This makes the overall weak footwear and clothing market in 2019 conservative about the profit rebound in 2020. It can be predicted that this epidemic will become a lasting war for fashion enterprises.
After understanding the current situation and Countermeasures of several clothing enterprises, e-commerce companies and shopping malls, interface fashion found that the current difficulties of larger enterprises mainly come from offline sales, which can not feed back the costs in store rent and human employment. E-commerce companies, small and medium-sized enterprises and independent designer brands are relatively more flexible because they do not have too heavy physical store layout, and their performance losses are not as serious as those of large enterprises, but they have to simplify new frequencies and styles due to lack of production capacity.
Lu lualways, a Shanghai clothing brand, has more than 250 stores in China. Wang Bing, the founder of Lu lualways, told interface fashion that since the outbreak in January, there has been almost no income offline. For our brand retail enterprises, this epidemic is almost a devastating blow.
The pressure comes directly from goods, rent and manpower.
Because of the early spring festival this year, many retailers began to produce new products in advance. Wang Bing said that some clothing enterprises have completed 70% of orders and spent a lot of money, but the sales in the next few months can not be made up at all. The shops that have not been closed still need to be maintained by employees, so the expenses of shop rent and employees wages cannot be avoided.
Wang Bing predicted that for many garment enterprises and upstream supply chain, it would be difficult to maintain these two hard expenditures for no more than three months in the declining industry environment.
In order to jointly alleviate the pressure of retail industry, about 20 domestic real estate enterprises, such as Wanda, China Resources Land and Longhu, have reached out to the merchants of their shopping malls and offered to reduce rent. In this rent free tide, most of the rent is halved, and a small part is totally free. The duration of rent reduction varies from half a month to two months.
Perhaps the agreement between the two parties will be adjusted periodically with the development of the epidemic, but at present, short-term rent reduction seems to be the best sincerity of the owners.
The strategy of Zhongxiang Taifu, a real estate company, is to free half a months rent for cooperative merchants. Cao Rui, director of investment promotion of Guiyang hunt city square, a shopping center of the company, told the interface fashion that the new year was the best time for the mall to perform every year, and the rent free shopping mall caused great losses this time.
On February 9, Hunter city square will reopen. Cao Rui predicted that catering brands relying on materials will not open at the same time due to slow logistics and other reasons. After opening, the department store will also temporarily stop holding activities and publicity. Merchants and shopping malls need to communicate more at this time.
Taigu Real Estate Co., Ltd. said to the interface fashion that it has launched the highest level emergency plan including canceling the recent large-scale public celebration activities and allowing merchants to flexibly arrange business hours according to their own conditions. In terms of rent, the corresponding reduction scheme will be developed according to different business types and demands of merchants, and the specific details are being communicated with merchants.
At the same time, not only shopping malls, clothing enterprises and agents also need to share difficulties.
Wang Bing said that before, many agents had ordered from lulualways. After the outbreak, they decided to take over the orders of agents that had been produced in April. In fact, we could have made profits, but this decision will cost the company 15 million more. Because once the agent loses money, we have no way out in the future. We are both prosperous and disadvantaged. We did our best in the whole chain.
Lulualways also adjusted the number of orders to the factory, reducing the original planned quantity that has not yet been placed to control costs. It also emphasizes that in this period of time, online revenue increase, while in the aspect of physical stores, wechat marketing, wechat mall, live broadcast and other non-contact financial marketing strategies are carried out.
Optimistic estimates suggest that there may be a more pronounced rebound at the end of April. Wang Bing said.
Jiumuwang said to the interface fashion that the recent adjustment in business strategy is to strengthen online sales and start to implement measures to deliver SF within 24 hours after placing an order. Taipingbird also said that it will focus on the promotion of omni-channel sales and flexible supply chain, open multiple sales modes such as spring discount and online live broadcast of online shopping mall, invite fans to cloud shopping, and all of them will be free of charge.
Perfect diary said to the interface fashion that the delay of factory resumption and the shortage of workers will lead to the insufficient supply of some products, which will affect the daily sales of the brand and the original promotion activities in March. There will also be delays in logistics.
