When Will The Global Garment Industry Encounter Difficulties?

Affected by the epidemic, consumer demand in the market is flagging. The situation of garment enterprises is even more optimistic. GAP has lost $1 billion since February, and 80 thousand employees have been suspended from their pay. Esprit announced the closure of a total of 56 stores in Asia except the mainland, while Anta sports retail sales showed a negative 20%-25% growth over the same period last year.

Insiders say that the sudden outbreak of the epidemic has made the garment industry become a disaster area in an instant. Whether it is domestic sales or export sales, it has been severely defeated. The early warning of the "red light" in the business data is also expected in the market. When will the garment industry get retaliatory consumption?

Sales in stores are lower than expected.

During the May 1 period, reporters visited Beijing Wangfujing pedestrian street, Chaoyang Joy City and Hui poly shopping center, and found that the number of shoppers to shopping malls began to increase.

In the afternoon of May 2nd, a discount brand appeared everywhere in a fast fashion women's shop in the shopping mall. There were many consumers picking goods beside the clothes stacked up like hills.

The shopping guide told reporters that the number of people shopping during the May Day holiday increased significantly. During the festival, there were promotional activities in the store, and the discount rate was relatively large. Many people came to buy clothes on a special trip. "A customer picked up more than ten clothes the day before yesterday. Because of the large number of queues in the fitting room, she bought them directly."

But during the visit, the reporter felt that some clothes shop's clothing obviously lagged behind, and the summer clothing category was not very rich. Some of the clothes that were most discounted were mostly early spring goods such as sweaters, knitwear and so on. Some shop assistants said that there are still many backlog stocks, which can only be promoted during the May 1 holiday. Otherwise, the weather will be hot and can not be sold at all.

Compared with the crowd in the shopping mall, there is not a lot of customers in a women's clothing store on Wangfujing street, but the shop assistant said that it is more and more hopeful to open a few orders a day compared with the beginning of the epidemic.

In recent days, Ms. Wu, who has a special liking for shopping, has recently started to walk out of the house and buy clothes in nearby shopping malls. "This is not a picture of a lot of people in the circle of friends who are shopping in the street recently. I really can't help it, and hurry out to do it."

Then, the retaliatory consumption of the offline garment industry has arrived? Zheng Zheng, deputy general manager of Chaoyang Joy City, said, "it should be a slow rebound. At least from Chaoyang Joy City, we can see that the weekly traffic volume and sales volume have increased over the previous week, but the speed is slower than we think.

Transformation of foreign trade enterprises to save themselves

This spring, the textile industry can be said to be caught in the "cold winter". Song Zhanfeng, general manager of Zhejiang Shaoxing poly Textile Co., Ltd., said: "at present, we have sent only two containers to the US market, and European orders have been completely annihilated. So far, a container has not been sent out. If this situation continues, enterprises can only carry on to August this year. In fact, this is only a microcosm of the current foreign trade garment industry.

It is understood that with the continuous improvement of domestic epidemic prevention and control situation, foreign trade clothing enterprises basically returned to work in March, and overseas orders have also returned to normal delivery. But I did not expect that after March, the overseas epidemic continued to spread, and the consumption market in Europe and the United States was sluggish. Brand customers became very cautious and cancelled and postponed orders.

According to the data released by the General Administration of customs, the total import and export trade between China and the EU reached US $75 billion 190 million in the first quarter of this year, down 19.8% from the same period last year, a drop of 5.1 percentage points lower than the overall decline in China's foreign trade in the same period. In the overall EU export data, the total export clothing and accessories amounted to 5 billion 470 million US dollars, a decrease of 8.8%, and the total yarn, fabrics and products of textiles were 1 billion 800 million US dollars, down 14.8%.

On the video conference held by the China Textile Industry Enterprise Management Association recently organized by key textile and garment enterprises, participants analyzed that the road of self rescue can be divided into two parts, one is to transfer the sales market, the other two is to change production varieties.

It is understood that the clothing manufacturers in Changshu, Jiangsu, specifically for the technology sector has developed a series of products suitable for domestic sales. The company official said, "foreign trade can not go out, only through domestic sales, strive to minimize losses."

Consumption is expected to resume before National Day.

According to the data released by the National Bureau of statistics, in the first quarter of this year, the per capita clothing consumption expenditure of residents was only 369 yuan, down 17.8% from the same period last year, accounting for 7.3% of the per capita consumption expenditure, down 80 basis points from the same period last year. In addition, consumption data in March also showed that the categories of clothing in non essential consumer goods were deteriorating rapidly. Specifically, in March, sales of clothing, shoes and hats and needle textiles decreased by 34.8% to 68 billion 900 million yuan, down from 1-2 months. It is reported that the industry and catering industry in March only two of the ring did not improve the industry.

It is undeniable that since this year, the performance of several garment giants has shown a downward trend. It is reported that there are 80 thousand employees who have been paid off on holiday. The stock has fallen 60% since February. Esprit has launched a clearance sale in the official website, the flagship store and offline stores, and many of its shops have been closed.

Anta sports recently released data show that in the first quarter of this year, Anta brand retail sales fell by 20%-25% compared with the same period last year, compared with the same period last year, the number of FILA brands declined, while the sales volume of other brand products showed a high number of units. In addition, Hai Lan's home revenue also declined in the first quarter of this year. Hai Lan's first quarter earnings report showed that the company achieved 3 billion 848 million yuan in business income, a decrease of 36.80% compared with the same period last year, and a net profit attributable to shareholders of listed companies was 295 million yuan, a decrease of 75.59% compared to the same period last year.

Textile clothing brand management expert Cheng Weixiong said, for clothing enterprises, the most affected is the sales link. During the epidemic period, the flow of passenger shops dropped suddenly, rents and manpower wages were great pressure for enterprises. Although some shopping malls had some concessions in rent, they were also at a drop in the bucket. If the inventory is not promptly digested, it will affect the factory's capital return in spring, thereby increasing the capital turnover pressure of enterprises.

CITIC Securities recently released the first quarter consumer market report also shows that during May 1, the control has not yet been completely lifted, the impact of consumer oppression still exists, but the recovery of passengers in various industries generally more than 60%, which also shows that residents' confidence in consumption has been restored. Compared with the last holiday, the recovery trend is more obvious. Consumption recovery is progressively advancing. It is expected to achieve real recovery before National Day.