This year is undoubtedly the most difficult year for the garment industry in the past 10 years. To this day, many companies are still unable to resume work due to the epidemic.
It is suffering from inventory, rent and basically zero offline customer flow. Big brands are trembling, while small brands are pressing the pause button.
Someone made a calculation for clothing people: usually sales from January to February account for about 10%-15% of the whole year. The epidemic has suspended offline sales, which will directly lead to an 8%-10% decrease in annual revenue.
What’s even more painful is that it can’t increase revenue and reduce expenditures.
Even if a brand has only 150 employees, the loss in wages, rent, taxes, water and electricity, etc. alone can reach 1 million to 2 million in one month.
China’s garment industry is now standing in the center of the storm to welcome the impact. But perhaps, this is also an opportunity for evolution – forcing us to expand our thinking and reorganize the business at hand.
01
About profit
Offline combined with online, on-site upgrade
A storm has blown away fashion and disrupted the economy. Compared with the SARS crisis in 2003, this “chill” is even worse.
First came the wave of store closings.
Uniqlo: Closed 270 of the 750 stores in the Chinese market
H&M: Closed all stores in Wuhan, a total of 13 stores
Levi’s: Closing about half of its stores in China
Adidas: Temporarily closing some stores in China and saying it will have a negative impact on short-term performance
Nike: Closing about half of its stores in China, UBS issued a report saying that its performance from mid-January to the end of February will plummet by 70%
Burberry: Closing China 24 of the 64 stores in the mainland market are suffering from cash flow problems again.
“The biggest problem caused by the epidemic is cash flow.” Xu Weidong, chief academic officer of Shanghai Dongzhou Fashion Institute, believes that whether it is a direct operation model or a franchisee system, after the business ceases The biggest difficulty is cash flow.
So what is the main problem causing this situation?
Single profit model
Before this, except for large In addition to the accelerated integration of offline and online brands, most small and medium-sized clothing stores completely ignore this point. Even in 2019, when live broadcasts were popular, they turned a blind eye and completely missed the opportunity.
But now, clothing people realize that physical objects alone are not enough.
As a result, everyone began to actively adjust their strategies, upgrade on the spot, and attack the line. Every day, thousands of people start “grabbing business” with Li Jiaqi and Wei Ya.
Yinman, linked to more than 600 store owners across the country to carry out social marketing
Eifli, through the community to save themselves in a timely manner, Taking advantage of the situation to promote membership through all channels
Youngor, store shopping guides carry out online and offline integration through groups, friend circles, and targeted push
Peacebird uses online to achieve sales in half of its suspended stores, and the average daily total sales exceeds 8 million
Lingzhi, the total transaction volume on the six antennas of the online mini program has exceeded 28 million yuan;
Golia opened the mini program mall, and it reached 3 million yuan on February 7th.
This is like the story of “killed by a cow”. When you lose your life-saving straw, you can immediately find another profit model.
Although the bullet of the virus has injured the company, it has also shattered the inherent thinking of the bosses: online is not only a channel, but also a strategy and an entire industry. Chain is a brand new business model.
Therefore, this epidemic will definitely force traditional clothing to upgrade its profit model.
02
About Customers
Motherly Love Algorithm → Fatherly Love Algorithm → Best Friend Algorithm
If you don’t want to be “betrayed”, you have to re-understand yourself and your relationship with consumers.
In fact, there have been two iterations of the relationship between us and consumers – “mother’s love” to “father’s love”. Now I think it should be transformed into “best friends”.
What is the difference between them?
Motherly love sales = give users whatever they want
Fatherly love sales = I will tell you what is good, listen to me
Friend Sales = I listen to your needs and then select the best ones.
These key points are not sales, but who is qualified to be “mother”, “father” and “best friend”?
Gonghejun believes that for clothing people, you need to be much ahead of the majority of the audience’s cognition, and your aesthetic level reaches a certain level, and consumers trust you enough before you can obtain it. “Qualification as a best friend.”
And when you can become a “best friend”, your brand power will also expand.
Gonghejun never thinks that brand power must be expensive. When you occupy the minds of customers with high-quality content, products, and services, and they think of you first every time they shop, then It is a display of brand power.
But all this is based on your understanding of Sufficient professionalism, love for the clothing industry, and sincerity to customers.
An epidemic will surely make clothing people cherish every customer even more.
03
About marketing
Maintain quality and quantity, and tell good stories
As mentioned in the previous point, we can see the needs of consumers, so we must seize the needs and satisfy them. How to do this?
