Style Is Not As Good As 1/5, And UNIQLO Runs Faster Than ZARA.

The international fast fashion brands, once representing western style, have lost the Chinese market. After the announcement of the British high street brand TOPSHOP and New Look announced their withdrawal from China in 2018, Forever21 from the United States also rushed to the curtain several months ago. The big players also have no good news: the performance of Inditex group, the parent company of ZARA, has slowed down since 2015, and the revenue growth in 2018 has continued to decline to 3%, and net profit has risen by only 2% over the same period last year. This is the worst profit growth in the past 5 years. Another fast fashion giant H&M group has slowed down its opening speed after a sharp decline in revenue growth in 2016. In contrast, UNIQLO's performance is far from "fast fashion". Thanks to the strong growth in the Chinese market, its 2018 fiscal year revenue rose by nearly 16% compared with the same period last year, showing a handsome uptrend in the picture below. Compared with the expansion of the above brand stores, it is more intuitive to see that the momentum of TA development in China is different. From 2015 to 2018, UNIQLO net increased 246 Chinese stores, which is 15 times the number of ZARA, 1.4 times the number of brands of H&M group (including H&M, COS, etc.) - behind the more rapid expansion, it often means more beautiful growth and stronger confidence.

Chinese consumers are more and more willing to pay for UNIQLO. What exactly are they buying? This represents the consumption logic of contemporary young people. DT Jun (public number ID:DTcaijing) tries to compare the differences between UNIQLO and ZARA in order to get answers to the above questions from the perspective of consumer perception. 1 the number of UNIQLO products is only ZARA 1/5, but a commodity can provide up to 18 colors. First, from the perspective of product development, UNIQLO and ZARA have different cores. We compared the products of two brands on Tmall flagship store in May 2019, and the difference was obvious. The number of UNIQLO products was only ZARA 1/5. In ZARA nearly 10000 items, apart from clothing, there are a wealth of accessories products, bags are divided into men's bags, women's bags and children's bags, and even perfume and lipstick.

Obviously, ZARA earnestly practices the concept of fast fashion, to provide as many designs as possible, and provide a full range of solutions for fashionable people. In contrast, UNIQLO's products are few in style, and over 30% of them offer more than 3 color choices. UNIQLO a man's POLO shirt even gave 18 color options. For a man who doesn't want to think about what clothes he wears, he can only rely on this POLO shirt for a month. If we strictly define the fast fashion according to the "business model that can be launched in fashion week in a very short time", it will not be a fashion brand that actually closes to the fashion week and the fashion trend. In particular, the data of real fast fashion ZARA are pulled out and compared. More than 9 of the products only offer 1-2 color options, basically buying several clothes, that is, buying several styles.

Behind this is the very different business philosophy of the two brands. DT Jun here directly quoted the public number, which is analyzed and summed up by Jiang Tai Gong's office: UNIQLO: clothing is originally without individuality, and only by ingenious wearing of someone can it display its unique personality charm. ZARA: for customers to make style proposals, customers find their favorite products in the process of enjoying style proposals and decide to buy them. We can understand the difference between the two brands from the buyer's point of view: there are not many basic styles without personality, so before buying UNIQLO, you know what clothes you want to buy, comply with the shopping logic that you want to buy goods A to buy merchandise A, and ZARA's common style, you don't know what you want to buy before you see your clothes, you want to buy clothes, go shopping and look for them. From the perspective of China's market performance, there is no personality fund to win more fans.