H& amp; amp; M closed the store, Nike's market value plummeted, and the aura of foreign brands was not there?
Foreign brands have been a little anxious recently.
There are media reports that H&; Store M has been officially closed since June 24th.
this store is H&; The first store opened by M brand in China mainland market has been in operation for 15 years.
Huaihai Middle Road, one of the most prosperous commercial streets in Shanghai, was once the home of major fast fashion brands because of its dense traffic.
There are both the largest flagship store opened by Uniqlo in 213 and the first domestic concept store opened by ZARA in 218. In addition, Hermes House, MUJI, Victoria's Secret and other brands, the first domestic store or the first flagship store have all settled here.
as you can see, H&; M closing the store is not a bad geographical location, except for the impact of the epidemic, which is mainly related to its own business situation. In the past two years, there H& been a clear decline: according to its financial report, by the end of 221, H&; M has closed 6 stores in China, accounting for 12% of the total number of stores.
the company's financial report also shows that from June to August, 221, China's performance dropped by 4% year-on-year, and China is no longer one of the top ten markets in the world.
international brands are increasingly feeling the cold of the market. At the same time, the market value of another international brand, Nike, is also plummeting. According to media reports, as of the closing of the US stock market on June 28, Nike fell nearly 7%, and its market value evaporated by 12 billion US dollars a day, about 8.5 billion yuan. At the same time, Nike's share price once fell to $12.48 per share in intraday trading, setting a new low since August 22.
On June 27th, the day before the market value plummeted, Nike announced its financial report for the fourth quarter and the whole year of fiscal year 222 as of May 31st this year, which was an ugly financial report. In the fourth quarter, the performance of Greater China declined at an accelerated pace, achieving revenue of $1.561 billion, down 19% year-on-year. The annual revenue of Greater China was US$ 7.547 billion, down 9% year-on-year. Excluding the impact of exchange rate changes, it fell by 13%.
quite dramatically, just at the beginning of last year, it was still popular among young people to "stir-fry shoes". A pair of shoes of Nike were fired for a sky-high price of 1, yuan. By this year, this "shoe-frying pageantry" has long since ceased to exist.
It's not that young people have stopped speculating, but that their attention has already changed. What attracts them now may be more domestic products with better cost performance or better international brands.
Actually, it's not just H& M, other fast fashion brands are also making adjustments.
Uniqlo, a well-known clothing brand, recently closed an iconic store in the bustling business district of downtown Tokyo. This Uniqlo store is located in the Shinjuku business district in Tokyo, which is also a prime location in the center of Tokyo, surrounded by many well-known department stores and fashion brands.
Although Uniqlo's parent company Fast Retailing Group explained that the development plan has changed, the new development plan in Shinjuku business district will have an impact on the passenger flow, and the store lease contract expires, so it decided to close the store.
but in fact, a more reasonable explanation may be that Uniqlo is unwilling to pay higher rents in the bustling business district, and closing the store is more like a kind of "painful meat cutting" to save costs.
after 2, domestic clothing consumption demand was strong, and many foreign fast fashion brands were fashionable in design. Due to the fast response speed of the supply chain and the fast speed of new products, Chinese people spoke highly of foreign products at that time, so Uniqlo also achieved high growth.
at its peak, even domestic brands such as La Chapelle, Taiping Bird and even Anta and Li Ning are learning Uniqlo's supply chain.
however, in just a few years, the wind and water have turned, and the former fast fashion brands are now under the pressure of loss, and the star aura is gone. In the final analysis, it is still an important issue, which is out of favor with consumers.
No favor is reflected in many aspects. It is difficult to give consideration to both online and offline channels in terms of channel access.
for h&; M and other fast fashion brands, the initial feature is to open a store, and it is to open a big store in a bustling business district, which is two or three stories high at every turn. This method is feasible at first, especially before the rise of online shopping, brands can really eat a lot of market share by relying on capital power to attack the city.
However, with the popularity of online shopping in China, the geographical advantages of many stores have been eliminated, which has become an important channel for clothing sales. Too many offline stores have become a burden, especially during the epidemic in the past two years, people's frequency of staying at home has increased. The bigger the stores of these fast fashion brands, the heavier the rent, and the more they can make ends meet.
e-commerce could H& been saved, but many fast fashion brands failed to seize this opportunity, H&; M is one of the enterprises that haven't kept up with the channel changes. The company didn't open the Tmall flagship store until 218, which didn't cultivate people's habit of buying online in time, and its marketing actions in the e-commerce channel were limited, and there were hardly too many marketing events. E-commerce didn't open up a traffic avenue, and it didn't become an antidote to ease its sales.
