Shein and electronic commerce lead to the desertification of municipalities

In three years, the Chinese chain Shein, out of Spain, has become the third most popular fashion brand, primarily the youngest. Sales in the fashion sector in Spain are slowing in the period from 2020 to 2022, but physical sales slowed the most. Nueno exemplifies the phenomenon of “a store closing”. Zara moves the receiver to neighboring areas and the ‘online’ channel. The opening of a Primark captures low-priced shopping and attracts customers to the area. But Shein cuts spending on competition across all channels.” The zero-sum game of the family budget was reflected in the rise of China in Spain. shein and vintage (sale of clothes among individuals). With the increase in sales, big signatures were signed ‘online’.

Most wanted app

The behavior of the fashion industry in ‘2022: Fintonic Intent HQ Barometer‘ is the name of the study that captures the trends of recent years with new data. The 237,000 customers of the Fintonic expense control app are a credible example of a trend, as evidenced by other research in recent months. One example is the study published this year by Smartme Analytics, a data analytics company, which found that four out of 10 consumers use apps on their mobile phones for an average of 31 minutes per month to buy clothes. And this new, more active fashion shopper buys a cheap item that he sells after a few uses. Chinese Shein and Vinted They are among the leaders in sales via mobile phones. Nueno recalls that Shein had already appeared during an investigation into mobile calls during the quarantine: “At first I thought it was a coding error, as an unknown Shein appeared among the most common queries from customers of a telecommunications operator. During the pandemic, fashion buyers had already found their place. at the moment Shein is the most wanted app on. Internet worldwide after Amazon“Nueno explains.

Opportunities in middle populations

Nueno points out that for the first time in history, a newcomer needs only nine quarters to enter the list of the top three fashion stores. “The fashion industry has changed more in three years than it has in 30 years, both in terms of buyer type and buying style, and key players in the industry.According to Nueno’s research, retailers “must carefully consider their sales strategies in these areas as they have become places to host innovative formats” to promote themselves through physical stores.

This fashion industry In Spain, it grew by 17.5% between March 2021 and March 2022. However, it grew by 7.5% between July 2021 and the same month of 2022, and by 5.7% one year after August. So sales are falling. The same is true for all of Europe and the UK. But it’s the physical selling that slows it down the most; Annual growth in the first half of 2022 was 19.7%, well below previous levels. While shops on the main streets have lost weight and are experiencing some recovery during the curfews, they cannot keep up with ‘online’, which grew by 28% between July 2021 and July 2022 and by 18.3% in August-August. two years. Shopping centers, on the other hand, have more customers but do fewer transactions. Despite this overall trend, industry first reports suggest that mall influxes have been high this Christmas and net growth is projected compared to last year.

customers

According to research with data from Fintonic application, Shein online store ranks third in Spain for sales, fourth in number of transactions and fifth in number of customers. H&M is also in the top 5. When it comes to men, they prefer sports (Nike and Adidas) or more formal (Cortfiel). Customers who love traditional fashion, above all, middle-income women aged 25-34 and three times the average cost: They buy 3.4 times a month and their average ticket is 38.7 euros. They prefer Cortefiel, Zalando and Nike to Zara, Primark, H&M or Shein. But if web sales alone are taken into account, Shein stands out as the leader. They are followed by Zara, Zalando, H&M and Asos.

Nueno’s analysis of key fashion companies’ strategies confirms that Zara’s leadership is largely dependent on the successful omnichannel strategist who sells both online and in physical stores. The Galician firm has invested approximately in the last 10 years. 2,700 million euros in logistics and provisioning to consolidate your inventory, connect with suppliers, or track stock. At the same time, it closed 890 physical stores between 2019-2022, mainly in less populated towns. The commitment to big stores is obvious.

effect of closures

“When a Zara store closes, a significant decrease in sales and the number of transactions “In the zone,” Nueno explains. The direct effect is that the buyer goes to buy ‘online’ or in neighboring towns. The opening of a Primark store draws the buyer to the area and benefits from the surrounding areas as well. Shein has several physical stores, but his customers are loyal to buying online and reducing their spending on other channels.

Fintonic’s research is based on data from: 5.76 million transactions registered by Fintonic app throughout 607 days It was made by 237,000 people between January 2020 and September 2022 in different cities of Spain, worth 198.4 million euros. For this analysis, all payment instruments used by the participants except income information and cash were used. . Likewise, the study was limited to the sales of the 20-30 most relevant fashion brands in Spain.