Woke up: 1 million meters in production, foreign trade orders canceled, overseas stores closed The tide, domestic textile bosses are crying, business is too difficult!
Affected by the new coronavirus epidemic, according to incomplete statistics from Business Insider, more than 30 retailers have announced notices of suspending operations. In addition to ZARA and H&M, they also include clothing brands Levis, Madewell, Uniqlo, and Calvin Klein. wait.
Zara plans to temporarily lay off 25,000 people
Due to the global outbreak, Zara parent company Inditex Group Sales fell 24% in local currency between March 1 and 16, and Inditex Group temporarily closed thousands of stores to help mitigate the spread of the coronavirus.
As of last Wednesday, the fashion giant had closed 3,785 stores in 39 markets. Inditex Group currently has 7,469 stores worldwide. Inditex Group Sales While sales fell 24%, it also bore the wages of approximately 175,000 employees employed in the Chinese market, Russia and the United States.
As China’s economy recovers, Inditex Group said it has begun to reopen in China. The CEO said on a conference call that the group’s online business in China continued to strengthen operations in February, but did not disclose specifics. Whether sales are increasing or decreasing.
At present, except for the 11 stores of Inditex Group in the Chinese market, all stores in China have reopened.
According to Reuters, if Spain’s state of emergency continues beyond April 15, Inditex Group is considering temporarily laying off about 25,000 store employees in Spain, which will be due to the outbreak of the new coronavirus. One of the largest such initiatives in Europe.
Inditex Group’s financial status, with net cash flow of approximately 8.1 billion euros, will strictly control operating expenses in the future to minimize losses.
In addition, in order to help the Spanish government solve the shortage of medical supplies such as masks and medical protective clothing, Inditex Group plans to convert some fabric production lines into professional medical fabric production lines.
H&M closes more than 1,000 stores in Germany and the United States
The world’s second largest ready-to-wear retailer, Sweden Fast fashion brand H&M announced on March 17 that due to the spread of the new coronavirus pneumonia epidemic, it would temporarily close all stores in Germany, the United States, Canada, Portugal, and Belgium from the 18th. The company currently has 460 and 590 stores in Germany and the United States respectively, which are the group’s first and second largest markets respectively.
At the same time, the company has closed Poland, Spain, Czech Republic, Bulgaria, Belgium, France, Austria, Luxembourg, Kazakhstan, Switzerland, Greece, Slovenia, Lithuania, Peru, Ukraine, All stores in Philippines, Malaysia and Cyprus. During the closure, customers can still purchase through online channels.
H&M said that the group’s Chinese business has gradually recovered, and 500 of the 516 branches have resumed business.
According to data released by H&M, during the quarter from December 1, 2019 to February 29, 2020, the group’s sales, especially those in the mainland Chinese market, were dragged down by the epidemic. From December 1, 2019 to January 23, 2020, sales in the mainland China market increased by 27% (in local currency). However, after the outbreak, demand dropped sharply, and the overall sales in the mainland China market fell in the quarter. 24%. Of the 518 H&M stores in China, 334 were closed in February.
The group stated that sales in the markets of Hong Kong, Singapore, Macau, Japan, and Taiwan increased by 7% year-on-year (in local currencies) during the quarter.
As the largest clothing retailer in Europe, its brands include H&M, H&MHOME, COS, &OtherStories, Monki, Weekday, ARKET and Afound. H&M currently has approximately 4,900 stores in 74 markets around the world, with 180,000 employees worldwide.
On the same day, German sports brand giant Adidas announced that it would temporarily close all directly operated stores in Europe and North America. According to the plan, European stores will be closed from March 18th to 29th, and stores in the United States and Canada will be closed from March 17th to 29th.
Affected by the new coronavirus epidemic, according to incomplete statistics from Business Insider, more than 30 retailers have announced notices of suspending operations in the United States, including clothing brands Levis, Madewell, Uniqlo, Calvin Klein, etc.
The data behind H&MvsZARA fast fashion giant
Belgian fashion technology analysis company Retviews recently released a fast fashion company market analysis report “H&MvsZara”.
The report compares the differences in brand positioning and category ratio between Swedish fast fashion brand H&M, Spanish fast fashion brand Zara and Spanish fast fashion brand Mango. At the same time, they also used data to analyze the product classification and pricing strategies of various brands under Zara’s parent company Inditex Group.
Above picture: Zara and H&M have different sub-category ratios (original report)
The report shows that in terms of main product categories, Zara and H&M�There is not much difference: the three categories with the highest proportions are: tops, skirts, and bottoms; the weights in jackets, shoes, and accessories are also roughly the same.
But their weights on other subcategories such as underwear, home wear, casual wear, and swimwear are different: these categories account for 18.6% of H&M’s total sales and 18.6% of Zara’s total sales. The proportion is only 10.5% – this is because Zara’s parent company Inditex Group also has a brand Oysho that specializes in underwear and home wear.
In addition to product categories, the pricing of Zara, H&M and Mango are also very different:
The average price of clothing: Mango is 39.8 euros, Zara is 35.9 Euro, H&M is 26.2 euros
The lowest price: H&M is 1.49 euros, Zara is 3.95 euros, Mango is 5.99 euros
The highest price Price: Mango is 599 euros, H&M is 399 euros, and Zara is 279 euros
Compared with H&M, Zara has a higher proportion of mid-to-high-end products. H&M has the highest proportion of clothing priced at 10 to 19.99 euros, accounting for 36%; although Zara also has the highest proportion in this price range, mid-to-high-end clothing (30 to 49.99 euros range) accounts for 29%, while H&M has the highest proportion in this price range. The proportion of range is only 18%.
Zara and H&M are also very different in clothing color selection. Black and white are the main colors of Zara clothing, but H&M uses more bright colors, with more pink, blue and gray.
In the 2019 fiscal year from February 1, 2019 to January 31, 2020, Zara’s parent company Inditex Group’s net sales were 28.3 billion euros, a year-on-year increase of 8%; net profit was 3.6 billion euros, a year-on-year increase 6%.
In the 2019 fiscal year from December 1, 2018 to November 30, 2019, H&M’s net sales were 233 billion Swedish kronor, a year-on-year increase of 11%; operating profit increased by 12% year-on-year to 17.346 billion Swedish kronor. , full-year profit increased for the first time since 2015. (Note: 1 Swedish Krona is currently equivalent to RMB 0.72)</p
