Fast Fashion Brands Are A Bit Busy Lately.

　　 H&M : push the new brand, expand the electricity supplier.

It is undeniable that the H&M, a fast fashion brand that was once known for its boundless scenery and at the frontier level, is a bit sad in recent years. In fiscal year 2017, H&M sales (including VAT), 231 billion 771 million kronor increased by 4% over the same period. In the first quarter of 2018, the group's sales volume was 46 billion 120 million Swedish kronor, down 1.7% compared with the same period last year, with a profit of 1 billion 70 million kronor, down 44% from the same period last year. By the end of 2017, H&M entered 69 global markets and launched online businesses in 43 markets. In 2018, H&M expects to close 170 stores, the largest number of stores closed since 1998.

The continued sluggish performance forced H&M to constantly seek for a breakthrough. In 2017, H&M launched an independent and high-end brand Arket. This year, H&M has launched a new brand /Nyden for the millennial generation, which is also the ninth brand of the group. /Nyden sells products on the basis of "fashion week not following the trend, season or any date". It promotes the selection of team leaders and the mode of cooperation and creativity. /Nyden's brand logo consists of a slash and two Swedish words Ny and den. Ny and den represent new new and it respectively. The "/" symbol in front of Nyden means the meaning of CO creation. As the experimental brand of H&M, the first batch of /Nyden was launched on sale in April 3rd, and the rest of the series will continue to be launched in batches.

According to the world clothing and shoe net, in addition to the frequent launch of new brands, H&M, which has been struggling with digital development, seems to suddenly realize the importance of the electricity supplier, and has begun to exert its strength in the field of e-commerce. In March this year, H&M officially entered Tmall and opened an electricity supplier channel in the India market. It set up a discount electricity supplier Afound in Sweden. It also plans to expand its e-commerce business to emerging markets such as Saudi Arabia and Uruguay this summer, and is prepared to increase sales promotion efforts to eliminate inventories. In terms of physical stores, H&M group will continue to optimize and renovate its brand's store network, and will launch new concept stores to enhance consumers' shopping experience in physical stores.

　　 Zara : store reform to enhance shopping experience

In order to implement the full channel strategy and further integrate online and offline businesses, Spain has been in recent years. Fast fashion Giant Zara began to close some stores, slow down the pace of expansion, implement store reform, and invest heavily in existing stores. For example, merging a few small stores into a large store, or upgrading and upgrading the hardware and software facilities in the store. Starting in July 2016, Inditex's brand has achieved Inwallet mobile payment in all stores in Spain. At the same time, the group is also exploring innovative services such as interactive dressing rooms, self service checkout areas and so on in some stores in Spain, Germany and the United States.

In March of this year, Zara announced that it would launch a App Zara AR with augmented reality technology. The App, developed by Petronio Associates, a French design company, is scheduled to start online in 120 Zara flagship stores in the world for two weeks starting in April 18th. Consumers download the Zara AR and scan the two-dimensional code, and use the phone screen to set a good location in the store to activate the virtual model in 7~12 seconds. After the appearance of virtual characters, they will appear in streets, shops and windows, like the elves, not only to try on clothes, but also to place orders online, and to take photos to social media. Obviously, Zara launched this App not only to increase online orders, but also to enhance the shopping experience of consumers through high-tech means to attract young consumer groups. After all, holograms are quite fresh in the current fashion circle.

　　 Uniqlo: opening a new store, shifting the production front.

As the most direct way to contact consumers, stores have always been the highlight of UNIQLO. In March 30th, the 3 storefront shop with an area of about 2600 square meters was unveiled in Vientiane, Shenzhen. This also marks UNIQLO's formal opening of the concept of "Yi Qi Xin Sheng Digital Experience Hall" in China. The new store has launched the digital experience hall and U Space open interactive space, opening up the classic quality wardrobe, healthy life filling station, the Museum of the 24 generation of living space and the four scenes of the clothing experience area. There are many electronic devices installed in the store to provide new product information, preferential information and wear recommendation, so that consumers can seamlessly experience the LifeWear lifestyle and dress scenes online and offline. According to the latest quarter 2018 report of UNIQLO, UNIQLO's sales in overseas markets rose 31.4%, the first time to exceed Japan's domestic market. UNIQLO plans to open 1000 stores in mainland China in 2020, and the plan has now completed 60%. This means that in the next few years, UNIQLO will continue to expand at the speed of 100 stores a year, and more than half of the shops will sink to the three or four tier cities.

