H&M, A Fast Fashion Giant, Is In Trouble.

With the development of economy and globalization, more and more foreign brands have entered the Chinese market and provided more choices for Chinese consumers.

For clothing, a few years ago, the popular clothing brands were Metersbonwe, Semir, YISHION and so on.

Now, ZARA, H&M, UNIQLO, FOREVER21 and other brands are more popular.

However, due to the rise of the "national goods tide" in recent years, the development of the electricity supplier and the change of people's consumption concept, many foreign brands' performance in China has begun to decline, and many brands have even withdrawn from the Chinese market.

Last year, Topshop, a fast fashion brand from the United Kingdom, announced the termination of its cooperation with Chinese franchising partners due to a sharp decline in sales and profits.

NEWLOOK, also from the United Kingdom, announced that it would withdraw from the Chinese market and close all its stores in China.

Recently, FOREVER21, a fast fashion brand from the United States, has also announced the closure of online stores in China.

And H&M, which is also called the 3 giants of the fast fashion brand, is also showing obvious weakness in the Chinese market, which is also known as UNIQLO and ZARA.

In recent years, the performance of H&M in China has been relatively low, and with the growth of the number of stores, its performance has become more awkward.

H&M is a fashion brand from Sweden. Its founder is Erin Persson, founded in 1947, earlier than UNIQLO and Zara.

At that time, H&M mainly engaged in women's clothing at a low price.

Later, after buying a Menswear brand, H&M began to pform into a fashion fashion with high cost performance and achieved great success.

Since then, H&M has begun to expand its business globally.

In 2007, H&M officially entered the Chinese market.

When H&M entered China, it could be said that it was invincible and full of scenery.

H&M wins the love of young people in the first tier cities quickly with its fashionable style and appropriate price.

In the hottest days, consumers who came to H&M stores to buy clothes even queued up.

After the first and second tier cities stood firm, H&M quickly sank to the three or four line city.

At that time, H&M never had to worry about no consumers. It was worried that stocks could not meet the needs of consumers.

In the most prosperous years, the annual growth rate of H&M has been above 30%, which shows how popular H&M is at that time.

It can be said that as the first fast fashion brand to enter China, H&M has made a good lesson for domestic garment enterprises.

At that time, many new garment factories in China needed a month or even a quarter of the new speed.

However, H&M usually takes only a week or so, plus the price is close to the people, and the cost performance is high. H&M greatly meets the fashion pursuit of young consumers at that time.

However, by 2014, sales of H&M began to become a bottleneck.

First of all, because of the rise of many domestic brands and the same marketing mode, some customers were successfully taken away.

Secondly, with the further popularization of social networks and the development of e-commerce, a large number of net red clothing stores have risen rapidly, thus robbed the traditional clothing store business.

At the same time, H&M made a big surprise -- burning stocks.

Generally speaking, inventory backlog is a frequent occurrence for garment enterprises.

Generally, businesses will take out inventory and sell them, or donate them to some organizations.

But in order to maintain their brand image, H&M did not want to sell stocks at low prices, so they burned them all.

It is reported that in the past 5 years, H&M burned 60 tons of clothing.

This behavior has damaged the image of H&M.

From 2015 to 2017, the sales growth of H&M was 19%, 6% and 4% respectively, that is to say, from 2015, the growth rate of H&M's performance in China showed a trend of overall slowdown.

Last year, sales of H&M group increased by only 5% compared with the previous year.

I don't know when this downturn will last.

In order to improve the performance and save the declining trend, H&M also made some adjustments and adopted a series of measures.

Such as increasing the intensity of online marketing, continuing to increase the number of offline stores, and inviting celebrities like Zhang Yixing, Wang Yuan and other stars as spokesmen in order to win the favor of young consumers.

In fact, under the current consumption environment, increasing market space by expanding scale has gradually lost its role.

More and more foreign brands have lost their way to China. It also shows that the Chinese market has become an increasingly difficult cake.

In the future, if fast fashion brands want to stand out in the increasingly competitive market, they must slow down, re-examine the trend and characteristics of industry development, try their best to achieve business pformation, optimize business structure, and strengthen innovation.

Moreover, not only foreign brands, domestic enterprises should also be prepared for the long term development.

In the future, the reshuffle of the whole industry will also intensify. What brands will quit China? What brands will stand out? Let's wait and see.