"There is no market in the world where one can say that our expansion is complete." Signed Thomas Lourenco, owner of H & M France, this assertion could be pronounced with the same assurance by his peers Zara, Gap and Uniqlo. From New York to Shanghai through Roanne and Cape Town, the four largest clothing retailers in the world are opening every year by hundreds of shops.
Spanish Zara, Swedish H & M, Gap and American Japanese Uniqlo are all facing the same problem: on their home market, the sales growth slows, when it is not negative. "Diversifying internationally is an emergency, insists Luca Solca, head of research at CA Cheuvreux Europe. The economic slowdown, particularly in southern Europe, is likely to be higher than expected. "
Zara and H & M are still dependent on Europe for more than half of their sales, while Gap focuses 68% of its activity in the United States. Last year, the benefits of Fast Retailing, Uniqlo's parent company, they have been sealed by its poor profitability in Japan, where the brand 80% of its sales. The Japanese group has up its sales targets for this year, but its growth (14% to EUR 9 billion) will come mainly from abroad.
Uniqlo and its three main competitors have no choice but to accelerate in emerging markets, starting with the most promising, China. In 2011, Inditex (Zara's parent company) has opened 156 stores and is 400 by the end of the year. Decided to carry more than half its sales outside Japan within four years, Fast Retailing plans to open 100 stores in Asia this year, including 80 in China, before doubling the pace in 2013. The Japanese want to pass Zara and H & M in China, where Gap has to spend 15 to 45 stores this year.
Adaptation of forms and colors of clothing
The four giant jacked and on other emerging markets. H & M has just opened in Mexico, Thailand, Latvia. Swedish now eyeing South Africa, where Zara plans to open in Johannesburg and Cape Town. The Spanish also investing Australia, Taiwan and Peru. The Gap American ventures in South America, via Chile.
Uniqlo also hunt on the land of origin of its rivals. After all, Europe is still, by value, the first in the world market for clothing. The Japanese also sees the potential in the United States. After opening two "flagships" in New York, he announced a first store in San Francisco, and an innovation center and offices to handle logistics and human resources. It plans to open hundreds of stores in the United States, seeing a market of $ 10 billion by 2020. H & M, which opened 200 stores in the U.S. since 2000, and Zara, which has 47, can not take the risk that the Japanese enjoy one of the disappointments of Gap in the U pay day loans.S..
Neither group can not abandon its traditional market, the risk of yielding market share. Zara and H & M and continue their offensive in France. The Spaniard will land in La Rochelle (Charente-Maritime) after the summer; Swedish invests him with smaller cities like Roanne (Loire).
This conquest accelerated on every continent requires the giants of fashion to reshape their strategy and working methods. Paradoxically, refining collections is relatively simple. They remain in effect to 80% common to all countries. Zara added a size XXS for Japan, Gap smaller sizes in Shanghai, "where people are smaller," and other major Beijing … H & M has dedicated her clothes formatted in the UAE.
Brands also avoid sending too much green (color of the husband or wife cheated) and white (color of mourning) in Asia, and juggling the short or long sleeves at the option of climates. Lines of spring H & M are adorned with pastel colors, such as Uniqlo, yet partisan bright colors. Blades are apparently more seyants skinned fashionistas Chinese very well and flatter your tan Europeans. Globalization can sometimes synergies in the colors …
Higher prices by 30% in the Chinese market
For now, the Chinese conquest of clients has not changed the procurement strategies of the giants of fashion. They have responded to higher cotton and wages in China. H & M still produces most of its collections in Asia, but increasingly in Bangladesh. Uniqlo stocks up 80% in China, but part of its production is relocated to Vietnam, Indonesia and Bangladesh. Zara, meanwhile, increased its production in Asia and will continue this strategy. But "we will always maintain at least 50% of our supplies in Europe," says a manager of Zara, whose production is mainly located in Spain, Morocco and Portugal. This asset can deliver within 24 hours of Europe, and in little more time in Asia, where customers are fond of European products.
Result of this procurement strategy, the giants of fashion practiced in China prices averaged 30% greater than those displayed in Europe, partly because of taxes and customs duties. So, high prices encourage Chinese purchasing power remains low, to consider Zara, H & M and Uniqlo brand as "premium". "This will force these retailers to improve their quality," says a consultant. Or, conversely, to harmonize their prices. "Especially since they are exposed to local competitors, the European-sounding names, such as Hong Kong's Giordano, much cheaper," says Anne-Laure LINGET, the Federation of knitwear and lingerie. In China, the war between Zara, H & M and Uniqlo may be more complicated than elsewhere.