Affected by the epidemic, the apparel industry will start cold in 2020. As a typical seasonal economy, offline sales scenes such as shopping malls, department stores, and specialty stores that rely on spring clothing sales stopped for a time. Facing the month of life and death of spring clothing sales, since March, many shopping malls in Zhengzhou have ushered in resumption of work. However, due to multiple factors such as epidemic management and control, the flow of physical stores is much worse than before.
From the downstream retail terminal to the upstream clothing company, the whole chain of the clothing industry is trying to find a new way to break the situation under the impact of the epidemic. Mini-programs, webcasts, private domain traffic ... Pessimists see it as "cold rice and fry", and optimists are using it as an industry inflection point and trying to break the ice. Under the examination of the epidemic situation, a way forward for the apparel industry is starting.
Epidemic Black Swan strikes spring clothing market, multiple clothing stores in Zhengzhou are slow-selling
Under the epidemic, the clothing industry is suffering from "dark moments." Because the Spring Festival market is closed for too long, most of the physical clothing stores are mainly closed. Although some shopping malls have resumed business after the resumption of work, under the dual pressure of epidemic control and market demand, the spring clothing market has not fully ushered in the "spring" of the industry.
"It's really difficult to sell spring clothes this year." On March 5, Ms. Li, sales manager, told reporters in a women's clothing store in Xidigang Shopping Center, Zhengdong New District. "Because of the epidemic, passenger flow has not been high since the mall opened, and occasionally customers who enter the store may not be able to close the deal."
Although before the Spring Festival, major shopping malls and clothing stores have launched new spring clothes invariably, but due to the sudden epidemic and the impact of store closures, sales are far less than in previous years. Not only brand stores, but also some large shopping malls have encountered similar situations. The reporter visited a number of shopping malls in Zhengzhou and found that due to passenger flow control during the epidemic and other reasons, the slow-selling phenomenon of spring clothing this year was obvious. The head of Zhengzhou, a fast fashion brand, told reporters that compared with the same period last year, sales had fallen by 40% to 60%.
In addition to the epidemic reasons, the price of spring clothes this year has made many citizens feel "hot." During the visit, the reporter found that this year's spring clothing did not have a large-scale discount promotion, and even some clothing prices were a little high. In some fast-fashion brand stores, the price of ordinary long-sleeved bottoming shirts placed in the "Spring New Products" area is between 249 and 299 yuan, and some uniquely designed shirts are more expensive, while the price of small leather jackets is even more More than 3,000 yuan.
"It should have been the peak season for spring clothing in March, but this year the market is not strong, and no discounts will be offered. It is time to put on summer clothing after April." A brand clothing salesperson from Xidigang Shopping Mall told reporters that the store's new online clothing Sales volume has increased by more than 20%, but the number of visits to store applets and keyword searches related to spring clothing has only increased by about 5% in the past 7 days, which also shows that consumers' current demand and desire for spring clothing is not strong.
Weak market terminal, large backlog of spring clothing inventory
The outbreak has forced offline retail to be shut down. In fact, inventory has always been the number one problem for apparel brands. Under the combined influence of epidemic factors, some apparel companies and distributors have missed the spring clothing market, which has led to a surge in corporate inventory, which has affected a series of problems such as capital turnover in the future.
"Because of the failure to predict the impact of the outbreak of spring clothing sales, some manufacturers have not had time to adjust the number of spring clothing production, so many apparel brands this year, a large backlog of spring clothing inventory." Zhengzhou, a clothing company chairman told reporters. According to the reporter's understanding, in order to reduce inventory, although a number of garment companies in Zhengzhou have officially resumed work, according to previous years, the quarter should have accounted for a quarter of the spring clothes. At present, the proportion of the annual clothing launched by various womenswear manufacturers, the proportion It is generally lower than 20%, and some are only about 15%.
A related person in charge of a certain women's pants company in Zhengzhou told reporters that only tens of thousands of spring clothes were tentatively launched this year, at least doubled in previous years. "Most of the current production is summer clothes, and only some spring clothes that can be worn with summer clothes have some orders." The person in charge told reporters that compared with previous years, the spring time of this year's spring clothes has been greatly shortened, and the spring life of individual brands "It was only 20 days.
As the primary problem of the clothing industry, corporate inventory will not only affect the cash flow of the enterprise in the short term, but it will not be solved for a long time and may even increase the storage and transportation costs of the enterprise. "From the current market perspective, to reduce inventory, service companies must form the correct ecological concept and industrial supply chain, explore more new retail and digital operations, and improve the efficiency of inventory clearance." Industry sources told reporters.
Apparel companies that have missed the price of spring clothes face far more pressure than inventory. According to the law of the apparel industry, from February to March, apparel companies began to produce summer clothes. After missing the spring clothes market, the pressure on apparel companies 'funds and inventory of spring clothes will increase, which will further affect the apparel companies' purchase demand for summer clothes.
