The specialty fashion tier focusing on teenage girls and young women has been one of the segments hit hardest by the financial woes plaguing all of retail.
In the face of this difficult environment—as well as millennials’ increasing resistance to disposable fashion for economic and especially environmental reasons—two of the leading fast fashion chains playing in this arena have been testing new business strategies. And their recent moves run counter to the traditional positioning of fast fashion as a source of constantly changing, trendy merchandise at low prices.
Uniqlo introduced its LifeWear brand, which encompasses ready-to-wear, outerwear, and innerwear, as an alternative to the “disposable” nature of fast fashion. The clothing, while still low-priced, is meant to offer sustainable and quality merchandise appropriate for all sorts of activities.
Meanwhile, H&M launched a new brand, starting in London, called Arket. It has a slightly higher price point than the core H&M line and, similar to Uniqlo’s strategy, is focused on clothing described as functional and timeless. The brand, sold in dedicated stores, will expand later into other countries in Europe as well as being available online.
Topshop, another competitor in this space, is taking a different path, bringing new categories into fast fashion. This month, it introduced a five-piece collection of low-priced wedding dresses in the U.K. market, as well as 25 styles of bridesmaid dresses.
All of these companies, along with others in the fast fashion sector such as Zara and Forever 21, continue to rely heavily on exclusive collaborations with designers and other licensed property types to differentiate themselves and bring in new and repeat customers.
The retail sector overall suffered one of its worst periods in memory during the first quarter of 2017, with news of bankruptcies, store closings, and the end of well-known brands coming nearly every day during the period. This week’s announcements—including that Payless will enter bankruptcy and close 400 stores and that electronics retailer HH Gregg will liquidate if no buyer is found by week’s end—likely signal more bad news to come in the second quarter.
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