In 2020, affected by the global epidemic, fast fashion products, such as H&M and ZARA, have fallen into a crisis of opinion, both at home and abroad. Behind this, in addition to the epidemic, the main reason is that under the impact of new sales channels such as national Internet e-commerce and live streaming, it has entered an era of fierce price wars.
However, fast fashion’s self-help operation has already begun.
1. Digital transformation
From February 2017, Uniqlo launched the "You Ming Plan" to adopt digital information technology methods such as big data to provide consumers with more precise services and personalized products. In addition, real-time sales are provided for inventory management and supply chain control, and the process from design to sales is improved faster. From September 1, 2017 to August 31, 2018, the group's revenue increased by 14.4% year-on-year to 2.13 trillion yen, operating profit increased by 33.9% year-on-year to 236.2 billion yen, and net profit increased by 25.5% to 242.7 billion yen.
Through big data analysis, H&M can more effectively control customers, products and markets, and research sustainable artificial intelligence to avoid H&M's excess inventory and waste of resources.
2. Accelerate online sales
Fast fashion brands that have been paying attention to physical offline store business have begun to accelerate their online sales. ZARA’s parent company’s online sales increased by 50% this season. In April, it grew by 95% compared to last year. ZARA has opened up in the Chinese market. Cat flagship store, and launched "online order, offline pickup" and other services.
3. Youth strategy, celebrity endorsement
Last year, H&M announced that Zhang Yixing, an all-round musician, became the ambassador for menswear in the Greater China region of its brand, and was also the first annual ambassador of the H&M brand in Greater China.
MINISO invited Wang Yibo and Zhang Zifeng as global spokespersons for their brand, calling on more young people to release their pressure and live out their own life attitude. This is the first time MINISO has signed a global spokesperson.
4. Launch a joint series
As the new generation of the Internet begins to dominate the market, the demand for personalized, fashionable, and customized consumption continues to grow. Fast fashion brands are seeking to establish new emotional connections with consumers through the use of fashion IP co-branding.
The fast fashion and designer joint name was first introduced by H&M. In 2004, H&M and Karl Lagerfeld launched a joint series. This joint series was also sold out two hours after launch. So far every year H&M has launched a joint series with luxury brands and high-end designers. Including Comme des Garcons, Versace, and Alexander Wang, it has almost triggered a wave of queuing all over the world.
5. Strengthen environmental protection and implement sustainable fashion strategy
In recent years, H&M has continuously strengthened the brand's own environmental image, and stated that in 2030, it will only use decomposable and recyclable environmentally friendly materials, and even vowed that by 2040, H&M will have a positive effect on global climate change. H&M is launching "Deferred Payment" and "Leasing Service". The promotion of these two plans is to comply with the rising environmental awareness in the fashion circle and try to solve its excessive greenhouse gas emissions.