"But as the number of newly diagnosed people in the epidemic continues to decline, the market will gradually return to popularity, and the industry chain demand will begin to resume." The industry insiders predict that spring clothing may usher in a late peak of sales in early April.
Expansion, thunderstorm, store withdrawal ... Sales of the "Song of Ice and Fire" under pressure from fashion apparel brands
In fact, the "freezing point" of the clothing industry is not entirely due to the epidemic. As early as the first two years, the fast-fashionable brands that have become popular all the time gradually began to adjust the store layout, or withdraw from the main store locations, or close the main stores in the city's main shopping districts. Behind a series of changes, it reflects the new stage of national consumption upgrade to the forced transformation of the apparel industry.
On December 21, 2019, the official website of MUJI released news that MUJI began to set foot in the home improvement business in the Chinese market. Once the news was launched, it quickly caused industry fluctuations. "Is this a new direction for MUJI's diversified layout? Or has it stalled in China in recent years and is eager to launch new businesses to get out of the predicament?" Similar questions have raised heated discussions online. . According to its first-quarter financial report for fiscal year 2020, within the three months ended May 31, 2019, the sales of good product plans increased by 5% year-on-year to 112.3 billion yen (approximately 7.1 billion yuan), and net profit was year-on-year. It fell 31% to 6.5 billion yen (about 400 million yuan). This is MUJI's first profit decline in eight years, and its net profit has fallen by more than 30%.
Time is moving forward. As the only store of American fast fashion brand Forever21 in Zhengzhou, Forever21 on the first floor of Xidi Port in Zhengdong New District also closed after the Spring Festival in 2019, and released a message on its official website at the end of April last year to gradually withdraw from China. market.
The song of ice and fire of the fast fashion brand is much more than that-Lachabelle's actual controllers have breached the contract and the tide of closing stores has continued, while Uniqlo continues to occupy the Zhengzhou market's horse race enclosure. The development of the international giant H & M is showing signs of fatigue ... 2019 In terms of the Zhengzhou region alone, the days of fast fashion brands have their own "laws." From the crazy expansion a few years ago to today or barely supporting or "lost" out, in the clothing retailing industry with brands, the battle for fast fashion brands seems to have never stopped.
"With the upgrading of Chinese residents' consumption, consumers are more concerned about quality." Song Xiangqing, deputy dean of the Government Management Research Institute of Beijing Normal University and director of the Industrial Economics Research Center, pointed out that the rapid expansion of fast fashion brands is related to the positioning of fast fashion brands. This is also one of the characteristics of fast fashion brands. He said that consumers often buy fast-fashion clothing because of their favorite fast-fashion brands or styles, rather than buying favorably to the brand. The emotional connection between the brand and the consumer is weak, so consumers tend to lose.
Bringing goods online for "ice breaking"! The epidemic weighs on the road to rejuvenation of traditional clothing companies
It is worth noting that industrial upgrading and consumption upgrading will also spawn more market opportunities. In the headwind, the clothing industry of Endeavour may use online models such as live delivery and community e-commerce to open the road to self-rescue and revival. This development momentum has become more apparent during the epidemic.
"The snap-up time is 8 o'clock tonight, and there is still the last 5 minutes before the start of the rush. Taobao live broadcast, see it." On the afternoon of March 9, Ms. Zhang, a citizen of Zhengzhou, opened a clothing counter in a shopping mall in the Eastern District that she often visited Live trailer. She told reporters that compared with discounts in physical stores, merchants have greater discounts on live broadcasts. Shopping guides will issue a series of coupons in the live broadcast room and provide a small amount of supplies for fans to snap up. Overall, a piece of clothing is about 200 yuan. Compared with the normal Shanghai Xinxin, there will be a discount of about 30 yuan, and the more discounts the more orders will be superimposed.
The reporter visited the Huayuan Road shopping mall and found that many brand businesses have shifted their positions and started online sales. A shopping guide of a clothing brand in China World 360 Plaza told reporters that due to the epidemic situation, many colleagues have begun to try online live sales, launch promotional advertisements on live broadcast or WeChat and QQ fan base, and transform online sales.
Except for Zhengzhou, in contrast to the domestic market, during the epidemic, the red dragonfly with “Chinese leather shoes king” closed 4,000 stores offline. After painful thinking, it resumed 5,000 shopping guides online through cloud resumption, and its daily sales exceeded 200. More than ten thousand yuan, thus revitalizing the business.
"This reflects that the clothing industry has opened a wide range of online and offline omni-channel layouts. Enterprises with significant results in supply chain optimization also have great advantages." Market participants told reporters that online and offline integration will become a kind of clothing industry Normalization exists, and the seamless connection between online and offline depends on channel integration capabilities.
The person analyzed that with the development of China's retail industry into a new era, quality, personalization, and customized consumption will become the new fashion of fast-moving consumer goods industries. He said that after the epidemic, it is expected that retail brands represented by the clothing industry will continue to accelerate the adjustment in the future in terms of joining e-commerce platforms, launching high-end new brands, and launching joint names.