Silaid will close 1,300 Chinese stores. How can the clothing industry survive the "cold winter"?

The industry will usher in a shuffle

At 00:00 on June 1st, more than a dozen people were waiting at the door of the warehouse in Baoshan, Shanghai. Some people are professional employees who have been responsible for warehouse management for a long time, and some people come to the warehouse for the first time -they were originally shop operations, art, design, finance, HR, and worked at the headquarters of Pudong New District.

Their goals are only one: delivery. After zero, the crowd poured into the warehouse throughout the warehouse manager. After the warehouse manager talked about the division of labor, the warehouse that stopped running for 2 months reappeared vitality.

The accumulated 2 -month order is printed out of the computer and pulled the growing one. The cumulative shipments have continued to rise, from 3,400 in the morning to 7,000 or eight thousand in the afternoon, to nearly 10,000 orders in the evening, and the shipping volume exceeds 300%of the daily life.

The two months of loss have become a major topic facing a group of clothing companies after re -production.

The epidemic has a significant impact on the entire clothing industry. From the perspective of demand, the latest data released by the National Bureau of Statistics shows that from January to April 2022, the cumulative value of retail sales of shoe and clothing needles decreased by 6%year-on-year. From the perspective of the supply side, the output of cloth in April decreased by 3.3%year -on -year, while the price of raw materials increased by 45%year -on -year, which was at a historical high.

Under multiple tests such as sluggish demand, rising costs, blocked logistics, and decreased offline passenger flow, the news of multiple clothing brands closing shops came out. Industry insiders have analyzed that since 2020, the epidemic has repeatedly impacted the shoe and clothing industry in three years. Nowadays, the clothing industry is facing the contraction of offline stores and the intensification of online business competition. The more severe test is to be apparels for optional consumer goods. In an environment where consumption confidence is frustrated, it may face the weakening of demand.

Silaide will close all Chinese stores in China

Recently, a "Si Laide Term Termidity Termination Business Notification Letter" circulated on the Internet. The notification letter wrote that in April 2022, the shareholders' meeting of the Azhican shareholders decided to close Slyde's offline offline in China before July 31 this year. Retail stores. The side mentioned that the cost of continuous high incidence of epidemic, the weakness of the offline consumer market, and the difficulty of rents that were difficult to reduce, making Silide's operations unsustainable. Therefore, abandoning Siride and investing resources into the brand and channels that adapt to the future market.

In 1996, I introduced ONLY, Vero Moda and Jackjones to China one after another, with many stores. In 2008, Siride entered China. At present, there are more than 1,300 domestic stores, and there are 4.06 million fans of Tmall's official flagship store.

At present, a number of Si Lord stores in the core business district of Beijing are operating, and there are more than 50 % off sales signs. The store salesperson said that the product is being cleared, and the discount ranges from 50 % to 50 % off, and the closing time is July. A staff member responsible for the investment in the mall told China News Weekly. Under the epidemic, many stores closed, and the passenger traffic was reduced. The performance was indeed affected.

Cheng Weixiong, an independent analyst of the shoe and clothing industry, told China News Weekly that Silae closed stores and withdrew from the Chinese market, which was related to the re -layout of international clothing brands in domestic business. The tide of offline closed stores actually started in 2020. Facing the uncertainty of the epidemic and limited demand for offline consumption, enterprises have greatly done store closure and invested shrinkage. This is helpless.

According to monitoring data, in 2021, 62 domestic brand shoes and clothing and home textile listed companies totaling a total of 1,19,672 stores, a decrease of 3,865 compared with 123,537 in the same period last year. A senior apparel practitioner told China News Weekly that the clothing industry has heavy offline operations, and the general revenue proportion can reach 60%or even 70%. For the clothing industry, offline stores are closed, and the affected will be very large.

Women's brand Teenieweenie currently has more than 700 stores in China. Wang Le, the person in charge of the offline retail center, mentioned that the number of stores affected by the country in April reached more than 200 stores. Many stores even had less passenger traffic even if they opened the door. "During the closing shop, even if some emergency measures are taken, there is limited room for rescue for performance."

Qu Jing, Vice President of Huimei Group, told China News Weekly that its brand Inman has more than 600 stores across the country, and the highest peak has more than 100 stores closed stores, which has led to poor overall sales performance from March to May. She pointed out that on the one hand, closing stores will directly affect performance, and on the other hand, stores that are not affected by the epidemic have increased passenger flow, but the overall conversion rate is decreasing, which shows that consumers' desire to buy clothes is not strong.

Wang Le mentioned that the impact of the epidemic will continue. Many companies will adjust the offline layout. The current adjustment is just the beginning. The industry will usher in a shuffle. A brand with enough business ability may still hold a lot of stores.

Li Yongjian, a researcher at the Institute of Finance and Economics of the Academy of Social Sciences, said that the impact of the epidemic is short -term. In the long run, the crisis is also a turnaround. In business methods, this epidemic will prompt the offline development of enterprises to become more mature.

Online becoming a must -have place

Public data shows that e -commerce has flourished in the past 10 years, and the online penetration rate of the clothing industry has increased from 0.4%in 2010 to 36.6%in 2020. Online has become a channel for enterprises to ignore. With the rise of various e -commerce companies such as JD.com, Tmall, Douyin, and Kuaishou, the online channels of the clothing industry have accelerated. Zara and other foreign fast fashion brands withdrew stores and withdrew from China, but many brands have retained online business and continued to increase online e -commerce construction. Si Laide replied publicly that the online channel has not been adjusted.

Cheng Weixiong pointed out that as the offline stores were repeatedly affected by the epidemic, the company is currently beeping online business. Online live sales is a new sales channel that has emerged in recent years. It is an important supplementary channel for online and offline interconnection and interconnection.

