Clothing giant hand in worst report card market or huge loss of nearly 300 billion US dollars

 Clothing giant hand in worst report card market or huge loss of nearly 300 billion US dollars

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 bustling and full of people taking goods. 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.

Compared with previous years, the gap between this years 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 in the process of reshuffle, on the one hand is the collapse of enterprises, 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

CCTV finance and economics economic information broadcast column video

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

Under the influence of poor management and epidemic situation, Victorias secret British company, a famous underwear brand headquartered in New York, the United States, has entered into bankruptcy liquidation procedures. More than 800 jobs are in danger. The Victoria Secret Show in Shanghai, China, has become a fashion masterpiece of lbrands.

In recent years, Vimy began to go downhill. To save the brand, Victorias 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 mens 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, sales of INDITEX, Zaras parent, 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.

Last year, Chinas fast-moving consumer brand La chapel closed 4400 physical stores. In the first quarter of this year, revenue continued to decline sharply, down 57.75% year-on-year.

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 A-share companies disclosing medium-term performance forecasts, and the net profit base has dropped sharply compared with the same period. 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 the global garment market will lose 297 billion US dollars in 2020 due to the new coronavirus epidemic. 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.

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, domestic brands account for more than 70% of the brands with total sales of more than 100 million yuan in the first quarter.

Womens 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. Mens clothing brand commongender has adopted the online and offline combination and omni channel sales mode as soon as it comes into the market.

Online sales of clothing brands, with the recovery of logistics, business is back on 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%. The financial report also pointed out that investment was being accelerated to support the e-commerce business.

Ye Tan, an expert in finance and Economics: great changes have taken place in the mode of business channels. If online marketing can be combined with distributors, the transformation can be successful and the enterprise can stand out. If online marketing and offline marketing cant work, such enterprises will be merged.

With the post-90s and 00s 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 the clothing branch of China Textile Import and Export Chamber of Commerce: as an enterprise, it is necessary to enhance its core competitiveness and constantly respond to changes in the market and consumers, which is the magic weapon for success.