Market Analysis: Fast Fashion Brand 2020 Defeat

In 2005, ZARA, H&M and UNIQLO represented many fast fashion brands to enter China, and quickly occupied the Chinese market due to the three characteristics of parity, new product speed and keeping up with fashion trends.

2010 to 2016 is the craziest stage of fast fashion. Many Chinese consumers pass through the shop and can't help itching. When the most exaggerated time, many of the 80's wardrobe 80% is fast fashion brand. Now many people only choose discount products occasionally, and feel the quality is general.

15 years later, in 2020, the demand for quality among middle-aged people gradually surpassed the thirst for freshness. The "post-90s" who were standing close to each other, though they also patronized fast fashion, obviously had no fanaticism. After 00 years, they were more picky and rebellious.

The industry bottleneck of declining industry

The fast development of fast fashion brands is slowing down. In the field of luxury price reduction, light luxury, fashion brand attack, designer brand and the rise of local brands, coupled with the trend of brand force and limited edition clothing, the existence and competitiveness of fast fashion brands are gradually decreasing. This is the so-called decline of popularity.

With the popularity of e-commerce channels, more and more consumers are accustomed to online shopping, the line has long been unable to become the main direction of drainage.

Over the past two years, the price of clothes sold by Zara in the Chinese market has fallen by 10% to 15% on average. The quality of Muji has repeatedly been reduced, and the price has been cut for 11 times in China. But this is still unable to stop fast fashion brands from weakening in China.

　 Consumers' awakening and abandonment

When the "fast fashion" is on the rise, the audience is mostly 70 and 80. Now it has been in the past more than 10 years. After 90 and 00, it is two different classes. Consumption has changed from brand marketing drive to consumer drive.

Consumers pay more attention to the novelty and price of the style, but whether I like it or not, can I highlight my characteristics and personality.

Consumers' new consumption concept is beginning to awaken, and they are becoming tired of inferior quality and cheap goods. More and more people are withdrawing from this cycle of consumption of mediocrity and no longer buying cheap, mass produced clothing.

　 Rent crisis and closing regulation pressure still exist.

For the mall side, the fast fashion brand is the panacea for the absolute absorption of powder. But today there are many choices, and the rise of fast fashion restaurants, new entertainment formats, theme scene businesses and the new brands that emphasize lifestyle will increasingly drive the market to charge higher rents to the fast fashion brands that once used to be cheap.

Even though some of the fast fashion brands have received 1-1.5 million yuan / square repair, but in the current period of low fashion retailing, the blind expansion of shops, large shops and expensive rents are bringing serious crises.

Competition has intensified, and collective slowdown has begun.

Competition has suddenly increased. From 2017, fast fashion, especially in the Chinese market, is no longer good. Over the past few years, all the fast fashion brands doing business in China have done the same thing, that is, re exploring the Chinese market.

2018 was the turning point for fast fashion brands in the number of new stores in China, when the number of new stores fell by 39% compared with 2017, while the decline in 2019 decreased slightly, but also reached 18%. Coupled with the impact of the 2020 epidemic, the number of new fast fashion brands in China is expected to further slow down.

Finally, to sum up, it is just like the 500-5000 Chinese local clothing brands that were squeezed out of the market by fast fashion brands.

Source: real estate and business Author: Charles