Clothing Giant Hand In "Worst" Report Card, The Market May Lose Nearly 300 Billion Dollars! How To Carry The Cold Winter?

The new crown epidemic in 2020 will make the garment industry even worse. Under the current situation of shrinking orders, enterprises are facing difficulties in reducing production demand?

Clothing market downturn, discount and promotion become normal

CCTV finance and economics "economic information broadcast" column video

Guangzhou Panyu clothing market is a famous clothing wholesale market in China. In the past, the market was crowded with people taking goods, but now there are few customers in the whole street.

Usually, there are few discounts in the clothing wholesale market. Generally, the price is set according to the quantity of the customers. This year, the banners of discount and promotion appear in almost every store.

Discount promotion is not a special case of the clothing wholesale market. On the other side of Wuhan, "shopping paradise", chuhehan street, which has well-known brands at home and abroad, will carry out the discount promotion to the end.

On the other hand, compared with the previous years, there is a gap of 20% discount for clothing manufacturers in the early stage of the epidemic. On the other hand, there is a gap of 40% off the normal supply level of the clothing industry. Still, there are not many consumers.

Financial expert Ye Tan In fact, there were a lot of similar clothing brands in China before this epidemic. Now is in the process of reshuffle, on the one hand, the enterprise is closed down, on the other hand, some new brands will come out.

According to the official data of China Garment Industry Association, from January to may 2020, the retail sales of clothing goods of units above the quota in China totaled 288.7 billion yuan, a year-on-year decrease of 25.6%, and online retail sales of wearing goods decreased by 6.8%.

Global clothing industry collective winter

Under the impact of the epidemic, domestic and foreign clothing brands have been affected. Some brands are facing bankruptcy, others have to close many stores around the world. The global clothing industry is experiencing a cold winter.

Under the influence of the bankruptcy of the famous brand L in New York, the famous brand l-800 in Shanghai has entered into the risk of bankruptcy and operation.

In recent years, Weimi began to go downhill. To save the brand, Victoria's secret has made a lot of efforts from changing the brand spokesperson to developing new products. But at present, the self-help measures have little effect.

On July 8, Brooks brothers, a 202 year old American men's wear brand, filed for bankruptcy. The New York Times says the Brooks brothers are the United States "Continue to operate the oldest clothing brand" 。 Since their birth in 1818, the Brooks brothers have provided clothing for 40 presidents of the United States, including Lincoln, Roosevelt, Nixon, Kennedy, Bush, Clinton, Obama and trump.

The Brooks brothers survived the two world wars and the great depression, and many Americans called the classic brand almost the same age as the United States as "national pride.". Even though With 200 years of brand capital yield The Brooks brothers are still unable to withstand the impact of the epidemic.

In the three months to the end of April INDITEX sales fell 44% year-on-year to 3.3 billion euros, with a net loss of 409 million euros 。

INDITEX has announced plans to close 1000-1200 stores by 2021.

• China's "fast selling" brand lashabel closed more than 4400 physical stores last year, and its revenue continued to decline sharply in the first quarter of this year, with a year-on-year drop of 57.75%.

• Sweden's H & M, the world's second largest clothing retailer, had 3778 stores temporarily closed by the end of March.

• Gap, the largest clothing brand in the United States, has been in a state of fatigue long before the epidemic. Under the influence of Xinguan epidemic, the sales volume of gap in the first quarter decreased by 43% to 2.1 billion US dollars, and the operating loss reached 1.2 billion US dollars. The sales of all offline stores of all brands decreased by more than 50%.

Ding Shijie, textile and garment industry analyst of Guoxin Securities Economic Research Institute From the situation of domestic listed companies, we can see that the whole textile and clothing industry, including manufacturing and brand sales, has 28 companies in A-share market disclosed their medium-term performance forecasts, and their net profits have basically decreased significantly compared with the same period of last year. Among them, 9 companies are in advance of loss, and the proportion is about 32%.

Global data, an international research and consulting company, pointed out that affected by the new coronavirus epidemic, In 2020, the total loss of global clothing market will reach 297 billion US dollars 。 The biggest losses will be in the most mature markets. More fashion companies are expected to file for bankruptcy in the coming months.

Under the epidemic situation, how does the clothing industry ride the storm?

CCTV economic information program

Layoffs, pay cuts, production and business suspension are the initial three axes for clothing enterprises to save themselves. Now, with the opportunity of new retail and 5g technology, transformation and upgrading has become a new hope for the garment industry.

According to the data of the National Bureau of statistics, in the first five months of this year, China's retail sales of clothing, shoes, hats, needles and textiles totaled 406.7 billion yuan, down 23.5% year-on-year.

On the contrary, UNIQLO, a clothing brand with declining sales, achieved a year-on-year increase in revenue and profit in Greater China in May, and its performance rebounded significantly.

Ma Ying, Secretary General of clothing branch of China Textile Import and Export Chamber of Commerce From the consumption trend after the epidemic, consumers tend to pursue the ultimate cost performance of products without reducing their consumption level and quality of life with limited consumption funds.

Chinese brands, represented by cost performance, also gained growth momentum in this crisis. According to the data of Ali Research Institute, domestic brands account for more than 70% of the brands with total sales of more than 100 million yuan in the first quarter.

Women's clothing brand golia on February 14, the small program live broadcast a single day of nearly 4 million transactions.

Although half of its stores were closed during the epidemic period, the average daily retail sales of taipingniao, a domestic clothing group, still exceeded 10 million yuan through wechat second killing, small program distribution, and live broadcasting in turn in different cities or regions. Men's wear brand common gender adopts the online and offline combination and omni channel sales mode as soon as it comes into the market.

With the return of online marketing, clothing business is also on the right track. Adidas financial report shows that brand e-commerce channel sales increased by 35% in the first quarter, and the growth rate in March alone reached 55%. It is also pointed out that e-commerce is accelerating its investment.

Financial expert Ye Tan : great changes have taken place in the current business channels and modes. If online marketing can be combined with its distributors, and the transformation can be successful, such enterprises can stand out. If online marketing and offline marketing can't work, such enterprises will be merged.

With the post-90s and '00's becoming the main force of consumption, their preferences, habits and needs have attracted much attention. Focusing on personalized consumption experience has become the characteristics of young people. In this wave, changes in the clothing industry are quietly coming.

Ma Ying, Secretary General of clothing branch of China Textile Import and Export Chamber of Commerce As an enterprise, we should first improve our core competitiveness and constantly respond to changes in the market and consumers, which is the magic weapon for success.