In the fast fashion brand, the strategy used by H&M is "fast + low cost". While controlling production costs, it also tries its best to reduce the time cost. The fast-changing cheap clothing can successfully stimulate consumer's desire for consumption.
It only chases and is not responsible for leading the fashion

Like many fast fashion brands, the inspiration for H&M designers is less original. For the brand's R&D center, capturing the trend in a very short period of time is of course the most direct way to imitate the big name. This can be seen from the claims that several major fast fashion brands have encountered in recent years. The annual cost of H&M spent on the settlement of the lawsuit is considerable, which has become its fixed expenditure.

“Usually, designers will go to Milan and Paris fashion week to collect all kinds of fashion information. They will copy all kinds of styles, and they don’t need to analyze which models and colors will be popular. In any case, H&M will produce so many models every year. Costumes are always sold well," said one H&M window designer. Although these fashion conferences are now increasingly demanding for participants, H&M's designers can always buy a large number of pictures from the hands of fashion editors, and even directly go to the fabric factories that often work with big names to rush out new models.

It does not value profit in cooperation with big names

Designing garments in cooperation with luxury brands is H&M's signature marketing tool. The big brands of luxury goods hope that through cooperation with H&M, they will open up the market among people with relatively low spending power, and H&M, which is positioned as a civilian, will be able to leverage the reputation of the big names to increase brand influence and allow consumers to have a “high level” and “limited amount”. "a feeling of. "Although there are some big names who are unwilling to cooperate in this way because they feel that they have lost their worth, most of the big names that cooperate with them will get more direct and economic benefits than H&M." A management of a fast fashion brand said that H&M company Heavy investment, focusing on branding rather than profitability, but this transaction is always more cost-effective for H&M.

“H&M can also avoid the copyright issues and plagiarism that fast fashion brands often encounter.” The fast-fashion brand manager said that Zara's solution to this type of crisis is mainly to rely on a strong legal team to reduce the risk of claims, while H&M is It is mainly through cooperation with big brands to avoid the risk of infringement.

It is best at balancing "quick" and "low cost"

The speed with which H&M launches new products is fast, and it has two systems to guarantee the rapid delivery. One set is an efficient supply chain that mainly controls the production in Asia and Africa. The orders are earlier, the production period is slightly longer, but the cost is low enough. The other is the rapid response supply chain that mainly controls the European production and is launched at the fastest speed. New season. Although its logistics is recognized as the strongest among fast fashion brands, its new arrival speed will still be slightly lower than Zara, because higher speeds also mean additional costs. “The same model may have manufacturers in China and India. In order to ensure that goods in the first-tier cities are quickly put on the shelves, they will be first purchased from the domestic market and then transferred from India to a cheaper one.” This is also a kind of balancing of costs and Speed ​​approach.

"H&M's clothes are mostly simple, inexpensive materials such as cotton and linen, and have their own fabric reserves. They don't need to spend time looking for fabrics after the design is completed before they can start production." The manager of the fashion brand said.

It does not have its own factory and it is sometimes difficult to control the quality

The demand for rapid consumption has prompted H&M's production and processing process to be very fast and the workmanship of the garments has been unavoidably rough. This has caused H&M to encounter many quality problems. This is also a common problem for fast fashion brands. Another reason for H&M to “make a mistake” is that it does not have its own factory. It depends entirely on its foundries and sometimes it cannot achieve full control of these factories. The quick on-demand may also make its quality inspection process and processes become hasty. In the process of quality inspection, some production factories only take some qualified fabrics for inspection, and a large number of unqualified products will flow into the market. “There will be a situation in which the manufacturer is swamped with a few good products. The quality problems of H&M are mainly rough work, such as splicing, sutures, and color fastness, etc., but almost never have the excessive formaldehyde content caused to the human body. The problem of toxic damage to the skin," said one H&M employee.

Even if it is a popular style, it will not produce more

Sometimes when we go shopping, we find that a garment in the H&M store last month is no longer available this month. "This aspect is a basic strategy for hunger marketing. In the fast fashion brand world, people call this a "parity limit," said a clothing company staff member. "Of course, this is also a way to avoid high stocks. Because almost all apparel companies currently have high inventory problems, H&M does not have a dedicated discount store. It controls the amount of sales at the time of production.” This can also explain why the same garment cannot “conquer” all H&M stores. s reason.

