Sluggish And Fast Growth, Such As ZARA And H&M, Slow Down In China

< p > when ZARA, H&M, GAP, UNIQLO and so forth all issued heroic words to open hundreds of stores in China at the beginning of the year, the fast fashion brand Mango, the first to enter the Chinese market, ran away with poor performance.

Relying on agency mode, Mango used ten years to set up 200 stores in China, but now 81 stores disappear.

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< p > the "lipstick effect" in the economic downturn is driving the fast fashion brands such as H&M and ZARA to rise rapidly. However, will all the low-cost strategies of fast fashion brand make them come and go fast? < /p >

< p > < strong > experiencing growing pains < /strong > /p >

< p > if the fast fashion brand Mango, which is going through a large store, has become a past tense, the situation of ZARA and H&M is not optimistic at the moment.

From the miracle of growth in the creation of economic downturn to growth weakness, fast fashion is undergoing market quiz.

Reporters found that, while bravely paving the way to open stores, while sales growth slowed down, fast fashion is experiencing a contradictory development period.

In the view of the industry, low rent and other preferential policies have given the fast fashion enough room for development, but this is not static. The choice of fast fashion has arrived.

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< p > according to the relevant media reports, when ZARA, H&M, GAP, UNIQLO and so forth all issued heroic words to open hundreds of stores in China at the beginning of the year, the fast fashion brand Mango, the first to enter the Chinese market, rushed away with poor performance.

Relying on agency mode, Mango used ten years to set up 200 stores in China, but now 81 stores disappear.

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< p > at the same time, according to the data, the first quarter earnings report issued by ZARA parent company Inditex group shows that as of April 30, 2013, the net profit of the group increased by 1.39%, and its net sales increased by 5.18% to 3 billion 593 million euros in the first quarter, and the gross profit margin dropped by 59.6% to 2 billion 140 million euros.

Last December, relying on the strong growth power of the Asian market, Inditex group completed double-digit growth in sales and profits.

Inditex group leader also said that through the accelerated layout of the global stores, Inditex group has the ability to resist the economic downturn in Europe.

The latest performance report released by H&M group shows that the net profit of H&M group decreased by 11.9% compared with that of the same store during the period from December 1, 2012 to May 31, 2013, while the same store sales decreased by 4%.

At the same time, the same month store sales in H&M3 hit a minimum decline of 12% over the past three years.

This has made the H&M, which is already growing weaker, more determined to accelerate the expansion of growth.

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< p > in the view of Guo Zengli, director of industry information of China Merchants alliance, it is different from the development of retail industry. When the economy and consumption environment are depressed, fast fashion brands need to increase the number of stores to gain resources.

Under normal circumstances, fluctuations in the economy and the decline in consumption should encourage retail businesses to emphasize single store sales rather than further scale expansion.

The reason why fast fashion can take the opposite route is due to the low cost of opening stores, which can often make up for the same store performance decline through scale expansion.

But how long can such a choice last? < /p >

< p > < strong > just look beautiful. < /strong > < /p >

< p > "the more depressed the economy is, the more extensive the development of affordable fashion will be." this is the golden rule of the fashion industry.

The decline in purchasing power brought about by the global economic downturn has become a common phenomenon.

In order to please those consumers who are still fastidious in purchasing power, the lower prices become the necessary conditions for fashion. The rise and popularity of fast fashion brands such as ZARA, H&M, GAP and so on are at the right time to take a proper road - the interesting economic phenomenon of "lipstick effect" is once again verified.

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< p > "follow the trend rather than creators" is the positioning of fast fashion brands such as ZARA and H&M.

From the T show in Paris, which represents the annual fashion trend, to the cheap a target= "_blank" href= "http://www.91se91.com/", which is scattered over the two or three tier cities in China, the clothing "/a" generation plant, the latest fashion released by the high-end brand has been simulated and pformed by fast fashion a target= "_blank" href= "target=".

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< p > of course, the following strategy of fast fashion brands is followed by the criticism of all parties on its alleged duplication of plagiarism.

In Europe, ZARA needs tens of millions of euros a year to pay for plagiarism, but for ZARA, which costs billions of euros a year, it is a drop in the bucket.

Even so, the grey area of law often makes it difficult for relevant proceedings to enter legal proceedings.

The famous French a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > shoe brand Louboutin deeply felt its taste. It always used the red sole as the signboard. After seeing the competitor, Yves Saint Laurent sold the women's shoes in the exclusive shop of Manhattan, it took the name of "illegal competition" and "trademark infringement" to the court.

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< p > however, the final ruling of the US court considers that although the red sole has its own characteristics, it can not be regarded as exclusive all privileges and dismissed the case.

Forever21, the fast fashion brand in the US, has also been blamed. Over the past 4 years, it has been prosecuted for more than 50 times.

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< p > in fact, the soul of fashion brand has never left the original design, and the lowest design threshold even imitate plagiarism is the most fatal damage to brand added value.

If you try to remove the trademarks of ZARA and H&M, it is difficult to identify their brands from similar designs.

Although low inventory and limited edition of psychological tactics seem smart, they can not change the same design.

If there are 10~15 women in 100 urban white-collar workers wearing similar a target= "_blank" href= "http://www.91se91.com/" clothes to work in the morning, the brand will come to an end.

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< p > compared with the style, the quality of fast fashion brand is also widely criticized.

ZARA has been on the blacklist of quality inspection for the 7 time in two years in China, and once encountered consumer trust crisis in China.

In fact, the quality problem has always been the inherent defect of fast fashion gene. Based on the consideration of cost control, these fast fashion brands have excluded high-quality and long life fabrics in the design stage.

Especially with the increasing labor costs of Chinese foundries, fast fashion brands have to further reduce the quality cost in order to maintain low prices.

For many fast fashion brands, frequent replacement of lower cost raw materials and foundries in pursuit of low cost has become the norm.

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< p > ZARA and H&M still have no match in the domestic fashion industry, and the continuous pursuit of Chinese consumers has allowed them to let it go.

However, "brand building is the core of brand development no matter what time". If ZARA means a crash and rough production on a certain day, how long will their age last? Perhaps no brand can achieve perfection. However, ZARA seems to be eager to build their skyscrapers when they are weak and vulnerable. The farther away they may be, the more they will lose.

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< p > if the fast fashion brand Mango, which is going through a large store, has become a past tense, then the situation of ZARA and H&M is not optimistic.

From the miracle of growth in the creation of economic downturn to growth weakness, fast fashion is undergoing market quiz.

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