H&M Pushed Nike Mall To A Fast Fashion Transformation

　　 Fast fashion attack, forced sports big technology innovation

There is no hundred days of red, and the former is the international first-line sports brand of shopping center. Nike is the first flagship store in China, located on Wangfujing (18.94,0.00,0.00%) street. Beijing The store in APM will not renew its contract after the lease expires, and it will enter the fast fashion brand H&M. In fact, the choice of shopping centers arises from the needs of consumers. Besides supply chain, products and technology, the more pressure on sports brand is the change of consumption and the adjustment of the market.

　 H&M squeeze Nike away

In fact, Nike's performance is very good, but it is just a popular brand. Beijing APM said that the Nike flagship store in Beijing, APM, is Nike's first Asian direct store and has a unique custom business. According to reporters, Nike Wangfujing flagship store opened in 2007, covering an area of 1100 square meters, occupying three storey shops on the street.

After the expiration of the lease, Nike replaced its fast fashion brand H&M. Nike does not mean to renew the contract, but H&M is even more popular for Beijing APM, which is transforming to a fast fashion. In fact, not only the Nike family, but also other brands in Beijing APM are facing a gradual replacement. According to APM in Beijing, about half of the brands in the field need updating.

ZARA, H&M and so on. Fast fashion Although the brand has not entered China for a long time, it has already formed a strong purchasing power in the second tier cities. Zhang Qing, the founder of sports consulting firm, believes that sport has not become a mature lifestyle in China. When facing a real leisure fashion brand, the brand loyalty of the former will be reduced and the market will be easily divided. Before, Nike's store in Tongzhou was replaced by UNIQLO.

　　 Where does Nike go from?

The flagship store's function is mainly image publicity, especially in Beijing, Shanghai and other mega cities. Flagship store is an important means to maintain brand influence. In Zhang Qing's view, Nike flagship store will be looking for new opportunities and lots of shops after its withdrawal from Beijing APM. Zhang Qing It is pointed out that experiential consumption with consumers has become the mainstream of consumption. If Nike opens its flagship store, its image may change.

Another industry insider said Nike's brand effect has been deeply rooted in the hearts of people. Closing flagship stores can reduce operating costs. From the point of view of sales contribution, the closure of Nike flagship store has little impact on the whole. According to rough statistics, Nike currently has more than 100 stores in Beijing, excluding the two shops in Wangfujing and Sanlitun, and several factory shops are directly battalion, the rest are all the agents opened shop.

However, the industry generally believes that the withdrawal of Nike does not mean that the brand is not recognized. "For shopping centres, they need to attract more brands with higher gross margin and profitability, while sports brand profits are too low." According to the above sources, the annual rent of Nike's flagship store in Wangfujing rises by about 15%.

　　 Consumers are "happy and old".

It is understood that Nike flagship store in recent one or two years still occupy an important position in Beijing APM leaflet. Now, the three floor space has been idle, waiting for the arrival of H&M. Adidas, which is also an international first-line sports brand, has not escaped the fast fashion shock wave. According to Sanlitun village's Taigu real estate, it has privately negotiated with Adidas to adjust its location and reduce its size.

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In Zhang Qing's view, the domestic sports market is very large, but there is no "sports basic plate consumption". Part of the sports product structure in foreign countries exists as a basic product. Such products have both target group and functional pressure. But domestic consumers tend to spend more time on sports brand.

"Fashion consumption created by Chinese consumers in sports brand makes their loyalty to the brand lower. For the second tier cities that first entered the fast fashion brand, the phenomenon of brand differentiation is serious, and it also divides the consumers who belonged to the sports brand.

In fact, sports brand has already realized this problem. Adidas told reporters that for a second tier city, it will focus on important positions such as running, basketball, soccer, women's series and training. "Consumers in these markets are more concerned about brand and fashion. Therefore, we are committed to providing products with our advanced technology, as well as garments from classic sports series and designers. "