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    How Does The Fashion Industry Cope With The Sharp Decline In The Number Of People Shopping?

    2020/2/6 14:20:00 0

    Epidemic Situation

    When the catering industry and tourism industry are obviously stagnant due to the impact of the epidemic, the clothing and make-up industry is also facing difficulties.

    The delay in the resumption of work has disrupted the production, renovation and delivery plans of the fashion enterprises in the new year, and with the restrictions on Residents' travel by governments and communities, the number of shopping people will continue to be low for a long time, which will directly affect the income of the entities.

    After the epidemic has dissipated, a large number of stocks hoarded will continue to affect the benign turnover of products.

    This made 2019 a conservative attitude towards the rebound of 2020's overall rebound in the overall footwear market. It is foreseeable that this epidemic will become a protracted war for fashion enterprises.

    After understanding the current situation and Countermeasures of several garment enterprises, electric business companies and shopping malls, the interface fashion finds that the current difficulties of larger enterprises are mainly from offline sales, and sales can not feed back on the cost of store rentals and human employment. The brands of electric business, small and medium enterprises and independent designers are relatively flexible because of the fact that they do not have excessive physical distribution, and their performance losses are not as serious as those of large enterprises. However, they have to streamline new frequencies and styles due to lack of capacity.

    Shanghai clothing brand Lulualways I love lulu in the country has more than 250 stores, founder Wang Bing to interface fashion, since the outbreak of the outbreak in January, the line almost no income. "For our brand retail enterprises, the epidemic is almost devastating."

    Pressure is directly derived from goods, rents and manpower.

    Because of the earlier spring festival this year, many retailers started producing new products ahead of schedule. Wang Bing said that some clothing enterprises have completed 70% of the order, and spent a lot of money, but sales in the next few months can not be made up at all. Shops that do not shut down still need staff to maintain, so the cost of store rentals and staff salaries can not be avoided.

    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.

    To ease the pressure on the retail industry, some 20 real estate companies such as Wanda, Huarun and Longhu have offered help to merchants in their stores and offered to reduce rent. Most of the rent relief is half rent, and a small part is free. The length of rent reduction is between half a month and two months.

    Wang Bing appreciated the decision of the owners, but it must be admitted that this is still a drop in the bucket for a protracted war. He believes that if there is no improvement in retail sales within a few months, it is hoped that the owners will be able to extend the contract time under fixed rent.

    Perhaps the agreement between the two parties will be adjusted step by step with the development of the epidemic situation, but at present, the short-term rent reduction seems to be the owner's greatest sincerity.

    The strategy adopted by Real Estate Company is that it is free from half a month's rent for cooperative businesses. Hunter, general manager of the Guiyang City Plaza, the shopping center in the city of Cao Rui, said that the new year was the best performance of the store every year, and the rent free caused a great loss to the shopping malls.

    In February 9th, Hunter City Plaza will be reopened. Cao Rui expects that the brand of food brands that are more dependent on materials will not be opened simultaneously due to the slow down of logistics. After opening, stores will also temporarily suspend activities and publicity. "Businesses and shopping malls should communicate more at this time."

    Swire real estate said it has launched the highest level contingency plan, including the cancellation of recent large-scale public celebration activities and allowing merchants to flexibly arrange their business hours according to their own circumstances. In terms of rent, the corresponding relief plan will be worked out according to the different formats and needs of different businesses, and the details are being communicated with merchants.

    At the same time, not only shopping malls, clothing enterprises and agents also need to tide over difficulties.

    Wang Bing said that many agents had ordered from Lulualways, after the outbreak, decided to have the production of April agent orders themselves to undertake. "Actually, we could have made a profit, but this decision would make the company spend 15 million more. Because once the agent loses money, we will have no way out in the future. All the glory and prosperity are damaged. We have made our best efforts on the whole chain.

    Lulualways has also adjusted the number of orders to the factory, reducing the amount of the original plan that has not been ordered to control the cost. It also emphasizes the increase in online revenue during this period. The entity store has launched a non-contact marketing strategy such as WeChat marketing, micro mall and live broadcast.

    "Optimistic estimates, there may be a clear rebound at the end of April." Wang Bing said.

    Like Lulualways, brands that are more dependent on the line are hoping for online growth.

