Fast Fashion Giants Disappear One After Another In China.

Once popular in the country, fast fashion "big guy", to the big sale, shop, ESPRIT today's situation is very sad.

In January this year, ESPRIT began to offer frequent discounts through the end of the season, and its strength continued to expand. In mid April, ESPRIT launched a promotional activity of up to 90 percent off on line and offline. In some parts of Beijing and Shanghai, there are even 20 pieces of them. Zero point five A clearance discount. Some netizens shouted, "clothes are cheaper than cloths".

At present, all products on the ESPRIT line have been laid off, some of the physical stores have completed a thorough clearance, and the remaining stores will also leave before the end of this month.

In addition to the complete withdrawal of the Chinese mainland, ESPRIT is also "uneasy" in other regions. In March of this year, ESPRIT's parent company global (Hongkong) announced that the 6 Affiliated Companies in Germany, which was under the influence of the outbreak of the outbreak in Europe, had filed for bankruptcy protection. At the end of April, in addition to mainland China, the group closed 56 Asian stores in Singapore, Malaysia, Taiwan, China and Hong Kong and Macao.

Although the brand has gradually withdrawn from the Asian market, it has not given up the Chinese market. It is reported that after the massive withdrawal of stores, ESPRIT will restructure its business in mainland China and continue to develop the Chinese market with a new look.

How will the brand be adjusted after the closing of the mainland stores? What kind of image will it be coming back in the future and whether it will rise again in the increasingly competitive market?

For the whole fast fashion industry, closing stores and adjusting has long been the norm. Fast fashion brands are becoming more and more difficult in the Chinese market, and those once popular brands disappear one after another in the Chinese market. In the future, fast fashion brands want to have a foothold in the market.

01. ESPRIT "sell oneself" GXG parent company open the "full cosmetic" mode.

As early as last December, the ESPRIT parent company Si Jie global (Hongkong) announced that the Wancheng resources limited, an indirect wholly owned holding company, established a new joint venture with the mainland famous menswear brand GXG parent company, Ningbo Mu Shang Group, to set up a new company to engage in other ESPRIT businesses that can agree with garments, clothing accessories and joint ventures. Mu Shang Group invested 60 million yuan to hold 60% rights and interests, and is responsible for operating ESPRIT mainland business.

It is understood that the transition of China's business to the joint venture is expected to be completed in June 30, 2020, and the closure of some shops is part of the transition of its business in China.

So how will the ESPRIT continue to transform after the complete closure of the mainland?

According to the next brand development plan of ESPRIT, the head of public relations of Mu Shang group revealed to the winning business network:

Mu Shang will completely reshape ESPRIT's channel, pricing, brand image and consumer portrait.

The group will be solely responsible for its product design, marketing and promotion, and will be in the new shopping mall channel with an area of 100-200 square meters.

However, affected by the epidemic this year, the group will appropriately adjust the shop opening time and product production time of the offline stores. It is expected that no specific brand reform rules will be introduced before the second half of this year.

However, whether the mozun group can make ESPRIT reborn and return to the peak age through this closed shop transformation, insiders say it is not easy.

02. Giant declines, epidemic strikes... Fast fashion is being abandoned by young people?

In the past two years, fast fashion brands are no longer in the Chinese market, and a large number of international fast fashion giants have withdrawn from China. Coupled with the impact of the epidemic this year, the head brand has also suffered heavy pressure.

Forever 21 bankruptcy;

Newlook, Topshop and Old Navy were withdrawn from China because of poor performance.

At the end of last year, ZARA closed four stores in Wuhan.

Since the end of April, Gap has been in urgent need of cash and 80 thousand employees have paid off on leave. Since February, market capitalization has shrunk by nearly 60%, and sales in the first quarter of 2020 will be about 100 million dollars.

H&M, UNIQLO and other affected by the epidemic, this year's revenue plummeted.

The new generation of consumption has changed, and fast fashion is still eating the same old version.

At present, the consumption preference of the new generation of main force "Z generation" is changing the whole consumer market. They like the costumes with strong design. Young people's aesthetic appreciation of fashion has evolved from chasing big brands to the products that love individuality and uniqueness. Most fast fashion brands are "fast but not broken".

Like the withdrawal of ESPRIT, many netizens mentioned feedback such as "backward style" and "outdated design". It can also be seen that it is hard to catch young people in the fashion of "eating old books".

With the increasing demand of domestic consumers for clothing quality and the increasingly fastidious taste of beauty, fast fashion needs to make greater changes to cater for the current market, and the brand that can not adapt to this trend is bound to fail.

It's hard to get close to consumers.

The rapid development of domestic electricity providers is undoubtedly a surge of fast fashion. Consumers like both online shopping and offline shopping experience. In this case, there must be a combination of two channels under the line.

Foreign fast fashion brands, which focus on stores, obviously lack the advantage of online channels. Even though most of them have opened up online businesses, they are mostly attracted by consumers by discount, and less interactive than others.

Affected by the epidemic, the resumption of passenger flow in the next line stores is still unknown, and consumer confidence recovery will also usher in a huge challenge. The way to rely on online "remediation" needs to be strengthened.

Guo Chao is "driving" foreign fast fashion.

The fashion aesthetics of the year has passed, new brands are constantly emerging, and foreign fast fashion industry collectively enters the "bottleneck period". And the most fatal is the strong rise of domestic brands.

In 2019, the symbolic value of culture in the clothing industry is getting higher and higher. The "national goods tide" is becoming the addition point of the local clothing brand. More and more high quality, high grade and high value "national goods light" rises, such as China Lining, Taiping bird, Bosideng and so on, which are loved by young people. The tide of foreign fast fashion brands has been foregone conclusion.