Rapid expansion of international brands in China last year surpassed the double-digit growth
Recently, Uniqlo parent company Fast Retailing Group ADRs listed on the way to Hong Kong , causing the industry discussion on the “fast fashion” wave of expansion . Case reporters comb the development of fast fashion at home and abroad found that although last year the overall economic environment is not ideal , but growth Uniqlo , H & M ‘s business in China more than two digits. In contrast, the domestic fast fashion brands but does not seem to find a good way out. Insiders said that the current fast- fashion brand competition, market structure has been relatively stable , within a short time is difficult to expand the domestic brands , the pressure in the future will increasingly face .
Uniqlo , H & M in China vigorously Nuggets
Recently, Fast Retailing Group to Hong Kong listing, in response to the reasons listed , Fast Retailing said it is not for the purpose of finance , just because “With the rapid growth of China and other Asian markets, the company is committed to focus on business development in Asia , in order to enhance the company visibility in the region ” between investors and customers . It can get a glimpse of the importance of the Chinese market for Uniqlo expansion.
In fact, with the domestic consumers of fast fashion , including Uniqlo , H & M sales in China may be comparable with the domestic fast fashion brands . According to statistics , Uniqlo and H & M2013 fiscal year sales in China amounted to 125 billion yen ( about 7.575 billion yuan ) and 6.655 billion kronor (about 6.407 billion yuan ) . Light of these two brands in China last year, the Nuggets on more than 14 billion yuan , far exceeding both Giordano into the country for many years , sales of similar size and Semir clothing .
While domestic sales are already fast becoming the fashion brand sales growth ” engine .” With H & M for example. China ‘s sales growth was 23 %, while the Group’s sales growth was 6.69% . Fast Retailing Group’s business in China as the representative of the international business , revenue and operating profit , respectively, year on year growth of more than Liu Cheng. In contrast, in Japan , affected by the gross profit margin , operating profit fell 5.4%.
In fact , due to the fast growth of the domestic market , these fast fashion shop also showed an alarming rate . According to the monitoring data CBIW provided, in 2013 the number of new stores H & M, Uniqlo , GAP, ZARA , respectively 60 , 77 , 34 and 20 . The parent company of fast fashion Baleno one of the representatives in the first half of last year the number of stores in the country is a net reduction of 333 . According to Business intelligence network to incomplete statistics, the four fast fashion brands to expand the number of stores in 2014 reached 155 .
Lack of fast fashion brand soul transformation
Compared with the increasingly rapid development of foreign fast fashion brands , domestic brands in recent years, but trapped by the pressure on the stock , worrying results . According to Smith Barney results of Letters show that net profit fell 49 percent last year , revenue declined 17%. Another brand Semir clothing although reversing revenue , net profit both fell situation , operating income 7.34 billion yuan , net profit of nearly 910 million yuan , an increase of 3.92% and 19.12% , respectively , but still difficult with these fast fashion pace of development phase ratio.
In addition, once favored including Baleno , Giordano ‘s performance is not very optimistic. Baleno parent company interim results, year on year sales in mainland China fell 21.83% ; Giordano 2013 earnings report showed net profit fell 19.73% .
In fact, from the date of last year, the domestic fast fashion brands have begun to seek transformation. With Smith Barney as an example . Its “one shop a story ” in the form of enhanced experiential in-store service , and Giordano, search in particular have begun to focus on the application of open and O2O shopping strengthen interaction. However, the industry still believes that although the domestic transformation For fast fashion brands have realized that to operate O2O, compressed supplier scale , but the gap with the international fast fashion brand is still great .
CBIW Industry Research Institute , said industry researcher Xu are loose , the domestic apparel companies did not really set up own unique brand of soul is key in the design and business model to imitate major multinational brands. From clothing color , style , the version of the three process technology , the domestic apparel companies with international fast fashion clothing brand is still a wide gap . Meanwhile, with the rapid rise of Internet sales , clothing inventory , supply chain and other issues are also exposed.
Investment Advisor in the light researcher Xiong Xiaokun said that there is fierce competition in the fast fashion brand , has been relatively stable market structure , expand domestic brands is difficult in a short time is one of the main problems faced by domestic brands transformation . In addition, including repositioning the brand, change the design style are present difficulty.
