Ten Fast Fashion Brands In 2018, The Mainland Opened 44% Sharp To Cool?

TOPSHOP withdrew from Tmall store and New Look China closed shop.

With a "mess", fast fashion passed through the turbulent 2018.

This year, "live" has become the annual keyword of many industries, and fast fashion is also experiencing changes and shuffling.

According to incomplete statistics, in 2018, the ten fast fashion brands, including H&M, ZARA, UNIQLO UNIQLO, MJstyle, MUJI Muji, NEW LOOK, UR, C&A, Forever 21, GAP, added 264 new stores in the mainland (excluding upgrading and reopening stores), which has decreased considerably over the past two years.

Data show that the ten fast fashion brands added 415 and 473 stores in mainland China in 2016 and 2017 respectively. The growth rate of new stores rose 14% from 2017 to 44% in 2018.

Last year, most brands slowed down.

International fast fashion three big tycoons, in addition to UNIQLO keeps "advancing vigorously", ZARA and H&M have gone up the "downhill path"; formerly the crazy expansion of the domestic brand MJstyle pressed the brake key; NEW LOOK, Forever 21 gradually "eliminated" out.

Expansion slows down, but "toss" never stops.

In 2018, fast fashion brands boldly innovated, launched cross-border new varieties, and iterated new store models, trying to maintain competitiveness in young consumer groups.

UNIQLO upside, the five big brands are slowing down.

The first three stores in 2018 were UNIQLO, MJstyle and UR.

UNIQLO "one ride", opened 90 new stores, second times more than 41 MJstyle, MJstyle, UR two local fast fashion new stores, the number is 41, 39.

MUJI and H&M followed closely, adding 34 stores and 30 stores respectively. GAP added 15 new stores, and ZARA, C&A and NEW LOOK new stores were single figures, 8, 4 and 3 respectively.

In addition, Forever 21 has not yet monitored developments in the past year.

From the expansion of the past three years, UNIQLO has been on the rise, and the growth rate of new stores has increased from 17% in 2017 to 17%. After a year of GAP dressing, the number of new stores in 2018 increased by 87% to 15.

In addition, the development speed of other brands has slowed down to varying degrees.

Among them, UR and Muji are relatively stable.

In 2016, UR launched 37 stores, 44 stores and 39 stores in 2016, with a smaller floating rate. Muji has added 34 stores in the past two years, down 17% from 41 in 2016.

The remaining five brands are slowing down significantly.

As can be seen from the above picture, H&M, ZARA and Forever 21 new stores have declined year by year, while MJstyle and NEW LOOK have slowed down sharply after the expansion of "small climax" in 2017.

East China leads the "five districts".

From the perspective of regional distribution, in 2018, the ten fast fashion brand new stores in mainland China were still led by East China. Apart from only 8 stores in the northeast, the number of new stores in the rest areas was quite similar, showing a trend of "five districts".

East China is a market that has long been flocked for fast fashion. In the past year, nine brands have been settled and a total of 107 new stores have been added, mainly in Shanghai, Zhejiang and Jiangsu.

Among them, there are 37 UNIQLO stores, which already exceed the total number of new stores in any other region. The number of MUJI products is 20, accounting for 59% of the total number of new stores in the year. MJstyle and UR have opened 15 new stores respectively, and there are 8 ZARA stores in one year, and 5 in East China.

There are more than 30 fast fashion stores in North China and Southern China.

36 in North China, mainly concentrated in Beijing, Shanxi and other places, added 16 UNIQLO, H&M 7, Muji, MJstyle, UR 4, Wuzhou international plaza, Shijiazhuang the Mixc and so on.

There are 33 new stores in Southern China, and 29 in Guangdong.

Shenzhen is the most attractive city in the region with a total of 14 new stores. Among them, two newly opened shopping centers in Wanyuan Hui and Shenzhen Shangshang city have introduced five brands, including 7 stores, including H&M, UNIQLO, UR, MUJI and GAP.

It is worth mentioning that 5 new stores in GAP Southern China district are located in Shenzhen.

30, 28 and 22 fast fashion stores were added in central, northwest and southwest respectively.

The new stores in Central China are mainly located in Henan and Hunan, with 12 in each and 10 in Changsha.

New stores in Northwest China are clustered in Shaanxi, Xinjiang, Xi'an and Urumqi, attracting six brands and 15 stores with several new shopping centers.

The southwest region mainly relies on Chongqing and Chengdu, and has introduced seven brand new stores.

From the point of view of urban distribution, in 2018, a second tier city is a key market for fast fashion brands. There are still larger expansion spaces in cities with three lines and three lines below.

There are 60 fast fashion stores in the first tier cities, accounting for 23%, 25 in Shanghai, 14 in Shenzhen, 13 in Beijing and 8 in Guangzhou.

The number of new stores in Shanghai is the number one, mainly due to the number of famous shopping centers opened in 2018, such as LuOne Cade Crystal Collection square, LCM set up Hui Xuhui square, Qingpu Baolong Plaza and century Hui square, each of which introduces 3 fast fashion brands, and Changfeng happy city and Jingan great fusion city each introduce 2.

