Global clothing industry collective winter: from leading the trend to catering to the market closure
Global clothing industry collective winter: from leading the trend to catering to the market closure, constantly shuffling and accelerating
According to the past years, when the e-commerce platform was in full swing on June 18, offline stores in the clothing industry would seize the opportunity to attract consumers with discount, coupon and other modes. However, the epidemic seemed to suck when the epidemic became normal.
During a visit to a business district in houshayu, Shunyi District, Beijing, a reporter from Securities Daily learned that stores including Nike, Adidas and so on all displayed billboards with different degrees of discount. When the level of prevention and control of the epidemic in Beijing increased, the door of these stores posted a notice that "the current limit of our store is 4-5 people", and there are few customers in the stores.
A staff member of a high-end outdoor sports clothing store told reporters that some of the goods in the store are at least 40% off, and new products are at least 20% off, two pieces can enjoy 20% off. "It used to be hard to get such a big discount.".
Despite the awesome discounts, reporters saw that consumers were still few in number during the observation period. "Affected by the epidemic, fewer people are buying clothes offline now." Another clothing brand store staff to reporters: "the flow of people in the working day itself is not big.". A while ago, the level of epidemic prevention and control was reduced, and the weekend traffic increased significantly. "
It is worth mentioning that, in the context of shrinking consumption, a number of clothing giants have handed over a dismal report card. In the hot summer, the global clothing industry seems to have entered the winter as a whole.
Garment giants hand over "worst" report card
Recently, data released by INDITEX group, 45 year old Zara's parent company, showed that the company had its first quarterly loss in 2020. Amancio Ortega, the world's richest man and founder of INDITEX group, who once surpassed Bill Gates and founded a hundred billion dollar clothing group, can only admit the loss in the face of the epidemic.
It is understood that over 88% of INDITEX's stores were closed during the first quarter. By the end of April, the group's eight clothing brands, including Zara, had only 965 stores in the world, less than one seventh of all stores.
Mengqi, the former head of Jingdong new channel strategy, told Securities Daily: "the fundamental reason for the decline of clothing enterprises' performance is the shrinking market demand. Affected by the epidemic, the overall income of enterprises declined; in addition, as people reduce outdoor activities, people's consumption decreased. In addition, the production of enterprises is also affected, especially on the premise that upstream and downstream industries are also impacted, people's income is reduced, and people's consumption capacity is reduced accordingly. "
In the case of unsatisfactory business data, closing stores has become one of the consensus of giants. INDITEX said it plans to permanently close 1000 to 1200 of its stores, or 13 to 16 percent of its global stores.
"It's right to close stores. If the cost of opening a store is higher than the operating income, closing some poorly managed stores is also a way to improve performance in order to lock in profits," Munch told Securities Daily
International Clothing giants are tightening their belts, so what about the domestic clothing industry?
Tonghuashun data shows that in the first quarter of this year, 23 of the 53 listed companies in Shenwan garment home textile industry suffered losses. In addition, eight clothing home textile companies issued the performance forecast for the first half of 2020, including one expected first performance loss, one expected continued performance loss and two expected performance decrease.
"Although the company's performance in the first quarter of this year has declined, the company has gradually resumed the operation of offline stores since the end of March. By April, in addition to some parts of Hubei, the company's offline stores had basically resumed business. " The head of a clothing listed company told Securities Daily.
The head of another well-known domestic clothing brand told the Securities Daily: "during the epidemic, the relevant stores of the company. However, with the outbreak under control, the company's stores have all resumed operation. The company has been developing online business, so in the first quarter of this year, the company's revenue still achieved year-on-year growth. In addition, after the outbreak, the company stepped up the modification of production lines for medical protective clothing and masks, which also contributed to the growth of performance. "
In fact, with the gradual resumption of offline stores, the performance of domestic clothing enterprises can still be maintained. With the global development of the epidemic situation, garment export enterprises are facing a "shortage of orders".
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