National Tide, Children'S Clothing, Experience... What Will The Brand'S Future Be Like In 2019?

Whether for international brands or domestic brands, 2018 is not the best year. Some people are in high profile and some people are leaving.

Historical experience tells us that every past is a prelude. The past spark will ignite the future prairie fire.

Now let's analyze the trend of fashion retail brand, and 2019, where to go!

01

Cultural identity determines the departure and retention of Chinese consumers.

With the rise of national economy and the promotion of national consciousness, the nationalist upsurge of patriotism has been unprecedentedly aroused, and cultural identity has sprung up in this upsurge.

Brand recognition of Chinese culture and respect for the Chinese will determine the Chinese consumers' going and staying.

Earlier, when Balenciaga sold its exploded daddy's shoes Triple S in France, some netizens broke the news that a Chinese female consumer had been treated unfairly. Later, Dolce& Gabbana released the humiliating incident triggered by the preheated video called "chopsticks eating" through social networking.

The continuous fermentation of these events reflects that the luxury brand has paid a heavy price for its lack of recognition and respect for Chinese culture in the process of striving for Chinese consumers.

On the other hand, since 2016, GUCCI has always been trying to win the Chinese consumers with the brand strategy of Chinese elements added to the products, especially the annual Spring Festival products. The use of zodiac elements is indispensable.

Even though product designers are often criticized, the brand's respect for the Chinese market and the sense of cultural identity are quite popular among Chinese people.

In the first half of 2018, sales in GUCCI Asia Pacific region (excluding Japan) accounted for 37% of total sales, while retail sales increased by 48% over the same period last year.

Obviously, embracing Chinese consumers has brought considerable achievements to GUCCI.

According to a research report released by global strategy consulting firms Bain &Company, the scale of China's luxury goods market increased by 18% in 2018, reaching 32 billion euros.

The report points out that Chinese consumers are one of the main drivers of the global luxury market.

Since 2015, 50% of the global luxury market growth has been contributed by Chinese consumers. The proportion of Chinese consumption in the global market has been increasing. It accounted for 33% in 2018 and 32% in 2017, and 8% of the total share occurred in China. The Chinese market has become a battleground for luxury goods brands.

Only by understanding can we identify, only with respect can we respect the luxury brand. Only by abandoning the shallow management of Chinese culture and consumers, deeply studying the Chinese market, and respecting the country and consumers fundamentally can we maximize the potential of the market.

How to convey the brand's recognition of Chinese culture and respect for Chinese people will become a required course for the survival of luxury brands in 2019.

02

The national sports brand is developing vigorously.

The tide of patriotism pushes the luxury brands to re-examine the Chinese market, and at the same time helps the rise of the national tide.

While foreign brands are making money in China, they despise the vulgar and high-profile attitude of Chinese people and accelerate the return of Chinese people to local brands.

At the same time, the pformation of local brands has also forced them to live a huge shift in consumption.

The Pacific bird is no doubt the product of "Chao" pformation in recent years, which is more thorough and successful.

Since 2015, the company has adjusted its brand positioning. After the pan 95, it has attracted a lot of young people who are independent, hot blooded, love affairs, and young people with distinctive fashion tastes. They attract young consumers through joint name and KOL promotion.

Bosideng replaced the old bloated and old fashioned aunt's perception with brand-new product design and image.

The "makeover" of the product has increased the retail sales of the brand 2018/19 in the first 9 months of the fiscal year by more than 30%.

Nowadays, due to the optimization of product image and the upgrading of marketing mode, local brands have successfully got rid of the inherent cognition of product aging and established the brand image of national tide.

On the international stage of the national tide brand, the local sports brand plays a decisive role.

In early February 2018, as the first Chinese sports brand to debut in New York fashion week, Lining boarded the stage of the 2018 autumn winter New York fashion week.

Lining, who has been silent for a long time, has derived two series of "understanding of the heart" and "type of realization" from the enlightenment. He used the avant-garde fashion design elements such as oversized, metal style, BoxLogo sweater and so on, and incorporated the strong elements of Chinese style to interpret Lining's understanding of the trend of movement.

Closely followed by Anta, with the new experience of combining sports function technology with daily wear aesthetics, the fashion circle of old man shoes is brushed to make the world focus on the Chinese sports brand fashion circle.

