The Epidemic Situation Of Retail Frozen Clothing Industry Under The Business Mode Or Reshaping Line

At the beginning of 2020, under the influence of epidemic situation, the scene of offline sales which depended on shopping malls, department stores and franchised stores was stagnant. The upper and lower reaches of the garment industry have been hit hard. Experienced the cold wave of consumption under the line, YOUNGOR (600177.SH) has closed all the 3000 stores in the country, and YOUNGOR's situation is only a microcosm of the clothing industry.

In the past, garment enterprises which relied mainly on traditional shop channels encountered unprecedented difficulties and were not waiting passively. Many garment enterprises either took full marketing or launched scarce products, or hired cars to pick up employees to rework, and tried to save themselves in various ways.

Obviously, the resumption of battle in the garment industry is imminent. According to the China Clothing Association survey data, as of 10 in February 29th, 80.8% of garment enterprises have resumed work, and the number of reemployment accounts for 66.3% of the number of workers employed under normal production. Still faced with many difficulties and problems such as shortage of workers, market downturn, reduced orders, and poor logistics.

In this regard, Cheng Weixiong, general manager of textile and clothing brand management experts and Shanghai Liang Qi Brand Management Co., Ltd., told the China business newspaper reporter that the sales volume under the clothing industry is under pressure. In fact, there is not much profit without opening the door. Garment enterprises should not only consider how to return to work, but also think about how to solve the problems of capital, inventory and so on after resuming work. After the epidemic, some enterprises will be eliminated. Therefore, enterprises should think about changing business models, such as products, channels, marketing and so on, so as to cope with changes in the consumption environment.

Integrating marketing

Since February 10th, the war of resumption of production and reproduction has gradually started.

According to the relevant person in charge of 01361.HK, the five mile industrial area and Jiangtou industrial zone have passed safety inspection and have been successfully started since February 10th. By the end of February 24th, the turnover rate of the shoe supply chain reached 73% and the garment supply chain recovery rate reached 65%.

The relevant person in charge told reporters that in order to make workers return to work safely, 360 degrees proposed "company to take you back to work". According to the person in charge, since February 22nd, 360 degrees have been chartered to Leping, Chongqing, Kaixian and other places to pick up workers to return to work. In the evening of February 24th, the company also returned 44 production line workers from Guizhou Bijie through charter flights.

In the middle of February, in addition to the Hubei area, most of the shops in the 31st channel have been restored. In order to promote dynamic sales, the company also achieves full sales through building a small program mall.

Similar to the situation of 360 degrees, YOUNGOR official told reporters that in addition to Hubei, other large flagship stores in other provinces have already opened shop. At the same time, YOUNGOR also chose the path of "full staff marketing" to solve the difficulty of resuming sales.

When the online store was running out of energy, YOUNGOR, from the chairman to the head of the sales office, almost all employees began to sell their shirts, suits, jackets, socks, bedding and so on. Almost all YOUNGOR products appeared on the social platform of the employees. "Now, WeChat group and circle of friends have become the main battleground under the YOUNGOR epidemic. YOUNGOR official said.

Unlike the 360 degree rush production and YOUNGOR's push sales, Yi Wen group chose to switch to production and resume their production.

Yi Wen group told the China business newspaper that the company is busy producing protective clothing and isolating clothing. In the temporary rental workshop, a total of 6 new production lines have been opened to support production expansion.

According to the relevant person in charge of Yiwen group, on the day of 2~19 February, the Yiwen group hired a temporary factory building in the Kyushu Tong Industrial Park of Fengtai garden in Zhongguancun for 18 days, opened up 6 production lines for isolation clothing and protective clothing, and reformed the 100 thousand level aseptic purification workshop for testing production. In February 20th, the expansion project of Yiwen group medical protective clothing was formally put into operation.

"At present, the product has been listed, capacity is concerned, it is expected to achieve Nissan daily protective clothing 5000~10000, isolation clothing more than 10000." According to the relevant official of Yiwen group, there are two groups of workers working alternately every day.

The difficulties faced by enterprises are different, and the direction of reemployment is different. In this regard, Lai Yang, President of Beijing Jing Shang Circulation Strategy Research Institute, told reporters that the current garment industry is facing the situation of shrinking consumer demand. The resumption and recovery of the garment industry should be carried out around consumption and demand instead of blindly expanding production.

Fancy self rescue

The birth of a garment requires many links such as design, plate making, surface accessories, trial production, mass production and so on. In this process, labor is indispensable. As the labor intensive industry, the first problem facing the garment industry is labor shortage.

