Following Forever 21, New Look, and Gap, something happened to the fast fashion brand Zara! According to Jiemian News, all stores in Wuhan have been closed, and the front doors have been sealed with the name of the Wuhan Public Security and Fire Department.
All Zara stores in Wuhan are closed
According to inquiries, all stores of the Spanish fast fashion brand Zara in Wuhan All have been closed, and the front doors have been sealed with the name of the Wuhan Public Security and Fire Department.
Zara has 4 stores in Wuhan, namely Han Street Wanda Plaza Store, Central Department Store, Huiju Center Store and Lingjiao Lake Wanda Plaza Store. According to reports from many Wuhan netizens on Sina Weibo, all four stores had been closed before December 28.
According to Weibo V accounts “Wuhan is coming”, “Pocket Wuhan”, “Fuxiang Life APP” and many other people have recently revealed that Spanish fast fashion Zara All stores in Wuhan have been closed recently. Judging from the pictures taken, there are seals on the doors. Some netizens speculated from the “notices” posted outside some stores that it may be related to fire inspections.
Searching for “Zara Wuhan” related information on the map showed that all stores were closed. The reporter called Zara Han Street Wanda Plaza store, Central Department Store, and Huiju Center store for verification. The landline phones of these stores were unavailable. Answering status.
About ZARA closing all in Wuhan There is no definite official explanation for the reason for the store’s failure. However, many local netizens left messages on Weibo speculating that it may be related to “failed fire inspection.” One of the netizens said that the notice outside the Wuhan IKEA store read ” “Closing for renovation”.
Among them, the staff at the main service desk of Chuhe Han Street in Wuhan said, “The ZARA store is under renovation and the specific opening time has not yet been determined.”
According to the semi-annual report recently disclosed by Zara parent company Inditex Group, the group’s sales in the first half of this year increased by 7% year-on-year to 12.82 billion euros, net profit increased by 10% to 1.55 billion euros, and gross profit margin increased by 7% year-on-year, which was lower than the analysis Experts expected.
Previously, the group’s net profit growth in 2018 was only 2%. Some analysts pointed out that at a time when traditional fast fashion giants are confused about the future, Zara is walking on thin ice and can no longer afford more changes. Many mistakes.
A storm is coming. In fact, fast fashion has shown an obvious decline trend in the Chinese market.
Gap sub-brand will withdraw from China
According to media reports, Gap Group recently announced that the Old Navy sub-brand will withdraw from China in 2020. Focus on the development of the North American market.
It is reported that this sub-brand was founded in 1994 and landed in China in 2014. In March this year, Gap announced that Old The Navy brand will be spun off into an independent listed company, and the spin-off transaction is expected to be completed as soon as next year. In addition, Gap Group will close approximately 230 stores within 2 years.
At the same time, the latest performance data disclosed by Gap Group is not ideal either. In the third quarter of this year, Gap Group’s overall sales fell by 2.2% to US$3.998 billion, compared with US$4.089 billion in the same period last year; net profit was US$140 million, down 47% year-on-year. Same-store sales of sub-brands Old Navy and Banana Republic were both negative.
Sino-Singapore Jingwei, Old Navy’s decision to withdraw from China also caught some consumers off guard.
“This brand is located in a prominent location in several shopping malls in Beijing. I feel that it is cost-effective and the quality is not bad. I didn’t expect to leave suddenly.” Consumer Ms. Li said to Zhongxin Jingwei reporter said that in recent years, many fast fashion brands around her have faced the risk of closing stores or using discounts and promotions to retain customers. She feels that her choices are getting fewer and fewer.
Loss of 500 million in half a year, 2,470 stores closed, “Chinese version of ZARA” even rented out the headquarters building!
La Chapelle, known as the “Chinese version of Zara”, has been in a more difficult situation recently. The financial report shows that La Chapelle’s net profit in the first three quarters of this year was -825 million yuan, a year-on-year decrease of 444.7%. Recently, La Chapelle issued an announcement stating that the company’s holding subsidiary Jack Walker (Shanghai) Clothing Co., Ltd. continues to suffer losses and plans to apply to the court for bankruptcy liquidation. From the beginning of this year to the end of June, the number of retail outlets in La Chapelle decreased by 2,470, with an average of 13 stores closing every day.
