Consumption Tends To Mature: Will Fast Fashion Turn From Brilliant To Dim? Will Low Level Cities Be A Way Out?

Half of 2019, the fast fashion industry shuffling intensified. According to incomplete statistics of win business network, the 8 fast fashion brands including H&M, ZARA, UNIQLO, MJstyle, Muji, UR, C&A and GAP have increased 84 stores in the first half of this year, which has been greatly reduced compared with the previous three years.

Although the overall expansion and deceleration, the Matthew effect is even more obvious. In the first half of the year, New Look and Forever 21 ended China's journey one after another. Muji was subjected to the "Chinese style crisis". Once the "domestic black horse" pressed the pause button. On the other hand, the three giants of the world are still thrived.

　 One

In just four years, fast fashion has changed from brilliant to gloomy.

2016-2019 in the first half of the year, 8 fast fashion brands added new stores in the mainland, reaching 131 in 2017. Among them, UNIQLO, UR, MJstyle and other brands expanded to meet the high light moment, but then declined year by year.

For the fast fashion brand, the golden age of horse racing enclosure has long been over, and the glory of "opening a fire home" has also become a history. China's market environment is changing quietly, the tide of the country is rising, and the aesthetic of consumers is constantly being rebuilt and rebuilt. The quality and style of fast fashion are increasingly criticized.

Against this background, the fast fashion shrink expansion pace becomes an inevitable choice.

Many international fast fashion in China occupied.

In the first half of 2019, the number of new stores in mainland China increased positively compared with that of last year, with only 12, 11 and 7 new products, including Muji, GAP and ZARA.

UNIQLO declined slightly, opened 28 new stores, and still led a brand.

H&M's new store has cut back from 21 to 6 in the past three years.

New Look and Forever 21 shut down one after another, and completely withdrew from the Chinese market.

MJstyle "Waterloo", UR is the leading domestic product.

The local fast fashion brand MJstyle began to slump in the first half of 2018, only half of the 37 in the same period in 2017. Only 7 stores were added in the first half of this year.

UR has turned over 12 new stores to MJstyle, becoming the "light of domestic products".

From the regional perspective, the fast fashion new stores in the first half of the year are still mainly in the East China market, with a total of 39, accounting for 46.4%, mainly in Jiangsu, Shandong and Zhejiang. Among them, there are 15 UNIQLO stores, and GAP, MJstyle, Muji and UR each have 5 houses settled here. A shopping center often introduces many fast fashion brands, such as UNIQLO and UR, which are stationed in Hefei Vanke Plaza and Ji'nan impression city.

Secondly, there are 18 new stores in Southern China and 7 in UNIQLO, mainly in Guangdong. Northeast and central China have 7, 5 in the northwest and 4 in North China and southwest China.

From the point of view of the city, the largest number of new stores in Suzhou is mainly due to the new shopping centers in the new period, and the introduction of fast fashion brands, such as Suzhou new Lake Plaza, which gathered UNIQLO, UR and GAP. Hangzhou, Ji'nan and Hefei also benefited from new projects, including Hangzhou Jinsha impression city, Hangzhou union CC, Ji'nan impression city, Ji'nan first Oteri J, Hefei Vanke Plaza, etc.

There are only 10 cities in the first tier cities, and Beijing is "absent". Among them, 5 Guangzhou, Cloud Gate NEW PARK gathered Muji, GAP and UNIQLO; Shenzhen 3, Shanghai 2.

Seize three cities and cities below. The market of popular cities is gradually saturated, and the potential of fast fashion is spreading to low level cities. In the first half of the year, Anshan, Luoyang, Lanzhou, Linyi, Pingxiang, Shantou, Yangzhou, Yulin and other cities each introduced at least 2 fast fashion new stores.

　 Two

"Matthew effect" intensified, cold and warm self aware

There is no doubt that the slowdown in store expansion has become the consensus of fast fashion brands. However, this does not prevent the Matthew effect from continuing to ferment in the fast fashion industry, and the trend is stronger and stronger. The three giants of the world are still thrived, and UNIQLO is particularly brilliant; New Look and Forever 21 have ended their Chinese journeys, and the once famous Muji has begun to get a thick gray tone.

The big three are still smiling.

This summer, UNIQLO again used Jump comics, manwei and other UT to become super net red, triggering wave of wave buying rush. The enthusiasm of young people for its joint marketing was completely ignited in June 3rd. On the day, UNIQLO and costumes of the US graffiti artist KAWS were sold. 1 million products sold out in 1 days, and sales reached nearly 100 million yuan.

In the first 9 months ended May 31st, sales of fast selling group, operating profit and net profit all reached a record high. Among them, sales in overseas markets have risen by 14.6%, and China is still the main driving force. UNIQLO brand has increased by more than 20% in the mainland market. At present, UNIQLO has more than 700 stores in China, concentrating on the second tier cities, and will continue to sink in the future.

The momentum and scale effect of ZARA and H&M is still strong. As of fiscal year 2018, H&M has 465 stores in 153 cities in mainland China, and 580 parent brand stores in ZARA parent company.

The latest report shows that Inditex's sales in the first quarter increased by 5% to 5 billion 930 million euros, compared with 2% in the same period last year. The H&M group's net sales in the second quarter were 57 billion 474 million Swedish kronor, an increase of 10.6% over the same period last year, and four consecutive quarters of growth.

"Losers" Muji

The latest report of Muji parent company showed that the sales volume of the good plan increased by 5% to 112 billion 300 million yen in the three months ended May, but net profit dropped 31% to 6 billion 500 million yen, the first time since 2014.

In China, Muji has risen with the growth of the middle class. Today, Chinese consumers have a new understanding and pursuit of the "middle class" lifestyle, and the MUJI style petty bourgeoisie has been surrounded by more domestic brands with more price.

Faced with this change, Muji's emphasis on the price reduction measures of "new pricing" seems to be of no help. 5 years down 11 times, but did not significantly enhance the performance, but diluted the brand value.

Insiders say that the biggest problem with Muji is lack of moat. Once consumers have more cost-effective choices, it will gradually be replaced, no one can guarantee that Muji can also withstand several "furniture products blacklist" impact.

"Death" is a difficult companion in time.

In the first half of the year, the biggest "melon" in the fast fashion industry is the US Forever 21 withdrawing from China. In April 29th, Forever 21 China official website, Jingdong and Tmall flagship store suspended operation and gradually closed shop. It was only over two months after New Look completed the closure of all the mainland stores.

Forever 21 and New Look can be said to be "dead" at the opportune moment. Forever 21 was originally on the same starting line with ZARA and H&M, and it came to China in 2008. The difference is that the opponents put the first store in the international metropolis Shanghai, but it chose to "go to the countryside" to Changshu. This is not a fast fashion trend, so it has been closed for a year.

Once again, China entered the era of the rise of the electricity supplier in 2011. Forever 21 opened the China official website and Tmall flagship store before ZARA, TOPSHOP and H&M, and targeted at the top business circle of big cities. The result is that once the killer - low price, online competition is not competitive, good store resources have been taken the lead by ZARA and UNIQLO.

New Look came later than Forever 21, but it was an "impetuous" - eager to turn around the deficit and adopt a simple and crude expansion strategy. In 2016, it shouted a radical slogan of "adding 500 stores in three years".

The actual result is that from 2016 to 2018, New Look opened 35, 53 and 3 respectively, far from the plan, and the location of stores was also limited. The heavy blow of reality knocked New Look completely down, and the more than 100 stores closed one night.

The rise and fall of fast fashion is never without trace. Who can continue to laugh and live? Wait and see.