In recent years, due to the sluggish in commercial real estate market, the impact of e-commerce platforms and the trend of consumption upgrades, fast fashion’s expansion in the mainland market has been slowing down. 2018-2019 is a watershed for the development of overseas fast fashion brands in China.
The business of H&M and GAP in China has seen a significant decline. In 2018, sales fell by 3.0% and 18.2%, respectively. The sales growth of Inditex, Zara’s parent company, also began to slow to 9.2%. British high street brands TOPSHOP and NewLook in 2018 Announcing its withdrawal from China, Forever21 announced its withdrawal from China in April 19th.
In this context, Uniqlo still maintains an average annual opening rate of 100 new stores and ranks first in the number of new stores opened by foreign fast fashion brands in the mainland, showing a particularly eye-catching performance.As of May 2020, Uniqlo has more than 3,600 stores worldwide (nearly 820 in Japan and about 750 in mainland China).
While overseas fast fashion brands are accelerating their withdrawal from the Chinese market, domestic fast fashion brands are gradually gaining popularity among consumers. With the upgrading of consumption in China, the market influence of local brands is gradually being released. Coupled with the mature and huge local supply chain, local fast fashion brands and Internet celebrity brands have also risen through online channels in the past two years.
In 2018, Tmall National Tide Action brought Peacebird, Li Ning, CLOT, JNBY, AngelChen, etc. to New York Fashion Week. The development of “National Tide” has attracted increasing attention from the industry. Many domestic brands have begun to focus on “Chinese Design” through joint cooperation and other methods. Incorporate Chinese cultural genes into the expression context of international youth.
Under the impact of the epidemic, many fast fashion brands that focus on offline stores have suffered huge losses, and the advantages of local Internet celebrity fast fashion brands that rely on e-commerce channels have become more prominent. With the rise of the national trend, the main consumer groups are becoming younger .In line with the changes in consumption trends, local fast fashion brands will have broad space to grow up and expected to enter a growth golden decade in the future.
Inditex ZARA, C&A, Uniqlo are our long-term fast fashion customers. We are professional in custom hangers, and can provide professional design drawings and display solutions.