China Business Daily (Reporter Zhang Tao) In recent years, the consumption environment has undergone tremendous changes. The once-popular international fast fashion brands are accelerating their withdrawal from offline channels, while the sports brands that have further risen amid the new crown pneumonia epidemic are taking advantage of the trend and becoming a new crop of major shopping malls. main force.
International fast fashion falls out of favor
Recently, on the first floor of Daxingtian Street in Beijing, Longfor, a reporter from China Business Daily saw that the domestic sports brand Anta replaced the international fast fashion brand GAP. The Anta store was originally located on the second floor of Daxingtian Street, Beijing, Longfor, and the location was not conspicuous. GAP has settled in a more eye-catching location on the first floor of the mall since the mall opened, and was once one of the most important fast fashion stores in the mall. Today, the situation has reversed, and GAP has withdrawn from the market. Anta has come from behind and replaced it. The new store not only has a larger operating area, but also is more fashionable.
And this is just a microcosm of the continuous decline in the performance of international fast fashion brands in recent years, shrinking their fronts and even withdrawing from the Chinese market. Recently, ZARA's sister brands Bershka, Pull&Bear and Stradivarius have all issued store closure announcements on their Tmall flagship stores: starting from July 31, 2022, the brand online store will stop selling goods. This means that these three brands will officially withdraw from the Chinese market. On March 31 this year, H&M's MONKI Tmall official flagship store closed. At the same time, the brand's last offline store in China was also permanently closed. On June 24, H&M closed its first mainland store on Huaihai Middle Road in Shanghai, which had been in business for 15 years. GAP has been closing stores in China in recent years. In Beijing alone, GAP has closed many important stores such as the first store of APM in Wangfujing, the flagship store of Joy City in Xidan, and the Indigo store. In 2021, OldNavy, the main brand of GAP, will directly announce its withdrawal from the Chinese market
Relatively speaking, the situation of Japanese fast fashion giant Uniqlo is much better, but it has not been able to avoid store closures and shrinkage. According to Uniqlo's parent company's 2022 fiscal year interim report, Uniqlo's sales revenue in the Chinese market declined, and 133 stores were temporarily closed in Greater China.
"The times have changed, and those old brands can no longer keep up with the current trend." Ding Yun, founder of Heyi Consulting, told a reporter from China Business Daily that international fast fashion brands that entered China in the early days attracted and matched consumers born in the 1980s. The quality of some brand products is not good enough, and they lack quick-response design capabilities and fabric research and development capabilities, which is a moment of excitement. Now, as there are more and more brands in the Chinese market, these old brands cannot keep up with the times in terms of product design and quality, and cannot meet the needs of the post-90s and post-00s. It is an inevitable result that they will be eliminated from the market.
Ding Yun believes that the iteration speed of fast fashion is greatly accelerated. In the future, only those brands with efficient low-cost design capabilities and product development capabilities can be invincible in the market.
Sports brands take advantage
The continuation of the epidemic has made consumers pay more attention and attention to health, which has also brought benefits to sports and leisure brands and boosted the accelerated expansion of related brands. At present, in offline sales channels, fast fashion is retreating and sports and leisure brands are rising.
Take Apm, a well-known shopping center in Beijing as an example, fast fashion brands ZARA, GAP, etc. used to be the main stores, occupying the best location on the street. Become the object of adjustment and withdraw one after another. Anta's brand Fila's first global concept store and Kolon's first flagship store in China, as well as an internationally renowned beauty brand, have successively replaced them, opening their doors at the best street-facing facade of Apm.
The same is true for Longfor Beijing Daxingtian Street. In the past year, the store has greatly increased the proportion of sports brands through brand adjustment, including Decathlon, Nike, Anta, Li Ning, Adidas, UNDERARMOUR, CHAMPION and other well-known brands at home and abroad. A sports and leisure product matrix that can meet the needs of all customers has been formed.
"Longfor Beijing Daxingtian Street plans to build a super-large store cluster of retail brands, introduce the first store, content store and flagship store in the region, and through continuous brand renewal, enhance the project's influence and attraction in Beijing Nancheng." The relevant person in charge of Longfor Group told the China Business Daily reporter that based on this, Longfor Beijing Daxingtian Street has been upgraded and refreshed for the popular sports trend brands in the current market. The Li Ning store has been upgraded to a full-category benchmark store, and the Anta store has been upgraded to Beijing. The largest full-category comprehensive store in the regional shopping center. In addition to the expansion of the store area, the store has also introduced more abundant product resources and promotion resources.
Many well-known commercial streets also attract customers by introducing flagship stores or first stores of sports brands in the upgrading and renovation. Last year, China's largest Nike global flagship store opened at the best location on the north extension of Wangfujing Pedestrian Street in Beijing, becoming a landmark store on the street.
"This kind of replacement started five years ago." Ding Yun told a reporter from China Business Daily that shopping malls are more willing to give the first floor or a good location facing the street to the "national tide" that the post-00s prefer, such as Li Ning and Anta. Ding Yun said that these trendy brands of domestic products have continuously improved the product power of design and research and development in the past three years, and the frequency of new products has increased, which is also more in line with the purpose of commercial diversion. In addition, the high gross profit of sports brands can also afford a relatively expensive rent. On the other hand, fast fashion such as GAP not only does not match the quality upgrade of shopping malls, but also the large shop area of fast fashion does not match the diversification of commercial products and the optimization of one-level revenue.
"Because of the epidemic and consumption upgrades in the past two years, the proportion of sports goods has increased significantly." Lai Yang, president of the Beijing Jingshang Circulation Strategy Research Institute, told the China Business Daily reporter that this was first due to the increased willingness of consumers to exercise. . Secondly, sports are becoming a very fashionable and cool trend expression and concept. At the same time, the sense of design and fashion of sportswear is also constantly improving, which is deeply loved by consumer groups.
The continuous rise of sports trends has promoted the rapid growth of sportswear sales. For example, domestic sports brands Anta and Li Ning, which mainly focus on the concept of national tide, are the beneficiaries. In 2018, 2019 and 2021, Anta's annual revenue growth rate was around 40%, and profit growth exceeded 30%; Li Ning's revenue growth rate in 2019 was 32%, and the revenue growth rate in 2021 was even as high as 56%.
Under this high-speed growth trend, high-quality sports brands are accelerating their offline layout and need to open more experience stores to show their brand image, enhance consumer experience, and drive further sales growth. Based on the needs of attracting traffic and promoting sales, offline shopping malls are also more willing to leave high-quality resources to sports brands.