Not only that, but after eating "FILA" and "Kolon Sport", Anta announced in 2018 that it would spend 37 billion 100 million yuan to announce the acquisition of "the first bird" - Finland sports giant AmerSports, announcing the rise of the Chinese sports brand to the world.

Local brands are actively reforming and embracing changes in the east wind of patriotic tide, and constantly improving their competitiveness in product design, supply chain management, brand marketing and other fields.

With the rapid development of brand strategy of innovative product design and close to consumer groups, while entering the international market in a high-profile manner, it has also opened the door to domestic commercial ShoppingMall. More and more local brands have been invited into Shopping Mall, and become a strong growth point for business entities.

In 2019, the national tide brand will continue to exert force to embrace consumers in line with the public aesthetic product design and store image, and help the real business.

03

Demographic dividend disappears children's clothing market accelerates brand upgrade

Statistics show that in 2017, the output value of children's clothing in China exceeded 150 billion, and the market compound growth rate reached 9.68%. In the next three years, the compound growth rate of children's clothing industry will remain at around 14%, and the children's clothing market in 2020 is expected to reach 266 billion 500 million yuan.

In addition, the per capita consumption of children's clothing in China is only 19.2 US dollars, while the per capita consumption of children's clothing in Japan, the United States and Britain reached 57.8/98.2/117.4 dollars respectively, compared with the per capita consumption of children's clothing in China, there is still much room for improvement.

The scale of children's clothing market and the huge development space of consumer spending have made children's clothing brand fall into the era of "hundred flowers Contention" in the past few years. But with the disappearance of demographic dividend, the market situation of "group fighting" will change, and children's clothing brands will enter the upgrading stage.

In 2016, the first year of the second child policy witnessed the birth of 18 million 460 thousand newborns. The number of births and births declined in 2017 compared with 2016. The number of new births in 2019 is expected to fall below 15 million, and the demographic dividend is gradually disappearing.

At the same time, 80 and 90 after upgrading to the main consumer, the concept of consumer groups have changed, they are more knowledge-based on consumer goods, brand awareness is stronger, and an international perspective + channel, so the new generation of consumer groups are more picky about the demand for children's clothing brand, and pay more attention to the quality and brand level.

In the environment of consumption upgrading, garment enterprises begin to adjust their product structure and marketing mode to enter the middle and high-end market in order to cope with market competition.

The market share of domestic children's clothing is the first Balabala parent company Semir apparel to buy Kidiliz group for 844 million yuan.

Kidiliz is a high-end children's clothing brand in Europe. It has several middle and high children's wear brands and agency brands.

After the acquisition of Kidiliz, Semir's children's wear brand from the public to the high-end will form a diversified and rich brand combination of children's wear.

And after a series of acquisitions, resource integration and layout, Semir has jumped the world's second largest children's wear group.

Coincidentally, China's men's clothing market has finished the acquisition of China's high-end baby brand - British 44% stake by 660 million yuan, and also started the layout of high-end children's clothing market.

China's economy is changing, the market is changing, consumers are changing, and the market of children's clothing is no longer calm and the impact of consumption upgrading is coming. Only by upgrading the brand and grasping the quality can we become the wave maker of this wave and remain invincible.

In 2019, the children's wear brand will open up the road of upgrading, and the potential of the high-end children's clothing market will gradually appear.

04

Focus on quality, fast fashion brands gradually fall into the altar.

Over the past decade, international fast fashion retail brands represented by H&M, ZARA and GAP have entered the Chinese market one after another.

With the advantages of low price, rapid change, and providing consumers with fashion trends, the market share of China's local clothing brands has been grabbed. At the same time, with the rise of shopping malls and shopping centers in China, the rapid expansion has been achieved.

After enjoying the rapid expansion bonus, the fast fashion brand in recent years has gradually lost the enthusiasm it is concerned about, and the sound of singing has become increasingly strong.

According to multi data, sales of fast fashion brands continued to slow down in 2017, and share prices and valuation of H&M and ZARA fell.

In 2017, the gross profit margin of ZARA fell to 57.4% from 59.8% in 2013, and its share price dropped by 4.5%.

The annual performance is the worst since 2008.

H&M's 2017 Q4 earnings report showed that group sales fell 4% in the current quarter, the first decline in performance in more than 20 years.

At the same time, the news of fast fashion brands' withdrawal and the reduction of store area began to constantly screen.

