It Is Said That The Second-Hand Shop Has Caused The Predicament Of ZARA And H&M.

Zara parent company Inditex group announced 2018 sales in March 13th. The Inditex company report shows that annual sales increased by only 3% to 26 billion 100 million euros, and net profit rose 12% to 3 billion 400 million euros.

During the Inditex reporting period, all brands and all regions of the world grew, and online growth was 27%.

Lnditex group said that in the 2019 fiscal year, the Group expects sales growth to remain 4%-6%, and continue to increase investment on line, while introducing more advanced logistics system.

Inditex's overall network sales account for 12% of total sales, while the average sales in the US account for 27%, and consumers' desire for new clothes may be weakening.

H&M also announced operating results for the 12 months ended November 30th, with an annual revenue growth of 5%, reaching $22 billion 700 million, while net sales increased by 3% in local currency.

Profits fell by 21.8% to 1 billion 360 million dollars over the same period last year.

Similarly, online sales increased by 22% to 30 billion kronor ($3 billion 200 million), which now accounts for 14.5% of the company's total revenue.

In fact, both Inditex and H&M have been expanding the online layout in recent years to compensate for the gradual decline in comparable store sales.

According to data released by thredUP and GlobalData, an online shopping mall, the consumption trend of consumers in secondhand fashion is increasing. This may be an important factor affecting fast fashion consumption.

Fast fashion products are low in price and short in wearing cycle. Although they are secondhand clothing, consumers will consider more valuable clothing products in the future.

In 2018, the size of the second-hand clothing market in the United States was $24 billion, while the fast fashion market was US $35 billion.

However, by 2028, the second-hand fashion market in the United States will soar to $64 billion, while fast fashion will only reach $44 billion.

According to CNBC's report, the resale growth of the second-hand clothing market in the United States has been very significant compared to the overall clothing market, because it has met consumers' preferences for category, value and sustainability.

In 2018, there were about 6% of second-hand clothing in women's clothing consumption. It is estimated that by 2028, about 13% of women's clothing consumption may come from second-hand clothes.

Fast fashion clothing will drop from 20% in 2018 to 14%, while other purchases in department stores will drop from 14% in 2018 to 9% in 2028.

With sustainable fashion becoming a necessity and trend, shoppers want to consume in a variety of ways.

Moreover, people not only buy second-hand fast fashion clothes, but also the second-hand luxury market.

The second hand fashion trading platform in the US has three platforms: Thredup, The RealReal and Poshmark. Among them, Thredup, founded in 2009, has the longest history. It is also a second-hand shopping website with the largest number of female consumers.

RealReal is also not to be ignored. RealReal is not just online. In the summer of 2018, after the opening of the experience shop of RealReal New York, a more than 1000 square meter shop was opened on the Melrose Street (a shopping and entertainment landmark in Losangeles).

Lathi Levesque, director of marketing at RealReal, said: "we do find that experiential stores attract many people who never sell goods. For those who are not accustomed to buying high priced goods online, it's a good way to promote personal experience and enjoy the one to one service of professionals.

As a second hand luxury luggage consignment platform, Rebag has opened five stores in the past year, three in New York and two in Losangeles, one of which is located in Melrose's main shopping area, adjacent to several well-known luxury brands.

Perhaps the fast fashion brand has recognized this problem. Since its establishment in 2003, Zara Home has been an independent brand operation of Inditex group. Today, the group has decided to set up a new long-term goal for Zara, that is, making home become the fourth business of Zara, so it will gradually merge Zara Home and Zara.

H&M is downplaying its fast fashion label and turning to the best lifestyle development.

For example, the group will focus more on the high-end product line COS and the new brand ARKET released in August.

Author: Sun Huahua