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    Out Of The Sword And Into The Fire? The Newly Reworked Costumes Are On Vacation Again.

    2020/3/27 10:55:00 0

    Knife MountainFire SeaClothing

    Since the resumption of labor is not resumed, the delay in delivery has been delayed, and the order has been cancelled since the resumption of production. Since mid March, Chinese costume bosses are in a state of ups and downs.

    With the European and American countries becoming the worst hit area of the new crown pneumonia, the foreign trade market has changed 180 degrees. China's epidemic situation was serious and unable to produce in January -2, and overseas customers hurried to rush orders. Now the European and American consumer market is following the Chinese market downturn, the brand customers have become cautious. They have cancelled and postponed orders for -6 months in March, and the market after June is still hard to judge.

    An industry survey report in Keqiao, Shaoxing showed that 64.8% of the local businesses reflected that the existing textile orders were cancelled by customers. The textile industry ushered in the most frequent withdrawals and abandonment tides in history. On the same day, from the China Development Research Foundation held the "international economic situation outlook" video conference on the news, at present, the Yangtze River Delta and the Pearl River Delta although the recovery rate is as high as 90%, but there is only about 30% of the real work, because there is a lack of orders.

    H&M closes all stores in the United States and Germany. H&M, the world's second largest apparel retailer, has announced that it will temporarily close all its 460 stores in Germany and all 590 stores in the United States to contain the spread of the new crown virus. The restart period is uncertain. E-commerce sales will continue. Germany and the United States are respectively the first and second largest markets of the company. Over the past week, the company has closed over 10 stores in Europe. The company said its business in China has gradually begun to recover, and now focuses on adjusting the level of purchase and inventory.

    Supreme global stores have been closed down. With the rapid spread of the new crown pneumonia in the world, the street store Supreme in New York, San Francisco, Losangeles, London, Paris and Japan has been suspended for a long time, only to retain the official website of the e-commerce business, to prevent and reduce staff and visiting consumers infected with the virus. Supreme stressed that the 2020 spring and summer new products will be sold online as usual.

    Nike will close the US and multinational stores. Nike (Nike) has decided to store all stores in the United States, Canada, Western Europe, Australia and New Zealand in from March 16th to 27th to avoid the spread of the new coronavirus. Stores in most parts of Korea, Japan and China will be open and will continue to operate normally, while consumers can shop through the official website and Nike App. For headquarters staff, Nike will provide home office and peak shift offices, while increasing cleaning and disinfection in the workplace to protect employees' health and safety.

    Adidas closes its stores in North America and Europe. Adidas announced that it will temporarily close Adidas and Reebok stores in Europe and North America to curb the spread of the new crown virus. European stores will be closed in from March 18th to 29th, and stores in the US and Canada will be closed in from March 17th to 29th. The company said: "in Adidas, the health and safety of employees, customers and partners are the top priority issues," adding that the affected employees will receive pay compensation.

    ...

    Faced with the difficult situation, all garment enterprises are actively seeking countermeasures, such as expanding the electricity supplier channel and increasing the proportion of domestic sales. Most entrepreneurs say that the primary goal is to survive first and wait for the consumption recovery after the epidemic.

    It is understood that the current stage, the garment factories and raw materials factory recovery rate of more than 80%, the resumption of production is no longer a problem. The problem now is that after resuming work, raw materials and capacity are available, but customers suddenly start reducing orders.

    China is a large exporter of garment and textile industry. It has the most complete apparel industry chain in the world. Its output value accounts for 70% of China's foreign trade surplus. 60% of the world's apparel products are manufactured in China, and 20% of the international trade in semi finished products such as spinning, cloth, zipper buttons and China are related to China. The most closely associated with this industry chain is the international brand representative factory. The bosses of these factories are anxious these days, worried that the European and American market will continue to be depressed.

