What Is The Annual Evaporation Of 400 Billion In The Clothing Industry?

"2020 is bound to be a turbulent year. It is estimated that China's clothing market will evaporate at least 400 billion revenue, and the overall market size will shrink by 15%." Liu Jinyan, vice president of convertlab marketing department, said in a keynote speech at a fashion conference in Shenzhen recently.

It is worth mentioning that under the epidemic situation, the global clothing industry has a hard time. According to public information, Nike has started to lay off employees publicly, and it has a huge loss of 5.6 billion yuan in the fourth quarter of fiscal year 2020. In addition, Levis has a net loss of $364 million in the second quarter of 2020, and a profit of $28.507 million in the same period of last year. The company announced that it would cut about 15% of its global employees. In addition, H & M will close 170 stores and Zara is considering closing thousands. What is the impact of the epidemic situation on clothing? What should the clothing industry do?

According to the data of the Ministry of industry and information technology, in May 2020, the domestic market will gradually recover, online sales will continue to improve, and the domestic sales of clothing will obviously improve; the overseas epidemic situation will be difficult to effectively control in a short time, the world economy and trade will shrink seriously, and the decline trend of clothing export will be further expanded. In this case, the production, investment and efficiency of China's clothing industry have recovered compared with the previous period, but they still show a sharp downward trend. The strength of the recovery of clothing production is weakened, the investment willingness and development confidence are insufficient, and the industry benefits are obviously deteriorated. The overall situation is still grim and complex. Specifically:

In terms of production: according to the data of the National Bureau of statistics, from January to may 2020, enterprises above Designated Size in the garment industry have completed a cumulative output of 7.317 billion pieces of clothing, a year-on-year decrease of 17.91%, and a decrease rate of 6.55 percentage points larger than that from January to April.

In terms of domestic sales, according to the data of the National Bureau of statistics, from January to may 2020, the total retail sales of consumer goods in China totaled 13873 billion yuan, a year-on-year decrease of 13.5%, 2.7 percentage points lower than that of January April. Among them, the retail sales quota decreased by 288.7-25% over the same period of last year.

In May, the total retail sales of textile and clothing reached 101.8 billion yuan, down 0.6% compared with the same period last year. From January to may, China's total retail sales of textile and clothing reached 406.7 billion yuan, down 23.5% year on year.

In terms of export: according to the data of China Customs, from January to may 2020, China has completed a total of 40.263 billion US dollars of clothing and accessories exports, a year-on-year decrease of 22.68%, an increase of 0.69 percentage points compared with January April.

In terms of investment: according to the data of the National Bureau of statistics, the actual completed investment of China's clothing industry from January to may 2020 decreased by 39.2% year-on-year, 2.5 percentage points narrower than that from January to April.

In terms of benefits: according to the data of the National Bureau of statistics, from January to may 2020, there are 13119 Enterprises above the designated scale in the clothing industry, with an accumulated operating revenue of 464.705 billion yuan, a year-on-year decrease of 16.89%, and a decrease of 1.58 percentage points compared with that of January to April; the total profit was 18.047 billion yuan, with a year-on-year decrease of 29.16%, and the decrease rate was 5.61 percentage points lower than that of January to April; The profit margin of operating revenue was only 3.88%, down 0.67 percentage points over the same period of last year.

The future development trend of clothing industry

① The trend of youth and individuation is more and more obvious

At present, young consumers are gradually becoming the main consumption force. The domestic consumption market has a more obvious M-type consumption structure. The high-end and low-end consumption markets have grown steadily, and the intermediate market has gradually shrunk. At the same time, it has become more and more important for consumers to pay more attention to personalized, personalized and personalized products, and to meet the consumers' demand for more personalized and personalized products, They also hope to establish resonance and emotional links with brands and express their lifestyle through products.

② Fashion change accelerates industry segmentation

In the process of the rise of new consumer groups, enterprises can not capture the consumer preferences of the consumer groups in the 1960s, 1970s and 1980s to label the post-90s and post-00s consumers, which means that the new round of consumption upgrading is more changeable, diversified and multidimensional. The personalized, differentiated and differentiated lifestyle leads to the failure to unify brand appeal. Many clothing brands will introduce younger and stylized sub line brands. More small and beautiful niche brands are favored. Younger and higher-end brands are becoming the main trend of transformation and upgrading of the clothing industry. With the continuous improvement of consumers' fashion taste and personalized demand, men's wear consumption is more brand-oriented, international, outdoor and leisure. Business formal wear, business leisure and outdoor leisure will be further subdivided. Precise marketing methods and customized products become the focus of men's wear brand competition.

③ Mobile social networking becomes a new consumption engine

Mobile social networking can not only actively stimulate the consumption demand of users, but also use the information sharing function of social platform to form fission network communication through users' word-of-mouth. The experiential consumption experience and communication of acquaintances can more effectively make endorsements for commodities, enhance the trust and confidence of users, and constantly improve the frequency and efficiency of purchase, so that the brand and customers can be more satisfied The communication between them is more warm, establishing close and direct links similar to social "friends", so as to better meet the personalized needs of consumer groups.

④ Integration of online and offline channels

With the development of e-commerce in recent years, the dividend period of e-commerce may come to an end. Compared with physical stores, e-commerce needs huge promotion costs, as well as website operation costs, labor costs, etc., which add up to no less than the cost of opening physical stores, and even the rents of shopping malls in many regions are gradually declining. The channel of clothing industry is not only limited to online or offline, but should be integrated. UNIQLO, for example, has launched the online and offline mode with the same price for the same model several years ago to guide consumers not only to spend online.

⑤ Upgrading of intelligent manufacturing enabling industry

The network technology is emerging and upgrading, and is entering a new stage of technological revolution and upgrading.

At the same time, the intelligent manufacturing of the clothing industry has gradually entered the stage of digital and network upgrading and transformation, and further realize the application of artificial intelligence technologies such as Internet, cloud technology, Internet of things, intelligent robot in all key links of production and marketing, and the automation and intelligent level of sewing equipment will be significantly improved; The application of big data + AI algorithm can predict consumer demand and assist creativity, design and product development; intelligent windows and vending machines can deepen the interaction with consumers with science and technology, so that consumers can get a more three-dimensional shopping experience; service robots will open a new intelligent shopping experience, and virtual fitting system will optimize the online shopping experience.