About a month has passed since the epidemic began. The rising number of confirmed cases every day reflects the serious situation. The turning point that everyone expected has not yet appeared. From the extension of the holiday to the postponement of resumption of work, As some companies have implemented working from home, the impact of the epidemic has begun to slowly appear. It is not just the infected people. It seems that everyone’s life has been affected by the epidemic, not just in Wuhan, but also in the country and even some international companies. , we must also face a critical point. As the fashion industry that is closely related to people’s lives, how has it been affected?
The supply chain is interrupted and products cannot be output normally
Affected by the epidemic , most manufacturing plants have stopped operating or delayed their resumption of work. Any problems in raw material procurement, factory processing, transportation, etc. will directly cause the brand to be unable to receive products on schedule. In the early stage, it will affect the release and update of products, and in the later stage, it will affect inventory and sales volume. Among them, some brands that were originally going to launch new products in fashion weeks, showrooms, etc. will not be able to get the products and cancel the launch. Without new products, they will directly face the problem of stagnant operations.
As the world’s largest textile production and exporter, China also represents the manufacturing business of countless international clothing brands such as Uniqlo, Zara, Michael Kors, etc. The supply chains of these international companies are bound to be affected.
In addition, some clothing manufacturers, such as Hongdou, Peacebird, Ordos, Baoxiniao and other brands, are responsible for setting up production lines for masks, protective clothing, etc., which will also affect Garment production line operations.
With physical stores closed, brands have to shift their focus from offline to online
In recent days , affected by the epidemic, whether it is for the safety and health of employees, or consumers are restricted from going out, except for necessities such as food and daily necessities, other stores will suffer from the tragic situation of no one caring about them. In order to reduce losses, major brands have been closing stores. Out of poverty, Burberry, Nike, etc. have closed nearly half of their stores in mainland China, and the parent company of Vans has closed 60% of its stores in China. Brands such as Prada and Moncler have also chosen to close some domestic stores. Offline sales will drop significantly, and some brands have also closed their stores in time. Adjusted revenue forecast.
In addition, some offline marketing activities have also been cancelled. Due to changes in immigration policies in many countries, most clothing brands, celebrities, KOLs, etc. will be absent from fashion weeks. This causes brands to miss product launches and marketing opportunities, and also has a huge impact on the work of celebrities and KOLs.
Optimistically, most brands have begun to seek new paths. People are restricted from traveling and will focus more on the Internet. Brands are shifting their marketing efforts from From offline to online, such as e-commerce platforms, social networks, DTC, etc. Recent news has revealed that half of PEACEBIRD’s women’s clothing stores have suspended operations during the epidemic and are actively deploying “digital retail”, resulting in average daily total sales exceeding 8 million, which is a reassurance for clothing brands.
Logistics is also a major factor before the final product reaches the consumer. During the extended holiday, many logistics companies stopped operating, resulting in products not being able to reach customers in time. After work resumed, some express delivery points also suspended operations and affected Consumers shop.
During special times, will consumer enthusiasm increase or decrease?
There are currently two views on this. Kate Nightingale, founder of the consulting company Style Psychology, said that the worry and sadness caused by the epidemic will increase consumption. “When humans are faced with life and death, they become more likely to make impulsive purchases.” According to the 911 incidents in the United States and the 2006 terrorist attacks in London.
Another view is that in special times, “saving lives is the most important thing.” Due to fear, worry, sadness and other psychology, people will focus on consumption of food, medical products and other health-preserving purposes. The desire to shop for clothing and other non-daily necessities will be less obvious.
The specific situation remains to be seen. In any case, the clothing industry faces a huge test during this epidemic. Stabilizing the special period is the first step. In addition, The long-term development and risk response capabilities of the enterprise should be considered. Let us pray together that the epidemic will improve soon and spring will come soon!
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