Topshop Trapping Shop To Tide Over The Yard Line To Make Achievements

Since the second half of 2018, there has been a constant negative news coming out of fast fashion brands. Closing stores, withdrawing from the Chinese market and slowing down the performance have become labels of fast fashion brands.

A few days ago, the Arcadia group of Topshop, the UK's fast fashion giant, said that it had closed 210 stores since 2016, and that 100 of its brand store tenancies will be closed after 2020 expires, and the future Arcadia will bet on the online market.

According to the "business daily", in August 2018, Topshop issued a statement saying that the cooperation agreement with the Chinese franchise partner Shang pin network had terminated the cooperation agreement ahead of time, and will continue to look for new partners in China.

Last year, on the eve of "double 11", Topshop Tmall flagship store issued a notice on the front page of the store, saying that because of the adjustment of international business operation strategy, Tmall store will close in the near future, and the whole store will be cleared from now on.

In fact, behind the Topshop's withdrawal from the Chinese market and falling into the "closed shop boom", it is an increasingly weak performance. Data from the Kantar Worldpanel Worldpanel index of the research institute said that in the 12 weeks before November 18, 2018, the sales of Arcadia Group Ltd. of Topshop parent company decreased by 16.6% compared to the same period last year, a decrease of far above the market average of over 2.5%.

According to the first half reported earnings, Arcadia Group Ltd. Holdings Taveta Investments Ltd. lost 42% to 124 million 100 thousand pounds in the fiscal year ended August 26, 2017, and sales also fell below 2 billion pounds, down 5.6% to 1 billion 910 million pounds annually.

During the period, the group closed 41 stores, while striving for rent reduction for the other 25 stores.

And the reason why Topshop is betting online is not only to adapt to the market trend, but also to grow along with the holiday season.

According to foreign media citing sources close to the group, Topshop sold double digit growth in the sales of Nordstrom Inc., Nord, and Zalando SE, Europe's largest pure fashion online retailer.

But the force line may save some of its performance, but it still needs to face many obstacles.

First of all, fast fashion brands have natural difficulties in doing business. From design to shelf only 2 to 4 weeks, it is a great challenge to maintain such a speed on the electricity supplier.

Topshop needs to make improvements in supply chain and product design to adapt to the business of e-commerce.

The optimization of online customer experience will bring challenges to operation, product classification should be clear, website maintenance should be close, delivery of end to end need to use physical stores to reduce the number of delivery of electronic business.

And the challenge comes from the rising competitors.

Anne Critchlow, an analyst at Societe Generale, once said that parity retailers are most likely to be overturned by online brands.

For example, Asos is the biggest competitor on the Topshop line. As a fashion business, Asos rose 26% in the 2018 fiscal year, with a lot of results than Topshop.

The product has a good performance in terms of price performance, new speed and fast delivery.

Its App built-in image recognition search function, users can upload photos of products, you can search for similar products.

In addition, Topshop is also deeply in the public opinion crisis. Arcadia Group Chairman Philip Green was charged with sexual assault and racial discrimination in October 2018. Although Green denied any accusations, the incident has been continuously fermented and the corporate image has declined sharply.

At present, Topshop can be said to be internal and external, and there are more problems to consider online.

However, clothing brands should take the product as the king and return to the product itself. Only by designing and producing more consumers' favorite clothes can they attract more consumers.