H&M And GAP Become Discount Stores, Fast Fashion Brands Are Trapped.

In retail stores, the discount and clearance activities of fast fashion brands are upgrading.

Beijing Morning Post reporter interviewed found that H&M, GAP stores nationwide are discounted all the year round, 70 percent off, 50 percent off promotional activities have become the norm.

In fact, the dilemma of UNIQLO is just a microcosm of fast fashion brands. Almost all fast fashion brands are immersed in the mire of "declining performance".

The second largest clothing retailer in the world

The first quarter of fiscal year 2016 reported that the company's net profit was 2 billion 550 million Swedish kronor, compared with 3 billion 510 million Swedish kronor last year, compared to 30%.

GAP group, the largest apparel retailer in the US, was also hard to escape. In the fourth quarter of 2015, its net profit was $214 million, a year-on-year contraction of 33%.

In the fast fashion camp, life is better.

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ZARA's parent company Inidtex group released its 2015 earnings report, showing net sales of 20 billion 900 million euros, an increase of 15.4% over the previous year, and net profit of 2 billion 880 million euros, an increase of 15% over the same period last year.

The quality problem of fast fashion brands is becoming the main reason for consumers to leave. Even ZARA, which keeps a positive growth in performance, has frequently been blacklisted because of quality problems. Many brands such as H&M and ZARA have been on the quality blacklist for many times because of being detected "quality safety" or "fiber dimension components are not qualified".

Consumer gold lady bluntly said, "I used to think fast fashion brand is good.

High.

Now, the quality of fast fashion brands is getting worse and worse, and some clothes are only enough to wear for one season.

To make matters worse, the discount and inventory starts to enter a vicious circle. Fast fashion brands are paying for the "no bottom line discount" behavior.

Due to the continuous discounts throughout the year, H&M and GAP have been branded as "discount anywhere and anytime" in the minds of consumers. The influence of brands is rapidly declining.

Worse than bad performance, UNIQLO's share price plummeted, which may make Ryui Masa, founder of the 2015 richest Japan, lose its richest seat.

Among them, GAP was rated as "one of the ten most likely fashion brands to disappear in the next ten years" in 2014, forcing GAP global president Jeff Kirwan to stand up and say, "if it is asserted that we are a promotional brand, this is not appropriate." Forbes

But we can change the way we communicate with consumers. "

Although fast fashion brands are shrinking globally, the Chinese market is still a battleground for fast fashion brands. In the case of saturated stores in first tier cities, fast fashion brands are aiming at the two or three tier cities.