Shuffling Mode Continues Fast, Fashion Industry Polarization

Fast fashion brands are experiencing a large-scale shuffle, some go to the end of the road, and this is stillness, some climb up the peak, and are sought after.

Fast fashion seems to be divided into two categories, one is represented by UNIQLO, one is represented by FOREVER21 and TOPSHOP, and the other is polarization.

UNIQLO KWAS's joint name once again pushed UNIQLO onto the cusp.

In June 3rd, when the joint name was issued, Tmall flagship store was sold out immediately, while some offline stores also appeared looting. Some of the products were sold out and there was no source of goods.

To this end, a number of entities shop launched the restriction policy.

As an alternative brand in the fast fashion industry, UNIQLO's performance also shows a different look.

In April this year, the first half results of the 2019 earnings report released by the fast selling group of UNIQLO parent group showed that the group's revenue and profit grew by two yuan, the total monthly income was 76 billion yuan, an increase of 6.8% over the same period last year, and the total operating profit was 10 billion 357 million yuan, up 1.4% over the same period last year.

Since entering China, the stores of UNIQLO have been approaching four digits, and the three major policies of jungle rule, Internet technology and joint IP have led UNIQLO to success.

However, we must not lose sight of the fact that fast fashion is at a low ebb, and UNIQLO is also facing some weak factors.

Last year, UNIQLO's overseas market performance surpassed the domestic market for the first time. Its domestic performance was dismal and its profit margins dropped. If UNIQLO's market space was already touching the ceiling, it would not be possible.

Japan's domestic market growth is weak, forcing UNIQLO to continue to explore overseas markets, and the Chinese market must be its largest overseas market.

As Ryui Masa emphasized, China has a population of 1 billion 300 million, and the Chinese clothing market will never slow down.

H&M high-end brands will enter China

In June 11th, H&M group's high-end brand &OtherStories announced that it will be stationed in Tmall this autumn, which is also the first flagship store that the brand has opened in the Chinese market.

It is understood that &OtherStories currently has 70 branches around the world, compared with the COS brand of H&M group, its style is more literary and artistic and emphasizes individuality. The design has been completed from three jobs in Paris, Stockholm and Losangeles.

The brand is also the fifth brand introduced by H&M in Tmall.

H&M's visit to Tmall seems to be a thing of the past, but it has been more than a year since careful calculation.

Over the past year, H&M Tmall flagship store has accumulated about 8000000 fans. As an opportunity, H&M's sales in China have also been greatly improved.

According to the annual report released in January H&M2019, net income increased by 5% to 210 billion 400 million kronor, and the growth of e-commerce business grew steadily. Sales increased by 22%, accounting for 14.5% of the total sales volume of the group.

The rapid growth of Tmall's e-commerce platform to H&M is a pleasant surprise. It's not difficult to understand why H&M group can't wait to move its brands one by one. After all, the whole group has seen the power of digital channels.

TOPSHOP bankruptcy margin

TOPSHOP, who withdrew from China in November last year, came to the brink of bankruptcy after more than half a year.

During this period, the brand went through a wide range of stores, plunged into sex scandals, and reorganized its founder, and formally filed for bankruptcy until the end of May.

It is understood that the TOPSHOP parent company Arcadia owns eight brands and 566 stores. Through the bankruptcy procedure, the company voluntary agreement will close 48, reduce 1000 related jobs, and seek the rent reduction of 30%-70% for the other 194 stores.

TOPSHOP's boss was prosecuted for sex scandals in the United States, which made the brand once again in public criticism.

Under the double blow of poor sales performance and impaired brand image, TOPSHOP's retail business in the United States has also been shattered, saving itself from reinvigorating itself, only selling itself, but not only the buyer has not yet appeared, but also the date has been postponed.

The trend of several brands is quite different. UNIQLO is on the high side. H&M also has a rising trend, while TOPSHOP is frustrated all the way.

The global economic recession has also accelerated the changes in the industry, so that the fast fashion industry's "shuffle" mode continues.

I believe that the polarization of the industry will continue to expand. Who can hold on to pressure and grow up in a predicament and stay until finally become a king?