable image shop with the way of "artistic creativity" to provide consumers with a place to gather life and spiritual needs.

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With the annual growth rate of 50-80 stores growing, the future business area will be concentrated at 200-500. The expansion area will be the mature and regional commercial center of the first tier cities, the mature business circle of second tier cities and the mature business circle of the second tier cities and the mature business circles of the three line cities.

It is estimated that in 2020, the number of stores will exceed 300, and the business scale will exceed 1 billion.

West meets

Three types of shops in parallel to create young people's favorite brand

Brand characteristics: pay attention to the life philosophy and fashion attitude of the younger generation, position "light tide", praise unfettered fashion, moderate comfortable trend, focus on easy but inexpensive, excellent and not expensive products.

Development results: the scale of 300 Direct stores has reached 240 from 2002 to 600.

Picture source / brand official WeChat, official website

- innovative initiatives in 2017 -

Speed up the layout of the collection flagship store, and open up the leisure area.

In succession, Wuhan opened the Wanda Plaza and Wanda Plaza, Guangzhou, and opened a super large 2000 WESTLINK&FUNLINK flagship store.

These 5S new image shops have a black line with warm colors. The whole space is bright and full of youthful vigor.

In addition to footwear, clothing, accessories, home and other main areas, it also opened up about 100 leisure areas to create a one-stop shopping experience.

To convey "light tide" brand values and create fashionable brands for young people.

Explore creative marketing to spread more closely to young people.

For example, in the public number of topic interaction, with egg truck raffle, Picacho welcome and other interesting ways to detonate new store popularity.

Before the 2017 national day, the Yellow tide in Shenzhen Shennan Avenue was washed up by the word "light tide". After the National Day issue was unveiled, the West meets the connotation of "light tide" through modeling. It does not appear to be unique but distinctive, making the brand positioning deeper into the hearts of young people.

- development strategy for 2018 -

Three types of shops are developing in parallel, and a second tier market is being ploughed.

The main three types of shops: specialized shops, the development of flagship category; 200-500 comprehensive stores, the main push shoes and clothing; 800-2000, integrated into the creative beauty home collection shop.

At the same time, we should continue to adjust the layout of the channel, expand the development of the second tier cities, gradually expand to the new central cities, and develop the three or four line cities rapidly, and promote the joint development of products and prices on the same line, so that consumers can enjoy a more convenient shopping experience.

MJstyle

Widening business categories and facing global expansion

Brand characteristics: locate the fast fashion lifestyle brand that the public can easily enjoy; create a lifestyle collection store, with a shop area of more than 1000, and the products cover all aspects of clothing, home, accessories, etc., with the unique design, exquisite workmanship and high-quality fabrics as the precondition. The new products are not less than two times a week, showing tens of thousands of items every quarter.

Development achievements: the 2015-2017 year development speed is in the forefront of fast fashion clothing brands, and has repeatedly been "bullying screens"; the annual growth rate of Ping Yue is more than 20%; in the past 5 years, the annual compound growth rate is about 100%, and the annual net profit growth rate is higher than the scale growth.

- innovative initiatives in 2017 -

Category upgrading

New accessories and beauty products are added to enrich the variety of household products.

Combined with the global popular trend, we constantly improve the fashion sense and design sense of the product, and compete with the price to maximize the satisfaction of consumers in the fashion quality life.

Shopping environment upgrading

It provides a more comfortable fitting room and open space to provide consumers with better offline experience.

Initiating public welfare marketing activities

Pay attention to the disabled, advocate "fashion and temperature", invite disabled leaders to interpret fashion in a unique perspective, organize public speaking activities in Colleges and universities, support public welfare undertakings with practical actions, inject public interest, love and feelings into the brand, and emphasize corporate social responsibility.

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Enter Tmall and expand purchasing channels

To establish a brand membership mechanism based on consumers, and formally enter Tmall at the end of 2017, and open up all channels under the online and offline channels to provide more convenient services.

- development strategy for 2018 -

Facing the global expansion of the territory

In addition to further enhancing brand sophistication and upgrading brand experience, MJstyle also hopes to bring products to more cities. In 2018, it plans to open more than 150 stores, and plans to open more than 3000 stores in the next 8 years, and will extend to Macao, Japan, Malaysia and Singapore to develop towards globalization.

UR

Two new sub brands to accelerate overseas expansion

Brand characteristics: positioning "light luxury, fast fashion", distinctive style, the annual development of 12 thousand new stores, the area of 1100-1500 stores.

Development results: in 2016, its revenue was about 2 billion yuan; in 2017, Haolan's family subscribed for 100 million yuan, its gross profit margin reached 60%, and the pre tax profit of a single store was about 350 thousand / month.

- innovative initiatives in 2017 -

Two big brand store opens

UR's UR ACCESSORY's first boutique accessory store opened in January 2017 at Guangzhou Wan Ling Hui. The store has a wealth of innovative elements. The dark hue and irregular pattern are highly personalized and dynamic. The products display areas with scenes, bringing strong visual impact and unique experience.

