Sales Performance Poor, Love Group Closed Stores

The epidemic of new crown pneumonia has impacted many industries. The fashion industry has been greatly affected by the reduction of people's going out and leisure activities. In South Korea, where the fashion industry is quite prosperous, in the first half of this year, the 40 year old fashion giant Yilian group closed its stores, and other fashion brands are also looking for a way out.

The well-known Xincun business district in Seoul is a place where many young people enjoy entertainment and shopping. According to the city's epidemic prevention regulations, people need to wear masks here. There is a shopping center that gathers several clothing brands and catering brands of the clothing group. Affected by the epidemic situation, in the first half of this year, since the establishment of the company, the 40 year old group has seen a double-digit quarterly decline in sales. The group has successively closed several stores in Daegu, Incheon and other places. From September to the end of the year, more than 1000 managers, who account for nearly one-third of the total number of employees of the company, have taken periodic unpaid leave.

At the same time, the group sold more than 20 store parking lot management rights for 10 years to raise liquidity. Love group also said that in the second half of the year, it will decisively close loss making stores, consolidate the operation of core stores, and re plan the development of the company centered on the network.

The reason why E-love group moved to the network market is mainly because of the rapid growth of online consumption in South Korea in recent years, especially this year. According to data from the South Korean statistics agency at the beginning of this month, online shopping volume in South Korea increased by nearly 30% year-on-year in August, and clothing and cosmetics categories increased by more than 6% year-on-year.

At present, many fashion enterprises in South Korea aim at online shopping platform and make special online brands as a breakthrough. Some fashion designers also choose to enter the online shopping platform to sell their own clothing, and take the way of booking before making to reduce inventory pressure.

As people go out less this year, they are not sensitive to the trend of fashion. Some clothing brands have launched "non seasonal" clothing, which can reduce the seasonal elements to ensure that they can be worn for at least 10 months of the year, which is welcomed by consumers.

At the same time, in view of the popularity of golf this year, Korean clothing enterprises have launched Golf style clothing, hot underwear and other clothing, in order to get a share of the market. In addition, some clothing enterprises choose to find another way, such as purchasing cosmetics companies, or developing their own beauty brands, so as to create a shopping space integrating beauty and clothing.