Original title: blood loss 400 billion! The scale has shrunk by 15%, Nike Inc zara said one after another, "it's too difficult!" Source: Tencent News

After Taobao online stores and live streaming stores launched attacks on physical stores one after another, the arrival of the epidemic is undoubtedly even worse. The big-end clothing industry in brick-and-mortar stores has been hit hard. Whether small physical clothing stores or giant companies in the clothing industry, a large part of them have been greatly impacted by various factors.

In the first half of this year, there was a visible depression and desolation in the clothing market of some well-known physical stores in China. Large physical wholesale markets are at risk of closure, not to mention small clothing stores, too few can withstand the impact of the epidemic in the rising environment of e-commerce live streaming.

Due to the impact of the epidemic this year, clothing manufacturers have stopped work one after another, unable to meet market demand. The upstream of the whole industry has been blocked. The middle and lower reaches of the clothing industry itself due to the continuous impact of e-commerce live promotion, the source of customers has been seriously lost. Now there is a problem with the supply of goods, and it is also very difficult not to enter the cold winter of the industry.

The clothing Association released official data on the clothing industry in the first half of this year. Sales as a whole are in the stage of continuous decline, and retail sales of clothing alone have dropped by 25.6% compared with the same period last year. This situation is obvious not only in our country, but also in the global clothing industry. After the storm over this period of time, I don't know how many clothing stores can still be seen in the street.

Liu Jinyan, vice president of the marketing department of the Convertlab Marketing Laboratory, expressed his views on the difficult development of the clothing industry some time ago: "2020 is bound to be a turbulent year. China's clothing market is expected to lose at least 400 billion of its revenue and shrink its overall market size by 15%."

Of course, this estimated 400 billion will not only be a loss for small clothing stores, but the biggest loss will still come from the larger companies in the clothing industry. For example, Nike Inc, Levi and GAP lost 5.6 billion yuan, 364 million yuan and 7.2 billion yuan respectively in the 2020 quarter. This statistics is only the amount of losses, not including layoffs, declining turnover and product maintenance and other expenses, we can see that the industry bosses have also been caught off guard by the cold winter of the industry.

In addition to losses, one of the problems facing these big companies is layoffs and shutdowns. Levi has cut 15% of its jobs worldwide, and Zara and Himm have also closed more than 1000 physical stores. The predicament of the industry is sweeping the world, and the major clothing brands want to seek transformation and open up new areas to stop losses in time.

In such a difficult industry environment, I do not know how many brands can really keep up with the times to break through the tight encirclement and turn losses into profits. I also hope that small vendors in physical stores can also find a new way out.