Changes In Consumer Habits Bring New Opportunities To Fast Fashion Brands.

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China

Entering the consolidation period, many clothing brands have adopted the strategy of shrinking, not only do not open new stores, but also stop and adjust the existing stores.

However, from the end of 2014, the world-renowned fast fashion brand UR (the full name URBAN REVIVO) accelerated its expansion in the Chinese market. In December 12th, after opening fiftieth stores in Guangzhou high Tak land Plaza, it went to Xi'an and Nantong in December 20th, December 24th, Fengcheng, Shanghai, Hong Kong, Fengcheng, December 31st, Fuzhou world Europe store, Yangzhou three Sheng shop, Chengdu coastal city store three shops.

What is the thinking behind such rapid expansion?

The reporter interviewed Wen Zhijun, vice president of UR marketing.

Speed supply chain management system industry leader

Reporter: as a fast fashion brand, what do you think is the difference between UR and ZARA, HM and UNIQLO?

Wen Zhijun: the fast fashion brands in the world can be roughly divided into three categories: the first category is light luxury and fast fashion, such as ZARA, MANGO and UR three. The consumers' age ranges from 25 to 45 years old, and the dress style is fashionable and elegant, suitable for urban white-collar workers with medium and high income.

The second category is high street fast fashion, such as H&M, FOREVER21, NEW LOOK, C&A, TOPSHOP, MJSTYLE and so on. The core age of their customers is young people aged between 20 and 35, whose products are priced lower and the whole style is partial to trend and leisure.

The third category is leisure fast fashion, such as UNIQLO and GAP two, mainly for the public consumer group, age is wider, product style is more basic, style update is slower.

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Reporter: fast fashion brands are quick to update products. What is the efficiency of UR's supply chain management?

Wen Zhijun: as

Brand, our company's core competitiveness is rapid response capability. After years of exploration and research, we have built our own UR speed supply chain system. Our lead time can reach 7 days, 5 days faster than ZARA's 12 days, and is at the leading level of the industry.

Reporter: inventory is the most concerned problem of many clothing brands. What is the secret of UR in this regard?

Wen Zhijun: our inventory management is based on flexible production mode, and through weekly tracking and analysis of the storage and sales figures of each store, the adjustment of the inventory allocation and production between shops is timely adjusted, and the corresponding marketing promotion is made in time to speed up the turnover of single products. The most important thing is that our buyers and design team will constantly understand the needs and trends of customers and make the most desirable products for customers.

Secondly, every spring and summer are our most important selling periods. We will analyze the weekly sales of new products. Therefore, we can clearly know the best sellers and unsalable funds that have been verified in the market this year.

In fact, all market forecasts are useless. Only the market tested is correct, so we will change the order in April, which has not been formally ordered, according to the unsettled sales situation of the new listing spring, and increase the salable elements, and revoke the unsalable elements.

In this way, the accuracy of goods can be improved, and the high accuracy means the reduction of inventory.

Reporter: since December last year, the pace of UR's opening is very rapid. Can you reveal the next shop plan of UR?

Wen Zhijun: since opening the first store in China in 2006, UR has relatively slow opening speed.

In 2014, we accelerated the pace of opening stores.

In December 12, 2014, we opened a new store in Guangzhou high Tak land Plaza, which is our fiftieth store.

Later, we opened stores in Xi'an, Nantong and Shanghai.

We plan to increase the number of stores in the Chinese market to 60 before the Spring Festival.

In 2015, we planned to open 50 stores in the form of franchising, supplemented by direct marketing, and open 80 stores in 2016, and strive to grow by 100 annually in 2017.

The ultimate goal is to achieve interaction and sharing between online and offline.

Reporter: in recent years, the overall trend of China's clothing market is not good. Many clothing brands are closing stores and clearing stocks. Why does UR maintain such a high speed of opening stores?

Wen Zhijun: since the end of 2012, the overall situation of consumption in China has not been very good. But in fact, the total consumption of clothing is growing by two digit per year, especially the fast fashion.

In addition, more and more shopping mall has been built in the whole country, and more emphasis on experiential consumption rather than destination consumption is more suitable for UR fast fashion brand.

Internally, UR has been in the Chinese market from the first store to the present for 8 years.

In the first 7 years, it is a process of running through the Chinese consumer market, including building a complete design center and production plant around consumer demand. We have made good preparations for the supply chain, store image and terminal talent team echelon.

So in 2015, we dare to open another 60.

Reporter: UR also opened flagship store in Tmall. Can you give us some information about it? What are our plans and ideas for O2O?

Wen Zhijun: Yes, we opened it in June 2014 last year.

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Our online mode is to keep the same price on the same line.

At the same time, we hope to build a brand ecosystem, from chain stores in shopping malls of all major cities to brand websites, WeChat, micro-blog and Tmall flagship stores, so that consumers can easily contact and understand UR.

In 2015, we will install Wifi system in all stores. Customers will receive promotional information from UR when they come to the store. After they become UR members, they will get cash coupons or special offers, and constantly upgrade their brand and shopping experience.

Slowly, we will explore more patterns.

For example, the introduction of mobile payment system facilitates the purchase and settlement of customers. A shop in North Canton has begun to work online and offline, so that consumers can book online and pick up goods at local stores.

Our ultimate goal is to interact and share online and offline.