The downward pressure of knitting industry in the first quarter seeks to break through online

The downward pressure of knitting industry in the first quarter seeks to break through online

The downward pressure of knitting industry in the first quarter seeks to break through online

In recent years, due to its softness, comfort, fit and elasticity, knitwear has been favored by consumers, especially in Europe and the United States. Driven by new technology and new technology, knitwear products have a wider range of categories, involving more and more fields. The proportion of the industry is constantly increasing, with a strong momentum of development and an increasing proportion of exports.

Affected by the epidemic, international Zara, H & M, UNIQLO and other brands, which are mainly knitted fabrics and closely cooperate with China's representative factories, have closed stores, refunded orders or delayed delivery one after another, even some domestic leisure operation brands have suffered serious sales decline, or even lost money. Despite remarkable achievements in knitting cluster and online breakthrough, enterprises still feel "great pressure" in the face of unknown international situation and slow recovery market.

The performance of leisure sports brands declined in the first quarter, and the knitting industry was under great downward pressure

Due to the impact of the epidemic, Zara, H & M, UNIQLO, Nike, Adidas and other major international brands that closely cooperate with China's daiworks have closed stores, refunded orders or delayed delivery, and even the high-level sales previously maintained in China have declined significantly. For example, Zara has closed 3785 stores in the world and all its stores in Spain; H & M has closed all its stores in nearly ten countries and regions in Italy, Poland and the Czech Republic; UNIQLO's parent company fast retailing group has also temporarily closed all its 50 stores in the United States. In terms of sales, Nike's revenue in Greater China has maintained double-digit growth for five and a half consecutive years (22 quarters), and now there is a "brake" in the first quarter (December 1, 2019-february 29, 2020), with revenue in Greater China down 5% year-on-year (excluding the exchange rate factor). Due to the high dependence on external demand of knitting enterprises, the pressure of enterprises is constantly emerging.

According to the data of the National Bureau of statistics, from January to March, the total garment output of the enterprises above the designated textile industry was 4618166900 pieces, a year-on-year decrease of 20.29%, including 2255185900 knitted garments, a year-on-year decrease of 23.73%. From January to March, the main business income of 2110 enterprises in the category of knitted fabrics was RMB 48.546 billion, a year-on-year decrease of 23.64%, and the total profit was RMB 1.927 billion, a year-on-year decrease of 610 million; the main business income of 3679 enterprises in the category of knitted garments was RMB 83.406 billion, a year-on-year decrease of 21.47%; the total profit was RMB 2.97billion, a year-on-year decrease of 1.326 billion.

Not only international brands, but also domestic leisure sports brands, such as Senma, Metersbonwe, Giordano, Anta, Li Ning and 361du, have seen sales decline to varying degrees. In the first quarter, Senma achieved a revenue of 2.738 billion yuan, a year-on-year decrease of 33.51%; Metersbonwe achieved a revenue of 2.738 billion yuan, a year-on-year decrease of 33.51%, a loss of 150-250 billion yuan in advance in the first quarter; Giordano's sales fell 34.6% in the first quarter, a decrease of 33% if converted at a fixed exchange rate; Anta's sales fell 20-25% in the last year; Li Ning's offline channels (including retail and wholesale) recorded 20% - 30% The retail sales of 361 degrees are 25% - 30% lower than that of the same period last year It can be seen that leisure sports brands have been greatly impacted in the first quarter.

According to the data of the National Bureau of statistics, in the first quarter, the retail sales of clothing, shoes and hats, and knitwear products of units above designated size decreased by 32.2% year-on-year, and the retail sales of online clothing products decreased by 15.1% year-on-year, respectively 35.5 and 34.2 percentage points lower than the same period of last year. In this regard, some experts said that although the domestic epidemic situation has been effectively controlled and consumption is also being restarted, with the severe situation of the European epidemic situation, knitting enterprises mainly engaged in foreign trade or processing on behalf of others will not have a good time in the short term, so enterprises must be prepared.

Order reduction foreign trade situation severe enterprise pressure far exceeds expectations

"March and April are the peak months of foreign trade factories every year, but now our orders are only arranged to the end of June. If we can't receive any more orders, thousands of workers in the factory may have a holiday. I can't sleep at night. Once I stop working, the company will lose hundreds of thousands of yuan a day. " The head of a large knitting fabric manufacturer complained repeatedly. He said that the company mainly exports to European and American markets, and most of its customers are international famous brands such as sportswear, casual wear, pajamas and underwear. Affected by the epidemic, many brands began to cancel orders and delay delivery. "Now we have to start to take orders from the domestic market, no matter the large order or the small order, to maintain the construction."

Although fast retailing group, the parent company of UNIQLO, a Japanese fast fashion giant, said recently that the company promised to arrange payment for completed orders and orders that have started production, the policy will not change until the end of the epidemic. Even promise: "the supplier will purchase relevant fabrics or materials to fulfill our order, and will provide compensation if we cancel the order." In fact, UNIQLO closed more than 270 stores in China, 50 stores in the United States and hundreds of other stores under the epidemic, and orders were delayed or cancelled to varying degrees. Among them, there are up to 161 domestic cooperation enterprises providing fabric or OEM. It is not hard to predict that these enterprises will be more or less affected.

According to customs data, China's textile and clothing exports totaled US $47.88 billion in the first quarter, down 17.8% year on year. From January to February, the export of knitted fabrics reached US $2.018 billion, a year-on-year decrease of 16.69%; the export of knitted clothing reached US $6.296 billion, a year-on-year decrease of 19.14%. With the spread of the global epidemic, knitting foreign trade enterprises are under more and more pressure.