A few days ago, the Guangdong Provincial Clothing and Apparel Industry Association, the Guangdong Provincial Fashion Designers Association, and the Guangdong Provincial Fashion Industry Economic Research Institute jointly released an industry research report that showed that since the outbreak of the new coronavirus pneumonia, supply and sales have been poor, inventory backlogs, financial constraints, etc. The problem is the main dilemma faced by Guangdong garment enterprises. As major professional markets, industrial clusters and garment companies in Guangdong Province resume work one after another, how to get the industry out of the trough has become the biggest test facing the garment industry in Guangdong Province.
Guangdong’s garment industry gradually achieves order Resumption of work
This survey of the garment industry in Guangdong Province was conducted on 273 companies, 8 industrial clusters and 6 professional garment markets. In the survey, 71.2% of the companies reported that at present, the upstream and downstream companies in the industry chain are starting operations out of sync, resulting in insufficient supply of raw materials and auxiliary materials and poor sales channels; 54.8% of companies reported that due to stagnant sales and delayed orders at offline physical stores, Defaults lead to inventory backlogs and tight liquidity.
Among the companies participating in the survey, as of early March, 68.5% had gradually resumed work, accounting for 37.8% of the number of workers under normal production conditions; 31.5% of companies had not yet resumed work due to various reasons. Most companies will achieve full resumption of work in mid- to late March, and about 10% of companies will achieve full resumption of work by the end of April.
Garment companies generally report that in the process of resuming work, the company faces many difficulties such as unsynchronized resumption of work by upstream and downstream companies in the supply chain, reduced orders, obstacles to workers returning to work, poor transportation and logistics, and lack of protective resources. and problems that need to be solved.
Judging from the resumption of work of industrial clusters, the eight industrial clusters participating in the survey have all begun to gradually resume work. The average resumption rate in early March was about 70%. The resumption of work of enterprises above designated size is relatively good. The government where the cluster is located actively assists enterprises in preparing for resumption of production, builds confidence in industry development, and assists in purchasing protective equipment. Production-oriented industrial clusters have reported that due to the delayed resumption of work in the professional market, cluster production companies have no orders and cannot resume production even though they have protective conditions. Therefore, they hope to promote the timely exchange of information upstream and downstream of the industrial chain and promote the interaction between cluster production companies and professional markets. , help enterprises to promote production and promotion and get help.
Judging from the resumption of work in professional markets, as of the beginning of March, 5 of the 7 representative professional markets participating in the survey have resumed work, namely Baima Clothing Market, Hongmian International Fashion City, Guangzhou Textile Trading Park, Xintang Clothing Trade City, and New China Building. The Zhongda Cloth Market, led by Guangzhou International Textile City, has not yet resumed operations. Thirteenth Bank, Clothing City and Hongpantian Clothing Wholesale Market are still waiting for government notification. Xintang Clothing Trade City, which features e-commerce sales, took the lead in resuming work on February 20. The resumption of work in the professional market is of great significance to the recovery of the entire industry and is the most important first step in the resumption of production in the garment industry. At present, companies and designers are eagerly looking forward to the opening of the Zhongda Cloth Market. Fabric accessories are in the upper reaches of the clothing industry chain. Without raw materials, it will directly affect the products designed by designers, and clothing companies will not be able to resume production.
Multiple measures were taken to resolve the market pressure caused by the epidemic
March On the 25th, Bu Xiaoqiang, President of the Guangdong Provincial Garment and Apparel Industry Association, attended the 47th press conference on epidemic prevention and control held by the Information Office of the Guangdong Provincial Government and answered questions from reporters.
According to Bu Xiaoqiang, Guangdong is the largest garment province in my country, and the garment industry is one of the nine pillar industries in Guangdong. Guangdong’s garment output accounts for 1/4 of the country’s total. Clothing products have significant seasonal characteristics. The warm winter in 2019 has caused an increase in winter clothing inventory, and the peak sales season of spring clothing in 2020 has been missed due to the delayed opening of the market due to the epidemic. Delayed resumption of work and production will continue to affect summer sales in 2020. According to analysis, the impact of the epidemic on the garment industry may last until August, putting great pressure on corporate liquidity and expenses.