The shortage of labor is more obvious to the Yiwen group, which opens up the conversion project. The reporter learned that at present, there are nearly 300 workers in the Yiwen group's conversion project, and 90% of them are allocated from the original production line, while only about 10% of them are newly recruited. "Staff returning to Beijing will have to resume their work after isolation. At the same time, affected by epidemic prevention and control, recruitment is difficult to carry out smoothly. But the production of medical supplies is a top priority, so there are two groups of workers working alternately every day. Yiwen Group official said.

The average supply chain recovery rate of shoes and clothing is close to 70%, which is also facing the problem of labor shortage. For this reason, the company has introduced a series of measures to protect the manpower supply.

According to the introduction of the 31st degree, the company first increased the strength of its internal recommendation. For example, an employee is introduced. When the employee is in stable employment for some time, the referee can get a bonus. In addition, the company will take advantage of the corresponding welfare policies to attract more talents to join, for example, in addition to eating and living, it also solves the problem of the education of the employees' children through self run kindergartens and counterpart primary schools.

In addition, in order to increase the number of recruiting workers, the company is also working with local governments to directly connect the counties and cities in Sichuan, Guizhou and Yunnan, and directly recruit workers locally.

And far from the front-line workers and consumers.

Many industry experts and clothing enterprises said that due to the predominance of the clothing industry, the spring and summer clothing had basically been completed by the end of 2019. When the spring came, the accumulated inventory became the top priority of the garment enterprises after their resumption.

"For clothing enterprises, the most important thing is sales. During the epidemic, fewer shops, less rents, and manpower wages are a great pressure on businesses. Although some shopping malls will enjoy concessions or even rent free, they will be a drop in the bucket. If the inventory is not promptly digested, it will affect the factory's capital return in spring, thereby increasing the capital turnover pressure of enterprises. Cheng Weixiong analyzed.

All garment enterprises are attacking the sales terminals at the same time. For example, the sales of all sales can be achieved by building a small program mall by 31st degree. YOUNGOR uses all the friends to carry goods, La Natsu Bell's new retail path and so on.

Reporters learned from YOUNGOR that each YOUNGOR employee has a separate store two-dimensional code (sunflower code), when consumers click on a recommended link to enter the mall to buy a product, the order will be counted as the performance of the employee. In this way, online sales of each employee can be counted. In order to enhance the enthusiasm of staff sales, the company formulates corresponding reward system, such as dividing salesmen into ordinary distributors, gold medals distributors, diamond distributors, and different levels of royalty will also be different.

In order to break the icy state of retail under the line, La Natsu Bell has to deal with the predicament of commodity sales with a new retail path. La Natsu Bell relevant official told reporters that the Spring Festival holiday is the golden age of offline store sales, but now the sales volume of clothing enterprises has been affected. At present, headquarters and national branches have launched WeChat online membership, WeChat spike, small program distribution, alternate broadcast in different regions, hoping to improve online sales. For the offline shop resumption, the other side did not make specific instructions.

Ms. Zhang, who has been engaged in offline sales for many years, told the reporter of China business newspaper that the store was closed down, but sales work had already begun. Open her circle of friends, everyday is in the circle of friends to bring goods. In addition to the promotion of friends circle, she also established different sales service groups according to the buying habits of consumers. "This is a direct way of maintaining our relationship with our customers."

YOUNGOR also told reporters that the flagship store of the company also directed the organization of online sales groups, usually to build a group of VIP customers separately. For different groups, the backstage will design corresponding products and price discounts, for example, high-end customers may push senior suits, and so on, ordinary people may push some explosions.

In addition to manpower, sales and other issues, many garment enterprises choose to switch production during the epidemic situation, and some enterprises are also faced with technical difficulties.

Take the Yiwen group as an example, in order to complete the fast conversion, the Yiwen group transferred the skilled workers who had made the layering process in the production line, such as the jackets, coats and jackets, to the conversion projects. For sewing, binding, layering, killing and other processes, clothing line workers are familiar with the category, but protective clothing and isolating clothing need to make use of the difference from clothing production line, which brings workers a production problem.

"We originally engaged in clothing production, using a large production line process. After a batch of fabric is cut, all workers can start sewing immediately. However, the production of protective clothing is different from that of isolating clothing, and the process is small production line. In the trial production stage, every process may stop at any time. " Yiwen Group official told reporters.

In nearly a month's resumption of production, the garment industry has to return to work and save itself in many ways. "The current garment industry is facing the shrinking of the overall consumer market," said Lai. "Many enterprises resume their work and resume production and save themselves." After the epidemic, garment enterprises should pay attention to flexible production technology and innovation, so as to make the production line more agile and agile. At the same time, under the opportunity of epidemic situation, enterprises should consider strategic transformation, and strengthen the supply chain system, circulation system, cloud manufacturing and so on, which is a direction for future garment enterprises.