The Development Of Fast Fashion Brands Has Slowed Down. Women Over The Age Of 33 Are Not Interested In Zara.

According to data monitoring, the price of clothes sold by the Zara in the Chinese market has decreased by 10% to 15% since last year. This may reflect the growth rate of the group in the Chinese market may not have met expectations, and began to feel the fierce competition of fast fashion competitors and the rise of domestic clothing brands.

With the fast fashion market becoming more and more saturated, in order to maintain the high growth performance, the Zara price cut will trigger fast fashion competition in China to become more intense. In particular, Zara has no advantage in the domestic two or three tier city market. Once a shop fails to guarantee the expected profit of the group for a certain period of time, closing the shop is the final normal choice.

In February this year, Zara suddenly closed the largest flagship store in Chengdu, China. Some analysts pointed out that this may expose the hidden trouble of Zara in the current market, and it is facing a threat in the Chinese market. China's e-commerce and O2O may weaken the traditional advantage of the fast fashion giant.

Because of the pressure of exchange rate fluctuations and fierce competition from the global competition, fast fashion obviously can not avoid the labor pains brought by the fashion retailing industry in the winter. According to the latest data, the popularity of Zara and other fast fashion brands among consumers is also related to age. Consumers are starting to flee from Zara.

Recently, Insight Rooms, a consumer analysis agency, surveyed women's participation in the topic of Zara on social media Instagram Instagram. The highest level of participation was female consumers aged between 23 and 27, while more than 33 of female consumers fell to 1%.

This means that Zara's main consumer groups are between 23 and 27 years old, while women over 33 years old are losing interest in high street fast fashion brands such as Zara.

Eddie Dilworth, founder of Insight Rooms, said that the Zara brand is young and fashionable, but the design style that is relatively conservative and real wear makes its consumers' age span more extensive than that of Topshop and River Island. Based on the survey data, the average age of consumers is about 25 years old, while consumers over 33 years old usually have certain economic strength and will be more willing to buy more high-end brand clothing.

Since the beginning of 2000, under the influence of the global economic crisis, the fashionable and cheap fast fashion brand has become an endless trend. Zara and H&M have entered the Chinese market in 2006. In 2010, the fast fashion brand GAP of the United States officially entered, attracting a large number of young consumers at that time.

Some consumers said that she once visited 10 years ago. Fast fashion store But 10 years later, after the age of 30, the demand for quality has gradually surpassed the thirst for freshness. While the "post-90s" have also patronized fast fashion, they are obviously not enthusiastic.

Some analysts have pointed out that the development speed of fast fashion brands is slowing down.

In the 2016 fiscal year, the profitability of Zara parent Inditex group was shrinking again. In the 2016 fiscal year ending January 31st this year, the group's net profit increased by 9.7% to 3 billion 16 million euros. With the global expansion of Inditex group, same store sales growth was flat last year. As an important indicator of profitability, the group's gross profit margin has declined for four consecutive years.

By the end of 2016, Zara had more than 2000 stores in 98 countries and 193 stores in China.

As the main competitor of Iniditex group, the Swedish fast fashion group H&M has entered China for 10 years. By the end of 2016, the group has 4351 stores in 64 markets all over the world, with an average annual sales growth rate of double digits, and its daily sales volume in China has exceeded 2 million yuan. However, H&M's performance has been slowing down since last year, and its sales growth slowed to 3% in February this year. The sales growth in the fourth quarter ended in February 28th was only 4%, less than expected.

Some analysts believe that after the crazy expansion of H&M, it can be determined that it is now in the bottleneck of performance, and its gross profit margin has dropped to 55.2% compared with 60% of 10 years ago.

In the face of the global retail market downturn, increase electricity supplier channels, shrink Physical store Channel has become the choice of fast fashion brands. At the end of January this year, H&M group abandoned the goal of opening 10% to 15% new stores every year in order to focus more on developing e-commerce.

As early as last year, Zara revealed that it would slow down the expansion of the entity store and devote more attention to online channels. Ignacio Fern Fern ndez, chief financial officer of Inditex group, told the media that now consumers are buying things on different channels, and the group is more inclined to cooperate with all channels. Some analysts pointed out that Zara may not be able to adapt to the fierce competition in the Chinese market. A disturbing fact is that Zara did not have online stores until 2010, when Gap opened online stores for 10 years. Until 2014, Zara opened online shops in Tmall.

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