In addition to the expansion of stores, UNIQLO is further shifting production from China to low wage Southeast Asia in order to reduce costs. Recently, the fast fashion group of Japan's fast fashion group recently unveiled its core brand, UNIQLO's list of CO producing factories in 2018. Compared to the 2017 list, Vietnam's factories increased by 40%. The list of long-term foundry works for UNIQLO accounts for about 8 of all orders of UNIQLO, and 184 factories in 7 countries, including China, Bangladesh, Kampuchea and Vietnam, have increased by 38 over last year. Despite the increase in China's factories, the production system of UNIQLO is still centered around China (6 of the total), but the number of factories in Vietnam has increased significantly from 27 to 38. In addition, UNIQLO also plans to set up its first African production base in Ethiopia, which will start next year.

　　 GAP: withdraw from the wedding market, try make-up area.

Gap group's transformation strategy has been effective, and its performance is gradually recovering. 2017 annual sales volume has been growing for four consecutive quarters, of which Old Navy has become one of the fastest growing US apparel brands. Last year, Gap announced a series of transformation strategies aimed at revitalizing Gap group and its Old Navy, Athleta and small luxury retailers Intermix. The plan also includes $750 million to promote the development of e-commerce and mobile technology, closing 200 poor Gap and Banana Republic stores, opening 270 Athleta, Old Navy stores, and Gap and Banana Republic factory stores for sale discounts. By the end of 2017, Gap group had 3594 stores in the world, including fourth new stores in the fourth quarter. This year, Gap group will withdraw from the wedding dress market and close its only wedding dress brand Weddington Way. The Weddington Way, founded in 2011, will be officially closed after June 11th.

In addition to shifting its power from the strategic level, Gap has also begun to try and enter new fields to accelerate its pace towards younger consumer groups. Recently, GAP opened a POP KIT makeup store in Shanghai. This is the first time that GAP has tried to sell cosmetics products in China. Gap said that the establishment of the make-up flash store is to provide one-stop shopping experience, attracting more young customers for the shops. It is not yet known whether it will open up self made cosmetics in the future. However, Gap plans to develop online business, invest in Gap's online services and mobile terminal experience, shorten product cycle, and enhance Gap's performance and brand recognition with the help of young consumer groups.

Jing said: it is obvious that in the past two years, fast fashion brands are generally not very good, and are more or less lost. With the rapid development of the electricity supplier channel, the rapid development of high technology and social media, the saturation of the market and the slow development of the market, the fast fashion brands that have ever seen explosive growth are generally facing the bottleneck of expansion. Especially when products, supply chain systems and brand marketing strategies are difficult to make breakthroughs in a short time, Zara, H&M, Gap and other fast fashion brands are facing the phenomenon of oversupply and loss of consumers. A lot of fashion business like Asos and Boohoo are rising vigorously. These professional players who take the online digital experience as the center join the fashion retail war, and make the fast fashion brands that they are developing slowly become more and more stressed and nervous.

So, push the new brand, open a new store, expand the electricity supplier, enter the new field, implement the store reform, enhance the shopping experience, attract young people...... In the face of slow sales growth and fierce market competition, fast fashion brands have been busy with each other. They have entered new fields and expanded their new businesses in order to improve the development status, seek new market opportunities and find new growth points.

But it is hard to say whether these new strategies can bring new market opportunities, whether the group can create new brilliance or maintain the existing status of the brand. After all, changes in the market are like the weather in early spring. The fast fashion brands who once galloped the limelight would probably not be able to return to the glorious peak of their development. But the pressure and challenge are obviously not only aimed at fast fashion brands, but the entire fashion industry is shuffling, facing and coping with challenges. Opportunity is the same for any brand. To cope with the changing fashion industry environment and fierce competition, there is no choice but to keep pace with the times.

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