New Crown Pneumonia Test Brings Quanzhou Shoes And Clothing Brands To Carry Out Self-Help

The sudden outbreak of the new crown pneumonia has led to a big test in the shoe and clothing industry: the full recovery of the capacity remains to be seen, consumers are staying indoors, and there are few tourists in the shops. Under the shadow of anxiety, Quanzhou shoes and clothing brands have launched self-help to seek breakthroughs.

　　 Step by step back to normal

The retail and production of Quanzhou shoes and clothing brand enterprises are gradually returning to the right track, but the new crown pneumonia epidemic will have a certain impact on the industry and financial performance of the company in the first half of the year.

With the effectiveness of prevention and control of epidemic situation, Quanzhou shoes and clothing brand enterprises have gradually resumed the operation of offline stores. Reporters visited the department store in Quanzhou, found that the overall passenger traffic has rebounded during the Spring Festival, Anta, 31st, XTEP and other Quanzhou shoes and clothing brand has been open for business, but still few consultants.

As of February 14, 2020, Anta issued a voluntary announcement of the company's current operation, saying that nearly 40% of Anta's brand stores in mainland China have resumed business, and temporarily closed stores will decide to resume business arrangements according to the development trend of the epidemic situation and the policies of local governments. 360 degrees and XTEP said retail stores in other parts of the country are expected to resume operation before the end of February, except for retail outlets located in Hubei province.

In terms of manufacturing, XTEP, Anta and 31st degree all indicate that capacity is gradually recovering. Anta said that the proportion of Anta brand self-produced shoes and clothing was only 34.4% and 11.9% respectively. The group will closely communicate with the distributors and inspect the orders and orders for the next quarter according to the actual situation, so as to take timely measures to reduce risks. The group's self-produced factories and offices have been restored to operation since February 10th. With the resumption of operation and resumption of normal operation in many provinces and cities, the supply chain system is expected to return to normal level with the recovery of the epidemic. XTEP said that because the epidemic affected the smooth flow of public transport, some employees were unable to return to work, and some of their production was still blocked. The group was working with suppliers and outsourcing manufacturers to reduce the impact of the epidemic on the supply chain.

Although the epidemic is undergoing positive changes, the retail and production of footwear industry will soon return to normal. However, a number of Quanzhou listed footwear and garment enterprises including Anta, XTEP and 31st degree have publicly stated that the epidemic will have a certain impact on the industry and financial performance of the company in the first half of the year.

Anta is expected to return to its normal level in the first half of the year. The group will strengthen control costs and take appropriate measures in time to control the impact of the epidemic on the group. According to Anta sports released in January, the fourth quarter of 2019 and the latest business performance bulletin showed that in 2019, the Anta brand retail sales volume of the group grew 10% to 20% over the previous year; the retail sales of FILA brand increased 55% to 60% over the previous year; meanwhile, the retail sales of other brands of the group increased 30% to 35% over the previous year.

China's sporting goods industry has entered a structural uptrend since 2014. The new crown pneumonia will cause short-term fluctuations in the industry, but it is believed that the growth momentum over the next few years will continue, the bank said. According to the survey, about 50% of the sporting goods stores were closed, and the normal business outlets shortened business hours and fewer people, and retail sales performance will be under pressure. In the first quarter, sales accounted for 20% of the whole year. Store going inventory will also affect the wholesale demand of sporting goods companies, and the impact is expected to emerge from the second quarter of this year.

　　 Community marketing with fire

Footwear brand actively develops online platform business, and activates online sales through social marketing and live broadcast.

During the spread of the epidemic, consumers could not enter the stores and could not enter the stores. The shoe and clothing brands actively developed online platform businesses, and activated online sales through social marketing and live broadcast.

Recently, when they did not return to work, the vice president of the seven wolves began to "Hawk" their products in the circle of friends, displaying the clothing products of the seven wolves in the form of nine circles of friends circle, and entering the WeChat mall through the two-dimensional code, and realizing the home shopping. Seven wolves said that while maintaining the traditional e-commerce platform, the company actively expanded the social mobile e-commerce platform, and established the official website direct selling and distribution business through WeChat small program.

Not only the seven wolves, but also the brands of Quanzhou shoes and shoes, such as Anta and 31st degree, have launched the "full retail" project. All employees sell their products in WeChat's circle of friends. In order to make up for the impact of the epidemic on terminal sales, the Group actively transferred the sale to the e-commerce platform, and launched the call of "full staff marketing" to increase the "WeChat Mini program" and other ways to enhance online marketing, so as to minimize the impact of the epidemic on the retail end. Anta said that as many as 30 thousand employees and dealer partners participated in the "full retail" project, and e-commerce sales achieved certain results.

The epidemic has caused an impact on the footwear industry, especially in offline sales. However, many businesses have launched an emergency plan and put forward a temporary sales strategy which is mainly supplemented by physical stores and community sales. Some stores try to direct consumers to buy and buy by direct seeding. FILA and CABBEEN stores in Puxi Wanda Plaza, Quanzhou, respectively, have been online live. The store manager has acted as an online shopping guide, trying out and explaining in person, and interacting with customers online instantly.

When Hengda started selling online, an epidemic also forced the footwear industry to think about business models. SARS accelerated the development of Taobao and Jingdong in 2003. Now, the new crown pneumonia seems to make the garment industry find opportunities in danger. Garment industry retail expert min Guangya said that the sales channels of the clothing industry will become more diverse. After the outbreak, the diversified sales mode of the clothing industry, such as live streaming and social marketing, will heat up and accelerate the new retail trend.