How To Make The Worst Report Card?

How can the clothing giant bear the worst report card in winter?

The new crown epidemic in 2020 will make the garment industry even worse. Under the epidemic situation, the production and operation of clothing enterprises are hindered, facing multiple difficulties such as the reduction of market demand and the shrinking of orders. What is the current survival status of the enterprises?

Clothing market downturn, discount and promotion become normal

Guangzhou Panyu clothing market is a famous clothing wholesale market in China. In the past, the market was bustling and full of people taking goods. Now, there are few customers in the whole street.

Usually, there are few discounts in the clothing wholesale market. Generally, the price is set according to the quantity of the customers. This year, the banners of discount and promotion appear in almost every store.

In the end, Chuhan street is not a special case of Wuhan's well-known brands in the wholesale market. Compared with previous years, the gap between this year's clothing industry and previous years is obvious. On the one hand, the manufacturers were unable to start operation in the early stage of the epidemic, which led to the untimely supply of goods; on the other hand, there were too many discounts in retail stores, which should be 20% off the normal level, and now it has reached 40%. Still, there are not many consumers.

Ye Tan, an expert in finance and Economics: before the outbreak of the epidemic in China, there were many similar clothing brands, including those that had done a lot before, and they were all going bankrupt in a series of ways. Now in the process of reshuffle, on the one hand is the collapse of enterprises, on the other hand, some new brands will come out.

In 2020, the total retail sales volume of China's clothing industry decreased by 288.6 billion yuan from the official clothing industry in 2020.

Global clothing industry collective winter

Under the impact of the epidemic, domestic and foreign clothing brands have been affected. Some brands are facing bankruptcy, some have to close many stores around the world. The global clothing industry is experiencing a cold winter collectively. Under the influence of poor management and epidemic situation, Victoria's secret British company, a famous underwear brand headquartered in New York, the United States, has entered into bankruptcy liquidation procedures, and more than 800 jobs are in danger. The Victoria Secret Show in Shanghai, China, has become a fashion masterpiece of L brands.

In recent years, Vimy began to go downhill. To save the brand, Victoria's secret has made a lot of efforts from changing the brand spokesperson to developing new products. But at present, the self-help measures have little effect. On July 8, Brooks brothers, a 202 year old American men's wear brand, filed for bankruptcy. According to the New York Times, Brooks brothers is "the oldest clothing brand that continues to operate" in the United States. Since their birth in 1818, the Brooks brothers have provided clothing for 40 presidents of the United States, including Lincoln, Roosevelt, Nixon, Kennedy, Bush, Clinton, Obama and trump.

The Brooks brothers survived the two world wars and the great depression, and many Americans called the classic brand almost the same age as the United States as "national pride.". Even with 200 years of brand equity, the Brooks brothers have not been able to withstand the impact of the epidemic.

In the three months to the end of April, sales of INDITEX, Zara's parent, fell 44% year-on-year to 3.3 billion euros, with a net loss of 409 million euros.

INDITEX has announced plans to close 1000-1200 stores by 2021.

Last year, China's fast-moving consumer brand La chapel closed 4400 physical stores. In the first quarter of this year, revenue continued to decline sharply, down 57.75% year-on-year.

At the end of March, 37m & 78, the world's largest clothing retailer, was temporarily closed.

Gap, the largest clothing brand in the United States, has been in a state of fatigue long before the epidemic. Under the influence of Xinguan epidemic, the sales volume of gap in the first quarter decreased by 43% to 2.1 billion US dollars, and the operating loss reached 1.2 billion US dollars. The sales of all offline stores of all brands decreased by more than 50%.

Ding Shijie, textile and garment industry analyst of Guoxin Securities Economic Research Institute: from the situation of domestic listed companies, we can see that the whole textile and clothing industry, including manufacturing and brand sales, has 28 companies in a share disclosed medium-term performance forecasts, and their net profits have basically declined substantially compared with the same period. Nine companies have a deficit in advance, which accounts for about 32%. Global data, an international research and consulting company, points out that under the influence of the new coronavirus epidemic, the global garment market will lose 297 billion US dollars in 2020. The biggest losses will be in the most mature markets. More fashion companies are expected to file for bankruptcy in the coming months.

Under the epidemic situation, how does the clothing industry ride the storm?

Layoffs, pay cuts, production and business suspension are the initial three axes for clothing enterprises to save themselves. Now, with the opportunity of new retail and 5g technology, transformation and upgrading has become a new hope for the garment industry. According to the data of the National Bureau of statistics, in the first five months of this year, China's retail sales of clothing, shoes, hats, needles and textiles totaled 406.7 billion yuan, down 23.5% year-on-year.

On the contrary, UNIQLO, a clothing brand with declining sales, achieved a year-on-year increase in revenue and profit in Greater China in May, and its performance rebounded significantly.

After the epidemic situation, the consumption level of Ma's clothing and British Chamber of Commerce tends to reduce the quality of their own products.

Chinese brands, represented by cost performance, also gained growth momentum in this crisis. The sales of domestic brands accounted for more than 100 million yuan in the quarter.

Women's clothing brand golia on February 14, the small program live broadcast a single day of nearly 4 million transactions.

Although half of its stores were closed during the epidemic period, the average daily retail sales of taipingniao, a domestic clothing group, still exceeded 10 million yuan through wechat second killing, small program distribution, and live broadcasting in turn in different cities or regions. Men's wear brand common gender adopts the online and offline combination and omni channel sales mode as soon as it comes into the market.

Online sales of clothing brands, with the recovery of logistics, business is back on track. Adidas financial report shows that brand e-commerce channel sales increased by 35% in the first quarter, and the growth rate in March alone reached 55%. It is also pointed out that e-commerce is accelerating its investment.

Ye Tan, an expert in finance and Economics: great changes have taken place in the mode of business channels. If online marketing can be combined with distributors, the transformation can be successful and the enterprise can stand out. If online marketing and offline marketing can't work, such enterprises will be merged.

Under the trend of "90" fashion consumption, they are becoming the main force of their consumption.

Ma Ying, Secretary General of the clothing branch of China Textile Import and Export Chamber of Commerce: as an enterprise, it is necessary to enhance its core competitiveness and constantly respond to changes in the market and consumers, which is the magic weapon for success.