Facing the global luxury fashion industry from brand leading to consumer dominated, last year, it became the key node of the transformation of retail brands.
According to the data released by Market Research Institute Euromonitor International Europe, the retail sales of global clothing and footwear market increased by 4% to 1 trillion and 700 billion US dollars in 2017.
Among them, sports clothing increased by 6.8% to $300 billion, and children’s wear increased from 6.2% to $160 billion. Men’s and women’s wear increased by 3.7% and 3.3% to $419 billion and $643 billion, respectively.
The report also pointed out that in 2017, global online sales of clothing and footwear accounted for 16% of total sales, up 10% from 2012. Online shopping convenience, flexible return policy and better logistics services will become the focus of the brand’s future attention. Euro international predicts that the proportion of clothing and shoes sold in the total revenue will rise to 20% in 2021.
Although retail sales of sports and men and women categories continued growth trend, but has slowed, once the fast fashion brand to sleep without any anxiety frequently difficult since last year.
Kseniia Galenytska, a senior analyst at Rui International, pointed out that with the continuous improvement of the millennial awareness of consumers, the price of light luxury brands has been cut down, and more creative brands have been introduced to the outside world. The traditional fast fashion has been constantly impacted.
Kseniia Galenytska stressed that although the efficient supply chain and economic scale of blessing, fast fashion brand can be had at a very low price to sell large quantities of a product design sense, so as to make it more competitive in the fashion industry, but the mass unified style trend.
Today, Millennial consumers are trying to change the price led situation of the global popular fashion retailing industry. They are more willing to seek unique and personalized products to embody their values rather than follow the same style.
According to the data of fashion news, in the nine months ended in October of last year ended in Zara, the parent company of the Inditex group net profit rose 6% to 2 billion 340 million euros, compared to 9% in the same period last year has slowed sharply, sales rose nearly 10% to 17 billion 960 million euros, gross margin fell further to 57.4%.
To this end, Zara decided to break out from the online channel, last month in London West Field mall opened its first online store can only buy flash, the flash store also set up a virtual reality smart screen, consumers select barcode on the screen, the system will automatically provide consumers with a variety of the product collocation comments and recommend a single product.
At the same time, another fast fashion giant H&M is also looking for new growth points, in the 12 months ended November 30th, H&M group’s sales tax rose 4% to SEK 231 billion 700 million, excluding VAT sales amounted to SEK 200 billion, about 160 billion 400 million yuan, gross profit rate is reduced to 55.2% last year 54%.
In order to attract more consumers millennials, H&M group will launch a new brand of /Nyden, the Swedish “NY (new new) and den (it it)” composed of two words, the news brand design studio in Losangeles in the United States, Oscar Olsson will serve as the creative director.
It is reported that the production cycle of the brand product is 3 to 4 weeks, neither according to the four seasons, nor does it follow the trend. The price will be slightly higher than the core brand H&M of the group. Consumers can buy the brand product through online or offline flash store.
Some analysts pointed out that behind the frequent threat of traditional fast fashion, business modality is getting out of date, and fast fashion brands are starting to explore the underlying reasons of the new mode.
Peel Hunt analyst Jonathan Stevenson has stressed in the Retail Financial Times reported that the electricity supplier is “invisible” against the “visible”, fast fashion will become faster and more light, you need to get rid of the store efficiency loss caused by large volume, because the electricity supplier does not need to ensure that each store inventory.
Kseniia Galenytska indicates that personalization is still an important trend and proposition in the fashion industry in the coming years. If we want to break through successfully, we need to strive to achieve the scale and speed of fast fashion retailers while improving the personalization of our products.
The global fashion retail market continues to change, the future trend will become more difficult to predict, and with the electricity supplier channels increasingly mature, the rapid development of high technology and social media, the 2018 global luxury fashion retail industry will continue to be a major reshuffle, either with Nike or to the sports brand benchmarking Zara fast fashion leader, the future will continue to face serious challenge.
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