On February 15 this year, La Chapelle, a fast fashion brand once known as the "Chinese version of ZARA", once again issued a risk warning, expecting that the net assets in 2021 will be negative, and the company's shares may be terminated by the Shanghai Stock Exchange.
From H&M, ZARA, to Metersbonwe, Egger, vera moda, Baijiahao, La Chapelle, whether it is European and American, Korean, Japanese, or local brands, fast fashion brands of various styles and price points, why is it more and more difficult to please consumers?
The decline of domestic brands
It all starts with a leaderboard. Some time ago, Euromonitor Data released the top ten brands in the Chinese apparel market in 2020. Uniqlo ranked first with a market share of 1.6%, which is not a big surprise. However, it was followed by Semir, which was deeply rooted in the "earthy" label and suspected of going out of business in many people's concepts, which surprised netizens:
"I thought Semir couldn't do it, but it did!"
During the epidemic, Semir clothing is indeed struggling. Throughout 2020, Semir closed a total of 2,796 stores, an exaggerated number, including 760 directly operated stores, 1,762 franchise stores, and 274 associate stores.
The casual clothing "Gemini" from Wenzhou, one is Metersbonwe, and the other is Semir, which has quickly become the "earthy taste" abandoned by the market after zara, GAP and other foreign fast fashion brands have entered. Meibang later launched "Youfan" in an attempt to build its own retail ecology, but it has not been able to avoid falling into a business dilemma.
Losses are a matter of course for Milbank. In August 2008, Milbank Apparel was listed on the Shenzhen Stock Exchange and became the "first stock of domestic casual wear".
In 2020, Milbank's revenue has shrunk year by year, and losses have also intensified.
The number of stores, As early as 2017, Milbank was no longer announced, from the previously released data, from 2013 to 2016, the number of Milbank stores decreased from more than 5200 to more than 3900.
How to travel through the cycle
Some insiders have observed that the golden development period of Zara and H&M in China was basically opened between 2011 and 2013, while brands such as Forever 21 and Topshop have also entered the Chinese market in this period.
This period is also a period of rapid expansion of domestic commercial real estate, almost every shopping mall has H&M, ZARA on the first floor, and the store area is not small.
In 2013, H&M opened a flagship store in Wangfujing, Beijing, covering an area of 1,100 square meters, which was originally located as Nike's flagship store.
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In 17 years in China, there were only 550 stores before the sale, nearly half as few as at its peak. In the past five years, the traffic of its stores in China has dropped by 60%.
From its entry into China in 2007 to its sale, it had only 66 stores in 22 cities in China.
Fast fashion, as the name suggests, only the new "fast" can keep up with "fashion".
It is understood that the average production cycle of fast fashion brands is 10 days, and stores are new at least once a week. In this industry, ZARA is a frequently compared case, it can achieve twice a weekly new, about 12,000 new models per year.
At 11 o'clock in the evening, the jeans factory in Xintang Town, Guangdong Province, was constantly lit, and the grinding workers skillfully sprayed bleach on the jeans, and after processing this wear mark, they earned 3 cents and were satisfied.
The pants are likely to be hung in your zara store downtown, labeled at $259, and you'll still buy it.
Fast is not fashion, it is the level.
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