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What Does Muji'S U.S. Subsidiary File For Bankruptcy Protection And International Brands Close Their Stores In Debt?

2020/7/23 10:08:00 0

MUJIBankruptcy Protection

Recently, some well-known international textile and clothing enterprises have successively heard the news of applying for bankruptcy protection: Muji, the US subsidiary of Muji, confirmed by Nippon, has applied for bankruptcy protection on July 10, local time. According to its announcement, Muji US company has incurred 64 million US dollars in debt, and has increased more than 27 million US dollars in May alone, and it will not be able to see it in the future Another well-known American clothing company, Booker brothers, founded in 1818, has filed for bankruptcy protection, which shocked the American counterparts. This month, TM, a 100 year old brand of men's wear in Britain, has applied for bankruptcy protection In addition, it filed for bankruptcy protection with the famous Italian brand of cornido, a famous brand in Italy, and recently filed for bankruptcy protection with the famous Italian brand cornido The group also filed for bankruptcy protection in accordance with local court procedures. Similarly, Andre é, a French 100 year old shoe brand founded in 1896, has closed all its stores in France one after another, and has to apply to the court to start bankruptcy reorganization proceedings.

Looking at a series of international well-known textile and clothing enterprises with a long history of collective application for bankruptcy protection, what kind of enlightenment will be brought to the industry and brands?    

First of all, the epidemic has brought serious impact to many clothing brands, which shows that the anti risk ability of brands needs to be strengthened.   

A spokesman for Booker brothers in the United States said that in the past year, the problems of Booker brothers' operation were frequent, and the outbreak of epidemic situation made the operation worse. Similarly, Muji's U.S. business accounted for only about 2.5% of the group's total revenue in the previous fiscal year. The business has lost money for three consecutive fiscal years, with a loss of about $10 million in the previous fiscal year. It can be seen that before the outbreak of new pneumonia, Muji's US subsidiary had encountered obstacles. According to an analysis, in recent years, the commercial rents in the United States have continued to increase, and the cost burden of enterprises is heavy. Since the beginning of this year, the number of new commercial breakdowns in the United States has reached 3604, an increase of 26% compared with the same period last year. In addition, with the aid of the epidemic situation, bankruptcy applications showed an accelerated trend. In June this year, the number of new cases was 609, with a year-on-year increase of 43%. The most important thing is that the sales market is deeply affected by the epidemic, and consumers' purchasing power is not strong, which leads to the increase of enterprise revenue loss, thus accelerating the speed of enterprise closure. It is pointed out that the reaction speed determines the blood return rate. Due to their deep foundation, respect, and overconfidence, time-honored textile enterprises often underestimate the risks, which make them feel at a loss when the risks come, slow reaction and lack of risk control awareness.    

Secondly, under the epidemic situation, consumers tend to pursue products with high cost performance, and the survival method of brands increasingly relies on providing high cost-effective products to the market to fight against risks.    

The epidemic situation makes the demand trend of high cost-effective products more and more prominent, and the products with quality, practicality and low price as the selling points become the new favorite. In the face of the uncertainty of global consumer market, the brand needs to constantly upgrade and self innovate, accurately analyze the market, industry environment and consumption behavior mode in the post epidemic era, and optimize and establish products that meet consumer demands and reasonable pricing. Reexamining the price has become an increasingly important point for international textile enterprises. Taking MUJI products in Japan as an example, it has changed from a cheap brand to a super affordable brand. Through continuous optimization of refined management and supply chain upgrading, we can create more consumer products.  

Thirdly, the change of consumption market caused by epidemic situation is not only reflected in the change of consumption demand grade, but also in consumption habits. There are new ways to follow up and innovate in the brand.   

Experts say the globalization epidemic will reduce people's attendance at business meetings and social activities, so the dress demand for such occasions will be restrained. To this end, we are looking forward to redefining the brand of Lewin TM in the British men's wear market. In addition, every autumn is the return season for students, which is usually regarded as the second largest sales season after the Christmas shopping season in Europe and America. However, due to the epidemic this year, the global retail industry is still facing great uncertainty. If a large number of students need to continue online classes at home, the sales of electronic products may increase, while the consumption expenditure of clothing, shoes and other categories may decline. Therefore, some international leisure brands adapt to the current situation and timely adjust the output of young people's clothing in order to reduce the foreseeable losses.    

The impact of the epidemic on the global textile and clothing industry is still continuing. Although the international textile and clothing time-honored enterprises have applied for bankruptcy protection, it does not mean that they will go bankrupt. Even if it "collapses" now, it's only temporary. Because when it is unable to pay its debts, it can carry out financial restructuring and win the opportunity to make profits again. Through the adjustment, some of the down time-honored international textile enterprises have the opportunity to re-establish themselves and return to the public view. It remains to be seen whether their outcome is good or bad.

On July 20, 2020, entrusted by China Textile Industry Federation, China Textile Machinery Association hosted the scientific and technological achievements appraisal meeting of "digital warp knitting machine series complete sets of equipment and digital warp knitting workshop" jointly completed by Donghua University, Fujian Yili Intelligent Technology Co., Ltd. and Fujian Huafeng new material Co., Ltd.

Gu Ping, President of China Textile Machinery Association, Xie Xuhong, deputy director of scientific research department of Donghua University, and Li Tianyuan, vice president of Huafeng Huajin Group Co., Ltd., attended the meeting. Nine experts including academician sun Jinliang of Shanghai University and Professor Wang Zhi of China Knitting Industry Association were invited to form the appraisal committee.

The new report, test report and test report were reviewed by the team. After inquiry and discussion, the appraisal opinions are as follows:

1. The data provided are complete and standard, and meet the identification requirements.

(2) the key points of the development and application of the high-speed warp knitting machine are as follows: 1 Requirements; (3) a highly integrated embedded intelligent control mode is proposed to improve the real-time performance and reliability of the system; (4) the information model of digital warp knitting machine is proposed to build a digital workshop for real-time data acquisition, information sharing and intelligent decision-making.

3. Integrated and innovated the mechanical system and digital control system of digital warp knitting machine, successfully developed 15 models of digital warp knitting machine, realized industrialization, built 5 Digital warp knitting workshops in Fujian Huafeng new material Co., Ltd., which greatly improved the production efficiency and reduced the comprehensive operation cost.

4. The enterprise standards of raschel rdpj4 / 2 warp knitting machine, Raschel rd7 warp knitting machine and robot system for product quality on-line inspection have been formulated, which have been inspected by the national textile machinery quality supervision and inspection center, and the project products meet the requirements of the standards. 5. The project achievements have independent intellectual property rights, and 13 invention patents have been applied for, of which 5 have been authorized.

The overall technology of the project has reached the international advanced level, and achieved good economic and social benefits, with broad market prospects. The appraisal committee unanimously agreed that the project passed the appraisal. It is suggested to speed up the application in the industry.


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