The Slow Pace Of The Fast Fashion Industry In The Future Will Become The Main Theme.

According to the world clothing shoes and hat network understanding, at present, the retail industry has been more competitive than ever before, and the fast fashion with the tide of the tide is also experiencing a huge collective battle.

And sadly, more and more

With the negative news of brands, many of them come from their own problems. Are they losing their popularity?

TOPSHOP layoffs, regional business bankruptcy, China's physical store plan no progress, decline in performance

According to Reuters, its owns TOPSHOP, TOPMAN and Miss Selfridge and many other fast fashion.

After completing the internal audit of the group, Arcadia Group believes that there are many problems such as excessive number of stores and staff redundancy at the present stage. It will improve the profitability of the group by shutting down some poor performance stores and layoffs.

It is reported that the layoff rate is about 2% of the total number of employees in the group, or about 300.

TOPSHOP's parent company has more trouble than that.

After Australia's franchisee filed for bankruptcy protection in May, TOPSHOP's New Zealand business suffered the same fate, which made the future expansion of the Chinese market, mainly through online partners, also become a topic of concern for the industry.

Enter China at the end of 2016

Since then, there has been no new trend in the development of TOPSHOP's physical stores in China.

In addition to financing problems, TOPSHOP/TOPMAN's reputation and appeal in the Chinese market is also a barrier to its huge expansion in the Chinese market.

Performance review

TOPSHOP and TOPMAN were anxious last year, both in the UK and in the international market.

In the fiscal year ending August 2016, Arcadia group's sales decreased by 2.5% to 2 billion pounds compared with the same period last year, and net profit dropped by 16% to 211 million pounds.

During the period, sales in Britain dropped by 1.3% to 896 million compared with the same period last year, and international revenue fell by 6% year-on-year.

H&M was exposed to burn clothing inventory, the series of queuing sales disappear

Recently, according to fashionunited, a television program called Operation X in Denmark accused H&M of incinerating 12 metric tons of unsold clothes every year and has destroyed 60 tonnes since 2012.

According to the program survey, about 30 thousand new brand jeans and trousers are still being tagged.

So it was widely criticized by the public and the market, which made H&M headache.

It is worth mentioning that the way to deal with the tail cargo quickly is to resell, donate, destroy, incinerate and landfill. H&M chooses the most destructive incineration, and a large amount of toxic gases from dyes and other materials will directly pollute the atmosphere.

This summer, according to Buzzfeed News, the The Changing Markets Foundation released a report claiming that there were serious pollution phenomena in several large viscose fiber factories in China, Indonesia and India, and claimed that H&M had purchased eight raw materials, Zara was purchased from four of them, and Tesco, ASOS and Marks&Spencer were also on the list.

Fast fashion itself is a continuous reduction of production cycle and increase the frequency of new products. At the same time, excessive consumption aggravates the burden of environmental pollution.

The biggest problem facing the fast fashion clothing companies such as Zara and H&M is how to balance the relationship between environmental protection and business profits.

Just as Deng Minlin, a spokesperson for Greenpeace, is puzzled, "H&M's current business model is still based on" more and cheaper ", and the real cycle of sustainable development should follow the principle of" less and better "to produce wearable clothes.

Else Skjold, a professor at the school of design in Denmark, said that H&M was due to overproduction.

High inventory has always been a big problem for fast fashion, and H&M group has launched promotional activities in the third quarter, but this has to a certain extent slow down the growth of performance.

For H&M, it's time to think about how to save yourself.

There is no popularity in the H&M ERDEM outlets.

In November 2nd, as the earliest cross-border publishing joint series, H&M officially launched the 2017 H&M Designer Series H&M * ERDEM in China.

On the day of the sale, there was no crazed queuing in stores. However, the H&M official mall, which had been sold at the same time, was paralyzed in the morning.

Analysts believe that this year, H&M * ERDEM joint stock offering fewer stores, resulting in difficulty in picking up goods, plus consumers are more accustomed to buying online, resulting in overload of network hits.

It is understood that the H&M will jointly sell nationwide stores from 14 last year to 5.

Performance review

According to the results of the first 9 months of the 2017 fiscal year ending August 31st, H&M group's sales rose by 7% to 173 billion kronor, or 21 billion 200 million US dollars, lower than expected in August 31st.

Among them, tax sales in the first three quarters of 2017 increased by 4% over the same period last year, down two percentage points from the same period last year.

A&F fell for the 18 consecutive quarter, releasing its first non erotic advertising, pforming its brand to fast fashion.

Recently, the US youth clothing brand group Abercrombie&Fitch Co. (hereinafter referred to as "A&F") announced that the brand name of the same brand launched a new "This is the Time". For this reason, the image of the youth in the first TV advertisement was healthy and positive, and it was the first time that the brand did not appear in the TV advertisement for the naked model in the past 10 years.

