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    2019 Four Fast Fashion Six Months

    2019/7/11 18:44:00 0

    Fast Fashion

    Seeing that the first half of 2019 has passed, looking back on these six months, the four fast fashion Chinese market has been gradually opened, and the two or three line cities are still sinking. However, there are too many uncertain factors for fashionable and fashionable brands. To enter the Chinese market does not mean that they can continue to achieve good results.

       Who is C in PK transformation?

    On the one hand, in the first half of the year, retailers generally responded that the overall environment was not clear enough, and influenced by the international political economy, Sino US trade war, international politics and economy, performance, and other achievements, some fast fashion brands withdrew from China. Last year, the British street brand New Look completely withdrew from the Chinese market. In May this year, FOREVER took the 21 step. After a big sale, the store announced its defeat in China. In fact, this is just a microcosm of some fast fashion. The same fast fashion brand has the same fate as FOREVER 21. ASOS, TOPSHOP, NEXT and South Korea's TBH Global are all finally disappointed because of "acclimatization". On the other hand, the domestic rivals are too tough in the Internet age. Many domestic brands have made a great appearance in fashion week. Lining, Bosideng, Taiping bird, Hui Li, Anta and so on have seized the C position of the national tide, so that the four fast fashion brands such as Zara, H&M, gap and UNIQLO can not sit still. The transformation seems to be inevitable.

    In particular, the business of the four fast fashion brands in China (Asia) has shown a great division. For H&M, ZARA and UNIQLO, China's business has been growing rapidly, but GAP's Asian business has not been able to grow rapidly and has encountered bottlenecks lately.

    In the first half of the year, the fast fashion H&M of transformation should have a name. Aside from the strong U.S. dollar and the drop in pre tax profits on offline investment, H&M's most criticized stockpile inventory is effectively controlled, which allows the brand to move in the right direction. In the first half of the year, the transformation in H&M was not empty talk. Inventory at the end of the second quarter was 18.3% of sales and 18.6% at the end of the first quarter. In fact, the reduction in demand for excess inventory discounts should increase the gross profit of the third quarter by 1.5 percentage points. In addition, we should focus more on core industries, upgrade the chain stores of the same name, invest in emerging brands Arket and Other Stories, if we can continue to maintain good sales growth momentum in the first half of this year, and substantially reduce inventory, it is impossible to get out of the trough.

    Fast fashion industry is no longer in sight. UNIQLO is also a good example of deep adjustment. KWAS has launched a joint venture, and has adopted more advanced technology in strategy to make up for the short board of "fast fashion quality common failing", emphasizing itself as a "digital consumer retail companies", focusing on Technology and developing functional fabric products. It has unique insights into China's Internet electricity supplier market: online and offline two-way drainage, taking the same price online and offline models, online self ordering stores, and offline fitting can also be delivered online. Reduce costs through big data support.

    In addition, GAP and Zara seem relatively normal in the first half of transformation. Gap has almost stagnated growth, and Asian business has seen a big negative growth. As other fast fashion giants change, it seems to have not kept up with the train today. It did not cater to the Chinese market, or experienced in the past, and suffered from the rapid differentiation of fashion in 2017. In the first half of the year, the gap transformation was relatively passive. From the frequent closes at the beginning of the year to several times for executives, the acquisition of children's clothing, and the split group catalysis, it was committed to sustainable development and did not make any success in any single sector. Even the strategy of putting Old Navy into a "core engine" of the profits also failed, and in the first quarter, it fell into a complete regression.

    By contrast, the situation of Zara, which has just changed, is even more optimistic. Sales in the first quarter increased by 5% to 5 billion 930 million euros, an improvement of 2% over the same period last year. Faced with growth stall and falling share prices, the transformation in the first half will focus on leveraging the electricity supplier (Tmall) and opening the three or four tier city market. In particular, the main purpose of the change is: Zara is eager to catch up with the digitalization process behind the garment partners. It is understood that Zara online sales accounted for only 12%, while its competitors accounted for 20% to 30% on average, he intends to fully realize digital before 2020, offline store inventory and electronic business platform to get through.

    A new way to get out of fashion

    Fast fashion is a simple way of "fast fashion". It means that clothing companies react quickly to fashion design, and they are quick, cheap, easy to accept and keep up with the trend. But looking at the present, simple "fast" is not their strongest selling point.

    The joint tactics of repeated tests. In the first half of the year, UNIQLO could be said to have been scouring the Chinese market, and the cooperation with KAWS had produced a panic buying rush in China. The KAWS x UNIQLO joint on the counter was sold out, and the clothes on the model were also picked up. H&M, who is also a fast fashion brand, is also unable to sit on its feet. On the eve of the 618 launch of the most conscientious cooperation Series in the history, H&M Giambattista Valli fairy dress, fought the UNIQLO KAWS joint name, and plans to introduce another high-end brand &Other Stories into China. In contrast, Zara and gap had little splash in the first half of 2019.

    Opening up new battlefields. But in fact, under the situation of fast fashion recession, the poor performance of the Japanese mainland is in sharp contrast to the rapid development of the Chinese market. In the second half of the year, the direction of development of UNIQLO may not only stabilize the Chinese market, but also open up new territories for developing new markets such as India. Tadashi Yanai, founder of UNIQLO, said India could become the "world's first and most exciting market". It will launch its first store in New Delhi, India, which means that UNIQLO is ready to compete with Zara and H&M to seize market share in India. Besides the terminal retail, it also includes the establishment of the upstream large global sourcing base.

    New image and new field. The replacement of the new Logo comes along with the zara2019 Spring advertising campaign, which goes towards a simple sense of high quality, complying with the preferences of the millennial consumer groups. Even never invited the spokesperson, it started appointing 90 star Dongyu Zhou and Wu Lei as the Greater China brand image ambassador, and pre sold the stars in the Tmall flagship store. In the first half of the year, the company regarded cosmetics as a new growth point.

    Digital + short video and other social networking sites infiltrate. Zara in order to have a better understanding of consumers' views on the trend of Instagram, designers of all ages were invited to analyze this. At the same time, the online business platform provides designers with inspiration for design. Background data can help designers understand the keywords of consumers when shopping, so as to infer the trend of fashion.

    In addition, the last joint venture between UNIQLO and KAWS has caused users to rush to buy without a notice, and the early warming of a big wave of net red. Recently, the joint chattering has set off a trend of fashion. Users wear their favorite UT to create different creative short videos. In video content, more Cosplayer put on UT, recreate the animated character, and set off a wave of classic animation memories killing it. The ultimate goal of the challenge is to train the new generation of young consumers in the world to brand awareness and purchase intention of UT.

    Gap's approach also has the same effect. First, the online small program mall is composed of 9 parts: "sweep code and look for clothes", "online shopping mall", "member welfare" and so on. The preferences of small programs are different from those of offline stores, but consumers need to register as GAP members before they can purchase normally. H&M is open to the new fashion quiz community, Itsapark. This platform promotes consumption by enabling users to communicate around fashion.

    In addition to the above new play, increasing children's clothing business is also a way for fast fashion brands to test children's clothing market, not only to create new profit growth points for the brand, but also lay a market foundation for children's clothing independent shop in the future. With the outbreak of the two child bonus in China, the children's wear market is ushering in a period of rapid growth. It is foreseeable that the independent children's wear shop will become the trend of the fast fashion brand in the future. Children's clothing business will become a new growth point of fast fashion brand.


    Source: Zhongfu clothing net: Ding Xuejiao

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