“Although clothing is a necessity of life, the basic physiological needs of keeping warm and covering the body have weakened. It is more of a psychological need, a demand for aesthetics, scene needs, and conformity needs. The quantity of clothing consumption demand in the short term It is declining. After all, if you wear a mask and go out, no matter how beautiful you are, who will show it? Not to mention spending more time at home, a set of pajamas is versatile.”
After the outbreak, most people Clothing brands have temporarily closed most of their stores. Even if they remain open, physical stores are almost empty, and many domestic apparel retailers have seen their Spring Festival sales plummet.
Shenzhen clothing brand Yinger currently has more than 1,300 physical stores across the country, half of which have been suspended (the revenue of the remaining half is not optimistic);
Shanghai clothing brand Lulualways I Love Lulu currently has more than 250 stores across the country. Since the outbreak of the epidemic in January, there has been almost no offline income;
Belle 2 Monthly performance fell by 80%, and it is impossible to predict in March;
As of February 5, there are only more than 50 operating stores in Inman, accounting for about 10% of the stores nationwide.
Levi’s has recently closed half of its stores in the Chinese market, which is expected to account for 3% of the group’s revenue, which will have a negative impact on the group’s short-term growth goals. ;
Nike announced that it will temporarily close about half of its stores in China, and the remaining stores will shorten their business hours. Nike predicts that its operations in China will be “substantially affected” and its financial report released in March will include relevant data;
Uniqlo has closed 270 stores in China, accounting for 10% of the total stores About 40% of the total, its revenue in the international market will be further hit in the short term;
H&M closed 13 stores in Wuhan;
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The impact of the 2020 epidemic on domestic clothing consumption demand
Clothing Although it is a necessity of life, the basic physiological needs of keeping warm and covering the body have weakened. They are more psychological needs, including aesthetic needs, scene needs, and herd needs. In the short term, clothing consumer demand is declining. After all, if you wear a mask and go out, no matter how beautiful you are, who will you show it to? Not to mention spending more time at home, a set of pajamas is versatile.
Under the epidemic, according to Maslow’s hierarchy of needs theory, short-term consumer preferences are changing, one ebbs and the other ebbs. Safety needs are ranked first. In the short term, safety protection and medical equipment , insurance, and food industry consumer spending increased.
In the short term, it will have a greater impact on tourism, entertainment, catering, hotels, department stores, and traditional manufacturing industries, which will inevitably affect consumer income. Consumer income is expected to decline, and consumer spending on clothing will naturally decrease. .
Within a cycle after the epidemic is over, consumption will generally rebound with retaliation. According to optimistic analysis, clothing consumption will also rise in stages. The epidemic will affect people’s consumption outlook to a certain extent and improve consumers’ awareness of health and aesthetics. , the pursuit of quality life.
1. Impact on textile and garment production factories. Factories are labor-intensive enterprises. Most garment factories are at the bottom of the industrial chain, and their status is negligible. And know. The first problem faced by the factory is “resumption of work”. Not starting operations will result in costs, which means losses. The resumption of work is expected to be delayed by 20-30 days on average, and it will take longer to restore production capacity. The main production areas of clothing are Guangdong, Zhejiang, Jiangsu, Fujian, and Shandong provinces. Under the epidemic, even if many companies resume work one after another after February 7, the proportion of non-local workers will not be too high before March. Even if they come back, they will not be able to go to work during the quarantine period. The return time of bosses returning to their hometowns in Hubei and Wenzhou areas will be delayed. A situation will arise where employees either cannot come back, or cannot return to work, or have no work to do when they return. What preparations should the factory make before and after starting work?
Establish an epidemic prevention and control team before starting work and hold online meetings with core managers; make good use of management tools such as DingTalk and Enterprise WeChat to communicate online at any time;
Learn, master and implement the relevant enterprise resumption operating procedures issued by the government, and formulate a safe start-up manual;
Relevant operating standard training after the start of work;
Analysis of various production factors and investigation of material requirements;
Communicate with non-local workers and employees to determine the expected number of returnees and return time, and adjust recruitment arrangements ;
Communicate with customers about the new pace of product development, adjustments to sales plans, production, and shipping rhythms;
Work with supporting supplies Communicate among chain links, understand the delayed resumption of work in each link of the supply chain, and assess the impact on their own factories and response measures;
Emergency measures to be taken once the epidemic is discovered.
The second problem faced by the factory is the delay of “summer orders”. Around March is the peak period of summer delivery. The direct consequences of order delays are: first, the problem of deductions for default, and second, the problem of increased inventory. Garment companies need the upstream and downstream industry chains to work together to complete orders. If supporting companies cannot resume work simultaneously, a lot of work will not be completed. Under such circumstances, two situations may arise. On the one hand, insufficient demand, and on the other hand, insufficient supply of summer products due to delays in starting construction and lack of industry confidence.
The third problem faced by the factory is “Industry warning: Within a cycle after the epidemic ends, consumption will generally rebound in a retaliatory manner, and clothing consumption will also rise in stages. So after the epidemic, what changes should clothing brands make in response? In addition, many companies and brands were caught off guard in the face of the sudden epidemic. In this epidemic, in addition to finding ways to actively “help themselves”, clothing brands also need to sum up experience and formulate response methods and system mechanisms after the risk arrives.
✦ Respond quickly and improve product research and development capabilities. There are too many uncertainties in the market after the epidemic. No one can predict accurately. Therefore, clothing Enterprises must always pay attention to adjustment and innovation, and constantly adapt to market changes. It is necessary to continue to innovate in various dimensions such as products, ways of reaching and connecting users, based on meeting users’ needs for convenience, aesthetic upgrades, personalized consumption needs, and consumption growth needs after the epidemic.
✦ Maintain flexible inventory. Zhang Qing, an apparel industry analyst and CEO of Key Way Sports Consulting Co., Ltd., mentioned in an interview with a reporter from the Financial Associated Press, “The current flow of personnel is relatively stagnant. The inventory of clothing companies will undoubtedly become a huge pressure, which will test whether companies can establish effective quick response mechanisms. Many first-line brands have already established quick response systems and will not hoard large amounts of materials. Enterprises with high flexibility will have less inventory losses.”
✦Build your own marketing platform After the epidemic, I believe many clothing companies have seen the power of online platforms such as mini programs, micro-malls, communities, and live broadcasts, and accelerated their online sales. The integration of online and offline requires the establishment of its own independent marketing platform to respond to unexpected market conditions. Zhang Qing, an analyst in the clothing industry and CEO of Juazhidao Sports Consulting Co., Ltd., said, “Although the clothing e-commerce channel is growing, the relative proportion is not large enough, and traditional channels are still the mainstream. After the epidemic, it will also bring consequences to enterprises. To gain some experience and improve the efficiency of e-commerce operations, local brands should pay more attention to community and membership marketing to establish closer ties with consumers.”
✦ Regardless of lightening the cost structure Crisis or not, for clothing companies, cash flow, supply chain and inventory are the most important. Controlling cash on hand and controlling costs are the long-term way for companies to survive.
✦ Pay attention to risk diversification not only to strengthen online layout, but also to avoid long-term risks. After the epidemic, companies may not put their eggs in the same basket. International brands can set up factories in multiple countries, and domestic brands can seek supply chains in multiple places to cope with unexpected impacts.
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