In fact, the remodeling of A&F began in 2015, and A&F said it would abandon the brand's erotic route.

In February this year, the group launched the first new store concept for A&F in 15 years, emphasizing "warm, tolerant, open, attractive" design style and customer experience, focusing on selling clothes.

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You know, A&F has gone through 18 quarters of winter.

In May of this year, news came out that A&F hired Perella Weinberg Parners LP to deal with the sale and began contacting potential buyers.

Although this happened in two months.

A&F group decided to pform its fast fashion brand in order to pull back its performance.

A&F group has increased its target consumer group from 18 to 24 years old to 21 to 29 years old.

At the same time, it also launched the children's wear product line and an underwear brand Gilly Hicks for the first time, like the fast fashion brands like Zara and H&M.

For example, Tmall will go deep into the Chinese market.

In the past 6 years, A&F has shut down more than 350 stores including two brands including Hollister.

In June, A&F announced that 6 new Abercrombie&Fitch stores will be opened this year, of which 5 are in the US and the other 1 new stores in Harbour City, Hongkong will replace the flagship store closed at the end of last year.

The recent improvement has strengthened the confidence of A&F pformation.

Performance review

Data show that the A&F group's overall sales decline in the two quarter of 2017 decreased from 3% in the first quarter to 1%, showing an improvement in the three quarter and a 2.1% decline in the market forecast.

Hollister same store sales rose 5%, much higher than Consensus Metrix's composite forecast of 2.9%, and A&F brand's decline also narrowed to 7% from 10% in the first quarter.

Previously, A&F Group sales fell for the 17 consecutive quarter, and failed to grow for more than 4 years.

New Look China plans to run aground for 500 years in 3 years

New Look's latest store data show that in the first quarter of fiscal year 2018, New Look added 17 stores to 127, while its South African boss ChristoWiese claimed that three years of China's 500 stores crazy plan seems to be postponed or even stranded.

In the 2017 fiscal year, New Look has only 25 new stores in China, which is only 38% of the 2016 financial year expansion shops.

In addition, the 20 men's clothing stores that the Group expects to grow is only 75% in real terms, with a net increase of 15 to 21 in the year.

As for the radical expansion of New Look in the Chinese market, the No Agency of the fashion industry research and consulting organization has early warning. In 2016, the agency's research report to its internal customers claimed that the popularity of New Look in China was not enough to expand its annual 100 stores, and its expansion speed was higher than that of the global fast fashion group, which has already settled in China, and no matter whether the store or the reputation is higher than New Look.

Performance review

Sluggish sales and radical investment led New Look to slump 31.8% to 155 million pounds in the 2017 fiscal year, 2016 in fiscal 2016, and 44.1% in the 2016 fiscal year, while operating profits fell 44.1% in the 2016 fiscal year.

SPAO the number of stores has shrunk rapidly.

Dalian's only Korean fast fashion SPAO, which was closed at the end of last month, was also closed in Shenyang, Beijing, Chongqing, Beijing, Chongqing, Wuhan, Chengdu, Chunxi Road and Qingdao Golden Lion square.

SPAO is a fast fashion star brand under the Korean ELAND clothing and love group. In 2013 -2014 chose the popular combination SuperJunior and F (x) as spokesperson. In 2015, it chose EXO and AOA as new spokesmen.

SPAO has become one of the brands that Korean young people continue to pursue because of its Asian style, skin color, temperament and people's pricing. It is the first brand in Korea's SPA (fast fashion) brand to achieve annual sales of more than 100 billion won. It also opened a 3 day sale in Shanghai people's Square to break 4 million yuan.

In December 2013, it opened its flagship store in Shanghai and Beijing for the first time, and officially entered China.

As of September 2017, the number of SPAO stores in China was 31, and according to previous media reports, it has opened to more than 50 stores in China before.

In just a few years, stores have shrunk by nearly half. For this phenomenon, insiders believe that the problem is that SPAO has not yet fully opened the Chinese market, and its fame is far less than that of ZARA, UNIQLO, Gap and other international fast fashion.

As for ordinary consumers, more people shut down SPAO's business because of the poor quality of their products.

Closing shop tides spread throughout the fast fashion industry. The high cost of operation is one of the important reasons for fast fashion falling into crisis. With the increasing impact of the electricity supplier on the industry, the physical shops become a drag on fast fashion.

Fast fashion reflects the change of consumption.

In the fashion retail market, Chinese consumers are increasingly fastidious about brands. Especially when choosing fast fashion brands, their consumption is becoming more and more cautious and their loyalty is becoming lower and lower.

Many fast fashion brands are facing a decline in sales growth or even a negative growth.

In the past two years, some fast fashion brands have begun to adjust their market strategies to find a way out, such as changing styles, keeping up with hot spots, or trying to cooperate with luxury designers of luxury brands.

With the new generation of consumers becoming more rational, the slow pace of the fast fashion industry in the future will become the main theme.

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