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    How Did Fashion Retailers Carry The Epidemic? The Support Of The Most Hardcore Has Come.

    2020/2/5 11:53:00 2

    Fashion Retailing

    Since the outbreak of the new coronavirus, the discussion on the impact of the epidemic on the Chinese economy has never stopped.

    Especially during the Spring Festival, it is the golden period of retail sales. Due to the epidemic situation, the retail industry was almost in a state of suspension during the Spring Festival in 2020. Even in recent years, the luxury industry, which has been surging forward in the Chinese market, has been affected to varying degrees.

    Take LVMH group as an example. Since the outbreak of the new crown pneumonia, the stock price of LVMH has dropped nearly 10% from its high point in January 17th, evaporating to nearly 20 billion euros, and the opening of cloud group and Hermes has also declined to varying degrees.

    It is a common understanding of all retailers to fight against the epidemic and seek opportunities for innovation in the epidemic.

      68 fashion retail brand donations exceeded 250 million yuan

    In the face of a sudden outbreak, donations and donations to win the battle are the first choice of enterprises.

    Since the start of Johnson China in January 23rd, more and more brands have joined the anti epidemic camp. Luxury brand groups such as LVMH, Kai Yun group, Lifeng group, Coach, Versace and so on.

    In addition, Anta, Lining, Taiping bird, Semir, Dixie fashion, Estee Lauder, L'OREAL, Lin Qingxuan, Emory Pacific and other brands also contributed to their own strength, and domestic brands such as perfect diary, orange flower and Hua Xizi, have also broken the bag.

    As of 24 in February 3rd, a total of 68 fashion retail brands were generously awarded, and the total amount of donations and donations exceeded 250 million yuan.

    In fact, on the one hand, suspending business and closing stores, on the one hand, the pressure of rent, inventory and cash flow, the pressure of retail brands during this Spring Festival is enormous. However, brands are still actively practicing social responsibilities, just like the old Chinese saying "helping others, helping people constantly", facing the plight of retail brands, the state, real estate enterprises, or introducing policies or reducing rent, retail brands also actively carry out self-help, and seek new growth path through the force line.

    Rent reduction and burden reduction! The most hardcore support of state and commercial real estate

    In February 2nd, BELLE footwear division and the president of new business division held an open letter saying: so far, about more than 5000 shops have been affected and temporarily shut down. This is the critical stage of epidemic prevention and control. It is also a difficult period for enterprises. In February, our business revenue is expected to drop by about 80%, which is not yet expected in March.

    The plight of BELLE is the common difficulty of most retail brands. For this reason, the state has promulgated a series of policies to ensure the normal operation of enterprises.

    A few days ago, the five departments of the people's Bank of China, the Ministry of finance, the Banking Regulatory Commission, the Securities Regulatory Commission and the State Administration of Foreign Exchange jointly issued the notice on further strengthening financial support for the prevention and control of the new type of coronavirus infection of pneumonia. The central bank clearly pointed out that financial institutions should not blindly loan, break loans or suppress loans to enterprises that are affected by the epidemic, such as wholesale retail, accommodation, catering, logistics and transportation, cultural tourism and other enterprises that have a bright future but are affected by the epidemic.

    In January 30th, the Guangzhou Real Estate Leasing Association issued the proposal to reduce the rent for the owners (landlords) of the city, calling on everyone to "spend time together", calling on the owners to reduce the rent for February for the merchants, and reduce the rent in March and April by half.

    In January 31st, the Shenzhen real estate intermediary Association issued a proposal to "fight against the epidemic on a moderate scale and reduce the rent of various types of main tenants". It urged all owners to release a strong positive energy that is consistent with the city's ambition, solidarity and total resistance to the epidemic. It will reduce the rent to lessen the burden of all kinds of production and business entities and relevant tenants, including real estate agencies and stores.

    On the same day, the Changsha real estate intermediary Association issued a document that the owner of the city in February was moderately affected by the most serious impact of the epidemic, and the rent of the main tenants was reduced by half in March.

    In January 31st, the Suzhou Real Estate Economic Association issued a document calling on the owners of the city to exempt the rent for one month in February and half the rent in March and April.

    In January 31st, the Liaoning real estate industry association proposed to all the landlord friends in the province to thank and encourage all kinds of business owners to postpone the opening up of the society, and to urge their fellow friends to release the strong positive energy of the city, unite together and fight the epidemic situation, and reduce the rent or pay the rent of the various production entities and related tenants, including the real estate agencies and stores, in the fight against the epidemic situation.

