By ZHOU Fangying
China’s entire clothing industry is experiencing a sudden chill. Shanghai Fashion Week recently concluded to very little fanfare, with many attendees suggesting that they could spot last year’s Fall/Winter collections in this year's showrooms.
The lackluster performance of the fashion industry has had severe repercussions for stores. While foot traffic remains steady, the clothes are remaining on the racks. No one is buying.
A contributing factor is abubble in the domestic fashion industry. During the pandemic, many buyers turned to local designer brands due to travel restrictions and the local fashion market rapidly expanded. Retailers acquired a lot of inexpensive garments and attempted to pass them off as designer labels at higher prices, wrecking consumer confidence.
As the market expanded, competition did too. In Shanghai, an array of local multi-brand stores compete with foreign designer brands and luxury labels. Consequently, it is exceedingly challenging, if not impossible, for any of them to stand out.
Operating a multi-brand store is no easy feat. It requires an acute sense of aesthetics, business acumen, and a thorough understanding of customer preferences. To exacerbate matters, unlike couture houses, suppliers like low-key brands contend with an unstable supply chain, further complicating the lives of buyers.
The rise of e-commerce and live streaming also presents a threat to these retailers. Generally speaking, products sold online tend to be more affordable than their offline counterparts. Given that a brand may authorize both offline multi-brand stores and live streamers to sell their products, it necessitates more coordination between the two sides.
Despite these formidable challenges, many fashion enthusiasts cling to their dreams. Though the path ahead is strewn with obstacles, they remain unwavering in their belief that they will persevere.