    In the aspect of interface fashion, nine Mu Wang said that the recent adjustment in business strategy is to strengthen online sales and start the implementation of the 24 hour rush after the order. Taiping bird also said it would focus its efforts on the promotion of full channel sales and flexible supply chain, open online sales discount mode, online live broadcast and other diversified sales mode, invite fans to "cloud shopping", and all Shun Feng post.

    For the perfect diary of Guangzhou's beauty makeup brand, the impact of offline may be difficult to block the overall revenue. But at this moment, it's hard to keep up with the habit of being quick and productive.

    In the perfect diary, the interface fashion says that the factory postpones the work and the shortage of workers will result in a shortage of part of the products, which will affect the daily sales of the brand and the original promotion activities in March. Logistics will also be delayed.

    2019 is the year when the perfect diary develops the offline market. As of last December 25th, 36 outlets have been opened. For the recent offline store arrangement, the perfect diary indicates that employees will be suspended under the flexible distribution line, so that they can support online customer service to ensure the normal operation of the online business.

    As for the impact of the epidemic on retail sales, the perfect diary is optimistic. The company said that during the SARS epidemic in 2003, the growth rate of grain, oil, food and other required consumption was the most stable, and the growth rate of cosmetics in the optional consumption remained stable. Therefore, even if the industry is hit, enterprises are very difficult and should not be too pessimistic.

    Compared with these large and medium-sized fashion enterprises, the flexibility of small fashion enterprises such as designer brand and buyer shop will be more flexible.

    Nini, head of Shanghai fashion design studio, said that the biggest problem at present is that it can not resume work as planned. The commencement time needs to refer to the supplier's resumption time and the opening time of the park office. The studio in Kunshan's Park is currently suspended with the closure of the park. In addition, the offline activities originally scheduled for the end of February have also been cancelled.

    The studio plans to participate in the Shanghai fashion week at the end of March. Some new samples have been produced before the Spring Festival, but the new series have not yet been completed. "If factories and parks can return to work in February 10th, we will be able to keep the rest of the design and sample production." Nini said.

    She and her team have already set up a WeChat applet before the festival, which may serve as a measure to cope with the weakening of retail sales. However, if the epidemic continues, the delivery and logistics links will still encounter problems.

    Liu Xinxia, founder of the brand collection shop, founder of Labelhood Lei Hu, said that the designer's brand size was small and Tmall shop was not open during the festival.

    Labelhood Lei tiger's four entity store took the form of online business in from February 3rd to 9th and plans to open it on the 10 day of February. Liu Xinxia predicted that the containment of the epidemic will continue until April and May.

    According to her understanding, many designer brands are still controllable in the supply chain. Some brands have finished their products before the Spring Festival, and some designers share small workshops.

    It can be seen that the lagging behind the operation of factories and logistics will directly affect the pace of clothing enterprises themselves. Although online brands do not have to bear the pressure of physical shops rent, the new fast and active activities also make them dare not take lightly at this time.

    Although women's clothing brand Superr has completed the shooting, ordering and most production tasks from February to March, but founder Wang Jing still can not predict when it will return to normal.

    Superr's two character division is unable to confirm the date of returning to Shanghai, and fabric accessories and process development suppliers are unable to operate in a short time, leading to the stagnation of new development. A week ago, Wang Jing decided to temporarily cancel the plan to launch a new series in fashion week in Shanghai by the end of March.

    "I personally do not want employees to return to the normal working process too quickly. After all, the daily traffic round-trip and indoor gathering work all have a high risk of infection." She said to interface fashion.

    Xiaofeng, head of the operation of a women's clothing business company in Hangzhou, also said that the new date and activities had the greatest impact on the interface fashion. "Tmall's official activities have been postponed or cancelled, Taobao has not yet."

    At present, the company's online shop February 18th spring new activities will not be canceled, but this plan in February 20th for a March 8th activity photo, but because all the delay to resume work and can not be normal.

    Xiaofeng said that the company's online store had been updated two times a week, and now it will maintain the new frequency of the week until February 10th, and the new SKU and spot quantities will be reduced accordingly.

    He believes that logistics does not guarantee timeliness at the moment, which will slow down the enthusiasm of consumers to buy clothes.

    But since the outbreak of the outbreak, the performance of online stores has not fallen too much, and is optimistic about its performance. "In previous years, the sales volume of the electricity supplier in the past year was general, and it only started at the beginning of the first sixteen months."

    Source: Ying ho Fashion Business Review

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