    In January 31st, the Dongguan real estate intermediary Association issued the proposal to appropriately reduce rent for all kinds of main business tenants. It appealed to the owners and landlords to release a strong positive energy that is consistent with the city's ambition, solidarity and common anti epidemic situation. It will appropriately reduce rent for all kinds of production and business entities and tenants, including real estate agents and stores, and lighten the burden of enterprises.

    In February 3rd, in order to do a good job in epidemic prevention and control work, and strive to ensure the normal operation order of enterprises and lighten the burden of enterprises, the Shanghai Municipal Bureau of human resources and social security has jointly studied with the relevant departments such as the Municipal Health Insurance Bureau and the Municipal Finance Bureau, and issued relevant policies for reducing the burden of enterprises in Shanghai.

    On the night of February 3rd, the general office of the Qingdao municipal government issued the notice on coping with the pneumonia epidemic situation of new coronavirus infection to support the small and medium-sized enterprises to ensure the steady development of some policies and measures. The Notice includes four major 18 policies, such as stabilizing the workforce, lightening the burden of enterprises, increasing financial support, and improving the implementation of policies.

    The policy support target is small and medium-sized enterprises which are affected by the epidemic situation and have difficulties in production and operation. The notice shall be implemented from June 30, 2020 to the date of promulgation.

    While the country is actively introducing policies, shopping centers are also helping brands to tide over difficulties through the initiative to reduce rent and rent.

    According to statistics, a total of more than 70 commercial real estate developers have implemented a reduction and rent policy, involving thousands of shopping centers.

    We found that most enterprises or projects rent concessions from January 1 to July 7, of course, there is a direct reduction of half a month or even more than a month, Longhu business and Shanghai Longsheng International Commercial Plaza rent reduction period of 67 days. Guangxi Yulin Nan Xing square even announced the cancellation of the three quarter rental and property fees.

    The shopping center has a reduction of less than ten million, or more than 3 billion of Wanda.

      Finding new opportunities in difficulties and finding new ways to save themselves

    Of course, while commercial real estate is reducing rent, brand businesses are also actively helping themselves.

    Chen Hongzhao, CEO of Taiping bird clothing, pointed out that active self-reliance and self-help is the most desirable form for a team. Although our whole country, society and enterprises are facing an adversity that has never been encountered before, the more adversity and predicament we face, the more we need to have the spirit, morale and enthusiasm to find the vitality that we can play in the right place. Over the past few days, although some stores have been closed, some franchisees have begun to interact with customers and live actively, seeking new retail routes, and actively strengthening themselves and saving themselves. These behaviors are very encouraging to everyone.

    It also points out that every danger is hidden behind every danger. It is hoped that all regions will speed up the operation of private sector traffic. Each brand will speed up our online content marketing, and the electricity supplier should seize the opportunity to take the lead and create conditions for our offline operation to win time.

    Lin Qingxuan founder Sun Laichun said, "the epidemic has resulted in half of the stores being closed down and losing about 1000000 per day. According to this speed, most of its own funds will persist for more than 2 months. Next, we expect Tmall and small program mall to make up for some losses. We will add live broadcast and short video sales. It is hoped that the government can provide substantial relief, such as VAT, income tax, delaying payment of five risks, one gold and so on in the first quarter. Can the owner also reduce part of the rent? "

    In fact, from what we have learned, how to solve the inventory problem is the most urgent task for clothing brands. Ensuring cash flow adequacy is the key. However, as with catering brands, rent and labor are still two mountains. We also appeal to owners or landlords to reduce rent and cycle longer. At the same time, I hope that the government can provide relevant policy support to help overcome difficulties.

    "The clothing industry is coming out of the winter clothes coming out of the spring clothes market. At this stage, the epidemic is coming to the empty streets. It is inevitable that the physical retailing is not necessary before the natural disasters. The epidemic is testing whether the basic operation is solid enough for the clothing brand, whether the customer camp is adequately precipitated, and the epidemic situation is likely to be eliminated for the clothes brand with weak basic operation and no customer management system."

    In his view, this time for the clothing industry, the competition is the customer's ability to operate.

    1, a clothing brand with customer management system can make use of this time to quickly sort out the customer structure, classify the customers according to the difference of the product demand, and classify the customers according to the classification, such as WeChat, short video and jitter.

    2, winter clothing can be sold up through greater strength. Some customers who are accustomed to the end of the season are selected to conduct directional WeChat and video analogy. Spring new products focus on professional combination and customer background to enhance customer perception.

    3, for garment enterprises, for unlisted products in spring, they can communicate with upstream factories, and unfinished products can be compacted.

    4, strengthen the necessary communication with landlords, strive for rent relief.


    Source: Lian Shang net: Luo Xiuling

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