Most people may not know the exact definition of “fast fashion”, but when it comes to it, those huge clothing brand logos can always come to mind: H&M, ZARA or GAP, sometimes including UNIQLO (UNIQLO) .
This is certainly true. Relying on the ability to quickly copy the latest high-end fashion designs, in the past thirty years, fast fashion giants represented by the above-mentioned brands have always been able to supply popular elements in batches and quickly to young people around the world. In the process, they have easily Completed capital accumulation and achieved global expansion.
In the global retail industry, the contribution of fast fashion is crucial. Statistics show that its global market output value reached US$25.1 billion in 2020 and will grow at a compound annual growth rate of 21.9%. By 2030, the output value will reach US$192 billion.
The other side of the beast is weak.
In recent years, the keywords surrounding fast fashion have been store closures, downsizing and retreat. This is also true in China, a country with a population of 1.4 billion, which was once regarded as a gold nugget for supermarkets.
Last month, the focus of the industry was the closure of H&M’s first store in China; this month, the three major brands of ZARA parent company Inditex Group, Bershka, Pull&Bear and Stradivarius, closed at the same time at the end of the month.
The author also observed that dozens of GAP stores in Beijing, Shanghai, Shandong, Jiangsu and other provinces and cities have recently been closing stores for clearance, mostly due to the expiration of the lease and the brand not renewing the contract.
When old things leave, according to conventional story logic, new things should be ready to replace them. Unfortunately, a hollow is forming in the market.
In particular, more and more female consumers have realized that it is difficult to buy suitable clothes offline. In women’s clothing stores with hundreds or thousands of stores, it is normal that the price is not directly proportional to the quality. If you turn to shopping, you will face the problem of wrong goods. additional worries such as board and long pre-sale period. The popularity of brands such as BM and UR cannot escape the criticism of causing women’s body anxiety.
The successive withdrawals of large fast fashion brands have not only caused confusion at the consumer level, but also caused contradictions everywhere.
During the current epidemic, commercial real estate companies struggling to survive are also losing their stable investment pillar. The golden space occupied by fast fashion in the past was once competed by new brands when new consumption was booming. However, when the new consumption bubble has dissipated, how to make a choice has become a difficult proposition.
Unfortunately, after fast fashion retreated, it has not found anyone who can fight.
Fast fashion is embarrassing
On the northwest side of the intersection where Sanlitun Road and Workers’ Stadium North Road meet, there is a famous domestic commercial district – Taikoo Li Sanlitun in Beijing, a center where young people and fashion trendsetters gather.
Taikoo Li South is a prosperous district. From west to east, H&M, Adidas and Uniqlo are lined up. They once occupied the three most prime shops on its periphery and have become landmarks respectively.
At present, Uniqlo has moved to the renovated Taikoo Li West District and upgraded to become Beijing’s first global flagship store. Adidas is also upgrading to build an Asian flagship store. Instead, H&M, which has been rumored to close its store for many years, has become the only one that remains unchanged. .
Consumer patience appears to have peaked. “When will H&M withdraw? It doesn’t deserve to stay in that position.” “Its COS would be better than it is now.” Some netizens complained on social media.
As H&M’s 200th store in China, it was once regarded as a milestone in the group’s development in the Chinese market. When it opened at the end of May 2014, the popular singer Wu Mochou was invited to the store, which was lively and grand. In less than ten years, he has become a “disliked” existence.
This Swedish fashion brand, founded in 1947, chose to enter the Asian market only after entering the 21st century. In 2007, it opened its first domestic store at No. 651 Huaihai Middle Road, Shanghai. Last month, the store announced its official closure, which was seen as another milestone in its decline.
H&M is of course just a microcosm of an industry. Recently, the three major brands of ZARA parent company Inditex Group, Bershka, Pull&Bear and Stradivarius, said goodbye at the same time and will cease operations in China in July.
Analysts generally believe that the decline of fast fashion is mainly due to the rise of e-commerce and changes in consumer mentality.
On the one hand, the development of online shopping has made it difficult for people to go offline, and e-commerce platforms can provide more high-quality and cheap clothing, and fast fashion is no longer necessary; on the other hand, starting from the post-90s to today’s 00s In this generation, young people are increasingly pursuing quality and personalized needs, and fast fashion no longer looks “sexy”.
Naturally, each of them also has its own problems. For example, H&M’s involvement in the “Xinjiang cotton” incident triggered a wave of consumer boycotts, and ZARA’s parent company reorganized its product lines in order to transform.
From this, return to the golden shop in Taikoo Li Sanlitun:
When consumers take the initiative to “abandon” or even want to live in Sanlitun, who can deny that there is no risk of backlash.
The freedom of ordinary people to dress is obviously the biggest market demand.
Conclusion
A relevant report from the Qianzhan Industry Research Institute mentioned that it is expected that by 2023, the retail revenue of my country’s clothing industry will exceed 4 trillion yuan. Among them, consumers prefer fashionable clothing, and the overall growth rate of fast fashion is significantly higher than that of the entire industry. In 2018~ It is expected to maintain a sustained growth rate of 17.6% in 2023.
The known transformation direction of large fast fashion brands is to focus on incubating and expanding new mid- to high-end brands.
Among them, H&M alone has successively launched its three high-end brands COS, ARKET and &Other Stories into the Chinese market. In addition to focusing on promoting high-end brands such as Massimo Dutti, the parent company of ZARA is also trying to get involved in retail formats such as beauty products.
Most of the domestic top-earning women’s clothing brands are high-end, such as Di Su Fashion, whose DAZZLE and d’zzit brands are often found on the first floor of shopping malls and are not mass-market products.
In any case, the decline of fast fashion cannot stop the market demand and potential, and there will always be new players who want to get a share of the market. In the limited hollow area, consumers are waiting for new brands with price, quality and design that complement each other.
Of course, for commercial real estate developers, they are eagerly looking forward to new “stable and reliable” brands like fast fashion – this is the direction of new consumption efforts.
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