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    The Epidemic Situation Made The Clothing Industry Worse, And A Large Number Of Famous Brands In Europe Went Bankrupt And Reorganized

    2020/12/5 13:23:00 0

    Epidemic SituationClothing IndustryBrandBankruptcyReorganization

    The structural crisis of European clothing retail industry has lasted for more than ten years, and the economic crisis caused by the new coronavirus epidemic sweeping this year has made up for the clothing industry.

    Arcadia group, the parent company of British fashion brand Topshop, filed for bankruptcy on November 30 due to a business downturn caused by the epidemic crisis, the Figaro newspaper reported. According to Deloitte, the group has yet to lay off staff and its business is continuing. After a month of closure during the epidemic, it reopened in the UK this week, with more than 9000 employees still enjoying "part-time unemployment". But the bankruptcy decision has made the fate of nearly 500 stores and 13000 employees uncertain.

    The French management of H & M, a famous Swedish fast-selling clothing brand, issued a notice to the trade union at the end of October, saying that the social and Economic Committee would be convened and negotiations would be held with the trade union within the restructuring plan, with a view to reaching a collective agreement, the Paris daily reported. The scale of the cuts involved in the social plan is not known, but the group has about 5000 employees in France, and its layoff plan shows that the clothing industry is experiencing a crisis.

    Elodi Ferrier, National Secretary of the French Federation of trade unions (CGT) in charge of clothing and footwear, recalled that in 2020, the clothing industry had launched a large number of bankruptcy and layoffs and other social plans, including the closure of the flagship store of the Champs Elysees in Paris by gap, the French vivarte group and Orchestra, damart and NaF NaF, camaeu, Promod, Andr é and other textile, clothing and shoe brands have announced restructuring and layoffs.

    Johan petiott, director general of the French national trade union, pointed out that the economic crisis caused by the epidemic is a supplement to the structural crisis of the clothing industry. "In fact, the crisis in this industry has been for more than ten years. In the past 12 years, turnover has fallen by 17%. Retailers are facing challenges from online competitors, from giants like Amazon to upstarts like vinted. At the same time, the price war between brands such as kiabi and Primark continues, with about one-half of the goods sold at a discount in clothing. And consumers' habits have changed. In the 1960s, French consumers spent 9% of their budget on clothes. Now, this proportion is only 4%. More and more young people focus on sustainability, and their ideas are different. "

    Cedric Duroc, President of dia mart, a consultancy, says that in this context, all brands that are not well-known will be affected. This is the case with Promod, camaeu and Jules & Brice. They are caught between low-cost brands and high-quality fast-selling brands such as Zara, Sandro and Massimo dutti, which are favored by consumers. Celio, too, announced the closure of 102 of its 478 stores and laid off 383 jobs in France. However, celio has a good brand image, and I believe it can still get out of the predicament.

    Although Cedric Duroc is optimistic that celio will emerge from the water, the industry outlook is not optimistic as to how many clothing brands will go bankrupt and restructure in the near future. In the past three years, the "yellow vest" social movement, the protest of retirement system reform and two consecutive rounds of epidemic blockade in France have intensified the structural crisis of clothing retail industry. Cedric Duroc pointed out that among the 220000 jobs in the French clothing industry, 40000 jobs have been lost, equivalent to 19%. If the Christmas schedule is not grasped, it will be a disaster.

    On the other hand, e-commerce is developing rapidly. Gildas minwell, director of economic observation at the French Fashion Institute (IFM), predicts that online clothing trade will grow by 20% in 2020 and 3% in 2019.

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