H&M, TOPSHOP And Other Fast Fashion Giants Are Heavily Occupied By Online Stores.

A few years ago,

H&M, UNIQLO and other fast fashion big cards get together to speed up the layout of the Chinese market, so that the Chinese garment industry has encountered the "wolf coming" impact.

A few years later, these fast fashion began to start another collective thing: accelerate the layout of the electricity supplier market.

A month ago, H&M, who entered China for the first time in 7 years, moved all its product categories onto its own e-commerce platform. The UK fast fashion brand TOPSHOP, which did not have a physical store in China, was circuitous to enter the Chinese market on the official flagship store of Shang pin, and on the 13 th of this month, ZARA, which had opened its own online store, opened its official flagship store in Tmall.

Fast fashion giants are heating up the electricity supplier.

Looking at the current fast fashion giants, their business paths in China are quite similar: setting up their own online stores, and then entering Tmall platforms, online and offline.

"They will not change their clothing retail mode as they enter the Chinese market when they entered the electricity supplier."

In the view of Zhuo Saijun, an analyst at Analysys International, the feeling that the fast fashion giant is making the electricity supplier to the industry is because there must be everything, but at the moment, it has not seen much innovation.

"For H&M, this is an important milestone in our multi-channel marketing strategy."

H&M Magnus Olsson, general manager of Greater China and Southeast Asia, looks at H&M's opening of e-commerce platform.

According to Magnus Olsson, Chinese consumers can buy H&M's latest fashion and home products anywhere, 24 hours a day, through computers, smart phones and tablet computers.

Compared with H&M, there are more than 200 stores in China, and TOPSHOP has not opened a store in China. Therefore, the flagship store has entered the Shang pin network and is considered to be a curve entering the Chinese market.

This product, which is defined as "the first stop of global fashion and luxury", is indeed very powerful. It is the most important guiding column in the official website's home page, which has dedicated the TOPSHOP flagship store up.

Although all of them are speeding up the money to enter the network, it is worth noting that the electricity supplier is still very small in the overall sales plates of these big fast fashion giants.

An early intervention in e-commerce platform UNIQLO began in 2009, opened flagship store on Taobao.

Pan Ning, the senior executive vice president of global marketing group and CEO of Greater China in March, told the media that online sales accounted for about 6% of the overall sales of UNIQLO China, but the proportion in the future is expected to increase to 20%-30%.

In the 2013 fiscal year (as of August 31st last year), the operation of UNIQLO Greater China was about 7 billion 600 million yuan.

With this conservative estimate, the annual sales volume of its electricity supplier exceeds 456 million yuan. If the sales of over 100 million during the double 11 period last year were set aside, in fact, the proportion of electricity providers in UNIQLO sales in China is not high.

According to the data provided to Nandu journalists by Analysys International, the total sales volume of clothing B2C (excluding Taobao) in 2013 was 258 billion 190 million yuan last year.

For the fast fashion giant's huge "touchdown" impulse, Zhuo Sijun believes that it sees a good momentum in the development of the domestic electricity supplier market, while the offline store industry has generally been hit by overcapacity, but it has not seen much innovation at the moment, nor has it seen that the electricity supplier has particularly contributed to its overall business.

Fill the gap in the three or four line Market

In view of the fact that many clothing brands have gone through inventory in the early days, the clothing industry can not get rid of the "low" consumption impression.

Although there are special price zones on the business platforms of several fast fashion giants, the discount of special products ranges from 50 percent off to 20 percent off. However, they insist on the bottom line: the same price with online stores.

Online sales have a more obvious cost advantage, but fast fashion giants are implementing online and offline parity strategies, which means they do not want to sell too many online stores.

In Zhuo Saijun's view, although the online and offline prices, but there are entities and electricity providers two sets of internal mechanisms of teamwork, how to maximize the value of their respective problems.

Wang Jiansi, a senior retail expert in the apparel industry, believes that this mode of operation is equivalent to the fast fashion giant positioning the electricity supplier only outside the physical store, with a store to meet consumer demand.

"On the one hand, there is no advantage in terms of price, and on the other hand, the service capability is not comparable to the physical store. The fast fashion giant will not have much room for development in the field of electronic commerce at this stage."

So how fast can the fashion business space be? "Whether it is H&M, ZARA or UNIQLO, its coverage in the first tier city stores is enough, but the layout of the three or four tier cities is not yet perfect, and the power providers can help them do the product coverage of these three or four line markets."

Zhuo Saijun thinks.

This may have caught the fast fashion giant's abacus.

H&M said to reporters in the south, for example, our designers only sell for the designated stores in the first tier cities, and online stores also offer simultaneous sale, which means that consumers in the two or three tier cities can also be purchased through Internet channels, while household products are only sold in some stores, but now they can be purchased in online stores, which is a boost to the consumer shopping experience.

"More and more consumers want to shop online, the Internet provides an important channel for consumers to buy H&M products, and physical stores and online stores are complementary channels."

H&M said.

Offline drainage under the line

In fact, the entity store is the core of fast fashion giant, even the online platform is draining for offline.

On the APP of UNIQLO, the reporter saw that it provided a guide for the location of the store in the back, and the coupon two-dimensional code provided by its online APP was specially designed, which could only be scanned in the physical store, thus achieving online store drainage.

On the global business platform, MANGO has a clothing search function. If you enter the number and the location of the consumer, you can find out whether there is stock in the city store.

MANGO is also trying to orientate traffic into physical stores.

After ordering online, consumers can pick up the goods at the designated store.

Whereabouts of control flow

Unlike other clothing brands, such as Tmall, which have large traffic flow, the fast fashion giants are completely opposite to the way they intervene. They are more willing to establish their own online shopping mall.

At the end of 2012, ZARA opened its online store and officially entered the electricity supplier field until its entry into Tmall this month. While responding to whether Nandu journalists will explore more online channels, H&M cautiously indicated that the focus of the current work is to do well the online store's consumption experience, and there is no plan to enter other platforms.

"If first settled

Traffic and entry are restricted by Tmall. All brands will encounter the problem of who the traffic is and who controls the users.

For the fast fashion giant "TouchNet" from the start of the independent business of caution, Zhuo Jun Jun think fast fashion giants have the right to flow consideration.

But Zhuo Saijun also pointed out that if you are an independent supplier of electricity, you will have great difficulty in absorbing your own brand and products.

As a relatively fast start in the fast fashion camp, the QQ TV business seems to be looking for a balance.

Nandu correspondent has found that ordering orders on its official website requires login to Taobao's ID, which means UNIQLO's official website and Tmall flagship store share Taobao's technology backstage.

UNIQLO also has its own APP, but orders are automatically pferred to Tmall on APP, which means that APP traffic is directed at Tmall.