With The Help Of E-Commerce Platform, Fast Fashion Brands Urgently Enter The Three Or Four Line Market.

H&M recently disclosed its first quarter results in 2019, with sales rising 4% to 51 billion Swedish kronor, or 5 billion 490 million US dollars, and by fixed exchange rate rose 10%, exceeding market expectations.

The fast fashion brand from Sweden has consistently stressed the importance of China's market and e-commerce channels in its earnings report: the Chinese market grew 16% year-on-year, while the online market maintained a good growth rate of 18%.

When H&M announced the announcement of Tmall's entry to Tmall in 2017, it had stirred up a feeling of "waiting for you at last."

Commented that compared to Tmall's UNIQLO, Zara and GAP, it is the brand of fast fashion first camp. H&M's decision to cooperate with the e-commerce giant is a little late.

In March 21st last year, H&M officially opened Tmall flagship store, and gained about one million fans in less than a day.

In September last year, H&M held the first Tmall super brand day. The new autumn series took the lead in the flagship store. The sales volume also occupied the first three categories of Tmall men's wear, women's wear and children's wear.

In October, the H&M and Moschino cooperation series was released live in New York at the official flagship store of Tmall.

Tmall double 11 period, as a new player who only settled for 8 months, H&M flagship store 11 million pactions that day, smoothly into the Tmall billion club, attracted market attention.

"Online market" became the most frequently used keyword in H&M related reports in 2018.

Commentaries say that last year was the first year of digital pformation for the fast fashion giant, which was dominated by physical stores.

And through various means such as deep cooperation with Tmall to drive its own pformation, H&M has achieved some achievements.

Earnings report is the best evidence.

In line with the strategy adopted by H&M, Zara and UNIQLO, both fast fashion brands, have made remarkable achievements in the online market.

Zara's parent company Inditex group released its earnings report in early March, pointing out that its online market has increased by 27% in 2018 and will continue to increase investment on line in 2019.

The fast selling group of UNIQLO parent company in 2018 highlighted the help of e-commerce for UNIQLO's growth in the Chinese market.

According to the financial report, the sales performance of UNIQLO online stores in China was strong, with double-digit growth, and sales accounted for 15% of the total revenue in the Greater China region.

Leveraging Tmall pformation to sink the three or four line Market

At the same time, the announcement of celebrity endorsement has become the standard configuration of fast fashion brand attacking the market.

Some analysts pointed out that from the choice of stars, fast fashion brands have begun to tilt towards traffic stars. The mode of "star + electricity supplier" seems to be an effective way to seize market share in fast fashion.

First noticed the electricity supplier channel, entered the Tmall UNIQLO in 2009, and opened Jing Bairan and Ni Ni as spokesperson for the global brand in September 2017.

Zara announced in September 2018 that Dongyu Zhou and Wu Lei became their China brand ambassadors. The two spokesmen of the same costumes and Global Limited series are on sale at Tmall Zara super brand, which is considered to be the most important step for Inditex to promote e-commerce and star traffic strategy.

In March, H&M announced that Zhang Yixing had become the spokesman for menswear in China. In March last year, H&M also announced that Wang Yuan became the spokesman of the brand new generation in China.

Whether it is H&M or Zara, or even a more advanced UNIQLO, it is at the critical stage of digital pformation.

In addition to adding extra premium to brand and increasing brand attractiveness, brand is also a star strategy. From another point of view, it also hopes to accelerate the touch low line market through the help of star traffic strategy.

Some analysts believe that the fast fashion brand's overall growth in recent years is weak, and it is difficult to touch the low tier cities.

China's three or four tier cities will continue to grow in consumption. Brands need to rely on Tmall's e-commerce platform. They also need to understand the needs of consumers in the three or four line cities through the platform, and make adjustments and even pformation accordingly.

The adjustment of fast fashion brands is imminent and the speed of adjustment determines the brand's performance in the Chinese market.

At present, the adjustment of H&M has achieved remarkable results.

Magnus Olsson, general manager of H&M Greater China, has said before: "those consumers in the three or four tier cities, where H&M brands may not be known.

They might be able to find us on Tmall. "

Tmall has become the main position of H&M and other fast fashion brands to cultivate the three or four line market in China.

Alibaba and the first financial business data center (CBNData) and DT Finance jointly released the November Tmall double 110 year insight: the arrival of the new consumption era. The report shows that the deep participation of users in different line cities has become an important trend in the new consumption era.

The consumption potential of the three or four tier cities is gradually released.

From 2013-2017 years of Tmall double 11 participation situation, the proportion of low tier cities consumption accounts has been in steady growth.