Although fashion retail stores around the world have reopened, suppliers to brands are facing greater difficulties: demand from brand retailers around the world is uneven, and the backlog of inventory in the spring has led to many cuts in autumn orders. Up to two-thirds.
Restocking has been postponed again and again! Clothing brands “flipping” spring inventory in the fall
As shoppers are still worried about being exposed to the new coronavirus when shopping in stores, retailers can only repeatedly postpone purchases and plan to sell spring in the fall Basic clothing leftover.
Siddiqur Rahman, a Bangladeshi clothing supplier that supplies companies such as Swedish fast fashion giant H&M and US clothing group GAP Inc, said: “We don’t think clothing orders will increase soon. Shipments may pick up before Christmas, but there is no guarantee.”
According to investment bank Bryan, Garnier & Co., the new crown epidemic is expected to cost the world $2.5 trillion. The dollar fashion industry shrank by up to 30% in 2020.
1. American sports giant Nike said it has canceled about 30% of factory orders before the autumn and year-end shopping seasons. H&M said it will sell some out-of-season spring inventory in the fall.
2. American fashion retail group PVH, the parent company of Tommy Hilfiger and Calvin Klein, said last month that the company is very cautious about autumn purchases because the same stores in its reopened North American stores Sales fell by about a quarter.
3. American fashion luxury goods group Ralph Lauren said it has canceled about two-thirds of its autumn orders; American casual denim clothing brand Levi Strauss & Co. (Levis) said it would put some unsold basic clothing on shelves in the fall.
Most stores in the United States and Europe have reopened, and there are long lines outside some malls, but in reality most consumers are still staying at home. A survey conducted by market research firm Coresight Research on June 24 showed that nearly 60% of Americans said they would not go to shopping malls for the time being. A survey by Morgan Stanley found that 57% of British consumers plan to stay away from clothing stores to avoid contracting the new coronavirus.
Retailer cancellations of orders have led to a sharp reduction in workload at factories across Asia, with hundreds of thousands of garment workers losing their jobs
Retailer cancellations of orders have led to a sharp reduction in work at factories across Asia. Hundreds of thousands of garment workers in Asia have lost their jobs since the outbreak.
Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association, introduced that new orders decreased by approximately 10% compared with the same period last year. 45%. Factories in Bangladesh, the world’s second-largest clothing producer, are operating at half their usual capacity.
With consumers wary of returning to stores, retailers have repeatedly delayed placing orders with suppliers as they try to gauge when consumer demand will return to normal. “We need to wait as long as possible on the purchasing side in order to make decisions at the moment closest to the recovery of sales,” H&M Chief Executive Helena Helmersson told Reuters. H&M last month posted its first quarterly loss in decades.
Recruiters for Vietnamese clothing companies also face difficulties. Vietnam is a large-scale enterprise such as Nike and Adidas. Major manufacturer of sportswear brands. Recruitment consultant Will Tran told Reuters that he and his colleagues had only signed two hiring orders in April and May, when typically each person had as many as 10 orders. He said: “So 80% to 90% of the job demand disappeared with a ‘poof’.”
A domestic manufacturer: “Dead Sell at a loss and try not to collapse before dawn”
“Desai Group was founded in 1993. We currently have 10 advanced assembly lines and an average daily output of 20,000 pairs of shoes. The annual GDP exceeds 1 billion yuan, of which foreign trade accounts for the vast majority.” Zhuo Xuxu, channel general manager of Wenzhou Desai Group, told reporters.
Desai Group Production Line
According to According to the introduction, “Desai” products are sold to many countries and regions such as the United States, Europe, the Middle East, and West Africa, and are also Chinese OEMs for many international first-tier brands.
At the beginning of this year, the domestic epidemic broke out, but Desai’s export orders have been scheduled until April 2020. In order not to delay production, Desai, with the help of the Wenzhou government, sent his own vehicles to pick up employees from Sichuan, Yunnan and other places, and resumed work and production as soon as possible. But just when Desai overcame various difficulties and tried his best to produce shoes according to the original order, the global epidemic broke out again, and international customers such as Russia, Japan, and the United States notified Desai to cancel their orders.
Zhuo Xuxu used “desperation” to describe the state of the entire Desai at that time. Half of the 10 assembly lines were stopped. . “We are selling at a loss now. We have no choice. Don’t think about making money first, we must survive first.” Zhuo Xuxu said.
Guangzhou Pinliu Industrial is also experiencing suffering. This company’s annual sales exceedThe company with over 200 million yuan mainly exports beauty products and tools overseas, such as compressed facial masks, cotton pads, cotton towels, heating patches, shoulder and neck patches, etc. It is also a OEM for well-known brands such as Watsons.
Guangzhou Pinliu Production Line
“Affected by the epidemic this year, overseas orders have shrunk severely, and the factory is in a very difficult situation.” Wu Yong, chairman of Guangzhou Pinliu Industrial Co., Ltd., told reporters , although he has long been aware of the risks of only doing foreign trade, and has tried to transform into domestic trade before, but the effect is not ideal, because the competition in the domestic market is fierce, and the threshold is very high for factories without brand experience.
“The price war is so serious now that I have lost my underwear, but there is no other way. Carrying it to death.” Wu Yong “Amway” every time he meets someone: “Now is really the best time to buy things. If it weren’t for the epidemic, how could it be so cheap? The factories are selling at a loss.”
Wu Yong said that when many bosses in the same industry communicate, the word they talk about most is “endurance”. Because many factories have closed their doors or changed owners.
“Let’s see who can survive these few months. It’s best to survive until ‘Double 11’, the next wave The opportunity has come. In fact, there are now many preferential policies in various aspects, such as rent reductions, preferential accounts and loans, and subsidies from the government and platforms… Spring has come, but we are still on the road, and we strive not to fall before dawn. It’s victory,” Wu Yong said. </p
