Fast Fashion Brands Are Getting Tired And H&M Is Trying To Pform New Retail Outlets.

In the past, China's clothing market was a fast fashion brand.

Many years ago, H&M, ZARA,

The international fast fashion brands, such as UNIQLO, have entered the Chinese market one after another.

These fast fashion brands rely on low prices, rapid changes and alignment.

And so on, so as to seize the market share of China's local clothing brands.

After entering the Chinese market, these fast fashion brands are expanding rapidly with the rise of domestic shopping centers and shopping centers.

But nowadays, the brand of fast fashion has changed a lot.

In recent years, sales of fast fashion brands have continued to slow down, and brands that are forced to close are few.

It is understood that since last February, ZARA has closed the largest flagship store in China.

In December of that year, Forever21 closed its only store in Tianjin and Hangzhou.

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

The fast fashion brand circle has been on the decline for a while.

Among them, the three in one H&M, which has always taken into account the popularity, quality and price, is no exception.

It is understood that in July 2017, H&M abandoned the goal of adding 10% to 15% new stores in China every year, while H&M closed the store in Xidan.

However, seeing that the fast fashion brand is becoming more and more tired, H&M is also actively starting to upgrade.

Fast fashion brands fade gradually, H&M seek new retail pformation

So far, H&M has made two strides in the road of pformation.

First, the first brand-new concept store opened in Sweden, where the brand originated, swept away the traditional impression of traditional stores being crowded and messy. Two, H&M launched a new e-commerce platform and store in Sweden, Afound, specializing in the sale of discount fashion products.

The two big steps of H&M undoubtedly lie in the fact that we have to pform new retail outlets.

H&M's first new concept store is located in the high-end consumer area of Karlaplan, Stockholm, Sweden. There are only a few selected costumes in the bright and spacious space.

In selected

China's H&M high-end product line Trend and Premium Quality products.

We must know that the past two product lines can only be purchased through e-commerce channels.

In addition, the customers who enter the shop can also have a cup of espresso on the shop and give customers the greatest enjoyment.

H&M intends to attract higher income local residents through the new concept store's test water.

And by summarizing this experience, the relative standardized commodity delivery mode commonly adopted in the global market is pformed to make it more responsive to the needs and preferences of the market.

In fact, H&M wants to create a new store through more beautiful display methods, higher quality products and better service experience, so as to gain higher business efficiency.

And in order to get rid of the bad situation of stores, so that stores to high-end pformation.

In addition to new concept stores, Afound, a discount platform opened by H&M, will also be synchronized on the mall this year.

Afound is an attire shop specializing in the sale of discount clothing and household products. H&M compares their discount platform to "a paradise of price and trend".

In addition to selling its own brand products including H&M, Cos and Cheap Monday, Afound will also introduce some other external brands.

Product chain is also very rich.

Everyone knows that H&M's discount platform Afound is of great help to solving the current situation of store failure.

The most obvious point is that Afound can help solve the inventory problem of traditional stores.

We know that for clothing brands, inventory detention is a big problem.

The advent of Afound has made many stores sold in traditional stores "selling doors" to solve the big trouble of H&M.

In addition, the emergence of Afound also means that H&M starts to force the line, and intends to get through the two channels under the online and offline channels.

At this point, the new retail mentality of H&M pformation is self-evident.

After taking these two steps, H&M immediately launched a brand new Nyden.

This brand is different from the fast fashion brand.

Nyden aims at the millennial generation, instead of advocating the pursuit of the trend, but in the quality and sales of the product.

It is understood that on the one hand, Nyden has a very good choice of product fabrics; on the other hand, consumers can only buy online or offline flash stores after entering the market.

Nyden is a new attempt of H&M in the pition period.

On the whole, after realizing that the fast fashion brand has entered the fatigue period, H&M began to pform without stopping.

However, the road of H&M pformation is not smooth enough, and there are still many difficulties on the road of pformation.

H&M is still facing many difficulties on the road to pformation.

On the surface, H&M seems to be on the road to pformation.

But in fact, there are many roadblocks for H&M's pformation.

First of all, the sequela caused by fast fashion "fast" has not been cured.

In the traditional stores of H&M, the advantage of "fast" effect of fast fashion brands is still weakening, and the disadvantage of "fast" effect is continuously strengthening.

The specific performance is that the fast fashion brands can achieve rapid expansion of stores, which is a great advantage in the past.

But now the sales of traditional stores are low, and the expansion of traditional stores will lead to losses, so the rapid expansion of stores is no longer an advantage.

