"Two Sets Of Pajamas Are Over This Winter", So That The Clothing Enterprises Are Trapped.

Many people on the Internet are saying: "two sets of pajamas will be able to pass the winter." A sudden outbreak of the epidemic, originally intended to purchase new clothes consumers, canceled the plan, so that the apparel business collectively into trouble.

During the epidemic, it is a true portrayal of many people to stay out for half a month. Occasionally, the aunt who goes out to sell vegetables is wearing a nice coat outside, and it is still pajamas pyjamas.

The Spring Festival is the peak season for clothing sales. From the sales situation of clothing listed companies over the years, sales from the end of January to the end of February account for about 10%~15% of the whole year. Due to the outage of Spring Festival express, online consumption will go into the off-season. However, in order to curb the spread of the virus, people stay indoors, and offline businesses miss the golden opportunity.

Adidas issued a statement saying it would temporarily close some Chinese stores and said it would have a negative impact on short-term performance. Nike has also temporarily closed its 50% stores in the mainland of China. UBS issued a report that Nike's performance will drop 70% from mid 1 to the end of February.

Large enterprises have capital accumulation and financing ability, which will help to cope with the current situation. But for small and medium-sized enterprises, the epidemic will hurt their lives. When the stores are closed, regional distributors and agents lose their cash flow, and they also have to pay wages, rents and property fees. They are faced with problems such as inventory backlog and futures execution.

Clothing itself is characterized by seasonality, and the shorter the popularity cycle, and the backlog of inventory is a fatal pain for garment enterprises. The emergence of new pneumonia has hindered the process of going to stock and disrupted the new spring upbringing, bringing new spring stocks. The epidemic is not over yet, and this part of the loss is still unpredictable.

The sudden new coronavirus has caused many garment enterprises to fall into high inventory pressure, resulting in the lack of liquidity, which has led to the failure of the new season's clothing production. Negative growth occurred in the most severe May. However, after the epidemic subsided, the consumer's desire to buy back was released, and the recovery rate of consumption was fast.

Under such circumstances, the management level of enterprises is a great challenge. At present, it is necessary to reduce all expenses and ensure cash reserves as far as possible. Second, strengthen the development of online sales channels. The other is to speed up the clearance of inventory and redo the merchandise plan. Conditional clothing companies can try the production of masks and protective clothing. Finally, I hope that the government will not put pressure on enterprises and have a relatively long term reduction and exemption policy.

It is believed that the epidemic will soon be over, and clothing enterprises are no longer worried.