Under The Epidemic Situation, Listen To The Aspirations Of Clothing Brand People.
Affected by the epidemic of pneumonia, rent and labor are a common problem for physical stores. For clothing and other popular industries, inventory backlog is also a problem that can not be overlooked. Now let's hear what the clothing brand people say about the impact of the epidemic.
A clothing brand regional retailer Wang Quanyong:All of us are physical shops, except that the stores in Wumart supermarket were opened by wumi compulsory requirements, and the rest of the stores were closed at the beginning of two. Every day, the net loss is 20W+ million. The first half of this year is finished.
The epidemic almost lost all cash flow to all the debt department stores, hundreds of thousands of employees' wages, rents and property fees. What's more, it is like the inventory of our clothing enterprises. They were all sold out six months ago, and they were all backlog.
The twelfth lunar month twenty-nine has been completely abolished. The final sales period of spring clothes is Ching Ming Festival, followed by summer wear. It's all over.
Clothing, shoes and hat industry, catering and tourism industry, as long as there is debt, the collective is finished. I am still discussing with the finance department what to do next. We have already started the work of the landlord, talking about difficulties and spreading out honestly, hoping to understand each other and hold together until May 1. I believe that most landlords will understand that if a small number of landlords fail to implement the waiver, we can only forcibly terminate cooperation or resort to the law, which is the last choice.
At present, there are 15 stores in Zhejiang, with annual sales volume of 90 million 300 thousand and sales revenue below 100%.
From January 25th to date, there are 13 stores closed, and 2 stores have a daily sales of less than 1000 yuan. At present, the daily rental cost is about 30 thousand yuan, and the salary is about 15 thousand yuan. The most difficult problems are inventory backlog, futures execution and so on. If this condition persists, it will lose at least 2 million per month.
If the brand insists that the agent should execute the futures, then the subsequent losses will be more serious. As a brand agent, at present, most hope that the government can give tax exemption and tax support at the tax level, and hope that the mall can have rent reduction and rent free support. I hope Brand Company can give policy support to reduce stock and reduce futures.
We have about 2000 stores under the line, and the revenue below the line is about 77% of total revenue. At present, 2/3 stores are temporarily closed, and the sale of continuing businesses is negligible. At present, the expenses are mainly the cost of housing and labor, and the sales loss has nearly 100 million yuan since the Spring Festival. The impact of sales began a few days before the Spring Festival, so the inventory pressure in winter is good. The stock in spring is big, and it will be very serious. There is no way to predict the specific figures.
Over the past two years, the pressure of market and industry continues to exist. Therefore, we have always attached great importance to cash flow. The cash flow before the end of the year is still very abundant, so it is helpful for us to deal with this situation now. We also assume that there is no limit to the sustained loss of revenue. There should be no big problem in the second quarter.
The next priority is to make further planning in terms of rent, inventory and labor costs. The pace of business has been disrupted, and we need to rearrange the layout according to the situation. The heart must not be messy.Cash flow problems should be the biggest problem facing many enterprises. In the past two years, the environment is not good enough, and many enterprises' cash flow has been stretched there, and there is not much flexibility. Therefore, before the end of this round of business, business is back to normal. Many enterprises in the apparel retail industry may not be able to survive without help from outside.
The trend of the whole industry is hard to predict, but in the longer term, this business suspension will not have a great impact on the industry, but it will also affect enterprises. Revenue plunged in the first half of this year, and losses were already confirmed. This difficulty is an opportunity to upgrade the overall operation and management level of the industry.
If there is anything we need, first of all, the cost of housing rent is the largest expenditure and the highest proportion. We also hope that there will be a certain period of reduction and half of the rent fee. At present, according to the announcement policy of several large commercial real estate groups, half of the epidemic period is not enough. The tenants have no income and need to be remitted. After resuming business, at least half of it needs to be reduced to April.
Secondly, the value-added tax and income tax in 2020 must be given to us by the government. The relief in the second half of the year will hedge some of the losses in the first half of the year.
Third, the subsidy policy for staff salaries. Labor cost is another big proportion of our retail industry. We will do our social responsibility to ensure that the existing staff are paid as much as possible and pay their wages on time. However, we need to re calculate the payment method for the period of closure and abnormal business income.
The basic direction is to hope that the state, enterprises and employees can bear some of them and can not put pressure on enterprises. Because the current development trend is difficult to judge, there is no way to make clear the solution now.
Finally, after work masks, disinfectants and other protective equipment. At present, masks have not been bought, and now we basically do not go out. It is not so urgent. After reworking, how to solve these supplies is a big problem.
Now we have about more than 400 brand stores, and basically 100% are physical sales, because there is no electricity supplier authorization as an agent.
Now more than 95% of the shops are closed, and there are hardly any businesses left. Without regard to the depreciation of rental goods, the biggest problem is the wages of the employees. Now we have calculated the social security expenditure of nearly 200 thousand of the daily wages without income.
This year is very optimistic. Now our brand headquarters are basically linked. We are making some direction on the goods and readjusting the plan this year. It is expected that the first half of this year will be very troublesome. In the second half of Zhejiang, we can not make money in double 11. Now we need to discuss with the brand in the second half of the year. We need not cooperate with the double 11. It is necessary to talk about rent free rent with the owners until August. In the long run, 20 years of direction, 20 years of adjustment, and 22 years of business environment may be good.
Next, apart from rents and external communication, our biggest internal pressure is to face the issue of wage expenditure. As for how long it can last, we have to balance our deficit with confidence in the future.
In this case, if you want to continue to live, you first need the landlord to cooperate with the rent reduction, and you must give a reasonable rent in the future cooperation. In addition, we also hope that the government should not be too aggressive about the development of the complex, and that the interest tax incentives for retail enterprises like ours are only a drop in the bucket. Through this matter, we will also be more rational in dealing with future business, and will be more cautious about the development of new stores.
Ding Yu, head of retail brand of huanding group,
There are 220 stores under the Riverstone line, and the proportion of entity stores is over 90%. Now the situation is very bad, stores basically no business, more than 80% are closed shop.
Salaries, shopping malls, office rents and so on are continuing to pay, and online activities have been cancelled due to the pressure of express delivery. We expect to lose more than 5 million during the Spring Festival (only 5% of them are direct battalions). In the first half of the year, the opening plan of the store was completely ruined, and the confidence in joining the agency was hit hard.
At present, if the status quo is maintained and the business is supported on the wireless side, if there is no money left behind in the autumn, if there is no other financial support, it will last for 6 months.
The next plan for the brand is to reduce all expenses as much as possible, such as closing down non profitable shops as soon as possible, reducing the number of single store employees, strengthening the development of online sales channels, and re planning the merchandise. I am not optimistic about the market this year. It is very much hoped that the government can introduce a tax reduction and tax exemption policy. The landlord of the first party can give businesses more time to rent, less than half the rent support.
It is worth mentioning that in February 2nd, the Suzhou government issued the ten policy opinions of the Suzhou Municipal People's Government on supporting the small and medium enterprises to tide over difficulties together with regard to coping with the pneumonia outbreak of new coronavirus infection, and put forward relevant policy opinions on the small and medium-sized enterprises that are facing difficulties in production and operation under the epidemic situation. This is undoubtedly a good news for small and medium-sized enterprises. It is hoped that the relevant policy advice from different regions can also be launched as soon as possible to help physical brands, especially SMEs, overcome difficulties.
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