Photo source /PCLADY

UR's high-end fashion brand UR COLLECTION flagship store landed on October 2017 at Guangzhou Tian Hui square IGC, bringing artistic fashion clothes.

Simple and multi-level space design in the shop creates an elegant atmosphere of art.

Expand international fashion layout

In 2017, it first entered Singapore and opened a store in the Raffles shopping mall and Lion City Square in Plaza Singapura.

- development strategy for 2018 -

Accelerate overseas expansion, strengthen international image, and create smart supply chain for clothing.

With Singapore as the base point, it has entered into overseas markets such as Britain, the United States, France and Japan.

In March 2018, the first flagship store in London will be opened in London, with an area of 2044.

Jointly signed strategic cooperation agreements with Jingdong logistics to create a fast response flexible supply chain, the two sides will also carry out deep cooperation in big data applications, high-end customized services, cross-border cooperation and integrated marketing.

The annual expansion of 60-100 stores is expected. In 2020, there will be more than 400 stores at home and abroad, with annual sales exceeding 10 billion yuan.

In deep trouble, how can they "save themselves"?

H&M

Stationed in Tmall, push member system

Development status: there are more than 500 stores in mainland China.

According to the fourth quarter results announced by the brand, sales fell by 4% year-on-year. After the announcement, H&M shares broke the biggest decline in 8 years.

In the face of difficulties: the decline of performance; the storm of dismantling stores; the slow pace of development; the frequent blacklisting of quality; the cold of joint series.

- response measures -

Expand sales channels and enter Tmall

Its core brand H&M and H&M Home will join Tmall in 2018. This is also the first official online channel for the group in addition to its official website in China.

Rich brand portfolio, developing high-end high-end products

Following the COS, ARKET and other brands, its nine brand /Nyden will be released in 2018, and it will be launched with the KOL to launch a limited payment way, which is specifically aimed at the millennial generation of consumers.

China formally launches an integral membership system in China

Members can enjoy discounts, full discount and mail service.

Star collaboration with fashion industry

Yang Mi, a female star honored as "Queen of goods", and Mark, who co stars in the hit show, are invited to endorse the 2018 Chinese New Year series.

ZARA

Expand slowdown, focus on building large flagship stores

Status quo: more than 200 stores have opened in China; the parent company Inditex group currently has a market value of about 99 billion 600 million euros.

Faced with difficulties: profitability declined, gross margin fell to 57.4%, offline retail growth slowed down, and 6%-8% grew less than expected 8%-10%.

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- response measures -

Slow down store expansion and increase investment in online channels

Sell 16 stores, or invest more funds to expand online business.

Expand to the key cities, large areas and flagship stores in prime locations.

The flagship store, located in Shenzhen Vientiane and Shanghai Changning dragon dream shopping center, opened in November 2017. The new shop style is concise and bright, increasing the accessories proportion, adding perfume counters, setting up fitting rooms in children's wear area, and enhancing the consumer's sense of experience.

Reduce operating costs under the line

The new store has strict energy efficiency standards, which reduce energy consumption by 20% and 40% of water consumption than traditional shops.

In 2018, the group also plans to make China the first market in the world to implement eco efficiency models for all stores.

GAP

Force children's clothing business, overweight new retail

Development status: there are 138 stores in mainland China, and sales in the third quarter of fiscal 2017 increased 1% over the same period, showing signs of recovery.

In the face of difficulties: the long-term decline in performance and the worldwide closure of stores have greatly reduced the image of consumers in the minds of consumers.

- response measures -

Force children's clothing business, enhance family experience

The introduction of the famous IP joint children's wear; the 1908 largest Chinese flagship store opened with children's playground, providing children's living space; the first independent children's clothing store in mainland China opened in Yintai, West Lake, Hangzhou, providing an updated team of children's children's clothing every 2-3 weeks, and there will be more children's playground in the future.

Create a new retail experience and set up a younger image.

The flagship store is digitally innovating, with mobile phone filling stations, electronic touchscreens, LED fitting screens, and so on to provide a sense of technology store experience. Participating in Tmall super brand day, synchronizing the game of "catching small meow" in global stores, attracting millions of consumers to participate.

Shorten supply chain cycle and speed up follow up trend.

In the future, the average development period of 10 months will be reduced to 8 to 10 weeks.

C&A

Gradually returning to the market, opening to 40 in the next two years

Development status: in China, C&A was quiet for one year in 2016, and gradually returned to the market in 2017. In the first half of this year, 15% grew year by year, and 95% of the stores were profitable.

In the face of difficulties: market position is weakening; loss of old stores is a drag on performance.

- response measures -

To adjust the product structure to "Pyramid" mode

Maximize the turnover of high profit products.

Closing down old stores and updating store image

The new store subverts its traditional image, mainly based on its minimalist style, and uses a large number of natural elements to emphasize its environmental protection concept of sustainable development.