2019 is the year for perfect diary to develop offline market. As of December 25 last year, 36 Direct stores have been opened. For the arrangement of offline stores in the near future, the perfect diary indicates that it will flexibly adjust the employees who are suspended under the distribution line to support online customer service, so as to ensure the normal operation of online business.
On the impact of the epidemic on retail, the perfect diary is optimistic. The company said that during the SARS epidemic in 2003, the growth rate of grain, oil, food and other mandatory consumption was the most stable, and the growth rate of cosmetics in optional consumption basically remained stable. Therefore, even if the industry has been impacted, it is difficult for enterprises, and should not be too pessimistic.
Compared with these large and medium-sized fashion enterprises, small fashion enterprises such as designer brands and buyer shops will have higher flexibility.
Nini, the director of Shanghai fashion design studio, told interface fashion that the biggest problem at present is that it is unable to resume work according to the original schedule, and the commencement time needs to refer to the resumption time of the supplier and the opening time of the office in the park - the office of the studio in Kunshan No. 1 park is currently suspended with the closure of the park. In addition, the offline activities originally scheduled for the end of February have also been cancelled.
The studio plans to attend Shanghai Fashion Week at the end of March. Before the Spring Festival, it has produced some new series samples, but the whole new series has not been designed. If the factory and the park can be back to work on February 10, we can keep up with the rest of the design and sample production. Nini said.
Liu Xinyu, founder of the designer brand collection store labelhood Lehu, told the interface fashion that because the designer brand is small and tmall store is not open during the festival, the impact seen at present is not significant.
Labelhoods four stores will open online from February 3 to 9, and will open offline on February 10. Liu predicted that the containment of the epidemic on consumers wishes could last until April and may.
According to her understanding, many designer brands are still controllable in the supply chain. Some brands have finished production before the Spring Festival, and some designers will share small workshops.
It can be seen that the lag in the operation of factories and logistics will directly affect the pace of clothing enterprises. Although online brands do not bear the pressure of the rent of physical stores, they are afraid to take it lightly at this time due to the characteristics of being fast and active.
SUPERR, an online brand for womens wear, has completed the shooting, ordering and most production tasks of all new products from February to March, but Wang Jing, the founder of SUPERR, cannot predict when it will return to normal.
At present, SUPERRs two publishers are unable to determine the date of returning to Shanghai, and the fabric accessories and process development suppliers are unable to operate normally in a short period of time, resulting in the stagnation of new development. A week ago, Wang decided to suspend plans to launch a new series at Shanghai Fashion Week at the end of March.
I dont want my employees to resume their normal work process too soon. After all, there is a high risk of infection in daily transportation and indoor gathering work. She told interface fashion.
At present, the new spring festival activity of the companys online store on February 18 will not be cancelled, but this plan is to take a picture of an activity on March 8 on February 20, but it cant be carried out normally due to all the delays in returning to work. Xiaofeng said that the original companys online store will be renewed twice a week, and now it will resume work on February 10 with the frequency of once a week. The number of new SKUs and stock will be reduced accordingly. He believes that logistics does not guarantee timeliness at present, which will slow down the enthusiasm of consumers to buy clothes. However, since the outbreak of the epidemic, the performance of online stores has not declined too much, and is optimistic about the performance after that. In the past, the sales volume of e-commerce in the new year was average, and it only picked up from the 16th of the first month. *Nini and Xiaofeng are pseudonyms. Source: editor in charge of interface news: Chen Hequn, nb12679
At present, the new spring festival activity of the companys online store on February 18 will not be cancelled, but this plan is to take a picture of an activity on March 8 on February 20, but it cant be carried out normally due to all the delays in returning to work.
Xiaofeng said that the original companys online store will be renewed twice a week, and now it will resume work on February 10 with the frequency of once a week. The number of new SKUs and stock will be reduced accordingly.
He believes that logistics does not guarantee timeliness at present, which will slow down the enthusiasm of consumers to buy clothes.
However, since the outbreak of the epidemic, the performance of online stores has not declined too much, and is optimistic about the performance after that. In the past, the sales volume of e-commerce in the new year was average, and it only picked up from the 16th of the first month.