"Closing Shop Tides" Is Still Expanding And Complying With The Consumption Concept Of The Millennial Generation.

The three quarter report shows that the US youth fashion brand A&F net profit plunged 81% in the three quarter, 35 stores closed, AOKANG international continued to close 68 stores, the red bean group closed 43 stores, Marsha general store withdrew from China, the mainland closed 10 stores, CUCCI closed the Renhe Spring Department Store in Chengdu, and LV closed the stores in Shanghai, Taiyuan and Fuzhou. Even the fast fashion brands that have swept all major shopping centers across the country are hard to escape. The GAP group has experienced seven consecutive quarters of declining sales and will close 65 stores.

Although China is recognized as a big manufacturing country, it is still in the wilderness stage of low level competition in many fields. Cheap and poor products have become the inherent impression of many consumers on China made. "The overall fashion market is still expanding, and consumer demand and consumption capacity have not decreased or even showed a significant growth trend". In an interview with reporters, Wang Wei, founder of passenger Lai Le, said, "keep up with the trend." Consumption upgrading This is the key, which requires enterprises to change their attitude of self complacency and follow consumers' timely changes.

According to the Statistics Bureau of China, the total retail sales of consumer goods in China totaled 332316 billion yuan in 2016, an increase of 10.4% over the previous year. Wang Wei believes that many traditional businesses have not kept up with the upgrading of consumption. "The changes in China in the past 30 years can really be described as" earthshaking ". The per capita income of the 18-35 year old has changed by nearly 100 times, followed by the change of consumption behavior.

These millennials born between 1980 and 2000 have grown into mainstream consumer groups in the society. The annual bill statistics of Alipay under the ant's golden clothing show that in 2016, the average payment amount of the "80 after" people in the country exceeded 120 thousand yuan, while the "post-90s" mobile payment accounted for nearly 92%. "Now that there are great changes in the concept of income and consumption, it is necessary to change and remain unchanged if we want to do well in the fashion industry. Now many downhill businesses are not fast enough." Wang Wei said.

For a long time, China's economic growth has been too dependent on investment. In order to achieve the goal of "ensuring growth", the government adopted Keynes doctrine as the cornerstone of the theory and imposed a strong intervention in the economy through demand management. This has led to China's overall "quick money making" atmosphere, such as traditional YOUNGOR, Hai Lan's home, and Shanshan stock. Local clothing Companies are investing in the industry, and others are abandoning the main business, making profits from real estate and investment. But the problem is that the demand for investment creation is intermediate demand, rather than final demand. Once consumption is not up to date, there will be overcapacity.

So we must start from the source, and Marshal Cohen, a leading industry analyst at NPD group, a consumer information company, believes that if traditional enterprises want to survive in this fashion trend, they must make changes for these casual consumers. However, we should not blindly change. We should control the overall direction by the company's top leaders, and then try it through high frequency and small cost through "small steps" or "feeling the stones across the river".

"In fact, many enterprises are trying to change, but they do not know where they are changing. They are the same as the blind. No one can tell anyone. The way to go is right. Just like a blind man, he will take a cane and make a sudden rush at the front. Why did he leave without a moment's notice or slowly around the place? " Wang Wei Express. In order to embrace change and adapt to the consumption concept of the millennial generation, enterprises are also making changes. High end luxury goods began to open shop; fast fashion began to pay attention to pollution and waste problems, production of natural material clothing; Fashion Week merger; to logo; that is, show to buy; cross border two spokesmen. It is difficult for us to judge whether or not these practices are right or wrong, because they are constantly trying to find a way that is suitable for them to better survive.

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