While fashion retail stores have reopened around the world, brands’ Asian suppliers are facing greater difficulties: mixed demand from brand retailers around the world, and a backlog of inventory in the spring has led to cut orders for the fall. As much as two-thirds.
Retailers have been delaying as shoppers remain worried about being exposed to the coronavirus when going into stores. Restock and plan to sell remaining basics from spring in the fall.
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 believe that clothing orders It won’t increase anytime soon. Shipments may pick up before Christmas, but there’s no guarantee.”
According to investment bank Bryan, Garnier & Co .It is expected that the new crown epidemic will shrink the global fashion industry worth US$2.5 trillion by up to 30% in 2020.
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.
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 of its reopening Same-store sales at North American stores fell by about a quarter.
U.S. fashion luxury goods group Ralph Lauren said it has canceled about two-thirds of its autumn orders; U.S. casual denim clothing Brand Levi Strauss & Co. (Levis) said it will put some unsold basic clothing on the shelves in the fall.
Most stores in the United States and Europe have reopened, and there are still long queues outside some malls, but in fact most consumers are still stay 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.
Cancellation of orders by retailers has 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.
Helena Helmersson
H&M CEO Helena Helmersson told Reuters: “We need to “We are waiting as much as possible to make a decision at the moment closest to the recovery of sales.” H&M last month posted its first quarterly loss in decades.
Recruiters for apparel companies in Vietnam, a major manufacturer of major sportswear brands such as Nike and Adidas, also face challenges. 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 percent of the job requirements just ‘poof’ disappeared.”</p
