What Is The "Super Fast Fashion" Mode That Is Faster Than Zara?

Brands such as

,

After entering China, it filled the vacancy of China's fast fashion market. At the same time, their fast-paced supply chain mode also expanded rapidly all over the world.

However, I always believe that technology can not be a permanent barrier, only culture can make the brand last forever.

You fast, I improve technology faster than you.

There will be no end to this competition.

No, the following companies are getting more and more sophisticated on the "fast" road, and have even compared Zara, which is famous for its speed.

Recently, to talk about the fast fashion brands with high popularity, Boohoo can definitely be the best among them.

In March 2017, the UK's fast fashion business Boohoo.com PLC updated its performance report. It said that since the release of the holiday season report in January 10th, the group's business continued to be strong. The revenue growth in the 2017 fiscal year ended February 28, 2017 was 50%, which was higher than the previous 46-48% expectations. This is also the sixth annual performance forecast for the group in six months.

Subsequently, Boohoo.com PLC issued a separate statement, indicating that the company has completed the acquisition of Nasty Gal Inc. in the US bankruptcy business. 12 million of the $20 million paction is new bank loans, including Nasty Gal Inc. intellectual property rights, databases and assets.

In the same year April earnings report shows that the specific data is that revenue increased from 195 million 400 thousand pounds in fiscal year 2016 to 294 million 600 thousand pounds, and pre tax profits nearly doubled to 30 million 945 thousand pounds, better than the market expectation of 28 million 700 thousand pounds, up 97.4% from the 15 million 674 thousand a year ago.

According to the world clothing and shoe net, Boohoo.com's entire supply chain efficiency is less than 2 weeks. Simon Bowler, a retail analyst in Paris, France, also points out that the delivery time of Boohoo.com PLC on 100 new products per week is only 1-2 weeks, twice as fast as that of Zara.

This is because even if Zara is a vertically integrated production mode, the new design will produce a certain number of codes, and then store them on various stores, before receiving every type of data that consumers are interested in.

However, Boohoo.com adopts the "test repeat" mode of sales and purchase. The new product will only produce a very small number of products, and most of them are made in the UK and put on the Internet. Through online browsing and ordering, we can quickly determine which styles are more popular and then conduct large-scale merchandising.

Moreover, in Boohoo.com design, with the help of social media, the most popular elements can be quickly absorbed into the product.

Therefore, the new efficiency of Boohoo.com has also been greatly improved.

According to the world clothing and shoe net, Boohoo is a famous online retailer in the UK. It was founded in 2006, mainly including clothing, shoes, bags, jewelry, watches, glasses and so on.

In 2007, Boohoo was named one of the ten largest electricity suppliers in the UK.

The purpose of this website is to provide beautiful and inexpensive costumes for beauty loving people.

As of February 28, 2017, the Boohoo platform had 5 million 200 thousand active users, an increase of 29% over the same period, the total volume increased by 33% to 11 million, and the passenger price increased by 12.4% to 37.76 pounds, and the conversion rate increased from 4% in the 2016 fiscal year to 4.4%.

The number of active users of PrettyLittleThing is 1 million 300 thousand.

Boohoo.com continues to widen its categories. Recently, children's wear, maternity dress and marriage series have been launched.

Just now we are talking about the rapid growth of Boohoo. Its market value is currently about 2 billion 100 million pounds, while the largest fast fashion e-commerce brand in the UK is ASOS, with a market value of about 4 billion 700 million.

For various reasons, ASOS has withdrawn from the mainland market in the middle of 2016, but we can see that its development is quite rapid from its latest financial reports.

According to the first half of 2017 ASOS earnings report released in April 2017, as of February 28th, its retail sales rose 31% to 889 million pounds over the same period last year, gross profit increased 36% to 444 million pounds compared with the same period last year, gross profit margin was 47%, pre tax profit increased 14% to 27 million 300 thousand pounds. 6

As can be seen from this graph, Boohoo and ASOS in the UK are just like the dark horse with fast fashion brand strength, which is increasing rapidly, exceeding the brands of Zara and H&M.

Similar to Boohoo business model, and because of its earlier ASOS, it has more users' accumulation and richer new models every week.

However, as far as I can see, the more parity of Boohoo commodity prices is going to be on the lower end line, and the ASOS unit price is higher, nor is it a complete competition relationship.

According to the world clothing and shoe net, ASOS, founded in 2000, is currently the largest fashion business in the UK. After its profit in 2004, its business has covered the world, including Russia, the United States, Germany and France.

Up to now, ASOS has more than 14 million active users last year, with an average of 4500 new products per week, which is 10% higher than that of 2015. A total of 85000 products of different styles are on sale. About 62% to 65% are ASOS's own products, while the rest come from 1000 brands selected by ASOS.

In addition to the two super fast fashion brands in the UK, the efficiency of the supply chain is as high as that of the UK's old fashion brand Primark.

{page_break}

Primark, which was born in 1969 in Dublin, Ireland, has a long history, but it is not a classic high-end brand.

On the contrary, its goods are very cheap.

Open its official website, you can see 2 euros beautiful bikini, 3 pounds of sunglasses, 5 pounds of ballet shoes.

According to the world clothing and shoe net, as of the first 16 weeks of January 7, 2017, the fixed exchange rate of Primark sales increased by 11%, mainly due to the increase of 12% of the sales area, and the sales in real terms increased by 22% during the period.

In the 2016 fiscal year, Primark's new store expanded 11.3% to 5 billion 949 million, and the fixed exchange rate increased by 9%.

It can be seen that in 2017, the growth of the old cheap fast fashion brand Primark was still very strong.

Unlike boohoo and ASOS, Primark has been a offline store mode since its inception.

The main reason is: "the profit margins of our single commodity are very small, which is why even online retailers can not compete with us."

George Weston, CEO of Primark parent company ABF (Associated British Foods), said.

In addition, Primark does not have any form of marketing activities. The large order quantity can get the lowest price of suppliers, narrow the distance between fabric suppliers and processing plants, and use skilled workers and mechanical assembly lines to minimize operating costs.

According to industry sources, the Primark model is actually available in China.

Now the clothing brand's rate of increase is 4-10 times.

If the markup rate is greatly reduced, a 15 yuan dress will be sold for 20 yuan, and there is no opportunity for excessive marketing and only cost-effective products.

However, this mode of performance than cost effective and supply chain efficiency will not end with the development of technology.

Really want to let the brand value play, still need to be known as the name of culture.

Look at the luxury brands' routines and tactics, and know how good the brand premium will be.

Of course, trafficking in culture and love is a relatively small number of things, coupled with cost-effective brand oriented mass consumer groups, low price fast fashion brand itself is difficult to create a classic in terms of quality and technology.

Maybe this is the two sides of a leaf, which is hard to reconcile.

More interesting reports, please pay attention to the world clothing shoes and hats net.