What Are The Changing Trends Of The Garment Industry?

Shops in the process of investment, often will ask "this. brand What is the future?

Fortunately, in this era of information development, we can understand the prospects of a brand business through big data analysis. Especially recently, the major brands have released the third quarter earnings report. Through these earnings figures, we can analyze the pattern of the industry is showing a trend of change, and then make a judgement of the future trend.

In order to make the report analysis more focused, we only analyze clothing brands and closely related to clothing. fashion Brand financial reporting.

　　 Brand shuffle is happening.

The key to big data analysis is not to analyze every data, but to discover its relevance in massive data. Through comparison of different brands' earnings, we can find that, at present, there is a Clothes & Accessories Brand big shuffle is quietly occurring.

The first manifestation of this big shuffle is the pressure on the clothing brands that people familiar with in the past decade or so are facing a transformation or even decline, which has greatly affected their performance. As of October 31, 2016, 23 domestic apparel listed companies announced the third quarter earnings in 2016, of which 13 companies suffered a year-on-year decline in revenue and 12 companies saw net profit decline.

Third quarter revenue changes for domestic apparel brands -

Data show that at present, all brands are also facing new layout under this pressure. Among them, the practice of the group is very representative, that is, the introduction of fresh blood through mergers and acquisitions and capital operation. In the more than 1 years of listing, he has made 4 major acquisitions. The company's brand ELLASSAY, LAUREL and EdHardy have 77 new stores (including direct stores and distribution shops), 28 stores, and the control of international fashion brands or the right of operation in the Chinese region.

However, there are another pattern of the noble bird, the Hai Lan's home, and the American state clothing. It is to sink to the small and medium-sized cities, and to achieve the effect of stocking by adding a large number of storefronts. But this has also led to a sharp decline in net profit margins of these businesses, and the actual effect needs further observation.

- changes in the number of stores in recent years in some domestic and foreign brands -

Compared with domestic brands, the reshuffle of foreign fashion brands presents another form, and more is the change of formats. On the one hand, brand luxury brands generally encounter development difficulties. On the other hand, fast fashion brands have slowed down in the past few years. At the same time, some emerging brands and designer brands have stepped up their efforts. (because of the rule of information disclosure and the time difference, most of the foreign brands' third quarter earnings report is not yet public, so we choose the operation figures for the first half of 2016.

Some foreign fashion brands 2016 revenue changes in the first half of the year -

Data research shows that many traditional luxury brands are facing great difficulties. For example, Prada group has recently been reduced by institutional shareholders because of its performance problems. In the first half of this year, the group's total revenue was 1 billion 550 million euros, down 15% compared to the same period last year. This is the first time in the past 5 years the total income has dropped by two digits and the sales in the Greater China region has dropped to 21%. The adjustment strategy of luxury brands in China is also becoming clearer. Among them, LVMH will slowly expand in the mainland of China and Hongkong, and will start to close unreasonable stores. There are only two new shops in Tiffany, and 6 existing stores will be relocated. HugoBoss plans to close 20 Chinese stores in 2016. And a few years ago, luxury brands often had more than 50% expansion per year in China.

On the other hand, some time ago became the most fashionable fashion in the shopping center, and the time windows were closing. H&M, UNIQLO and other traditional fast fashion brands have slowed signs of growth, but market competition is still fierce. But the local fast fashion began to see opportunities, and the "MJstyle" and "hot wind" brands began to expand independently by means of experience upgrading, collation and cross-border cooperation.

　　 Analyzing the future through history

In fact, it is not the first time that such brand shuffling and big substitution took place in the past twenty years, at least two times.

In the 90s of last century, Baleno, JEANSWEST, Giordano and other popular fashion brands were the kings in the shopping malls. Both the number of stores and sales performance occupied a larger proportion in the whole market, but the traces of these brands in the industrialized age were too prominent, and the design was similar. With the continuous development of the national economy, the popularity of Baleno and other brands can not meet the needs of the vast number of consumers.

So at the end of the last century, Jack, Jones, Only and other brands entered China to fill the market gap. These brands originated in Europe, and their style of clothing was not completely in line with domestic consumers at that time. Therefore, this substitution process lasted for several years, but with the rise of bar culture, nightlife and the increasing income of residents, these brands have ushered in the true sense of "golden age" in China. At the same time, brands such as Giordano and Baleno did not quit the market. They began to find new space in the 234 street shops.

However, since the beginning of the 2007-2009 years, H&M, UNIQLO, ZARA and other fast fashion brands have entered the domestic market, and their logistics and distribution, commodity management, inventory control, personnel training and other aspects are complete and advanced, and the prices of their similar products are more competitive. The dominant position of popular fashion brands such as Jack, Jones, Only and other overseas fashion brands instead of Baleno, Giordano and JEANSWEST will be replaced by fast fashion brands such as H&M, UNIQLO, ZARA and so on. But similarly, Jack, Jones, Only and other brands have not withdrawn from the market, because quality and design have accumulated some fans for them, they still have a place, and gradually blossom in the two or three tier cities nationwide.

Today, the brand new big shuffle, a notable feature is that the brand of personalized route has begun to be recognized by more people. The brand of Amoy brand and social function has begun to rise, and the public's attention to brand has begun to disperse. Data survey shows that five years ago, a medium-sized shopping center, of which the number of branded merchants was around 70-80, and now has easily exceeded 120. In order to adapt to this new change, more and more brand owners began to implement multi brand strategy. Like ELLASSAY, its main brand, the sales of high-end brands in the field of fashion continue to be under pressure, but the brand of EdHardy, which is purchased from the luxury brand, is developing rapidly. Laur L is also expected to accelerate its opening in the four quarter.

Behind the escalation of consumption

The vitality and development prospects of a brand depend on the combined effects of three factors: price, quality and design. The change of population structure and the demand for consumption upgrading is the motive force behind its development.

From the point of view of brand choice, the so-called upgrading of consumption does not mean that people will buy more expensive products. Behind it, there is a more complex social psychological change.

A study on consumption escalation in the United States found that the significant change in the middle class consumption escalation is not luxury goods, but some businesses that aim at cost performance, such as the rise of low-priced supermarkets.

The same history is happening in China. The middle class of the next 25-45 years old will become the main force of consumption. They can be roughly divided into three categories: the high quality people who value the quality of goods, the new network people who are brave in trying new things, and the opinion leaders who are willing to share. Stars also buy Taobao goods, big guys also eat roadside stalls, forcing small white-collar workers to save money and buy big Chinese brands. The traditional positioning theory has been unable to adapt to this new situation. Instead of publicizing "who I am", it is better to study who the users are. Under the premise of the release of users' personalized needs, the new brand store / buyer shop, designer brand, fashion sports brand and Amoy brand will take the place of fast fashion and become the new "shopping center favorite".

It is worth noting that for the time being, many domestic brands mentioned earlier did not show signs of catching this opportunity. Data survey shows that the majority of new fashion brands currently concerned by domestic users are foreign brands. In contrast, many domestic brands are still addicted to price wars, gradually allowing users to get used to their humbleness, or constantly throwing money, burning money, and playing a large amount of meaningless advertising, so that once they stop throwing money, they will lose market influence.