On the contrary, due to the fast expansion of previous stores, the loyalty of H&M brand is very low.

According to the relevant research report, many consumers buy fast fashion brand clothing simply because they like fast fashion or a certain style rather than a fast fashion brand.

Therefore, the emotional connection between H&M brand and consumers is very weak, and H&M consumers are easy to lose.

Second, local brands are recovering, and competition on the road to H&M pformation is intensifying.

It is understood that in the ten years of rapid development of fashion brands, China's fast fashion brands such as MJstyle, hot air and other fast fashion brands are rising rapidly, which has gradually impacted fast fashion brands.

H&M is no exception.

In recent years, China's local brands such as hot air and MJstyle have been ahead of other brands in 160 and 101 stores in 2016.

By 2017, MJStyle had expanded its 200 stores faster than H&M, ZARA and other brands, occupying a certain market share.

Besides hot air and MJstyle's popularity, many local brands are favored by consumers.

Such as Han Du Yi house and Jiangnan cloth dress.

In the past few years, Jiangnan cloth has been very eye-catching. At present, there are 49 stores open in the capital market, and its performance is good in the capital market. The stock price has risen 67% in the past 6 months, and its market value is about HK $8 billion 600 million.

Han Du Yi house is also not willing to be outdone. It is also trying hard to plan the listing of the pfer board, and the ability to absorb gold is also strong.

The revival of these local brands has hit the market that the original fast fashion brands occupy, and has become a major roadblock on the road to H&M pformation.

Finally, H&M is also under pressure from real estate business.

In 2017, fast fashion entered the "exhaustion period", and the number of people entering the shops decreased daily.

As a commercial complex, it is hoped that the brand will be able to drain its business rather than just share the flow of the commercial complex.

Since fast fashion brands can't effectively drain the commercial complex, fast fashion brands like H&M have no previous bargaining power in shopping centers.

To reflect the practice is that the number of stores to manage brand dealers will have to pay a lot of brands, and there is no room for deliberation.

As a result, on the way of pformation, H&M's store rents are getting higher and higher, and the operating cost of stores has been increased, and profits have been further diluted.

In addition, the brand Nyden launched by H&M has encountered difficulties in less than a year.

It is understood that following the departure of the founder, CEO and creative director Oscar Olsson in July of this year, Nyden again launched the restructuring plan.

After the plan is reorganized, Nyden will be sold on the official website only on the official website of the website and parent company H&M group.

This change means that H&M has to pay a certain cost of trial and error on the road to pformation.

To sum up, the road of H&M pformation is not smooth.

However, it is certain that H&M's decision to make the pition is correct.

However, with so many roadblocks, H&M pformation needs to consider many problems.

What is the pformation of H&M under the barrier?

In fact, the fashion industry's iteration is very fast, and the pformation of clothing brand is also aimed at having a foothold in the industry.

Any clothing brand that wants to base itself on the changing garment industry must bear in mind the following points:

First, the clothing brand should take the product as the king and return to the product itself.

In this era of "product is king", only by designing and producing more clothing that consumers like, can more consumers "give generously".

Actually.

H&M is also aware of this at this stage. The introduction of Nyden brand is the best proof.

However, in the realization of high-end products, H&M can not be too hasty, and must be down-to-earth in order to produce a real good brand.

Secondly, clothing brands should keep a keen sense of smell in the market and upgrade their old business models in time.

Because in the changing retail market, the future development is unpredictable.

But what is invariable is that business models are constantly changing under the impetus of consumers' pursuit of novelty.

Therefore, with the acceleration and innovation of market demand, clothing brand will continue to explore more possibilities and broaden the new boundaries.

Only in this way, will the industry fail to repeat its bad copy after the industry is thriving again.

Thirdly, clothing brand should constantly innovate technology and embody brand development.

For example, clothing brands need to understand consumers' purchasing situation to assist production.

So, what method should be used to understand the purchase situation? For now, big data analysis is the best way.

This makes it important to master big data analysis.

In fact, big data in the clothing industry has a wide range of applications.

Just like H&M, we need to speed up access to online and offline data, and we must not apply big data analysis.

Therefore, it is very necessary for clothing brand to develop sturdy and innovate.

In general, H&M has been branded in the weakness of fast fashion brands.

According to the trend of H&M, H&M will definitely make efforts to reduce the volume of physical retail space and strengthen online shopping platform in the future.

It is not hard to see that H&M is determined to rebalance its retail strategy.

Also hope that H&M can really change the existing store mode with new experience and service, and get rid of the current fast fashion brand decline.

(author: Liu Kuang)