Fast Fashion "New And Fast" Mode Of Development And Setback

Fashion has always been like a gust of wind crossing, leaving no fixed trend. With the high-end design, the price of civilians, and the fast fashion of "new and fast", it has been red for a while. In the past ten years, it has become the vane of countless Chinese women to catch up and catch up with the trend. However, with the iteration of fashion, after the fast fashion brands such as Topshop, ASOS and New Look, Forever 21 has also lost the Chinese market recently, while La Natsu Bell, the Chinese clothing giant, who claims to be "China ZARA", has also been caught in an embarrassing situation of huge losses and large-scale closes. It seems that the fashion of "fast but not breaking" is out of order. Some analysts believe that after years of fast food consumption, consumers are now focusing on quality, refinement and individuality. How to capture the main group of clothing consumption after 90 is worthy of research on clothing brand.

Clothing brand pressure mountain

"This year is a very tough year for clothing brands." Guangzhou one hundred shopping mall official told the Yangcheng Evening News reporter: "many brands are facing pressure of performance and inventory pressure this year. A few years ago were mainly affected by the electricity supplier. In addition to the impact of the electricity supplier this year, what is more tested is the internal strength of the enterprise."

Take the Guangzhou Friendship Shopping Mall as an example. In the past years, there was little promotion in clothing brand. Many brands also joined the 3-5 fold this year.

2018 is an important watershed. According to the National Bureau of statistics, from 2012-2017 years, China's clothing retail business has maintained a steady growth trend. In 2017, the total retail sales of clothing reached a historical high of 1 trillion and 450 billion yuan. In 2018, the figure dropped to 1 trillion and 370 billion yuan.

Fast fashion and go to Mai Cheng

Yangcheng Evening News reporter noted that fast fashion Newlook and TOPSHOP were one of those who quit the Chinese market in 2018. Some time ago, it also lost the Forever 21 of the Chinese market. It was also a fast fashion route, with a wide variety of products and cheap prices. The main customers were urban residents aged twenty or thirty, and new products were launched every month.

But the setback in the Chinese market is not only an international fast fashion brand. In the first half of this year, La Natsu Bell, a domestic clothing giant, shut down 2400 stores in the first half of the year. At the end of July, it announced the semi annual performance loss announcement in 2019. It is estimated that the net profit attributable to shareholders of Listed Companies in 2019 half year will be -4.4 billion yuan to -5.4 billion yuan, which is about 286.6% to 329% lower than that in the first half of 2018. Recently La Natsu Bell also announced that in fact, the shareholding ratio of controlling shareholders is close to 100%, and has constituted a breach of contract, which is commonly known as a pledge.

In fact, La Natsu Bell's business model is replicated by the rapid expansion of ZARA and other international fast fashion giants through direct camp mode. In 2009, there were only more than 900 marketing outlets, reaching more than 9000 by the end of 2016, and the number of marketing outlets increased. In 2012, La Natsu Bell's revenue was 2 billion 913 million yuan, and in 2016 it was 8 billion 551 million yuan, and its net profit increased from 260 million yuan in 2012 to 572 million yuan.

Crazy after the expansion of the shop, this is the same reason why New Look quit the Chinese market. The rapid expansion of brands makes the fast fashion market highly saturated, resulting in the decline of New Look because of the failure of brand transformation and expansion strategy.

　 Quality and personality tide brand rise

Reporters noted that fast fashion in the past ten years, few opponents, "new and fast" supply chain mode is an important factor. If Missguided can launch 1000 new products every month, update the stock once a day, ASOS can complete the product process in 2-8 weeks, the average time to market is about 6 weeks, while the traditional retailer needs 6-9 months.

Although fast fashion has done the best in the "fast" business, after many years of fast food consumption, consumers began to stress quality, refinement and individuality, and tide brand and net red brand began to rise. Many consumers interviewed by the reporter of the Yangcheng Evening News said: "less and less in fast fashion buy clothes, because it is easy to wear out, the quality is not good."

The fast fashion brand has experienced a big shuffle. In April this year, H&M released its first quarter results in 2019, exceeding market expectations. Among them, the Chinese market grew 16% year on year, and the online market grew by 18%. This report is just one year from H&M's entry to Tmall. It can be said that digital transformation has helped to boost its performance. In recent years, in the fast fashion market, UNIQLO, the first to notice the channel of e-commerce, settled in Tmall in 2009, and launched the star traffic strategy in 2017.

The white paper, which is released by Tencent's data lab before 2018, shows that the integration of online and offline can help clothing brands grow more. A sports brand marketing director said: "our online investment proportion gradually increased, from the beginning of the offline offline 8:2 ratio, to nearly 5:5 now, last year made a big IP implantation, the cooperation effect is very good, the future online media will be more and more attention."

The white paper also shows that after 70, buy "refined", after 90 changed to "diligent", after 90 has become the main consumer of clothing. And consumers are most likely to be "grass growing" in social channels. How to catch up with the market trend and seize the consumers is a topic worthy of study by fast fashion.