The fast fashion brands' frequent closes, the tragic depression of earnings data and the sustained decline in performance growth are due to the consequences of the upgrading of consumption, on the one hand, the end of the one-off clothing carnival.

After 90 and 00, the new generation has become the main consumer of fast selling clothing. They are no longer satisfied with buying clothes made from mass production at low prices, but hope to get a unique experience and innovative products.

According to the latest report released by fashion agency Thredup, 25% of female consumers said they would no longer buy fast fashion clothes from 2019, most of them young consumers.

The report also showed that 40% of the millennials surveyed said they would stop buying fast fashion brands, and 54% of the respondents aged 18 to 21 decided to buy higher quality products.

Obviously, the fast fashion brand's low and rough product quality can no longer satisfy the new generation's consumption demand. The change of fashion concept will soon leave the fashion brand behind the times.

The new generation of consumers, while focusing on their quality, is also influenced by their educational background.

Environmental protection, waste reduction and sustainable development, once the slogan and the concept of printing into textbooks have been integrated into the growth trajectory of new generation consumers. Their consumption concept has been influenced by imperceptibly, and environmental protection and waste reduction have been virtually embedded in their consumption concept.

Fast fashion brands are almost one-off clothes, like the takeaway coffee cups and plastic packaging, which start to introduce new generation of consumers.

05

Focus on online e-commerce return to the real business entity

Last December, NetEase strictly selected the first line shop to open in Hangzhou shopping plaza.

Store items are collected online, such as thermal insulation cups, pull rod boxes, home textiles, tableware and so on.

The store experience area occupies about 1/2 of the space area. Starting from the original intention of constructing "interesting commodity presentation and experience", it divides the experience into several "family" scenes with continuity, logic and close to real life, and creates a sense of belonging for the new middle class group.

The brands who once focused on the online market began to move to the offline. Jingdong, Taobao, Xiaohong book, Goblin pocket, NetEase koala, Dangdang, Tmall international, keep and other brands have been testing the real business.

Dangdang layout line offline bookstore, Ali development box, Ma Sheng Sheng and other emerging businesses, Jingdong involved in fresh supermarkets, three squirrels set up offline food outlets, and so on, what drives the giants to coincide with the trend of the line?

What is the reason for the return of the electricity supplier to the entity?

First, offline stores can increase user experience and make up for the shortcomings and weaknesses of online shopping platforms.

Second, offline stores can serve as after-sale service points to provide customers with services such as repair, maintenance and replacement.

Third, offline stores become a new entry to traffic, and also a publicity for brands.

Fourth, this is also the most important point. According to statistics, more than 80% of the consumption is still online, and the development of the online industry is facing a bottleneck.

In order to break through the existing bottleneck and satisfy consumers through diversified operation mode, online retailers have become the common choice of e-commerce platform and brand merchants to tap user value.

Online and offline integration, the return of e-commerce to the real business is the current and future retail industry recognized trend.

In 2019, the electricity supplier will continue to explore the way forward on the road to real business.

06

Multi channel brand extension and digital marketing

With the strong growth momentum of China's retail market, the marketing of various brands began to pay more attention to the results, and the standard of measuring results also tended to sell more.

Under such a marketing environment, brand marketing has more and more obvious commonalities, that is, more and more brands are beginning to embrace young consumers, where young people are, where traffic flows and advertising targets are everywhere.

"Digitalization + youalization" has become the "double life gate" of many brands. In 2018, Valentine's Day "Tanabata" is a good example of this trend.

After Taobao, Jingdong and other electronic business platforms become the indispensable positions of retail brand marketing, WeChat small program has become one of the main battlefields of marketing social warfare since 2018.

On the seventh day of 2017, only one of the Dior companies tried the small program, but in 2018, the luxury brand that used the small program for Tanabata marketing soared to 9. There were many luxury brands such as Valentino, Burberry and Gucci, including the lightweight luxury brands such as MichaelKors.

Even Dior and Burberry in WeChat friends circle advertising landing page is also a small program.

In addition to WeChat applet, micro-blog and jitter have also become the battleground of the brand.

In August 3rd, Burberry released the first content of Tanabata on its own official micro-blog.

Micro-blog marketing has experienced several years of crazy launch period, in order to avoid causing consumers' aesthetic fatigue, its marketing method is more creative and interesting.

Chanel also sends several customized short videos on a V's vibrato number. The Dior, who is struggling to fight traffic, simply opens its official account on the jitter.

