The new crown epidemic in 2020 will make the garment industry even worse. Under the epidemic situation, the production and operation of clothing enterprises are hindered, facing multiple difficulties such as the reduction of market demand and the shrinking of orders. What is the current survival status of the enterprises?
Clothing market downturn, discount and promotion become normal
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.
Compared with previous years, the gap between this year's clothing industry and previous years is obvious. On the one hand, the manufacturers were unable to start operation in the early stage of the epidemic, which led to the untimely supply of goods; on the other hand, there were too many discounts in retail stores, which should be 20% off the normal level, and now it has reached 40%. Still, there are not many consumers.
Ye Tan, an expert in finance and Economics: before the outbreak of the epidemic in China, there were many similar clothing brands, including those that had done a lot before, and they were all going bankrupt in a series of ways. 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 poor management and epidemic situation, Victoria's secret British company, a famous underwear brand headquartered in New York, the United States, has entered into bankruptcy liquidation procedures, and more than 800 jobs are in danger. The Victoria Secret Show in Shanghai, China, has become a fashion masterpiece of L brands.
In recent years, Vimy 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. According to the New York Times, Brooks brothers is "the oldest clothing brand that continues to operate" in the United States. 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 with 200 years of brand equity, the Brooks brothers have not been able 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 disclosed the medium-term performance forecast, and the net profit base has dropped significantly year-on-year. Among them, 9 companies are in advance of loss, and the proportion is about 32%.
Global data, an international research and consulting company, points out that under the influence of the new coronavirus epidemic, the global garment market will lose 297 billion US dollars in 2020. 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?
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-effectiveness 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, tmall's cumulative sales of more than 100 million yuan in the first quarter of the year were in the first quarter
The new crown epidemic in 2020 will make the garment industry even worse. Under the epidemic situation, the production and operation of clothing enterprises are hindered, facing multiple difficulties such as the reduction of market demand and the shrinking of orders. What is the current survival status of the enterprises?
Clothing market downturn, discount and promotion become normal
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.
Compared with previous years, the gap between this year's clothing industry and previous years is obvious. On the one hand, the manufacturers were unable to start operation in the early stage of the epidemic, which led to the untimely supply of goods; on the other hand, there were too many discounts in retail stores, which should be 20% off the normal level, and now it has reached 40%. Still, there are not many consumers.
Ye Tan, an expert in finance and Economics: before the outbreak of the epidemic in China, there were many similar clothing brands, including those that had done a lot before, and they were all going bankrupt in a series of ways. 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 poor management and epidemic situation, Victoria's secret British company, a famous underwear brand headquartered in New York, the United States, has entered into bankruptcy liquidation procedures, and more than 800 jobs are in danger. The Victoria Secret Show in Shanghai, China, has become a fashion masterpiece of L brands.
In recent years, Vimy 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. According to the New York Times, Brooks brothers is "the oldest clothing brand that continues to operate" in the United States. 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 with 200 years of brand equity, the Brooks brothers have not been able 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 disclosed the medium-term performance forecast, and the net profit base has dropped significantly year-on-year. Among them, 9 companies are in advance of loss, and the proportion is about 32%.
Global data, an international research and consulting company, points out that under the influence of the new coronavirus epidemic, the global garment market will lose 297 billion US dollars in 2020. 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?
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-effectiveness 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, tmall's cumulative sales of more than 100 million yuan in the first quarter of the year were in the first quarter
