UNIQLO Profits Fell Sharply, 46.4%Zara Caught Plagiarism Has Been Popular Fast Fashion What?

Yesterday,

Announced the first three quarters of sales data, operating income of $12 billion 480 million, operating profit of $1 billion 270 million, down 23% compared to the same period last year, the company's pre tax profit of only $617 million, a sharp fall of 46.4%.

In fact, UNIQLO has been in a state of decline in recent three years.

Data show that in fiscal year 2014, the net income of UNIQLO was about $693 million, down 28.7% in the 2013 fiscal year.

In the first half of fiscal year 2015 (September 2015 to February 2016), the consolidated earnings showed that the net profit was 47 billion yen, down 55.1% from the same period last year, the worst in five years.

Meanwhile, Zara, a fast fashion giant, is falling into the storm of being accused of plagiarism by designers this year.

Dozens of designers have plagiarized their works by attacking the products of the Zara parent company, Inditex SA.

The terrible thing is that Zara has been accused of plagiarism, and almost all of the fast fashion brands such as H&M and Forever21 have.

In addition, according to the results of the first half fiscal year of 2016, H&M group's pre tax profits plummeted 22% to 1 billion 240 million dollars; as of April 30th, GAP group's net sales fell 6% to 3 billion 440 million dollars, and announced that it would close 75 Old Navy and Banana Republic stores outside North America.

A series of events, without being asked by people, have been popular with fast fashion brands. What's the matter?

ZARA is the forerunner of "fast fashion".

The so-called "fast fashion" is characterized by "fast, ruthless and accurate".

"Fast" means fast fashion clothes.

The speed of new products to the store is fast, and the display frequency of the display is high.

"Ruthless" refers to the fact that consumers buy fast fashion clothes at a considerable speed and are "ruthless", often changing the "moonlight clan".

"Quasi" refers to the designer's vision, foresee the trend of the recent trend, and design all kinds of fashionable clothes in a short time. When consumers choose goods, they must buy them without hesitation.

Of course, the price appeal, fast fashion brand is also not much to make.

Through international brand new conference and other channels to collect fashion information for integrated design, and then to production and sales, the fastest fashion can only take 12 days, but the price is less than the international brand similar style 1/10.

Moreover, the number of garments produced in fast fashion is very small. The clothing styles produced annually are 3 to 4 times that of the general enterprises, and the products are replaced every week.

For today's young people who pursue individuality, it is easy to arouse a strong desire to buy.

According to Liu Jing Zheng, chairman and chief executive of fast marketing, fast fashion brands are divided into three generations: the first generation is the self owned brand retailer, such as GAP, and so on. The second generation is Zara and H&M with fashionable elements. The third generation is UNIQLO, which focuses on clothing performance, fabrics and clothing collocation.

Since its entry into the Chinese market in 2006, especially in the 2008-2012 years, fast fashion has caught up with a good opportunity in China. With the continuous development of China's economy, the accelerating pace of people's life and the increasing demand for fashion clothes, coupled with the rapid expansion of China's commercial real estate and the rapid growth of retail space, ZARA, H&M and other fast fashion brands are occupying the market rapidly. They are favored by white-collar and fashionable people with the characteristics of speed, variety and quantity, and become the mainstream of mass consumption.

After that, fast fashion brands are quickening the pace of opening stores.

From 2012 to June 2013, in just a year and a half, UNIQLO, ZARA, H&M and C&A opened 207 new stores at a whirlwind speed.

At the same time, the fast fashion brand flagship store is also getting bigger and bigger. UNIQLO's flagship store in Huaihailu Road, Shanghai, covers an area of more than 8000 square meters from one to five stores. It is nicknamed "the flagship store of UNIQLO".

With the weakening of the real economy, there are many closes of physical stores. The fast fashion giants such as GAP, UNIQLO, H&M and so on seem to be showing signs of decline. They are faced with the multiple challenges of the market under the current economic environment.

And the fast fashion itself brings many problems that are brought by the fast pace.

Although fast fashion has fast response supply chain, super commodity integration capability and inventory digestion capability, it achieves a series of objectives such as rapid design, rapid production, quick sale and quick update.

However, the business mode of fast fashion management makes it difficult to devote much time, energy and resources to originality and so on. Under the urging of market demand, design sense, designer shortage and plagiarism become one of the fatal injuries.

At the same time, the acceleration of competition pressure on fast fashion brands is also one of the reasons for weak performance.

Fast fashion brands are fashionable but eliminated quickly, while in some promotional activities, the price of the regular purchase has not been long enough to cut prices, which has also hurt consumers' enthusiasm for buying.

In addition, in the face of changes in main customers and fierce competition, around the "80", "after 90" and "00 post" and other groups, to achieve personalized breakthroughs in line with the target customers also need to actively promote.

After all, fast fashion brands continue to expand their sales range, products will become more and more popular and lose the appeal of fast fashion.

From the perspective of market competition, today's

In order to meet the needs of individuation and diversification, we should strengthen the management strategy of multi variety, small batch, networking, and information technology. It is a better choice to produce products with high cost performance, low price and diversified brands.