There are 112 new stores in the second tier cities, accounting for about 42%, of which 88 are provincial and municipalities.

In the urban distribution of TOP10, Hangzhou surpasses Shenzhen in 15 new stores, ranking second only to Shanghai, introducing 5 MUJI products, 4 UNIQLO, and H&M, ZARA, UR, MJstyle and GAP, and enters shopping centers such as Hangzhou Joy City and Linping Yintai city.

The rest of the cities listed include Xi'an, Changsha, Chongqing, 10, Nanjing and Xiamen each 8.

There are 93 stores in three and below cities, accounting for about 35%.

Among them, Urumqi led by 5, mainly in high-tech zones, Dehui two Wanda Plaza, MM2 shopping center and so on; Yangzhou 4, 3 settled in JINGWAH city Living Mall.

Followed by Linfen, Nanyang, Shangqiu, Changzhi each 3, Baoji, Changzhou, Jilin, Kaifeng, Lanzhou, Zhuhai and other 15 cities have introduced 2.

Fast fashion annual Keywords: crossover

In 2018, fast fashion brands (thematic reading) were widely involved in new formats, such as the two new MUJI HOTEL of Muji, and the first lipstick series Zara Ultimate released by ZARA, only on the internet shop, officially entering the make-up market; H&M joint Moschino test water pet clothing...

This trend will also extend to 2019. C&A announced that this year will be the layout of the wedding market, targeting the mid end market; the MJstyle parent company is also planning to enter the new pet field, offering products including pet sales, pet products, pet food, health products, medicine, beauty, foster care, medical training and so on.

On the road of pformation and upgrading, fast fashion faces many challenges. It is no doubt that new business sectors across borders can diversify risks. At the same time, it can help brands seek and cultivate new growth points as far as possible.

Key brand analysis

All the way up the UNIQLO Library

UNIQLO officially entered China in 2002. By the end of 2018, the number of stores in mainland China has exceeded 660, which is equivalent to opening more than 40 stores every year.

This is not easy for a foreign brand.

In 2018, UNIQLO ushered in the climax of the store in three years, opened 90 new stores, and launched the "digital experience Museum" under the fusion line and offline entity and virtual shop in the store to promote the layout of the whole channel.

In addition, by virtue of the series of T-shirts released last year with a number of well-known "IP" images, such as "weekly youth Jump" 50th anniversary series, KAWS Sesame Street, Blizzard, marvel, Dora A dream, UNIQLO has greatly increased exposure and gained popular popularity, and finally directly promoted the growth of China's market performance.

According to the latest earnings report of fast marketing group, in the three months ended November 30, 2018, UNIQLO's performance in mainland China was the most significant, with double-digit growth in both revenue and profit.

In the 2018 list of the world's richest people, Ryui Masato, fortune's owner, increased by $5 billion 900 million, ranking fourth.

Shrinkage adjusted MJstyle

Compared with the rapid expansion in 2016 and 2017, MJstyle slowed sharply last year, which is related to the competitive and complex fast fashion market environment, and is also influenced by the brand's own adjustment and development.

In the past year, the development of sub brand topfeeling has been developing rapidly, and 61 stores in the mainland (excluding upgrading and re opening stores) have gone beyond MJstyle.

It is worth mentioning that there are 42 franchisees, accounting for about 69%.

In the process of MJstyle grabbing the market, joining is an important channel. In 2017, the number of MJstyle shops reached its "peak", and more than 80 of the 185 new stores were franchised stores.

"Down the altar" ZARA

According to the latest performance report of Inditex, the parent company of ZARA, in the 9 months ended October 31, 2018, group income only recorded a low single digit growth, rising 3% to 18 billion 400 million euros, 10% in the same period last year, and net profit increased by only 4% to 2 billion 400 million euros, compared with 6% in the same period last year.

In the field of fast fashion brands, ZARA has been taking the lead in the market with rapid market response.

It is undeniable that the giants are also being hit by performance, and the experience strategy of "winning quickly" has gradually failed to support long-term high-quality growth.

In 2018, ZARA, the "high" and "slow" in the Chinese market, did two big things.

First, strengthen marketing, such as the use of Wu Lei and Dongyu Zhou as the brand ambassadors of Greater China, betting the stars with goods and fans effect.

Second, overweight electricity providers, such as the first new retail concept store designed in Shanghai, which is completely designed for the electricity supplier business. Consumers need to download APP to complete fitting and shopping, and all orders are delivered through the electricity supplier channel.

The reality is not optimistic, and the future may be even more difficult.

According to the latest report released by fashion agency Thredup, 25% of female consumers said they would no longer buy fast fashion clothes from 2019, and 40% of the respondents said they would stop buying fast fashion brands. 54% of the Z generation respondents aged 18 and -21 decided to buy higher quality products.

There are signs that young consumers' fashion ideas have undergone subtle changes.

How to continue to attract young people is an important issue for fast fashion brands to think about and solve in the future for a long time.