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    Fast Fashion China Is Blocked, How Can Local Brands Grasp Opportunities?

    2019/5/23 9:28:00 10131

    Fast FashionLocal Brand

    Recently, the news of the US fast fashion brand Forever 21 withdrawing from the Chinese market has aroused concern in the industry.

    In fact, foreign fast fashion brands have been repeatedly defeated in recent years in China. In 2018, two brands of Newlook and TOPSHOP have been withdrawn from the Chinese market.

    Zara and H&M, which are still "guarding" in the Chinese market, are also deeply stuck in the performance bottleneck. How to keep China's huge market in the cold winter market is a pressing problem for these fast fashion brands.

    Is there an opportunity for local brands?

     

     


    Britain's fast fashion


    According to Altus data from the British real estate research firm, since last Christmas, there are 400 unemployed people in the fast fashion industry in Britain, including Topshop, New Look and so on. So far, 14 thousand people have lost their jobs and 4345 jobs are still in danger.


    The fast fashion industry in Britain, as a typical industry, is mainly affected by rising operating costs and weakening consumer confidence.

    There are quite a few fast fashion brands in Britain that exit the Chinese market, such as Marks&Spencer Marsha, selling its franchise in Hongkong and Macao to partner Al-Futtaim, closing 30 clothing stores in the UK and 53 shops outside the UK.


    ASOS, a British fashion dealer, announced its stop operation in China in early April 2016. Its Chinese version has been closed.

    From a high-profile announcement to China to go out of nowhere, ASOS's survival time in China is only two and a half years.


    The trouble is that the British fashion brand TOPSHOP also issued a statement last year that the brand and its Chinese franchise partner Shang pin net will terminate the cooperation agreement ahead of time, and will continue to look for new partners in China.

    Subsequently, TOPSHOP Tmall flagship store officially released closed shop announcements.


    New Look, one of the fashion retailers in Britain, has officially withdrawn from the Chinese market.

    All 130 stores will be closed to focus on the restructuring of the brand itself.

    It also decided to sign the CVA voluntary bankruptcy agreement with the owners, planned to close 60 stores in the UK market, and expected to lay off 980 people, and the other 6 branches or sub leased to third parties might also be closed, thereby reducing rental costs.


    Why is fast fashion not popular?


    Fast fashion is a quick feedback and imitation of fashion show design. When the famous brand's self rescue road is gradually put on the agenda, it is similar to buying and improving the new time process.

    In addition, more and more people begin to pay attention to the environmental problems behind the consumption pattern of "fast food fashion". Zara's winning situation is being disintegrated.


    The life expectancy of fashion is being shortened, and a large number of abandoned environmental problems are followed. The shortening of life span is being washed away by waves of "popularity" in addition to its own fashions. The quality problems caused by cost reduction are also emerging.


    Many of the fast fashion factories are set up in the developing countries with low manpower prices, which hide a lot of harm loopholes. Child care workers, labor contracts, fires, pollution and so on, the ill conditioned supply chain ecological environment behind them has been highly concerned and questioned.


    The rapid replacement of fashion makes the waste of production more difficult to deal with, the waste of resources increases, and the neglect of clothing recycling work also makes the harmful substances of brand products exceed the standard. Even the unsalable products are burned and bring many social and environmental problems.

    When young people begin to see these and have more good brand products, the myth of fast fashion will not continue naturally.

      

    Opportunities and challenges of local brands

      

    With the rapid growth of foreign fast fashion brands, domestic brands will have a chance to breathe.

      

    In recent years, local clothing companies have begun to test water and fashion.

    Public information shows that since the second half of 2015, Lining has launched a series of blue spring oriented spring products. This product positioning sports leisure and fast fashion, with two or three line city's core business circle and shopping center as the main offline sales channels; in August 2017, Hai Lan's home shares fast fashion brand UR pformation, and even launched the fast fashion brand black whale HLA JEANS, positioning the young consumer group about 20 years old, and later was known for sponsorship debate program "wonderful flower".

      

    From the perspective of performance and attention, domestic brands are also rising.

    In 2018, Lining's many appearances from New York fashion week to Paris fashion week attracted much attention.

    In terms of performance, Lining's main business income in 2018 amounted to 10 billion 511 million yuan, an increase of 18.45% over the previous year, and the net profit of the main business was 715 million yuan, an increase of 39% over the same period last year.

      

    However, the breakout of domestic brands also needs to face many difficulties.

    Recently, the HLA JEANS, a fast fashion brand of Hai Lan's home, was caught up in the search for other clothing brands. However, Hai Lan's home did not respond, but it caused a lot of consumers to "Tucao". At the same time, the industry also questioned its "no design and research, just a clothing factory".

      

    If international brands do not sink, then domestic brands will have a breathing space.

    However, if international brands begin to realize that they have to sink channels, they have global supply chain operation and brand marketing experience, and local brands have relatively little advantage.

    Cheng Weixiong said.

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