Why Does Fashion H&M Switch To Shops In Oxford Street?

These days, H&M A big business has been launched for real estate agents in the vicinity of Oxford street, London. According to the world clothing shoes and hats net, this Sweden Fast fashion The brand is looking for it. brand Pick up your plate and rent a double decker shop at 360-366 Oxford street. The lease between H&M and the shop owner should have expired in 2019.

The reason for subleasing is curious. Oxford street is one of the most commercial retail locations in the UK. The brand can not only harvest stream of people but also benefit brand image in this block. In an interview with fashion commercial news Drapers, an estate agent gave an explanation: "H&M has already opened enough shops nearby." H&M declined to comment.

Real estate agents are talking about facts. In addition to the legendary shop to be changed, H&M has three shops in Oxford street, one of which is a multi-storey flagship store selling cosmetics on the first floor. In Regent Street, H&M also has a very small pavement.

Opening a number of shops in the core commercial block has always been a popular tool for fast fashion brands such as H&M and Zara. Because by such a high frequency exposure, brands can continue to attract consumers' attention, repeatedly stimulate their desire to buy, and finally promote consumers' buying behavior in a certain store in the block. In some business school textbooks, this shop strategy is also regarded as an important reason for the success of these brands in business.

But this strategy may no longer be effective in the declining British apparel retail market. Because the limited performance growth determined by the big environment and the rising rents will make the cost performance of bulk shop strategy on the same block becoming lower and lower. This is the same for all brands, but it is not obvious in brands such as Zara that respond to changes in the market and sell well.

According to a report by consulting firm Kantar Wordpanel, 2016 is the most dismal year in the UK's fashion industry in the past seven years, and the number of industry sales figures has fallen month by month, which has decreased by 700 million pounds in September compared with the same period last year. According to the world clothing shoes and hats net, this is related to the year-round discount and low unit price. But a more critical reason is that most brand sales have been unsatisfactory.

This escapes blame for the weather in Britain, which is the most commonly used excuse for fashion brands when their performance is poor. Just like in the past December 2016, H&M achieved a 6% sales growth in the UK, less than 9% of its expected sales. The reason it gave is the unforeseen "warm winter" impact on sales in the UK.

Now, some brands, especially the fast fashion brands such as H&M, have many new background reasons for "Britain off Europe".

This may be contrary to many people's impression of the influence of Britain's clothing market. Because the pound that has continued to depreciate from Europe has actually increased the purchasing power of tourists in the UK, and has always been considered a great benefit to the retail market. And on Christmas day December 26, 2016, this reason was also included in the prediction of UK consumption and sales. We have reported that this whole day is expected to attract a record 14 million consumers.

But it seems that most of the positive effects only go to luxury brands. As DDT fashion and luxury Commissioner Nick Pope said in an interview with BBC, "in comparison, the change in British luxury prices is more affected by the depreciation of the pound, so consumers will be more willing to buy luxury goods in the UK."

And sales are only one side. The depreciation of sterling caused by Europe will also make the brand outside the UK face the problem of rising labor costs.

This has a relatively small impact on luxury brands. Apart from some luxury brands that process products in the UK, the luxury brands have plenty of room to raise their prices, so there is still a chance to balance the profit margins. For fast fashion brands, which are almost all in Asia and face fierce price competition, these rising costs can only be digested by other ways. For example, just like H&M, consider switching off some redundant shops.

More interesting reports, please pay attention to the world clothing shoes and hats net.