Teenie Weenie has a monthly average GMV of more than 100 million in the Douyin live room in December 2020. Yao Ying, the person in charge of his e -commerce company, told China News Weekly that he did not sell for discounts in the live broadcast room. He mainly relied on content output and brand establishment, and continued to output in a relatively stable quality system. "The live broadcast room is currently a sales trend, but this is only the first stage. We have not completely got rid of this situation.

Inman is currently conducting live training business from the group. It is aimed at more than 600 offline store owners to encourage them to live broadcast in the store to drain. Qu Jing said that try to make up for sales through various ways. Where the epidemic is less affected by the epidemic, it will attract customers to the store through live broadcasts. Due to the greater affected by the epidemic, people will be pulled to the community for the impact of private domains.

In the past few months, e -commerce platforms such as Jingdong, Tmall and Douyin have successively rescued brand merchants. Through measures such as reduction costs and assessment measures, decompression and negatives for merchants. Optimization in the supply chain to ensure efficiency and maintain the operation of merchants. "Promoting sales" has become the consensus of platforms and merchants.

However, the above -mentioned clothing practitioners pointed out that the proportion of online channels will become higher and higher in the future, and more and more enterprises will be broadcast. During the epidemic period, the traffic platform traffic is relatively declining, so competition will become more intense.

In fact, as early as the epidemic appeared in early 2020, Inman began to transfer from offline business to online, and tried to find flexible monetization channels through various explorations. But it is undeniable that "traffic is gradually bottoming." Qu Jing said that even in the emerging live broadcast track, it will not blindly pursue traffic, save profits, and return to the essence of business. Enterprises need to survive.

During the epidemic, in the community of Teenieneienie, there are different theme content punch -in every day. The situation of exercise, cooking and even drinking can cause everyone's discussion. Wang Le said that maintaining community vitality and preheating membership in order to unblock the conversion rate.

Chen Yun, the person in charge of Mark Huafei e -commerce, told China News Weekly that the entire private domain members had a lot of precipitation. During the epidemic, the store could not open the door. For platforms and private domains, it launched some different marketing gameplay and marketing strategies. Click to consumers.

Li Yongjian observed that the DTC (Direct Touching Consumer) model has risen in the past two years, and controlling consumer groups in its own channels is a choice of many big brands. The ultimate goal is to reduce costs and increase efficiency. Nowadays, the e -commerce platform is in the upgrade iteration. Enterprises are facing profit pressure. In the future, it is necessary to reduce the cost of traffic through technology.

The supply chain is impacted, how to break through?

The China Clothing Association's online survey of the 2022 spring of key member companies and industrial clusters shows that the restoration and development of the clothing industry faces unprecedented huge pressure and challenges. Of the 127 companies participating in the survey, 54.1%of the company's revenue declined, 59.5%of the profit declined, and the problems faced by SMEs were even more prominent.

"Since March this year, the outbreak has been outbreak. The East China market led by Shanghai is an important market for consumer goods. It has been unable to open stores and online business for nearly three months. It has affected the performance of many companies in the second quarter." Cheng Weixiong pointed out that the clothing industry has a long chain, from planning, design, facial auxiliary materials to production procurement, logistics distribution and other links.

Yao Ying talked about even if the inventory in spring and summer is controllable, the new overall overall will shrink in autumn and winter. The product development side is the original point that cannot be worked at the company. Development samples in autumn and winter will affect the development time and accuracy of development. The preliminary production of fabric delivery and product proofing will be lagging behind. In the event of factory blockade and logistics blockade, the new products cannot enter the store in time, which will increase the return rate. "The impact of this epidemic will last until winter."

"How to live a long time" has become a problem that the company is currently thinking about more. An unnamed analyst revealed that the data of the 618 clothing industry this year is not ideal. Except for sports and outdoor categories, other categories have limited recovery. The clothing industry is not strong, and the proportion of sales will not be too high. However, 618 this year was highly hoped for some clothing companies because the backlog of inventory was serious.

"Profit profit has become the main voice of the industry. Many clothing brands have strong demand for clearance this year, and businesses with severe inventory backlogs will quickly dump. The subsidy given by the platform this year is also unprecedented." Talking.

Makwarfi's total sales warehouse is located in Shanghai. The sales gap in the past two months has led to the backlog of inventory. Chen Yun said that 618 this year gives consumers more benefits, adopting multiple multi -discount sales methods to ensure their cash flow to the greatest extent to ensure their cash flow to the greatest extent Essence In addition, in the future, the form of multi -land separation and direct delivery of factories will be adopted to ensure supply supply. At the same time, it will be incorporated into the large retail system and integrates online and offline supply systems. The relevant person in charge of duck and ducks revealed that due to the main operation of down jackets, the epidemic was not affected in the first half of this year, but in order to ensure the supply chain, it is planned to establish a consumer's front position in the second half of the year and lay out in advance in the area where consumers place more. In order to avoid the damage to the timeliness of logistics in the warehouse epidemic control.

After this epidemic, Chen Yun believes that for the entire industry, the capabilities of the entire supply chain are now competing. If the factory has more agile supply chains and flexible supply chains, it can accelerate the production of explosive models and reduce the final inventory.

JD CEO Xu Lei previously revealed at the financial report meeting that due to the epidemic and consumption reasons, many businesses have suffered squeezing spring inventory, and many factories have stopped the production of summer clothes. Swatch to various platforms.

In response to 618, Cheng Weixiong saw that the clothing industry was not optimistic through the data. He believed that it was difficult to make a breakthrough. It was the most important thing for enterprises to grasp sales opportunities to survive. "Explore incremental increases on the basis of the advantages of the original business model and make a brand premium to develop long -term development."

Author: Meng Qian ([email protected])

Edit: Li Zhiquan

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