The financial report shows that in the first half of the year, La Chapelle is closing stores and disposing of assets in a drastic manner. Will these measures lead the company out of trouble?
According to CCTV Finance, the LaChapelle Group headquarters office building located in Minhang District, Shanghai has just been put into use for more than a year. Faced with performance losses and debt crisis, LaChapelle We will also choose to sell real estate to tide over the difficulties. Currently, you can see that posters for leasing have been posted under the office building.
The current Building B in La Chapelle Park The building has been renovated and is now available for rent.
Each one once occupied the top spot Fast fashions are now losing out of the Chinese market one after another. In the final analysis, what kills them is just one word – “fast”.
In order to update quickly, choose plagiarism
In order to ensure a fast update frequency, most fast fashion people choose to copy other brands’ finished products: ZARA is willing to pay up to 100,000 yuan per year for this A fine of tens of millions of euros.
In order to avoid being plagiarized, other brands have also tried their best, such as jointly branding each other to prevent plagiarism. This trick has been used, and I don’t know what fast fashion people How long does it take before the talent is exhausted?
“Wen Wei Po” once reported that in order to better “guide” consumption, first-line fast fashion brands launched 25,000 new products throughout the year, and the average design of each new garment The time is only 20 minutes.
This was very attractive to consumers 10 years ago, but not now. Homogeneous clothing makes people feel boring, not to mention Nowadays, the post-90s and post-00s generations value exclusive customized products more.
Blindly plagiarized and copied clothes cannot make the current main consumer force pay.
In order to speed up production, quality is ignored
Gonghejun knows that many people will be disdainful when mentioning this: it is not expensive and can be bought Just be thankful for the quality.
Yes. The price is indeed low, but the quality may not even match the current price tag. The jacket will pill in two days, and the pants will fade after being soaked once. A white T-shirt will deform after just one week of wear… Such quality is indeed unacceptable.
And ZARA has been in China for 2 years after entering China. During the year, it was listed on the black list 7 times due to quality inspection problems. These include various problems such as pH value and formaldehyde content exceeding the standard, velvet content and color fastness not meeting the standards.
In 2012, the international environmental protection organization Greenpeace broke the news: ZARA illegally used azo dyes and other toxic dyes in production.
This dye reacts with sweat to produce aromatic amines that may cause cancer once absorbed.
To be honest, the price is so low, maybe I will turn a blind eye if I see any threads, but I really don’t dare to wear clothes that endanger my life and health. .
In order to make money quickly, do not upgrade
Fast fashion people blindly pursue speed and ignore the essence of the product. Service was also overlooked. First, he was so arrogant that he had a bad customer service attitude and was extremely bad to customers.
Customer service attitude is extremely poor and does not deal with the problem at all
Moreover, he is so arrogant that he thinks the aesthetics of today’s Chinese consumers are , tastes and needs are still the same as 10 years ago.
They believe that low prices can win people’s hearts forever, and they also believe that the “super-fast” speed of new products can be their life-saving card. So we still maintain third-rate products + third-rate prices, trying to rest on our laurels and make new money.
However, because of this arrogance, fast fashion people have suffered a lot.
Just last year, the fashion agency Thredup also released a report:
25% of female consumers said They will no longer buy fast fashion clothing starting from 2019, and most of them are young consumers.
“Cheap fashion” does not belong to this era.
Because of the rapid development, we despise our opponents
If we ignore the needs of consumers It is arrogance that causes trouble, so ignoring competitors and disrespecting the market is the most brainless approach of fast fashion people.
In the past two years, the national trend has emerged. Since Li Ning appeared in New York Fashion Week in 2018, domestic brands have emerged one after another. Our high-quality and good-looking national brands have not only regained loyal fans at home, but have also begun to be sought after abroad.
We no longer blindly pursue foreign brands, but are willing to focus more on rising national brands and pay for them.
Faced with strong opponents, most fast fashion companies chose not to take it seriously. Only H&M and Uniqlo saw it, took it to heart, and made a series of adjustments.
After clearing inventory, H&M chose to transform online and cooperate with Tmall. The latest released data shows that in the first quarter of 2019, its sales were 156.2 billion yuan. Uniqlo focuses on the sinking market. Because of this, the two of them have not been so miserable in the past two years.
In other words, the “downward” trend of fast fashion also represents the “upward trend” of national brands.
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