Domestic and online sales How will sweater manufacturers stabilize the second half?

Domestic and online sales How will sweater manufacturers stabilize the second half?

2020 is destined to be a difficult year, especially for sweater manufacturers. Since the beginning of the year, the pandemic raid has caused anxiety among sweater companies: store closures, tight cash flow, overstocked inventory, delayed delivery of design and production, and imminent rent and employee wages...thinking in adversity and rebirth in despair. As the epidemic prevention and control has become normal, more sweater companies have begun to think about how to increase the layout of e-commerce, use e-commerce live broadcast to narrow the distance between products and users, and how to use new formats to meet the new needs of consumers.

Continuous operating pressure

Increased risk and challenge

In the first half of 2020, the sudden epidemic completely disrupted the pace of development of the sweater industry, allowing sweater manufacturers to experience a cold winter. Judging from the operation of the sweater industry in the first half of the year, the domestic market is better than the export market, and the industrial structure with two ends still plagues the industry. The recovery of the domestic consumption situation has played a key role in the recovery of the sweater industry.

In the first half of the year, the export of sweater products was blocked, and there was no sign of recovery. The domestic production situation was inconsistent with the export situation, and the production was more dependent on the domestic market. From January to May, the export volume of wool yarns fell 23% year-on-year, and the export volume of wool fabrics fell 41% year-on-year. During the same period, the export volume of sweaters and woolen woven garments fell by 42% and 41% respectively, and the decline in exports was even greater than that from January to April. Looking at the production situation from January to May, the output of wool yarn fell by 18% year-on-year, and the output of wool fabric fell 19% year-on-year.

According to data from the National Bureau of Statistics, the operating income of 889 sweater manufacturers above designated size dropped by 26.1% from January to May, 0.53 percentage points lower than that from January to April; among them, the export delivery value fell by 35.2%, which was a decrease of 1~ Increased by 2.84 percentage points in April, export pressure is still picking up. From January to May, the loss of regulated enterprises reached 46%, which was 1.38 percentage points narrower than that from January to April. The profit rate of regulated companies was 1.6%, which was a decline of 1.7 percentage points from the same period in 2019. The quality of industry operation was low. Industry risks and challenges have increased.

Affected by factors such as transportation restrictions and insufficient orders, the consumption of sweater raw materials has not shown a continuous recovery. From January to May, the import volume of wool was 99,000 tons, down 28% year-on-year, and once again fell back from the decline from January to April. The unit price of imports fell 12% year-on-year.

Expand e-commerce channels

Integration of resources and innovation

In order to get rid of the current predicament, sweater manufacturers are looking for ways to actively save themselves, trying to reduce the losses caused by the epidemic to the enterprises to a minimum.

In the first half of 2020, through rapid response, actual implementation, and implementation of a number of measures such as increasing investment in the raw material market, timely adjustment of goods, strict control of internal expenses, shifting the center of gravity from offline to online, continuous improvement, maintenance and support for dealers, etc., Erdos Achieved better results than expected. Wang Zhen, chairman of the sweater manufacturer Inner Mongolia Erdos Resources Co., Ltd., said: “It’s nothing to win in good times. We only look at our ability when we are in trouble. We absolutely believe that things are man-made. No matter how bad the market is, there are companies that do very well. How to do it depends on us."

Despite being affected by the epidemic, HALO's R&D team did not stop its scientific research. On July 28, 2020, the scientific and technological achievements of "Key Technology and Industrialization of High-end Cashmere Antibacterial Yarn Research and Development" jointly conducted by HALO and Xi'an Polytechnic University passed the achievement appraisal organized by China Textile Industry Federation. HALO developed woolen, semi-worsted and fancy yarns and other cashmere antibacterial products, after testing, the product performance indicators are higher than the 3A standard requirements for antibacterial knitwear.

On August 1, 2020, China’s first welfare standard tailored for cashmere goats, "Farm Animal Welfare Requirements, Cashmere Goats" was officially released and implemented. As the main participants in the standard formulation and compilation, the HALO expert team has visited the hinterland of the grassland many times to observe, study and explore the living habits of cashmere goats, combined with more than 20 years of technical accumulation and experience, to provide suggestions for the formulation of standards.

Sweater manufacturers are proceeding in an orderly manner in accordance with market changes, and industrial clusters are also trying to explore new models to resolve current difficulties.

Since the outbreak of the new crown pneumonia epidemic this year, sweater manufacturers have transformed their live online sales. In response to the strong demand in the e-commerce market, we invited China’s top ten fashion designer Lin Zihan and others to design and develop more than 1,000 new seasonal products, detonating the spring and summer clothing online sales market to create a "city of e-commerce live broadcasts" and vigorously promote online live broadcasts Professionalization and standardization. An e-commerce capability improvement training center and an online celebrity training incubation base have been established in Cashmere Town, and regular special trainings are carried out in cooperation with Alibaba and Wantang Academy; the county also grants qualified live broadcast institutions for 3 years Full rent subsidy, 300,000 yuan will be rewarded if the actual annual turnover exceeds 50 million yuan.

Recovery depends on domestic sales

Continuous force online

More than half of 2020 has passed. How will the sweater market interpret in only a few months? How does the company strategically plan to catch up with the previous gap?

According to the prediction of the China Sweater Knitting Industry Association, if the epidemic can be better controlled, it is estimated that in 2020, the sales of the sweater industry will decline by about 20%, domestic sales will decline by 15%, and exports will decline by about 25%. The second half of the year is the peak season for sweater products. The sales of sweater products in the domestic autumn and winter markets and overseas Christmas markets are crucial. The consumption recovery of sweater products will rely more on domestic sales, and the recovery of the domestic market is even more critical to the consumption of sweater products. The epidemic has not yet been completely controlled, and the future situation is still very uncertain.

"In the second half of this year, we will continue to invest online. For Erdos, it is not just a sales window, but a very important responsibility for brand, product image exposure, brand attitude and style communication, etc. Function. Because people have less time to experience offline stores, these online functions cannot be ignored." Wang Zhen said.

The relevant person in charge of HALO said: "Since this year, HALO has innovated marketing methods and channels, followed the trend by opening a Douyin account to instantly share company and product developments, and achieved good publicity results. In the next stage, HALO will maintain its high-end luxury positioning unchanged. Continue to expand the market under the circumstance of the current situation. At the same time, accelerate the promotion and application of high-end cashmere antibacterial technology.

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