Secondly, from the brand effect, the brand aura is gradually fading, not only because of product problems, but also because of the influence of Xinjiang cotton incident.
In the past two years, fast fashion brands have not been able to completely reverse the negative comments of domestic consumers on their quality. On the contrary, the negative news about brands has only increased.
H& M frequent hot search due to quality problems. The national enterprise credit information publicity system shows that from 221 to 222, H&; M (Shanghai) Commercial Co., Ltd. (I * * *) has seven pieces of information on administrative punishment, and the reasons for punishment include passing off unqualified products as qualified products and false propaganda.
on social media, many users reflect on H&; The clothes that M bought were deformed after washing several times. "The fabrics look like cheap goods, and there is no sense of high quality at all." "More than 1 pieces feel expensive, which is not as good as the texture of domestic products."
It's not that these fast fashions H&n't thought about saving themselves. Since last year, some media have reported Uniqlo and H&; M layout high-end strategy, however, the first thing reflected is not the obvious improvement of quality, but the price increase.
In April this year, the chairman of Fast Retailing Group said that Uniqlo would not easily raise prices, but even the giant Uniqlo could not bear the cost pressure in the face of the sharp rise in the prices of raw materials such as chemical fiber and logistics costs, and the impact of the depreciation of the yen, especially in mid-June, which hit a historic low.
a number of clothing brands have also announced price increases recently. UBS research report shows that since January this year, the initial price of ZARA has increased by at least 1% compared with the previous year, and the initial price in April this year has increased by nearly 2%.
some consumers have reported that although the price has gone up, the material is still the same, and the wrinkles and curls are still the same as before. "I didn't want to buy it originally, so I didn't want to buy it when the price went up." The practice of fast fashion price increase without mentioning quality can only further damage the brand reputation.
In addition, there are geopolitical factors, such as the cotton incident in Xinjiang last year, H&; M, Nike, Uniqlo, etc. stand on their own high ground, which is obviously in opposition to the attitude of consumers in China. Many overseas brands have offended many consumers in China, and many Chinese people have no good opinion of these arrogant brands.
during an avalanche, not a single snowflake is innocent. Various reasons that are difficult to adapt to China's national conditions have accelerated the decline of fast fashion brands, so closing stores has become the same choice for these fast fashion brands.
In recent years, a large number of fast fashion brands have withdrawn from the China market. Inditex Group, ZARA's parent company, announced that it would close all the physical stores of its three brands, Bershka, Pull＆Bear and Straparius, in China. Forever21, Topshop, Old Navy and New Look and other European and American fast fashion brands have also withdrawn from the China market.
In the current consumer market in China, the tide of the country is rising day by day. From digital 3C such as automobiles and mobile phones to fast-moving clothing, many categories have challenged the traditional position of foreign giants. With the post- generation becoming one of the main consumers, these young people's definitions and views on domestic brands have also quietly changed.
Now, perhaps only some elderly people will stick to the idea of "foreign goods are of good quality and can be obtained". Young people's ideas have long changed, and young people will also be eager for domestic brands with high cost performance, high-end positioning and diversified product functions.
There is also data to prove that foreign fast fashion has been overtaken by domestic products. For example, in the category of underwear, at the major shopping festivals in double 11 and June 18, the domestic brand ubras has already surpassed Uniqlo to top the list, and banana, inside and outside are also dark horse players who have surged in recent years.
There are several reasons for the rise of domestic products. One is to seize the online e-commerce channel bonus, be good at using online celebrity KOL word-of-mouth marketing, short videos and self-broadcasting, and actively interact with consumers.
the second is to satisfy the psychology of upgrading the quality of Chinese people, and the core selling points are unique design style and excellent product quality. The sunscreen black umbrella under the banana and ubras underwear are all explosive products with extremely high sales volume and basically no bad reviews in the past two years. If you want to win the favor of consumers, quality will always be the first.
Third, the brand image is friendly. It can communicate with consumers in an equal and respectful manner, and actively accept market feedback, instead of ignoring consumer public opinion. These are precisely what some foreign brands have not done well.
As for fast fashion brands or foreign big names, it will take time to test whether they can really focus on and respect a wider range of China consumers.
Maybe it can be seen from two aspects. First, brand marketing can maintain its original characteristic orientation, consolidate its fixed core group, and superimpose some elements that Chinese people like on this basis; Second, in terms of quality, or in terms of some new product technology components, we can develop some new elements, win some goodwill in the market, and get some premium.
Of course, in these two points, domestic brands do not have disadvantages, and the future competition will be a drama of learning from each other and catching up with each other.
Reference: H&; M offended this young man ",the city boundary; Uniqlo began to fall out of favor in China? ",tiger sniffing