The Impact Of The Epidemic On The Retail Industry Is Great. Accelerating Transformation And Breakthroughs Is The Only Way To Solve This Problem.

Many industries have been hit by the epidemic, especially in the retail industry. In order to reduce the infection between people and reduce the number of people gathered, retail outlets have closed down, which has brought huge losses to the retail industry.

Affected by the epidemic, the average number of entities in many fashion retailing entities is about 70%, and the most serious ones are 85% of the total stores, and only 50% of the stores are in business.

The Spring Festival is a traditional peak season for consumption, but the sudden outbreak of the new crown pneumonia this year has caught the retail industry by surprise. Passenger flow is suddenly reduced, no passenger flow, no cash flow, no sufficient epidemic prevention materials, inventory, manpower cost and rental cost are high. Supply chain logistics instability is a common problem in the industry. In the medium term, the epidemic will lead to an adjustment in the industry. In the long run, the epidemic is accelerating the transformation and breakthroughs of the industry.

It is undeniable that the epidemic has caused a heavy blow to the operation of fashion retailers. No sales, huge cost pressures, serious cash flow problems, shortage of preventive supplies, will continue to shut down stores according to the epidemic situation to ensure the safety of employees. Because there is no sales revenue, and at the same time to pay wages and rental costs, the cash flow of enterprises is tight, the pressure of survival is increasing, and the pressure of cost and capital has increased sharply.

Fashion retailing is a labor-intensive industry. Employee wages occupy a large part of the total expenditure, plus brand operating costs, rents, shopping malls, retaining points, etc., with high fixed costs. One side is the reduction of income, one side is difficult to reduce fixed expenditure, the two ends of supply and demand are double extrusion, and the pressure of cash flow is huge.

Conform to the change of consumer habits, the new retail mode rises, the proportion of online sales increases. Consumers are exposed to new things such as home mode during the epidemic. After that, consumer psychology will also change. This will lead to different consumer habits and enterprises must re understand consumer demand.

In the past, the passenger flow will continue to be sluggish, the revenue will not be too high, but the cost of shopping malls can not be sustained, and the losses will continue. Most stores are closed, and the stores that are still doing business are very poor. Consumers are less likely to go out, shopping centers are scarce, and brand stores are no longer interested. Luxury brands, which rely mainly on offline markets, have also been greatly impacted.

However, this will also enable enterprises to re-examine the focus of their own development and find opportunities for new battlefields and breakthroughs in transition. In the future, enterprises will pay more attention to flexible supply chain and diversified operation. It is undeniable that the epidemic has caused a heavy blow to the operation of fashion retailers.