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Huge loss nearly 300 billion dollars! Clothing giant in bankruptcy crisis, sales promotion and price reduction "self rescue" still in time?

Clothing giant hand in "worst" report card, the market may lose nearly 300 billion dollars! How to carry the cold winter?

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?

01

Clothing market downturn, discount promotion become normal

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.

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.

02

Global clothing industry collective winter

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, 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, sales of INDITEX, Zara's 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.

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

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 can't work, such enterprises will be merged.

With the post-90s and '00's 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.

Under the new economic situation, our factories should break through the rules and make new breakthroughs, so as to achieve a new development direction under the new situation. This is especially true in our polyester yarn factory.