Set up a super fitting room, open up sofa rest area, mobile phone filling station, enhance shopping experience.

Accelerate the pace of development

Sinking into the two or three tier cities, plans to open 40 more in the next 2 years.

These brands will be eliminated from the Chinese market.

NEW LOOK

Or will suspend the expansion plan in China

Since its entry into China in 2014, NEW LOOK has expanded radically and has threatened to open 500 stores in three years.

But according to the official website, there are only 130 stores in China.

Under the background of fierce competition in the Chinese market, NEW LOOK, which lacks popularity and cost performance, is in crisis. Not only has its sales plummeted, but it has also changed from profit to loss.

In addition to the global economic instability, the continued weakness of the British retail industry and the financial scandals of the boss, NEW LOOK fell into recession, and the original CEO also stepped down in September last year.

Some analysts pointed out that the new CEO Alistair McGeorge is low-key and won the market's unanimous approval by controlling costs and increasing profits. The company will suspend the expansion plan of its brand in China and resume its profit growth by focusing on the local market.

Forever21

Frequent shops and slow expansion of new stores

Following the announcement of the exit from the Scotland market in early April 2017, the Chinese mainland market is also closing its stores.

Since October 2017, the 4 storefront flagship store of in 77 in Tianjin and Hangzhou APM store has been closed for a year and a half, and the first APM store in the mainland has been closed down.

In recent years, Forever 21 has been maintaining "turtle speed" expansion in China. In 2012, it entered 2 stores in the mainland market, and opened 4 stores in 2013-2017. The total number is now less than 20.

In addition to fatal injuries with poor quality, compared with similar brands, its speed in the supply chain and duplication of design have lagged behind.

From the development and adjustment of fast fashion brands in 2017, and the latest development strategy in 2018, the fast fashion industry shows the following characteristics:

Channel expansion to find new growth points

Vigorously develop e-commerce channels, such as H&M, GAP; local brands expand to foreign countries, such as MJstyle and UR; further layout of the two or three line cities.

Strive to get rid of negative labels and close to "quality".

Push high-end vice cards and product lines, such as H&M and UR, explore personalized customization, invest in public welfare undertakings, set up a good brand image, increase R & D and enhance product value, such as UNIQLO.

Upgrading the physical store experience

To create a lifestyle experience Museum, such as A|K and MJstyle, international fast fashion can enhance profitability through upgrading shop experience, such as ZARA and C&A.

Developing new consumer groups

Vigorously develop children's clothing business, such as GAP; carry out younger marketing, snatch 95 after /00 "favor", such as West meets.

Where will the fast fashion go in 2018?

The competition of fast fashion clothing brand entered the second half, and the situation of Zara, H&M and other fast fashion brands "unified the whole world" has ended. The industry "big shuffle" is coming.

Consumers and developers are more interested in the "local fast fashion clothing brand".

In the 2017 shopping center's attention to clothing brand TOP50 (click links, see content), domestic clothing brands accounted for 31, leading the market with absolute superiority.

Nowadays, the interest of young consumers in the 1990s after 00 has gradually declined, and they are more interested in "Chinese" brands.

For domestic commercial real estate developers, the introduction of local fast fashion clothing brands is also more advantageous - avoiding high subsidy costs and a low discount rate.

In 2018, the local fast fashion is expected to further take a firm foothold, expand and accelerate with developers from "running in period" to "hot love period", pform "lifestyle brand", pursue multi brand strategy, meet consumers' increasingly differentiated and differentiated purchase needs, create an international image, go abroad and expand to the world.

The comprehensive development potential index of fast fashion clothing brand is comprehensively considered according to the quantity of brand opening shop, the level of urban garrison, brand development activity, brand innovation and brand performance.

The international fast fashion clothing brand meets the "ceiling", and the potential is not to enter the brand and the secondary brand.

"New middle class" consumers are more willing to pay for products of high quality and social responsibility.

Earlier brands entering China will encounter "ceiling", and growth will continue to slow down.

Their top priority is to get rid of the "black list" quality as soon as possible, enhance product identification, and create shops with distinct themes and strong sense of experience.

For example, UNIQLO is striving to draw a clear line with "fast fashion" and pform to the direction of high quality clothing brand, focusing on producing high-tech clothes.

The fast fashion clothing brand that does not enter the mainland China and the inferior brand of fast fashion group are more scarce, or become the focus of investment.

Such as the British fast street fashion fashion brand TOPSHOP, H&M's luxury luxury brand COS, fast selling group's high-end brand Theory.

- Description -

Statistical range: local fast fashion brand MJstyle, A|K, Xi Yu, UR; international fast fashion brand H&M, ZARA, UNIQLO, NEW LOOK, C&A, Forever 21, GAP (Note: because of A|K, West encounter did not announce the new city distribution information, this chart 3, figure 4 data sheet statistics are not included in the above two brands)

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