Zara Or UNIQLO Start A Price War. Is This Good Or Bad At The Beginning?

It is reported that

Starting from the beginning of the price war, UNIQLO will implement the price adjustment strategy to reduce the global price difference.

Zara, which has never been moved, has recently been discovered by foreign media.

The silent price reduction operation has begun.

For fast fashion brands that rely on high-speed expansion to complete market share, the driving force of design is even the second.

However, in the current trend of expansion, what should we do next?

Although some people think that Zara is trying to test the water.

For the market share and sales performance, but in the long run, the strategy of market share acquisition through expansion is not very desirable at present.

On the contrary, it may be possible to stimulate consumer desire through price adjustment.

But in the end, which one is strong?

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Zara, the Spanish fast fashion giant Inditex group, is starting to cut prices.

According to India market sources, Zara cut prices by 10% to 12% in the past year to better compete with H&M, a fast fashion retailer in India. The commodity price of H&M, Sweden's fast fashion giant H&M, is about 1500 rupees, which is about 22 dollars, while Zara's commodity price starts at 33 rupees.

Although Zara is a fast growing clothing brand in India market in recent years, its number of stores is around 100, but sales growth has shown signs of slowing down in one hundred million.

According to the 2015 Trent annual report, the turnover of Zara India market dropped by 23%.

In early April, Ryui Masa, chairman and CEO of fast fashion UNIQLO's parent group, said the data in the first half of the year were disappointing.

Ryui Masa said: "consumers do not agree that new products are equal to high prices. The environment of fashion retailing is now very difficult. It is a mistake for companies to raise prices in this environment.

There is evidence that consumer confidence is worse than we think. "

Zara is not the first fast fashion brand to cut prices, nor will it be the last one.

In August 1st last year, Muji began to cut 20% of the more than 260 categories of goods in China, with the aim of further expanding consumption through price advantage.

At the end of March this year, Spain's fast fashion Mango announced its price cut for its leisure series, a decline of about 15%, while UNIQLO's cartoon and print design t-shirt series UT, which was released last summer, reduced prices in the form of as low as 39-79 yuan in disguised price cuts, while H&M increased its cost performance by attracting cross-border cooperation.