It Is Spring That The Fashion Industry That Has Been Enveloped By The Epidemic Has Survived The Cold Winter.

Since the outbreak of the epidemic, shopping centers have adjusted their business hours and even closed shop, especially for the catering industry, such as "self help" and so on.

Similarly, some fashion brands are also facing difficulties. The Spring Festival was originally a bustling period of wearing new clothes and visiting relatives and friends, but it was disrupted by the sudden outbreak of a new coronavirus pneumonia. Postponing the resumption of work, restricting travel and so on, for half a month, the vast majority of people can only spend their days in "pajamas". The number of shopping people has dropped sharply, and the income of physical stores is not optimistic. This has also disrupted the new year's production, upstart and delivery plans of fashion enterprises.

Facing the test of inventory pressure, operation cost, uncertainty of epidemic duration and so on

Shenzhen clothing brand currently has more than 1300 stores in the country, half of which have been suspended (half of the remaining revenue is not optimistic) due to the epidemic. Yu Qigang, President of the fashion group, said that we are experiencing the stagnation of physical store operations, and the survival of us is fundamentally shaken. The original confidence was completely halted, and the original operation plan was completely disrupted.

Inventory pressure, operation cost, uncertainty of epidemic situation and so on are the risks that many fashion brands are undertaking. The movie says,

　 Huge pressure on inventory. Goods in winter are bound to become backlogs, and the goods we prepare for the 2020 spring and summer will not be listed in the foreseeable future. The huge inventory pressure and the adjustment of R & D strategy will be a difficult problem for us to face.

　　 High operating costs. The steep fall in revenue and the high cost remain a particularly severe test of the brand's cash flow, with labor costs up to millions of dollars per day. Such shocking cost figures were obscure during the rainy season, but we had to face them in times of crisis.

　　 The test of uncertainty. How much we want the epidemic to pass quickly, but we are really confused. How long will this epidemic last? March? April? May? Can the market recover? How long can we stick to such a great pressure to survive?

There are many fashion chain brands such as movie. There are many brands in the country. Wang Bing, the founder of Shanghai clothing brand Lulualways, told me in a media interview that at present, Lulualways has over 250 stores in the country. After the outbreak of the epidemic in January, there was almost no income under the line. "For our brand retail enterprises, the epidemic is almost devastating." The direct source of this pressure is goods, rents and manpower. Wang Bing predicts that for many garment enterprises and upstream supply chains, the two hard expenditures will not exceed three months in the declining industrial environment, otherwise it will be difficult to maintain.

Sometimes people in the industry reveal to the winning business network that the average profit rate of the whole industry can be maintained at around 10%-15% except the cost of rent, manpower, production and so on. If there is no sales for a month, the cost of rent, manpower and inventory should be maintained, which means that this year is not to make money. If the epidemic persists for a longer time, the losses will be even greater. It will not rule out closing some smaller profitable stores.

The performance of listed fashion companies is not optimistic. Most shops closed during the epidemic.

In some of the listed apparel enterprises, the performance is not optimistic. In the summary of the number of business, 40 textile and garment listed companies in 2019 were in a deficit state of 9, and net profits fell by 22, including many famous brands, such as Jin Hong group, Rand, La Natsu Bell, Taiping bird, noble bird, Mei Bang dress, Ruyi group and so on.

The Limited by Share Ltd released its 2019 annual performance forecast, showing that the net profit of the company is expected to decline by 73.87% to 61.99% over the same period.

The net profit attributable to shareholders of listed companies is 67%-87% in the same period last year.

Underwear giant city beauty is expected to lose no less than 980 million yuan in 2019. The first net income of children's clothing is expected to decline by 60% to 40% in 2019.

At the same time, some foreign chain brands also closed some stores during the epidemic. The US classic Cowboy brand Levi 's Levi's parent LeviStrauss&Co. (NYSE:LEVI) said that the company recently closed half of its stores in the Chinese market, accounting for 3% of the group's revenue, which will have a negative impact on the short-term growth target of the group.

In February 4th, affected by the outbreak of the new coronavirus, Nike announced that it will temporarily close about half of China's stores, and the remaining stores will shorten their business hours. Nike expects its operation in China to be "materially affected" and the March earnings report will cover the relevant data. In addition, the famous international brands such as UNIQLO and Gap have issued a notice of closure.

The impact of large fashion chain brands in the epidemic is unquestionable. Some designer brands are also suffering from the "disaster" caused by the epidemic.

YOEYYOU, co-founder of designer brand, said that if the epidemic could not be controlled in time, the upstream and downstream of the supply chain could not keep up with the labor cost. At least, it would affect the sales volume of one quarter or even longer.

The brand will take part in the fashion week in Shanghai at the end of March, but if it can not be resumed in time, plus some of its core staff from Wuhan, it is likely to miss the fashion week of Shanghai this year.

China's fashion industry is absent from fashion week such as New York and Paris.

Moreover, affected by the epidemic of pneumonia, countries such as the United States and Italy have taken measures to temporarily prohibit entry of Chinese nationals. The major airlines have also suspended flights between China and China, and the recovery time is still to be determined. Many Chinese designers, fashion designers, fashion bloggers and buyers who were invited to the fashion week, and even the staff of the Chinese brand, could only cancel the trip.

After the fashion week in New York, it will be London Fashion week from February 14th to 18th, Milan fashion week from February 18th to 24th and Paris fashion week February 24th to March 4th. Chinese designer brands AngelChen and Ricostru have cancelled their fashion show in Milan, and Xia Zi Chen ShiatzyChen has cancelled the Paris fashion show.

This means that fashion media, bloggers and buyers from China will still miss the 2020 autumn winter fashion week.

The whole channel and the whole industry work together to tide over the difficulties of the epidemic.

Although the epidemic of pneumonia has brought unprecedented challenges to the fashion industry, how to tide over the difficulties is the most important task at present. Under double pressure, we still see that many clothing companies are helping to join in the fight against the epidemic. Like Taiping bird group, they donated 12 million yuan, Anta, Lining, Heji group and Semir all contribute 10 million yuan.

Many shopping centers also carry out rent reduction. According to incomplete statistics of win business network, there are over 80 shopping center developers in the country voluntarily reducing rent and covering more than 1000 shopping centers and department stores.

The more challenging it is, the more we must remain calm and enhance the cohesiveness of enterprises. According to the movie, under the new situation, self evolution is the only way to go. Everyone is stepping into the office to tide over difficulties. This campaign urges us to adjust ourselves in the new situation. Accelerate the channel revolution, physical stores, the Internet, new retail and other diversified channels to enhance the brand's ability to resist risks, and open the whole staff marketing mode. Assume the pressure of operation, re-examine and sort out the various resources of the personnel resources inside the brand, increase revenue and reduce expenditure, and reduce efficiency. LOHO brand also opened new retail mode, implementing "no touch" try wearing glasses.

Indeed, there are opportunities if there are challenges. Collecting resources, maximizing the risk of dispersing can reduce short-term pressure, strengthen cash, enhance online, and long-term risks can be effective. The epidemic is also an important moment to test the team of enterprises. And this may be the best time for enterprises to establish a full channel. Including Jiangnan cloth, Taiping bird, Lining and other brands are constantly opening up the operation of the whole channel, and some designer brands are also launching their own rescue, using WeChat small program, live broadcast and so on to maintain the brand.

For the fashion industry and the commercial real estate industry, this is a battle of the whole industry. As long as we unite as one, after the outbreak, we will surely play a beautiful "turning around".