Will Fast Fashion ZARA And H&M Continue To Burn?

According to the world clothing shoes and hats net,

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And Sweden's H&M can be said to be the three giants of the industry, occupying half of the market, and become the first choice for Chinese young consumers to be fast fashion.

It is not known that there are many fast fashion brands that have been hot all over the world before these brands. What are the reasons for forcing the desolation of the brand and the decline of performance? Is it now that the hot fast fashion brands have become brilliant after a few years? Are they facing the crisis?

The fashion brand Esprit, which has been popular for more than 10 years, is probably not familiar with the brand after 90.

The fashion brand, founded in the US in 1968, has declined rapidly in just 35 years after its "peak hour" in 2008.

Peak revenue was 37 billion 227 million Hong Kong Hong Kong dollars, net profit of HK $6 billion 450 million, but in 2013, the net profit loss was as high as HK $4 billion 388 million.

The recession of the old fast fashion Esprit has been going on.

Recently, the latest results of Esprit's parent company's global report showed that the third quarter of the end of March saw a total of HK $3 billion 888 million in the three quarter, down 11.5% from HK $4 billion 391 million in the same period last year.

As of March 31st, the group's existing 681 direct retail outlets had closed 122 in the past 12 months, and the sales outlets of wholesale outlets decreased substantially by 1253 to 6137.

These unhappy situations have been reflected from the stores. Compared with UNIQLO and H&M, their stores always seem to be a lot of cool.

Consumers Miss Zhang told reporters, "compared to H&M, ZARA and forever 21, Esprit shop style is relatively old, it can be said that the rules are correct, maybe the quality is relatively good.

But when it comes to quality, clothing at the same price, UNIQLO's design is also more fashionable than it is.

Although Song Hye Kyo, a popular Korean pop star, speaks for her, she can not turn the cold shoulder.

Compared with the fast fashion brands that are now in flames, the advantages of Esprit are being weakened one by one.

In earlier reports, the Esprit who was responsible for the business of Esprit in China said that the cost of Esprit's supply chain was about 30% more expensive than the Korean clothing brand, let alone comparison with H&M and ZARA.

In addition, the data show that the traditional garment industry from design to raw material procurement to production and processing, the whole process cycle of 4 to 9 months, the design phase alone takes 1 to 3 months.

The Esprit operation headquarters is located in Germany, the design department is located in Hongkong, and the product of Esprit starts from the beginning of the design to sell on the shelves usually more than 9 months.

In response to the above supply chain problems, Esprit business reform is mainly focused on the "vertical mode", that is, faster and more cost effective development and supply chain processes, greatly improving product design and cost performance. Esprit has introduced the ZARA mode, reducing the delivery time from 9 to 11 months in the past to 3 to 4 months.

However, Esprit adopts a wholesale led operation mode, that is, the manufacturer is responsible for producing products, and then distributes to various channels.

In the early years, it relied on the development of small and light assets wholesale business, but it relied heavily on wholesale business. It ignored the development of supply chain.

This hinders the direct communication between producers and consumers, makes producers less sensitive to the market, and on the other hand, lengthened the order cycle, making it impossible for brands to react in real time to the changing market.

A person who does not want to be named is engaged in costume OEM.

According to the analysis of the insiders, it is apparent that Esprit has not grasped the changes of consumers' psychology and consumption patterns accurately, and missed the best opportunity for pformation before the advent of the Internet age. In a deeper sense, it is a flat and loose business model characterized by its affiliate and wholesale and retail sales, which can not change to the "vertical" and "efficient" integrated business mode in the short term, which eventually leads to the collapse of the whole fashion empire.

In the excellent international brand Cci Capital Ltd CEO Yang Dayun view, "fashion industry has such a characteristic, that is, every 35 years, any brand if it does not keep up with the needs of consumers in fashion and fashion, sooner or later it will gradually be eliminated by the market. Esprit and other fast fashion brands have not escaped this curse.

Brand aging, keeping up with young people's rhythm, and short supply chain are the main reasons for Esprit's declining. "

Gap, which is also a fast fashion brand, is not favored by the industry. The first quarter earnings data released by Gap group in 2017 showed that the largest decline in sales in Asia, including the Chinese market, dropped by 20.5%.

Roland Begg, global partner and vice president of Greater China, Chen Ke, an international management consulting firm, said in an interview that he personally believed that Gap had been on the decline.

Gap is the first brand that has come along with the economic recovery of the United States. It is aging at present.

"The problem is that the Chinese market is no longer the US market in the early years.

The image of Gap makes people feel more like a brand bought after 70, but now 85 or 90 are not willing to wear the same clothes after 70.

In addition, the price of the brand is not low, and there is no advantage in horizontal comparison with other fast fashion. Generally speaking, there is no obvious bright spot.

So will ZARA and H&M, which created fast fashion trends decades ago, continue to go hot?

With the deepening of digitalization, the brand of ultra fast fashion, represented by Boohoo.com and ASOS, is emerging rapidly.

Recently, Fung Global Retail&Technology, a retail research firm, released a report saying that due to the increasing demand for instant consumers, the production cycle of retailers is growing faster and faster, and fast fashion is changing to "ultra fast fashion".

European and American business platforms have sprung up a large number of ultra fast fashion brands, such as Boohoo.com, ASOS and Missguided, which have squeezed the design and sales cycle of products.

They are very good at responding to the fresh demand of consumers in a very short time, and have crushed the traditional fast fashion pioneers ZARA and H&M from the supply chain and performance.

Boohoo.com, ASOS and Missguided can produce goods in 2 to 4 weeks, while Zara and H&M are 5 weeks, while traditional retailers are 6 to 9 months.

The emergence of ultra fast fashion is based on the needs of consumers, and the premise of its realization is digitalization.

These retailers can easily get all kinds of information about fashion trends from the Internet, or simply "copy" the design inspiration of big brands, so that the ultra fast fashion brands can continuously update products and promote the shopping frequency of consumers.

The weekly volume of Boohoo and ASOS is 100 and 4500.

From the design point of view, it is also inferior to Zara and H&M, and has won the favor of big net red.

It remains to be seen whether ZARA, H&M and so on can maintain world dominance in the 35 years of fast fashion.

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