Focus On Fast Fashion H&M And The Fast Fashion Market In Hei Bang China Are 3 Big Problems.

Recently, reporters from the AQSIQ official website released a batch of unqualified list was informed that

And on the black list.

Successive landing on the blacklist, sales fell sharply, performance growth continued to slow down, H&M in the fiercely competitive China

Fall behind.

Despite competitors

The performance is relatively excellent, but it is also a "frequent visitor" of quality blacklist.

Repeatedly hit the black list

The AQSIQ official website released the list of imported industrial products unqualified in September 2016. 1 batches of cotton woven men's trousers with brand "H&M" were destroyed due to unqualified pH value, involving up to 110 pieces. The reporter noted that H&M products have been inspected for many times and failed in quality. According to incomplete statistics, since 2012, more than 40 products have been listed on quality blacklist since 2012.

Fast fashion brands are catching up with the market in pursuit of lower cost and faster renewal, but the quality is really worrying.

The survey shows that there are two main production modes of fast fashion brands in China at present. One is the factory responsible for the design, production and development of new raw materials. The brand is purchased from the factory, the other is commissioned by the brand, the brand is responsible for designing and producing the fabric for the factory, and the fabric is purchased and produced independently by the factory.

Under the second production mode, some small factories may also choose to subcontract orders among layers, resulting in an order being completed by many small factories.

Under such circumstances, if the foundry fails to strictly abide by the production standards set by the enterprise, it will be prone to quality problems.

Slowdown

In view of the fast fashion brand market, the fast fashion questionnaire released by the joint questionnaire network shows that among the consumers who buy fast fashion products, there are many young white-collar consumers.

Most of the revenue is 5000-8000 yuan, and consumers who frequently buy fast fashion products account for 40.98%.

Among these groups, H&M accounted for 40.11%, 36.18% of the group expected a lower H&M price, 21.95% of the surveyed people thought that online purchase would have lower discount H&M products, and 25.57% thought H&M's quality was not good.

Despite the quality problem, H&M group's sales growth slowed down further.

The company's latest earnings data show that in September, global sales grew by only 1% at local exchange rates, compared with 7% in August and 10% in July. The slowdown is more pronounced, the lowest growth rate in the past year.

Despite no mention of the Chinese market in the latest data, it was learned from the two quarter earnings report of the H&M brand parent that the sales growth in the Chinese market has obviously narrowed from the two in the first quarter to 6% in the two quarter.

For the decline of group performance, H&M brand parent company attributed the negative impact of seasonal climate and exchange rate issues.

According to the analysis of insiders, the "very negative impact" brought by H&M to the "non seasonal warm weather" as a reason for the slowdown is somewhat farfetched. Fast fashion clothing, as the name suggests, should respond to the current environment with fast design and rapid production.

In the Beijing market, a number of shopping centers have been visited. It is found that there are not many people in the H&M shops that are rich in clothing brands in Chaoyang Yuecheng city. The reporter learned from the salesmen in the store that the H&M in Chaoyang Yuecheng city will only have a large volume of passenger traffic when the sale is on sale.

In addition, in Yau Tang International Shopping Center, there are many fast fashion brands such as H&M, ZARA, GAP, PULL AND BEAR and Bershka. However, there are few consumers in H&M shops, and many fitting rooms are idle.

Beset with difficulties

Structural problems such as increased competition may be the root cause of the slowdown in the growth of H&M sales.

Compared with H&M, ZARA group, the biggest competitor in fast fashion field, has performed well in its parent company Inditex group. The sales growth of Inditex group increased by 13% during the 18 month of August 1st -9, and the sales growth rate of the H&M brand parent company was eliminated.

At the same time, the rapid sinking of the channel brought H&M into a vicious circle of "more stores and worse performance".

Reporters learned that in September this year, H&M opened 19 new stores in the Chinese market, covering 18 cities, including the first stores in Weihai, Dongying, Kaifeng, Rizhao, Shishi, Pingxiang, Changde and Jingmen.

By the end of September, H&M had more than 350 stores in the mainland.

Unlike before, H&M not only opened the store to a second tier city, but is now planning its layout to the three or four tier city.

Although the price of H&M products is slightly lower than the local consumption level in the second tier cities, the price of H&M does not have the advantage of low price in the three or four line cities with relatively limited capacity.

Zhang Qing, a garment industry expert, said in a reporter's interview that the clothing market is at present in a state of consumption upgrading, and H&M products, despite their more styles but poor quality.

Now many consumers are more inclined to online shopping, which is also part of the impact on the expansion of H&M entities.

Compared with several other fast fashion giants, H&M's product positioning is blurred.

In the case of increasing competition, the H&M product design can not attract consumers, it can only reduce the price by a certain extent, which greatly reduces the profit of H&M.

And repeatedly boarded the quality blacklist, but also to the H&M poor quality label, to the consumer psychology has created an unshaded shadow.