Clothing Brand Revenue Is Closely Related To Weather.

fashion

While catching up with the trend, the company carefully adjusted the profit margins.

But all efforts are often against the elusive weather.

Bad news has been in flux for a long time: John Lewis has lost 75% of its profits for half a year; Primark, a fashion chain retailer, expects sales to drop by 2% this year, while Marks & Spencer downloaded in July after a sharp contraction in revenue.

It is funny that these fashion companies, which are the main market in the UK, have recently focused their attention on the weather to ease their doubts and reproach about their poor performance. 4 and May are not hot enough. 8 and September are not cold enough. How do you sell us clothes?

"Consumers are constantly reducing their spending on fashion. We have never seen anything like that before."

Morgan Stanley retail analyst Geoff Ruddell found that the decline has set a new record in the past 20 years.

In view of today's unpredictable climate conditions, most people choose to wait and see that they will buy clothes until winter is really coming.

"10 years ago, everyone was ready to buy winter clothes."

Kantar Worldpanel analyst Glen Tooke, an analyst at market research company, pointed to London's more than 20 degrees of weather, "but obviously, who will buy a coat in this weather?" in September 13th this year, the highest temperature in London reached 30 degrees Celsius, but it was basically below 20 degrees in September last year.

Analysts say so.

"As we all know, climate is the reason for the poor sales, but I have to believe this time."

Neil Saunders, an Conlumino retail analyst at research firm, said.

Anne Critchlow, an analyst at Societe Generale, expects H&M to drop 2 percentage points year-on-year, and its downtrend is likely to be reflected in its operating margin. "It's too warm at the turn of summer and autumn, which is a great help to the whole European fashion market."

If the new season continues to delay, retailers can only be forced to sell products at a discount, according to Jamie Merriman, an analyst at Bernstein Research.

"We hope that H&M and other fashion companies will have sufficient supply to cope with today's climate, otherwise we will have to increase the discount rate," she said.

Due to the fact that the temperature difference is no longer obvious, retailers have to find ways to change the old model in order to cope with sudden changes.

For example, change from the original seasonal clothing to the overlay, and ensure that there is a certain amount of light weight while storing the thick clothes in winter.

However, given that most British retailers rely heavily on the supply chain in the Far East or South Africa, it is difficult for retailers to adjust inventories in advance of the temperature once pportation is launched, so it may be the "cold winter" on the sales pitch.

Who is in charge of fashion and weather?

A few months ago, H&M, the world's second largest fashion retailer, opened a huge flagship store in the Hungarian capital.

"In the short term, the company can only deal with the price reduction measures," the regional manager interviewed by the European news agency.

From a long-term strategic perspective, we may have to consider whether it is necessary to develop more seasonal series to mitigate the impact of climate on sales performance.

Beyond consumption, the four seasons are another key factor in the fashion industry.

Why is that?

It will release two series of "spring summer" and "autumn and winter" according to the season, and even to some extent explain the common points of the four fashion week hosts: they all have four distinct boundaries.

In addition, this is also a suggestion that we should see "clear stock" and "new product shelves" every season and season themes.

But lately

Practitioners seem to have made some changes.

Burberry took the lead in erasing the definition of seasons, replacing the original "spring summer" and "autumn and winter" with "September series" and "February series".

Its latest series in London, including denim, knitted, pajamas, silk and military coat, is enough to satisfy consumers living in all areas.

Aware of the sensitive factors of climate, more than one Burberry family, many small scale brand designers are also taking action.

When the distribution of passenger groups is wider and wider, it is difficult to take into account the needs of all sides.

Chen Xuzhi, a new designer, heard the complaints from overseas buyers that he was facing unsalable products in autumn and winter due to the early arrival of local spring.

For him in London, it was still cold in 3 and April.

Therefore, when designing the latest spring and summer series, Chen Xuzhi will put more emphasis on the clothing itself and adjust the thickness ratio, so that buyers can have more choices.

Temperature is not the only reason for poor sales.

Just as we learned just two days ago that La Nina time may bring a cold winter to Chinese people.

In the past few years, influenced by the El Nino phenomenon, we have been in the warm winter condition.

For fashion brands, it is almost impossible to adapt to the sudden climate in all regions.

Moreover, solving the temperature problem may not be able to save sales.

In March, the overall retail market in the UK was in a low ebb. Apart from the temperature, the economic background played a negative role.

Andrzej Szczepaniak, an economist at Barclays Bank, believes that although the personal consumption in early 2016 is slowing down, the referendum in the second half of the year will really affect consumer confidence.

And that's how things are going. British consumers have slowed down as Optima has finally won.

Since most of the British fashion brands are located in Asia, the pound that has been devalued by the European referendum has increased the cost.

In order to maintain profitability, most brands will raise the price in the UK area, and ultimately the extra cost will no doubt be borne by consumers.

However, consumption abroad is also unlikely. Especially when the destination is the United States, the high dollar makes British consumers more stressed.

Once Domino is launched, it is difficult for all participants to stay away.

Overseas suppliers may be replaced by local counterparts; buyers will not only consider the current price tag, but also worry about price fluctuations in the next 6 months.

The complexity of these problems is not less than that of climate.