Attack and Retreat Garment Industry Finishing and Starting Again
Release time:
2021-06-19 19:00
Source:
Stagnation in sales of physical stores and a sharp decline in performance have become a common phenomenon in the apparel industry in 2020. Under heavy pressure, many clothing brands "face up to difficulties" and take a series of measures to save themselves, such as closing stores, promoting digital transformation, taking advantage of the national tide, cross-border co-branding, and moving closer to the identity of "experts"; there are also some brands that can not bear heavy blows and withdraw from the Chinese market. In this "year of finishing and starting again", the new coronary pneumonia epidemic has forced enterprises to change, adding code online business, creating elements of the national tide, and improving the professional level have become common measures taken by enterprises in the transformation of the industry.
The decline in losses into the main line of performance.
According to the National Bureau of Statistics, per capita consumption expenditure in the first half of 2020 was 9718 billion yuan, down 5.9 percent in nominal terms from the same period last year. Among them, the per capita clothing consumption expenditure was 611 yuan, a decrease of 16.4. The decline in data reflects that the entire clothing industry is experiencing a cold winter.
A reporter from China Business Daily combed through the financial data of a number of garment companies since 2020 and found that most garment companies are facing a sharp decline in performance or even losses. In the case of women's clothing brand broadcast, the parent company of Daily Fashion, for example, the first three quarters of 2020 reported a net loss of $0.075 billion during the reporting period, down 9560.38 percent year-on-year. As the first "A + H share" listed clothing company, La Chapelle is also struggling, the first three quarters of 2020, the company's net loss of 0.783 billion yuan, at the same time, the company's debt has exceeded 4 billion yuan.
The performance of the men's clothing sector is also not optimistic. Financial data for the first three quarters of 2020 showed a net loss of $26.24 million, a sharp drop of 130.60 per cent, while net profit for Seven Wolves, Hailan House, Jiumuwang and Busen declined by 69.81 per cent, 50.69 per cent, 27.62 per cent and 92.87 per cent, respectively.
As the head of casual wear, Senma Apparel has also failed to withstand the negative impact of the new coronary pneumonia epidemic. Financial data show that the company achieved revenue of about 9.45 billion billion yuan in the first three quarters of 2020, down 28.74 percent year-on-year, and net profit of about 0.216 billion billion yuan, down 83.48 percent year-on-year. In the same period, the "unusual" Meibang apparel achieved revenue of 2.69 billion yuan, a year-on-year decrease of 33.3; the cumulative net loss reached 0.705 billion yuan, and the company expects the annual net loss to be between 0.58 billion yuan and 0.82 billion yuan.
International brands are struggling
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