The List Of Shops Is Still Being Renewed.

　　 H&M , UNIQLO , ZARA , UR, GAP, Forever21, MANGO... Over the past ten years, fast fashion brands have sprung up like commercial real estate in the first and second tier cities. However, in recent two years, they have repeatedly appeared frequent shop closes, and performance growth continued to decline. The industry believes that this means fast fashion "horse race enclosure", the expansion of the scale of expansion of the old way of growth has gradually failed, the future fast fashion industry slowed down the pace, take the boutique route may become the main theme.

The list of stores is still being updated.

According to the world clothing and shoe net, recently, Korean fast fashion brand SPAO confirmed that it closed its only store in Dalian in October 31st. A few years ago, when the "Korean wave" still prevailed in China, the brand quickly attracted the attention of Korean and overseas fans because of its cooperation with the spokesperson of Korean entertainment giant S.M. From March 2015, SPAO will replace it with a combination of EXO and AOA. With the strength of the star, SPAO set up a sales volume of over 100 billion won in Korea, becoming the first brand in the Korean fast fashion brand. Its first flagship store in Shanghai people's square has also created a three day sales break of 4 million.

But sadly, "Cheng also Korean wave, defeated Korea," the past two years with the rapid decline of fashion brands, the "Korean wave" in the global decline gradually, SPAO brand good days also ended. In the Chinese market alone, as of September 2017, the number of SPAO stores in China has dropped to 31, just half of its peak.

Worse than SPAO, it is the same as ZARA, Spain, which is far less developed than the "fast moving fashion brand MANGO" of "fellow townsman". The brand that once occupied hot shops in famous shopping malls such as Beijing Oriental Plaza and Oriental Ginza seems to disappear quickly in these places overnight. Data show that from the beginning of 2013, as of the third quarter of 2015, the brand store has dropped from 200 to more than 50, and the list is still being updated.

Sorting out information and reports shows that the shadow of "Guan Dian" has not been stopped since it opened in 2017. At the beginning of 2017, UNIQLO closed 4 stores. After that, C&A also closed the first flagship store in Chunxi Road, Chengdu. Almost the same period, Zara's first image store in China was officially closed at the beginning of the year.

Performance "winter" or "normal"

In fact, it is not only the so-called "second line" fast fashion brand in the industry such as SPAO, MANGO, even the fast fashion brand leader, such as the "leader" ZARA, the H&M born in the European region, the Japanese UNIQLO, and the old fashion brand GAP of the United States, has never ceased to shop in hot commercial areas in the past two years.

In terms of performance, ZARA Inditex SA, the parent company of Inditex, gained 23 billion 300 million euros in the fiscal year of 2016, with a growth rate of 12%, but the growth rate slowed down significantly, while gross profit margin fell by 0.8% compared with last year, the lowest in 8 years. The total sales revenue of GAP in the 2016 fiscal year decreased by 1.8% compared with the 2015 fiscal year, and a 15 billion 516 million US dollar was recorded. Net profit was only recorded at 675 million US dollars, a decrease of 26.5%; in the 2016 fiscal year, the gross profit margin of H&M fell to 55.2% from 5 years ago to 55.2%, and the operating margin decreased from 18.01% to 12.4%, two indicators all reached the lowest level in the past five years; the sales revenue growth of UNIQLO parent sales group in 2016 has slowed down significantly, the growth rate has dropped from 2015 to 2015 in the 2015 fiscal year, and net profit has plummeted to Yen Yen.

The poor retail environment has led these fast fashion brands to adjust their "global enclosure" expansion. In terms of the Chinese market, Zara has begun to adjust its growth rate to less than 8% in China two years ago, lower than the two digit growth rate of many years ago. H&M group also abandoned the goal of opening 10% to 15% new entities in China every year, and GAP, whose performance declined for seven consecutive quarters worldwide, also said last year that it plans to close over 1/4 retail chains.

Kang Xiaochen, a columnist who specializes in Hong Kong stock analysis, believes that the "four big" performance "cold winter" shows that after rapid expansion of the fast fashion in the global horse racing enclosure, its "speed sequelae" begin to appear, and the market saturation has become a fact. Moreover, over the past few years, fast fashion has simply been able to win the market by simply copying, expanding and expanding. Fast fashion brands suffering from the double impact of the Internet and new brands need to start thinking about winning more young people and quality customers in the new situation, rather than relying on extensive scale tactics.

Most brand layout "slow down" strategy

In order to win the attention of the market, many fast fashion brands began to "return to the main garment industry" and work hard on product and brand image.

For example, UNIQLO first tried to cooperate with anime and movie IP in pop culture. Since 2015, they have announced global cooperation with Disney. They have opened special stores in UNIQLO stores to create concept stores, providing Disney, manwei and Star Wars theme products.

In recent years, H&M, which is far behind its competitor ZARA in volume and sales, has chosen new brand and brand name mode to win more users' attention and enhance brand recognition. First of all, from the brand layout, performance data show that the group's high-end clothing brand COS, which was founded in 2007, has become a new growth power for H&M group. Compared with quality problems, H&M's fast fashion line is often "black list". COS's design and quality are excellent.

In addition, in October 31st, H&M's latest designer collaboration could smell different flavours. The group's choice of designers is not so high on the topic of Erdem, the design style is gorgeous and retro, and the materials are mostly made of silk, satin and fur. The quality is relatively high and the outlets are very limited. Therefore, the joint venture between H&M and Erdem has not experienced the fate of H&M Kenzo Kenzo, H&M * Versace sale and word of mouth in the past two years. It is very rare that the demand for supply exceeds demand and the market is booming. It is called a "turning around" for the joint reputation of H&M.

Yang Dayun, President of excellent international fashion brand investment company, believes that over the past few years, fast fashion brands have been infiltrating from the first tier cities to the two or three tier cities, and entering the Chinese market is more strategic layout. And when the brand effect and the market scale reach a certain level and achieve the accumulation effect, fast fashion brands become more concerned about operational efficiency. Whether it is closing stores or laying high terminal brands, including slowing down, focusing on quality, design trends, and so on, the representation is actually for the adjustment of services that cater to the needs of the masses. Ultimately, they serve the maximization of efficiency. Fast fashion brands "slow down" is also a reflection of the change of consumption upgrading needs.

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