A sudden epidemic has caused an unprecedented impact on many industries, and the fashion industry is no exception. The 2020 autumn and winter fashion week has begun. According to previous plans, many Chinese fashion practitioners should be preparing to rush to New York, London, Paris and other places, but now they are forced to change their work plans. In addition, many brands have closed stores in China, which has also brought a big blow to the offline retail industry. Brands have to pay attention to the online field…
The lack of “Chinese” fashion shows
In previous years and this time, the traditional “big four” fashion weeks, where big names gathered, were undoubtedly one of the main platforms for international brands to attract the attention of luxury consumers. Many artists have also created a more high-end personal image by participating in the “big four” fashion weeks, in the name of “front row shows” and “brand invitations”.
2020 New York Fashion Week, Hiroshi Fujiwara , Edison Chen, Quan Zhilong, Travis Scott, Tom Sachs, Drake and others attended the show and took photos together.
This year, with the further spread of the epidemic, this year’s practice of both Chinese brands and Chinese artists using Fashion Week to seize the traffic high ground will be broken. After the WHO defined the COVID-19 epidemic as a public health emergency, the Chinese public relations teams and celebrities of major brands canceled their fashion week schedules, not only out of concern for preventing the further spread of the epidemic, but also for their own concerns about watching the show news. No expectations for exposure.
The celebrity team said that going to fashion week at this time is not only contrary to mainstream values, but also more likely to set a wrong example by going against the trend and being punished. criticized by the public. Interleaving news about show looks in multiple epidemic-related hot searches is tantamount to self-defeating. The impact of the epidemic on the luxury goods industry
As one of the markets with the largest proportion of luxury goods sales in the world, the Chinese market plays a decisive role in the entire industry. status.
This year, due to the outbreak of the epidemic, the number of Chinese traveling overseas, especially group tourists, will show a downward trend in the short term. According to McKinsey’s “China Luxury Products 2019 Annual Report”, in 2018, Chinese people’s luxury goods consumption at home and abroad accounted for one-third of the total global luxury goods consumption. By 2025, total luxury goods consumption is expected to increase to 1.2 trillion yuan, accounting for 65% of global luxury goods consumption.
In the past two weeks, due to market concerns that the epidemic will be detrimental to the Spring Festival holiday sales that should have soared in revenue, the stock prices of many top luxury goods companies have fallen significantly. LVMH and Kering Group respectively fell 8.5% and 8%, Burberry fell 12%, and Capri Holdings, the parent company of Michael Kors and Versace, fell as much as 14.7%. The market’s nervousness once set a record, with the sector’s market value evaporating $15 billion in one day.
It is reported that Japan’s Fast Retailing Group has closed 130 of its UNIQLO stores in China, and Swedish fast fashion giant H&M has also temporarily closed 13 of its stores in Wuhan. Gap and Old Navy have also taken measures to close stores one after another, and denim brand Levi’s has closed half of its stores in mainland China, saying that the epidemic will hinder its ability to achieve financial growth goals. Just a few months ago, one of its largest stores in China opened in Wuhan.
UBS recently It also issued an announcement stating that the luxury goods giant LVMH Group’s full-year sales in 2020 will decline by 3%, of which the Chinese market may plummet by 30% in the second quarter. If the brand show lacking celebrities and bloggers fails to achieve the expected publicity effect, will it bring hidden dangers to the luxury goods sales market in 2020? Will there be a bonus period of “retaliatory consumption” after the epidemic is over? At present, No one has an answer yet.
It is difficult for clothing companies to resume work! 85% of companies have insufficient cash for 3 months!
Chinese factories shut down, leaving the world without food or clothing! However, it will not be easy for enterprises to resume work this year, especially small and micro enterprises: no money, no one, no raw materials, no traffic, and no market!
Survey data on 995 small and medium-sized enterprises show that currently 85.1% of small and medium-sized enterprises have cash on their books The maintenance time is less than three months. How many problems do small and micro enterprises face in resuming work?
Lack of manpower, limited cash flow, insufficient raw materials and insufficient consumption capacity have made it impossible for many factories to resume work. Even if they resume work, they cannot restore production capacity.
At present, manpower is the biggest problem. Employees’ reluctance to return to work has become a problem for many small and medium-sized enterprises.During the peak period, spring and summer products are bound to be unsalable and accumulate. If the founder’s cash flow is poor, it will be a big problem in autumn and winter when the capital investment is higher. If the cash flow can still support the autumn and winter, but the performance in autumn and winter is not good, he will face a whole year of bleeding. Online operations show advantages China’s extension of the Spring Festival holiday has caused many corporate employees to postpone their return to work, which has had a considerable impact on production and supply chains. In order to ensure the health and safety of every staff member of the brand and related personnel, the offline release will be converted to an online format to continue. While offline activities and physical retail are suffering setbacks, online e-commerce and various service platforms may usher in unexpected growth opportunities. McKinsey’s “2019 China Luxury Goods Report” pointed out that China’s luxury goods online sales revenue reached a record high of US$7.5 billion in 2019. China’s luxury goods e-commerce market will continue to explode in 2020, with a growth rate expected to exceed 50%. As the holidays are extended and people choose to stay at home more for safety reasons, “online shopping” has become an alternative to people’s offline consumption. Brands may be able to make up for some of their offline retail losses through e-commerce services. It is foreseeable that this epidemic will become a protracted battle for fashion companies. Regardless of the sales model or sales channels, fundamental changes are needed to pave the way for future crises.
</p
