Global Epidemic Continues To Rage, And The Analysis Of Fast Fashion Brand Giants

The global epidemic continues to spread. Up to now, the total number of confirmed cases of new crown pneumonia has exceeded 4 million 170 thousand cases, and more than 283 thousand deaths have been reported. Despite the fact that many countries have considered the issue of "unsealing", the global economic reboot has not yet reached a normal pace with the increasing number of confirmed data. Under these circumstances, are the giants of fast fashion industry all right?

? ? H&M

Recently, the Swedish fast fashion brand H&M released the first quarter earnings report, as of the end of the reporting period has closed 3778 stores in 54 markets, resulting in a sharp decline in business revenue in the first quarter. It is understood that since Italy announced the ban on nationwide closure in March 10th, H & M has temporarily closed down all offline stores in 13 European countries or regions such as Italy, Poland, Spain, Bulgaria, Belgium, France, Austria and Luxemburg. Among them, 8 stores in Italy will be closed. The company said the move was aimed at optimizing the combination of stores. Sales fell and growth slowed due to the epidemic. Only closing the stores with poor performance was a solution for the group.

At present, about 60% (3050) stores in H&M's 5061 stores are still closed; 46 of the 51 E-commerce markets are still open.

In the period from March 1st to May 6th, the total sales of H&M decreased by 57% compared with the same month in local currency, but online sales increased by 32% over the same period last year.

By region, H&M's sales in the Chinese market dropped by 32% over the same period last year. The biggest drop was Italy (80%), followed by Spain (76%), France (71%) and the United States (71%). Sales in Sweden, which did not completely ban commercial activities, also declined by 31%.

H&M warned that losses will be expected in the second quarter due to a sharp decline in sales and a reduction in sales to adjust inventory.

H&M said the group's cash flow is in good condition and will focus on ensuring financial flexibility and freedom to meet business opportunities in a challenging market at its best. "H&M also said that efforts are being made to obtain more credit arrangements.

In order to highlight the brand's new look of anti epidemic, H&M recently announced that it will introduce a new fabric technology COOLMAX, a high-performance fabric that can take moisture away from the body and keep the wearer's body breathable and comfortable. H&M will use this fabric to make the main style of this summer men's wear and a series of essential items for men's wardrobe. The series will be launched in H&M online store and Tmall official flagship store in May 8th, and will be landing at H&M's main stores in May 21st. Ross Lydon, director of H&M's menswear design department, said the COOLMAX series is the first H&M series to optimize daily clothing with high-performance fabrics. Thereafter, fabric innovation will be regarded as a new way to promote the development of men's clothing.

? ? ZARA

ZARA is known for its "efficient efficiency" strong supply chain, with its own factories and production lines. A dress is less than two weeks from design, production, transportation to store. However, under the influence of the epidemic, ZARA has also been caught up in the "closing shop tide" of the clothing industry.

In the first half of March, the 2019 annual report released by Inditex group, the fast fashion brand Zara, showed that 50% of the world's stores were temporarily closed, that is, 3785 stores in 7469 of the world's stores had been temporarily closed, and sales fell 24.1% year-on-year.

In addition to closing stores, the Inditex group is considering temporarily cutting out about 25 thousand stores in Spain. In order to help the Spanish government solve the shortage of medical supplies such as respirators and medical protective clothing, Inditex group also plans to transform some of the fabric production lines into professional medical fabric production lines.

In order to overcome the resistance brought by epidemic prevention, Zara has another way to solve the dilemma. The models of "ZARA" can not do the filming under the condition of a large number of people gathered, so they present the new ZARA products in the way of self timer. The way of showing is very striking, and the new ZARA product has been fired accidentally.

In addition, ZARA is still actively transforming. Inditex group has announced that all its brand products will be made of 100% sustainable fabrics before 2025. The group also promises that no garbage will be sent to landfills by Zara in 2025, and that 80% of the energy consumed by the company's headquarters, logistics factories and stores will be renewable energy.

? ? GAP

Under the influence of the epidemic, GAP is also "Besieged everywhere". It is reported that GAP group accounts quickly evaporated 1 billion U.S. dollars, and less than 1 billion dollars left. Some time ago, the GAP side announced that due to the impact of the global new crown pneumonia epidemic, the company's cash flow is urgent. If we can not get new operating capital, we will not be able to predict it in the future. Although the company has taken a number of measures to reduce losses, it has little effect.

The brand said in April 24th that GAP had temporarily shut down retail stores in North America and many stores around the world in response to the outbreak of the outbreak, in response to the directive of the government and public health authorities. Starting in April 2020, GAP will immediately suspend the rental of $115 million per month in North American stores. In the next 12 months, cash and expected cash generated from operations may not be sufficient to fund our operations. "And took 11 measures, including suspension of wages for more than 80 thousand employees, or become the first fast fashion brand to fall.

Prior to that, GAP's brand Old Navy has announced that it formally withdrew from the Chinese market in March 1st and closed down all offline and online stores. It is understood that this is the GAP group's brand, has been operating in China for six years. Officials say the exit is to focus on the development of the North American market.

In order to contain the decline and decline of the epidemic, Gap group announced in a recent statement that it will start opening about 800 stores in North America from this month. The group said earlier that its stores were forced to close during the epidemic, which has consumed $1 billion since February, and the cash flow has been rushed, leaving less than $750 million in bank accounts. At present, Gap group is taking measures to maintain healthy cash flow, including about 80 thousand unpaid vacations for shop employees, reducing executive compensation and delaying payment of rent in April.

? ? Uniqlo

The outbreak has not only changed the survival style of fast fashion brands in Europe and the United States, but also one of the fast fashion giants in Asia.

Last Thursday, Uniqlo, the fast fashion giant in Japan, released the monthly key financial data of the Japanese domestic market. According to the financial report, sales of UNIQLO in Japan continued to decline sharply in April, including comparable sales of online stores, which fell by 56.5% compared to the same period last year, and total sales, including online sales, fell by 57.7% over the same period last year.

UNIQLO's performance is usually greatly affected by the weather, especially the sale of its functional basic clothing. But this time it was mainly affected by the new crown epidemic, which caused most stores to temporarily shut down or reduce business hours. The flow of stores is greatly reduced, and consumers are cautious about shopping. UNIQLO said many consumers decided to stay at home to fight the epidemic. "

In April, at least 299 stores in UNIQLO were open as usual, but business hours were shortened, and 311 stores were temporarily closed. The same store sales volume, including online sales, dropped by 60.6%.

In order to better break the situation, UNIQLO changes the consumption attitude and consumption behavior before and after the data mining. UNIQLO revolves around the brand concept of "LifeWear suit life", starting from 4 aspects of peace of mind, health, quality and sustainability, and gradually building up the whole link from the early stage to establish brand immunity and health to open vitality and vitality now. At present, they are "evolving" through commodity innovation, online and offline services and innovation, brand value shaping and social responsibility.

Meanwhile, UNIQLO has launched a new 2020 spring and summer new product, including life sports, health sunscreen, AIRism comfortable underwear, UT world literary pioneer, high quality classic 5 series. To meet the epidemic situation, people are more comfortable and healthy, multi scene efficient, and at the same time produce emotional resonance, and serve as a new demand for cultural bearing.

The fast fashion tycoons have been in the global fashion industry because of the "fast and fast" logistics chain integration and fashion trends. But now the epidemic has been plunged into a "shuffle" crisis. In the new era of post epidemic, brands continue to carry out business adjustment and brand management, but they still can not resist the impact of the epidemic on revenue decline and consumer turnover. Will they usher in their "fast" rhythm?