Combining special fashion trends with low-cost features, the share of fast fashion retailers in the fragmented and highly competitive global apparel market is likely to continue to grow.
According to the analysis of the cocoa group, the fast fashion business in the United States has a huge business opportunity, thanks to a very rapid design process and a highly integrated supply chain.
In this report, fashion headwind will grow for retailers. The sales of these four branded retailers, h&m, uniqlo, zara, and forever 21 in 2013, totaled about 48 billion U.S. dollars in 2013.
This accounts for only 3.4% of the global apparel market, and there is still much room for growth. The author of the report points out that “Forever 21 in the United States is the largest retailer in the country. We estimate its market share in 2013 is only 2.4%, and it continues to expand, while the other three international brands have just begun to With growth, it is expected that market share will increase. "
According to cowen, sales of fast fashion in the United States will grow at a compound annual growth rate of 11% before 2020. This estimate assumes that the four major brand retailers will be able to maintain 2013 sales levels, and the number of exhibit stores will grow at a double-digit rate. This will result in 4.2% of the U.S. ready-to-wear market by 2020 – 77% growth in total in the next 7 years.
Shopping habits
Two key factors that drive rapid fashion to make it popular: Sell clothes that are potentially only a few times at “very cheap†prices, and sell a wide variety of goods on the store floor.
The report found that most clothing retailers do not provide the styles that consumers are looking for, the products offered by fast fashion shops, and consumers are more personally styled.
The author of the report pointed out that such a trend has caused the prices of men's and women's clothing to gradually decline for decades.
“The core of the fast fashion strategy is to rapidly reduce the price of apparel and accessories to attract consumers to keep updating their wardrobes to meet the fast and sometimes unpredictable fashion trends. They continue to develop their stores and develop the power of the e-commerce platform. The concept of competitive pressure will increase in the coming years. "
Fast and stylish leader
h&m is the world’s second-largest fashion retailer and has proven to be one of the largest retailers in the United States.
The company operates approximately 305 stores in the United States and rapidly expands its market share. In the United States, sales have grown at a compound annual growth rate of 19% since 2011. In 2013, its sales reached US$2.1 billion, accounting for global sales. 9%. The company has set a global growth target of 10% to 15% of the store's annual growth rate, and plans to have 375 stores in 2014. The United States and mainland China may be the key concentration areas, and the brand will enhance the popularity of online shopping.
Forever 21 is a low price and a huge variety of goods that help it reach $3.7 billion in sales. The company has 600 outlets around the world - including 468 in the United States. Since 2007, it has grown at a compound annual growth rate of 7%. Cowen rough estimate forever 21, in 2020, the number of exhibition shops can grow 60%.
Japanese casual wear brand uniqlo may not be successful for both h&m and forever 21, but it has now begun to expand. Currently there are about 17 outlets in the United States, but only a small part of its 2,500 stores worldwide. By 2020 they hope to reach the goal of 200 stores in the United States, and may reach 1,000 stores in time.
Price differentiation
The price band of fast fashion products is not only significantly lower than that of clothing retailers, which are mainly store-based, but also change the competitive environment by depressing the profitability of goods. The author mentioned that since 2010, the profit of goods has dropped by 130 percentage points.
“Compression of commodity profits is particularly significant in the retail industry of young people. Aeropostale, american eagle outfitters, and abercrombie&fitch are all hurt by fast fashion promotions and have lost market share.â€
Cowen pointed out that the face of this kind of "irresistible resistance", the survey results show that shoppers tend to fast fashion trend "very high."
“We conducted an expert focus interview and showed that continuing to consume in the fast fashion concept may continue to exert significant pressure on these brand groups. From the perspective of curves, profit margins and ROI, we expect future ROI. Will be lower."
Cowen also pointed out that because of the increasing popularity of cheaper fast fashion concepts, more and more consumers are completing transactions on the Internet, and the demand for buying in physical stores will also decrease.
RPET Fabric plays an important role in our daily life. Our Rpet Fabric has the advantages of high waterproof, tear-resistant, environmental protection ,black-out quality ,etc. The materials we use for this fabric origins from waste plastic bottles. This do great contributes to our environment for energy recycling. In order to build our company brand and enlarge our influences, we promise to offer perfect after-sales service and technical support for our customers! We are just here to look forward to your cooperation.
Pvc Fabric,Plaid Taffeta,Recycled Pvc Fabric,190 Taffeta Pvc Fabric
Wujiang City Shishan Textile Co.,Ltd , https://www.shishanrecycle.com