During the Tanabata Festival, Dior China brand ambassador Angelababy, fragrance family ambassador Wang Ziwen, brand friend Wang Likun, Tian Jing and young actor Sun Yihan limited video bags appeared in the official account, and received tens of thousands of points respectively.

From the digital marketing war of Tanabata on 2018, we can see that the investment in digital channels and digital content of the major brands is far beyond our imagination.

The phenomenon of clustering on all platforms has further proved the importance of brand to its digital strategy.

As of 2017, only 98 luxury brands had received more than 500 advertisements in the circle of friends, according to data released by Tencent.

Social media such as WeChat, which has a monthly turnover of up to 1 billion, can not catch up with the flow of offline stores.

After the upgrading of consumption, in order to compete for the younger generation of consumer groups, the accelerated digital strategy will be valued by more and more brands. More brands will continue to test the new digital marketing in 2019.

07

Low rise brand sinking 345 line city

Some people say that there are 1 billion people in China who haven't been on an airplane yet. The future aviation development will be concentrated in three or four line cities.

But with the massive listing in 2018, the huge purchasing power of the three or four tier cities was highlighted, and we suddenly realized that there was such a huge potential in the consumer market of the low level cities.

More than 12 months in the three quarter of 2018, the total volume of business (GMV) increased by 386% to 344 billion 800 million yuan, the average monthly active user increased 226% to 2.32 billion, the annual number of active users increased 144% to 386 million year on year, and the average annual expenditure of active users increased by 99% to 894 yuan.

The rapid growth of business data, on the one hand, broke the inherent judgment on the competitive pattern of domestic electric business, on the other hand, the large scale low line cities and rural population consumption potential began to receive unprecedented attention.

In the context of the slow development of the new Alibaba of the traditional e-commerce platform and Jingdong, the number of users has been expanding rapidly.

From the point of view of user distribution, based on the user data distributed in Quest Mobile in 2018 8, many users are mostly distributed in three or four line cities, which is obviously different from those of Jingdong and Taobao, which are mainly users of one or second tier cities.

The rise of many businesses has affected the consumption habits of hundreds of millions of low - line urban residents. The fast growing business data also illustrate the great potential of the low - line consumer market.

Simply comparing the data of per capita consumption expenditure and clothing consumption expenditure between urban residents and rural residents, we can find that the clothing consumption expenditure of rural residents at present is at least lags behind their potential consumption ability 3-5 years. With the improvement of social security and the awakening of consumption consciousness, the low line consumer market is expected to become an important support for future consumption growth.

One is the convergence of urban and rural consumption habits under the background of urbanization and migrant workers returning home.

The second is the rapid popularization and touch up of brands based on the penetration of electricity suppliers.

In fact, Wanda started the layout of the three or four tier cities and even the five line market a few years ago. According to Wanda's income data in recent years, more than 70% of the growth came from the three or four tier cities. Although the low unit prices were low, the population was large and the consumption loyalty was high, so it was easy to form a business center, and its investment return was not less than a second tier city.

At the same time, the layout of commercial carriers will inevitably lead to the entry and sale of retail businesses. After many years of continuous farming and sinking channels, Da Yun fat has successfully seized the three or four line market. In 2013, it ranked first in the domestic supermarket industry with the average sales volume of 330 million yuan per store.

Following that, WAL-MART, the global retail giant, began to sink its three or four tier cities.

In 2018, the huge market potential of the three or four line cities was thoroughly exposed to the world. With the more serious downturn of the second tier cities and the predicament of the upgrading of consumption, it is expected that in the next few years, more and more brands will start and accelerate the sinking of the 345 line market, and the Nuggets will be low.

Summing up

2019, the acclimatization of foreign brands in domestic marketing and the lack of cultural identity provide a rare opportunity for domestic brands.

Secondly, in the process of consumption upgrading, non price elements such as quality upgrading and environmental awareness have exerted a subtle influence on consumers' consumption decisions and preferences, and promoted the brand to start multi-channel marketing exploration.

And in the market downturn, the brand is starting to escape from some of the economically serious second tier cities. On the one hand, it seeks to save themselves and profit by cooperation instead of fighting alone. On the other hand, there are many brand new business practices to stimulate growth.

In the era of consumption upgrading and demotion, 2019 must be the era of business differentiation, and everything is just beginning.