Analysis Of The Fast Fashion Market Of H&M And ZARA

< p > so called fast fashion, its main source of profit is also basic.

Not only that, making a group of mixed businesses is their favorite strategy now.

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< p > Daniel Harari has been the director and chief executive of Rick company since 2002.

Li Ke is a soft material (< a target= "_blank" href= "//www.sjfzxm.com/" > textile > /a > product, < a target= "_blank" href= "//www.sjfzxm.com/" > Leather > stainless steel, industrial fabric and composite material) solution provider, providing software, automatic cutting system and related services for fashion, automobile and other industries.

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< p > C=CBNweekly < /p >

< p > H=Daniel Harari < /p >

< p > fast fashion is a way to attract passenger flow. H&M and ZARA are the models of a target= "_blank" href= "//www.sjfzxm.com/" > clothing > /a > fast fashion.

But why didn't there appear more famous fast fashion companies after them? For this reason, Daniel Harari, CEO of Lectra, thinks that to be fast fashion, we must be psychologically prepared, which is similar to building a luxury brand, not overnight.

Many enterprises claim to be fast fashion, but they do not realize that they can not simply do fast fashion. Instead, they need to use mixed business mode as support and at the same time be inseparable from the support of professional services and program providers.

Most of the gross profit of H&M and ZARA comes from the basic series rather than the fast fashion series. If they only do fast fashion, they will lose money early.

Around the success of fast fashion, Daniel Harari shared his views with the first financial weekly.

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< p > C: what do you think of fast fashion company in garment industry? < /p >

< p > H: fast fashion is just a way to attract passenger flow.

Customers like H&M and ZARA will return to these stores every three weeks on average to see which new items they see, but the vast majority of customers eventually buy the basic funds.

In fact, ZARA or H&M have 2/3 gross profit from the basic series rather than the fast fashion series. If they only do fast fashion, the company will already lose money and go bankrupt.

To be fast fashion, we must have psychological preparation. This is a very difficult thing. It can not be made in a year, at least ten years.

This is similar to building a luxury brand, not overnight.

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< p > C: is now talking about fast fashion. It seems to be H&M and ZARA. Why is there no new famous fast fashion company? < /p >

< p > H:, indeed, fast fashion is mainly H&M and ZARA. If there must be third, that is Mango.

In Asia, the only close brands are UNIQLO, but they are not at one level.

In my opinion, the main reason for the success of these two companies is that many enterprises claim to be fast fashion, but they do not realize that if the fast fashion business is to succeed, they must not only do the fast fashion, but should take the mixed business mode.

For example, H&M is a successful example of mixed business. It is mainly composed of 3 Series: well-known a target= "_blank" href= "//www.sjfzxm.com/". The designer "/a" cooperation series is cooperating with the best designers, regardless of cost; the basic series is mainly focused on improving profits through controlling costs; and fast fashion business, the company's internal designer team has the right to speak.

The 3 series have adopted different business models. The resources of the person in charge, process and input are completely different.

Therefore, adopting mixed business mode is more complex than simple fast fashion.

Although some companies are pforming from branding to retailing, they do not have the corresponding talents, knowledge and processes. In short, they lack the corresponding knowledge to integrate effectively the 3 modes of different modes, including fast fashion, basic funds and designers.

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< p > C: now what is the development of mixed mode in the industry? < /p >

< p > H: according to our survey this summer, 9% of the customers in the clothing industry of our top ranking are considering, or have begun planning and implementing the mixed business mode.

In fact, not all customers will directly say that the hybrid business mode is already in practice, but in fact, they are already heading in this direction.

I think the hybrid business model is not the most suitable for small companies, but is more suitable for large companies.

Small businesses are more suitable for vertical integration, because for them, it is easier to make a brand or retail business later.

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< p > C: Chinese clothing enterprises are also pursuing a mixed mode of operation? < /p >

< p > H: as long as you take a look at the top ten manufacturers of OEM in China's clothing (9.12, 0.55, 6.42%) market, you will find that they have begun to hatch their brands more or less.

The emergence of mixed mode should be said to be the natural result of the gradual development and evolution of OEM in the whole industry.

I think this model will be more suitable for Chinese enterprises and will continue in the future.

The proportion of China's OEM in global garment production is still 40% to 50%. We think they will gradually shift to brand and retail.

However, China's OEM has not really invested substantially in real terms, because they are worried that building their own a href= "//www.sjfzxm.com/news/index_s.asp" brand "/a" may involve a lot of energy, time and money. They also worry that too much time to manage their brands may not be able to devote themselves to satisfying the needs of brand customers.

So many OEM manufacturers are still testing the water stage, or are still observing, to see when is a suitable time.

But we think that in the long run, they must go in this direction.

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