At present, the number of shops in Guangdong’s key textile and apparel markets has exceeded 60%. However, a series of problems such as declining buyer flow, poor commodity circulation, and tight liquidity are still hampering market recovery. To this end, the Guangdong Garment and Apparel Industry Association has played a role as a bridge, providing timely guidance, communication and coordination, and reducing operating pressure for merchants through rent reduction.
According to Bu Xiaoqiang, the Guangdong garment industry previously initiated the “Guangdong Garment Fashion Together” campaign to promote the industry’s resumption of work and production from three aspects. At the same time, the “Yuehuo” online consumption promotion platform was built, including 15 online platforms such as JD.com, Tmall Overseas, and 1688, as well as 41 textile and clothing merchants associations, 10 textile and clothing professional markets, 39 media and 30 10,000 campus trend promoters from multiple universities actively participated. At present, the “Yuehuo” WeChat applet has been launched, and more than 300 representative clothing brands in Guangdong have been launched online. While reducing losses for clothing companies, it also provides benefits to consumers. In the next step, version 2.0 will be launched to link professional clothing market merchants with garment industry cluster manufacturers in Guangdong Province, foreign trade base export enterprises, etc., to enhance the overall brand influence of Guangdong clothing.
However, although clothing is one of the categories with the highest penetration rate of e-commerce, the Internet cannot replace the traditional cooperation methods between the upstream and downstream industries. A fashion designer told reporters that although the clothing market has experienced 20 years of e-commerce, the offline physical wholesale market in the Zhongda Textile Business District is still thriving. “OnlineFashion can be seen but not touched, and products such as clothing require personal experience. This is a step that the Internet cannot replace. “The designer said.
Using consumption to stimulate the recovery of the industrial chain is an important starting point
At the end of January, all 59 professional wholesale markets in Zhongda Textile Business District postponed their opening. As of March 9, Guangzhou Textile Trading Park resumed business, becoming the first in Zhongda Textile Business District. The market is ushering in the resumption of business. For more than a month, downstream garment factories have been unable to obtain raw material supplies, which has affected the recovery progress of the entire industry chain.
Shahe is the three major clothing trading centers in Guangzhou One of its most famous wholesale markets, Wanjia Clothing Wholesale Market, only officially resumed operations on March 17. Many merchants in the market told reporters that since the factory has not yet fully resumed operations, most of the current supply comes from festivals. current inventory.
“The epidemic has indeed disrupted the rhythm and arrangement of the entire industry chain. Bu Xiaoqiang said that according to the seasonal sales of the clothing industry, March and April each year are the shipping time of summer clothes, and June and July will turn into the off-season for sales. However, at present, the recovery of passenger flow and logistics is not ideal. , will affect the company’s cash flow.
In addition, some responsible persons from fabric suppliers said that in previous years, the three months after the resumption of work during the Spring Festival were the most important months for merchants throughout the year, because these three months The turnover will account for 35% of the total turnover for the whole year, and the turnover for the remaining nine months will account for 65%. Therefore, the company has been prepared to suffer losses throughout this year.
In order to reduce the adverse impact of the epidemic on the garment industry, Guangzhou City has launched 15 measures in February to reduce or exempt 2 months of rent for small, medium and micro enterprises and individual industrial and commercial households operating offline commercial stores in the city. Currently, rent reduction and exemption has been implemented 830 million yuan. The reporter learned that Hongmian Fashion City, Chengda Fashion Plaza and Wanjia Clothing Wholesale Market have all announced specific policies on rent reduction and exemption. In some markets, in addition to exempting two months of rent, rent from April to the second half of the year There are also certain discounts.
However, in Bu Xiaoqiang’s view, on the surface it is a rent issue, but in fact, even if rent is free for one year, if there is no recovery of passenger flow, logistics and cash flow, the business’s Sales cannot be revived. “At present, the factors affecting the apparel industry are mainly two-fold. First, the epidemic has affected passenger flow, and second, the crude oil price war in the international market directly affects the global financial and consumer markets. “Bu Xiaoqiang believes that the most important thing at the moment is to first restore the confidence of clothing merchants, and secondly to stimulate domestic clothing demand, and the method of stimulating it must have a grasp, “It is not to increase factory production, but to effectively stimulate domestic consumers. Demand for clothing. ”</p