    As the recovery of China's consumer market has just begun, domestic customers' orders are not ideal, and there are even orders to stop orders, or to discount the purchase price. Many factories not only make foreign trade orders, but also make domestic ones. Bosses say that the impact of the outbreak of the domestic market is very great. Many brands that have been sold under the market have suspended many orders that have not been put into production or are being produced.

    A factory owner who owns OEM products, such as UNIQLO, said that the factories in Japan today are better than factories in Europe and the United States, but Japanese customers, including UNIQLO, do not dare to place orders in autumn and winter. They also reduce orders. According to Japan's Ministry of finance trade statistics, imports from Chinese clothing and subsidiary products decreased by 65.7% in February.

    Due to shortage of orders, some factories are ready to start off in April 1st. A boss said, "if you stop now, you will lose more if you lose."

    It is understood that the export oriented Chinese garment industry chain is greatly affected by the epidemic situation in Europe and America. The yarn is the upstream raw material of the garment, the weaving mill purchases yarn and weaving, then sells the cloth to the printing and dyeing factory, and the printing and dyeing factory supplies cloth to the garment factory. The epidemic first affected the domestic sales and export orders of garments, affecting the re transmission to upstream printing and dyeing, fabrics, and then weaving, weaving back to spinning. Now the upstream textile, printing and dyeing, fabrics, and downstream garment enterprises are very cautious in their attitude, and do not plan for large-scale procurement of raw materials as usual.

    At present, the price of cotton yarn is also falling. According to data and futures data of China Cotton Textile Industry Association, cotton yarn prices and cotton prices are down in the near future.

    Not only foreign trade, but also the impact of the epidemic on the domestic market.

    Barbara is the Semir group's children's clothing, and the factory owner who provides ODM (Design + production) services for the brand tells the finance and economics reporter that Barbara had told the factory that all the orders that had not been operated were suspended, and that the shipment had been shipped, and that the payments payable in February had not yet been concluded until April. The brand has also asked suppliers to help sell goods, ranking suppliers, and vice presidents have also made live broadcasts.

    It is understood that balbala, Taiping bird, seven wolves and so on opened a large number of physical stores domestic brands, at present, the pressure is great. Many brands rush to ship, and the boss takes the lead in selling them at a cost less than in the circle of friends. In order to survive, some brands have begun to lay off staff.

    In addition, some factories operate under the condition of arrears of downstream raw material producers' accounts and arrears of workers' wages. The transaction between the brand and the factory is on credit sale mode, the operation order is 2 -3 months, after the 2 -3 months after shipment, the money has not been entered for a long time, and the factory has to pay for the operation and payment of labor. If the financial condition is not good, it may be difficult to maintain during the epidemic period.

    The impact of the epidemic on clothing consumption and the survival of the industry, factory owners are adjusting their mentality, some bosses said that in 2020 do not seek money, only to maintain capital.

    Bosses said that after the outbreak of European and American epidemic, the most serious ones were traditional foreign trade companies, namely, domestic sales channels and single trade factories with insufficient channels to develop e-commerce.

    A boss who has never tried the channel of e-commerce, set up an e-commerce team in February, and registered his brand, and began to explore the practice of the electricity supplier.

    However, there are also some bosses who believe that they can not place too much hope on the electricity supplier: "the electricity supplier has sales volume, because the electricity supplier opens the door, and the line closes down. This is not a demand, it is habitual consumption. Only consumers can go out and look around, and have the opportunity to socialize in new clothes.

    On the positive side, some bosses really began to change their minds in response to the impact of the epidemic. In the past, I didn't dare to do online. I felt that the price was different between online and offline. The boss who was hard to do online began to do online, do the jitter, and began to try for the future transformation.

    The epidemic has also pushed everyone to re-examine all project groups and work links, and promoted internal reforms such as online and mobile offices. People from previous companies went to a meeting, and now they use video conferences and corporate WeChat to send documents. The hour will be reduced to half an hour. Some worthless links in the work have also been cut down, and the IT and system have been improved, and the order completion speed has also been improved.

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