First of all, ensure that the product is good from beginning to end; secondly, use activities or stories to build momentum for yourself.
It is no longer possible to do business as we did 10 years ago. Nowadays, no matter how fragrant the wine is, the alley is too deep. If you don’t do marketing, you will definitely be left behind by your competitors.
Let’s see, as soon as the epidemic broke out, brands such as Peacebird and Gloria, which already valued online operations, took advantage of their advantages to maintain their popularity.
What should we do with brands that didn’t pay so much attention to online operations before? tell a story.
For example, many brands are currently choosing to switch to producing protective clothing and masks, or donate supplies to the hardest-hit areas. During this period, brands that spread more positive stories will be more likely to be remembered by consumers and will shift their consumption later.
Just as everyone shouted before, “I owe my mother a movie ticket” and “I owe Bosideng a down jacket”, this is the same truth.
Is marketing enough? Of course not, what is more important is the stability of the quality of these brands themselves. Only stable marketing and stable products will make consumers trust you steadily.
So, we still cannot relax about our products during the epidemic, but we need to pay attention to marketing. This is what is called “maintaining quality and quantity, and telling good stories.”
The epidemic will allow consumers to redefine clothing brands, which in turn will make every clothing person pay more attention to marketing and ensure quality.
04
About cognition
The further you look, the faster you become and the longer you live
Three years ago, the clothing industry was fighting for traffic, data, and hot sales;
Three years later, the clothing industry is fighting for results, transformation and thinking.
Personally, I think the most important thing for clothing people now is whether they have enough thinking and ability to quickly regroup in the face of every sudden bombing.
We can see from the market trends in recent years: after every “disaster”, the survivors are the companies that actively embrace change.
In 2003, when SARS was raging, JD.com launched an online sales model and gradually developed into one of the two major e-commerce platforms;
In 2017, the “store closing wave” “After that, Li Ning closed 178 stores, optimizing the experience stores and taking the “big store” route;
After the impact of e-commerce in 2018, Heilan Home cooperated with Tmall to upgrade its 5,000 offline stores For new retail “smart stores”;
……
These people who have put themselves to death and survived, All have become leaders in the industry. The crisis did not defeat them, but rose against the trend and stimulated their potential.
This epidemic is the same for us clothing people.
According to Maslow’s hierarchy of needs theory, consumers will pay more attention to safety needs in the short term and spend less on clothing. But after the epidemic is over, consumption generally rebounds with a vengeance. Clothing consumption will also rise in stages.
At this moment, we may be caught off guard, but the epidemic will also increase consumers’ awareness of health, aesthetics, and quality. pursuit of life.
Just like the Wenchuan earthquake, the Sichuan market quickly became a key market for all walks of life to seize. People who have experienced and experienced disasters up close are more willing to consume.
05
About mentality
Anytime Anywhere, stay ambitious
To be honest, the clothing people I know are very discouraged during this time. They thought that customers were unable to go out and had no need to dress up, so they also began to close stores?
In fact, staying at home does not mean that fashion is not needed. The more depressed people are, the more they need “beauty” to regulate themselves.
Taking photos of various objects has become a big hit on Weibo recently, and you can get a glimpse of it.
In addition, the popularity of short video platforms has also attracted many people You can also share your dressing experience at home. We call it “cloud fashion”. So we can see that even if everyone can’t go out, the desire for fashion and beauty still exists.
As of June 30, 2018, the number of Internet users in my country has reached 802 million, of which 569 million are keen on buying online.
Since everyone still has demand, we must learn to take advantage of adverse trends. Stay ambitious, hold on to hope, and maintain the most basic beauty of clothing people even if you work from home.
Don’t panic, don’t lose, don’t give up, this is the best “combat state” at this moment .
So, this storm
is not only a persecution, but also a kind of growth
For clothing people, 2020 is already a new 10-year exam. It not only tests your strength, but also tempers your will.
��still exists.
As of June 30, 2018, the number of Internet users in my country has reached 802 million, of which 569 million are keen on buying online.
Since everyone still has demand, we must learn to take advantage of adverse trends. Stay ambitious, hold on to hope, and maintain the most basic beauty of clothing people even if you work from home.
Don’t panic, don’t lose, don’t give up, this is the best “combat state” at this moment .
So, this storm
is not only a persecution, but also a kind of growth
For clothing people, 2020 is already a new 10-year exam. It not only tests your strength, but also tempers your will.
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