Even if it's a hot style, you can't expect it to produce more, because that costs money. It will use a variety of styles to make up for fewer defects.

Fundamentals can be left for sale in the discount season

H&M usually has a discount at the time of the season, and the most effective discount is usually at the end of the year. “At the end of the year, retail outlets rush for sales, and they usually have a big discount. Discounts last for a long time and the discounts are so great that they cover almost all stores,” said a former manager of H&M.

Like all clothing brands, H&M discounts are mainly for the purpose of inventory clearance. However, at H&M's discount season, you don't have to worry about encountering vintage and outrageous designs. At this time, it will be more advantageous to purchase a basic payment. First of all, fast fashion brands generally do not sell obsolete clothes stored for too long. This will hurt the brand image of “fast fashion”. H&M will have a public opinion storm that would prefer to destroy old stocks rather than let them flow into the market; secondly, because of “parity "Limited", more fashionable goods will sell faster, and some classic basic models have the opportunity to stay.

A lower discount can also make it profitable

The popular fashion industry has summarized its production characteristics with the words "first-rate design, second-rate materials, and third-rate workmanship." “Even if the clothes are as low as two fold, it is profitable for H&M,” said a former H&M management staff member. “Because the cost of H&M is usually controlled within 10% of the selling price, which is far lower than the average price. Cost-to-sales ratio for apparel brands is 30%.” H&M has many flaws in reducing costs. For example, most of its production plants are located in developing countries. A cheap labor force saves them manpower costs; apparel fabrics generally use price Cheaper materials. In the aspect of reducing logistics costs, H&M is doing the following: building more warehouses to shorten the transportation distance and transporting them as far as possible. The containers are all made of recyclable composite plastic boxes.

The clerk is not enthusiastic because promotion is not his responsibility

H&M's clerk was considered to have the lowest chance of being found in the clothing store. In order to save costs, the company staff did not even have their own work clothes, but they did not have a dim brand name on their chest. Even if they can find them, they will not give you advice when you pick them up, like the staff of other clothing stores. This is not because they are generally indifferent, and the main reason is that H&M does not provide incentives for store staff to have sales commissions. “Traditional clothing stores will give a corresponding amount of sales according to the sales volume of the clerk’s clothes, and the fast-fashioned store doesn’t have much to do with the clerk regardless of how many clothes you bought. We’re not going to ask you to ask you Don't try on it,” said an H&M clerk. In addition to this, it is also related to the concept of "self-purchase, self-contained" consumerism advocated by fast fashion. At H&M, the clerk’s main responsibility is to organize goods, because large stores have a large amount of goods that are often thrown over by guests and the workload for finishing is enormous.

It doesn't like you to try clothes in the store

H&M, like most fast-fashion brands, usually has a large retail space. At any time, H&M will experience two- to three-story single-family buildings in the city center. “H&M advocates a one-stop shopping approach and hopes that customers can buy all kinds of clothes in a commercial space like shopping in a supermarket,” said a former H&M store manager. But you will find that no matter how big the store, the share of the locker room is not enough. It seems that it is always difficult to avoid trying to line up the clothes.

H&M does not intend to solve this problem. In fact, it does not want you to spend time trying on clothes. It launched a 30-day unconditional return service that encourages customers to buy home and try it again. To allow you to shop quickly, it also has a number of cash registers. "On average, each store can reach 20 stores, just like a supermarket." One H&M public relations officer said. However, we rarely see them all run.

It doesn't care when Zara's neighbors

Whether it is the bustling business district in the downtown area or the mall that has just opened in a relatively remote location, brands such as H&M can enjoy more favorable policies when they enter the mall with their high popularity. “In this case, H&M tends to be in a very strong position. Not only can we get a lower rental price during negotiations with the mall, but sometimes the mall will provide them with free renovations and obey the style of decoration it requires.” The former manager of H&M said. In addition to this, it is also able to obtain a discount rate that is more favorable to itself in terms of detailed cooperation with the deduction points of the shopping mall.

But Zara can also enjoy this kind of treatment, not only that, they also always become neighbors. H&M himself does not mind this, because fast fashion brands can drive each other together, just as KFC and McDonald's are always squatting. Convenience stores often sit next to each other. "Not to mention compared to Zara, we are more cost-effective," H&M employees said.

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