The outbreak of a new round of epidemic has once again brought about the ups and downs of the entire society. Cities that were forced to suspend operations not only had a huge impact on local consumption, but also caused serious logistics problems. Question, the entire clothing industry is in trouble because of this. March to May is the 2022 autumn and winter stocking season. How can clothing companies overcome this difficulty?
Recently, the 2022 spring online survey conducted by the China National Garment Association on 12 apparel industrial clusters and 127 apparel companies showed that during the epidemic, companies faced Among the main difficulties, “increasing operating costs” tops the list, followed by “declining market demand leading to insufficient orders”, among which the downward trend of domestic sales orders is more obvious; from the perspective of enterprise size, the decline in the efficiency of small and medium-sized enterprises is more prominent, and the efficiency of large enterprises The majority of the shares remained flat, with customization and national-style enterprise profits achieving growth against the trend; however, as enterprises gradually adapt to the pace of epidemic prevention and control, 65.4% of the enterprises participating in the survey have reached an operating rate of more than 90%, and 24.4% The operating rate of enterprises is around 80%, and the overall resumption of work and production in the industry is advancing steadily. All enterprises are actively carrying out “epidemic self-rescue” actions.
01
Dayang Group:
The epidemic cannot defeat the integrity and commitment of enterprises
Although the sudden epidemic has brought about a series of chain reactions such as traffic control, logistics shutdown, and express delivery obstruction, whether it is in the production workshop, inspection workshop, transportation fleet, or even the factory gate of Dayang Group, Dayang people They are all working with a more conscientious attitude than before, and have even developed “new skills” – the door post has turned into a temporary “transfer station”, the purchaser has turned into a “custodian”, and the business department has started “cloud inspection”. In terms of reputation, For Dayang, which is supreme, ensuring delivery time is always a must-fulfill mission for its customers.
Recently, due to the severe epidemic prevention and control situation in Shanghai, some orders that cannot be produced on schedule have begun to be transferred to other parts of the country. Dayang Group in Dalian has also received some customized clothing orders. According to Hu Dongmei, Party Secretary and General Manager of Dayang Group, Dayang Group’s order volume is now saturated and production is running at full capacity. Therefore, it is particularly important to stabilize production and supply, smooth logistics and transportation, and ensure on-schedule delivery during the epidemic.
Although orders are saturated, the ongoing epidemics in many places across the country have also had a certain impact on the normal production and operations of Dayang Group. Hu Dongmei said that of the more than 600 noodle and auxiliary material suppliers of Dayang Group around the world, more than 90 were affected by the Shanghai epidemic, and more than 20 were severely affected.
In mid-March, the epidemic prevention and control situation in Dalian also suddenly escalated, causing Dayang Group to face problems such as transportation suspension, logistics shutdown, and the inability of some employees to commute. Faced with this situation, Dayang Group promptly arranged for employees who live in controlled areas to move into employee apartments, and organized commuter vehicles to pick up and drop off employees to and from get off work. At the same time, Dayang Group also actively communicated with the local government to urgently establish a transfer station for sending and receiving goods during the epidemic. The group’s fleet of vehicles will be used to transfer back and forth, seamlessly connecting raw material procurement and importexport cargo transportation. , ensuring the “last 100 kilometers” material distribution.
What moved Hu Dongmei the most was the full cooperation of all parties in the supply chain. For example, on April 13, a Hangzhou supplier’s goods were delivered to Dalian after many twists and turns. “The whole process was very hard. Although the raw materials of this truck were worth less than 10,000 yuan, the actual cost of the truck exceeded 10,000 yuan. And the supplier also offered to bear this part of the cost.”
At the same time, Dayang Group itself is also striving to ensure delivery. In April, a batch of goods originally scheduled to go to Shanghai was successfully transferred from Dalian to Beijing and then chartered to be shipped to foreign customers. “Dayang Group has always adhered to its promise to customers over the years since its establishment.” Hu Dongmei said.
“Cooperation in the industrial chain can lead to symbiosis and mutual prosperity.” Hu Dongmei said when talking about the company’s response to the epidemic, all companies must make more reserves in the supply chain, especially the diversified development of key fabrics and accessories. “For example, before the epidemic, a customer had been using Freudenberg products from Germany, but the company was one of the first companies to be affected by the Shanghai epidemic. At that time, we had to temporarily find alternative products, proofing, testing, and confirmation, and the cycle It is very long and can easily affect normal production. We will also need to reflect on ourselves in the future and make alternative supply plans in advance for such situations.”
02
Winner Fashion Group:
Companies should strengthen crisis rehearsal
“Apparel product development pays attention to seasonality and timeliness. However, due to the implementation of lockdown management in Jiangsu, Zhejiang, and Shanghai, suppliers have stopped work and operations, resulting in a longer raw material supply cycle for the company, and designers are unable to select materials and make patterns as scheduled. , which delayed the existing design progress and affected the new normal operating rhythm of clothing production. At the same time, the increase in raw material prices caused by transportation obstruction also put obvious pressure on the company’s cost control.” When talking about the impact of the epidemic on the company Yuan Qiong, vice president of Winner Fashion Group, said.
Currently, Winner Fashion Group is racing against time to produce new summer and autumn clothing products, and strive to get the company’s production and operations back on track.
In this moment of uncertainty, in addition to ensuring production, the winner…��In 2020, when the epidemic first appeared, we basically made no changes, but in 2021, we began to rebuild our financial model and conduct in-depth discussions on how to reduce costs and increase efficiency. What can be reduced and where can be increased? This initiative will have an impact on the company’s future The impact is significant. “Deng Feng said that this epidemic has urged enterprises to implement internal reforms. Internal adjustments that were not so bold and urgent in the past have been implemented in depth under the pressure of the epidemic, laying a more solid system for the future development of enterprises. foundation. Therefore, although the D.sign brand did not experience much growth during the epidemic, it did not shrink either.
“Especially in adversity, corporate culture plays a particularly huge role. Adversity is the best opportunity to test corporate culture. Many hidden and inconsistent thoughts will emerge during it, and you can even see the true nature of each employee more clearly. Attitudes and ideas, so I suggest that clothing companies should not discuss too much about the external environment during meetings, but should examine more of their own problems.” Deng Feng suggested.
05
Yaqi clothing:
Use the epidemic as a driving force and learn to walk on multiple legs
In the past few days, the production workshop of Dongguan Yaqi Clothing Co., Ltd. has been busy. Workers are working overtime to catch up on orders. The marketing center upstairs is full of sample clothes, and two anchors are live broadcasting the goods.
“The strict control in the early stages of the epidemic had a certain impact on the company’s production and business expansion. We must strive to complete the backlog of orders in the first quarter within a month.” Liu Jianbo, general manager of Dongguan Yaqi Clothing Co., Ltd., said the company The top priority at this stage is to get orders back.
While scrambling for production, Yaqi Clothing has also made certain breakthroughs in the expansion of online channels. The epidemic has indeed affected offline sales, but the live broadcast business has allowed the company’s sales to increase against the trend. “Live streaming allows factories to move directly to the C-end, reducing intermediate links, lowering costs, and making the efficiency higher.” Liu Jianbo said that the company will next expand into the live streaming supply chain and cooperate with leading MCN organizations. The epidemic has become a driving force for the company’s “electric shock”.
At present, Yaqi Clothing has been adjusted to mainly focus on the e-commerce supply chain business, which is divided into three major business segments: the development, production and sales of independent brands. Accounting for 30%; ODM processing of domestic Internet brands and offline women’s clothing brands, accounting for 50%; foreign trade export business, accounting for 20%.
“In the future, we plan to increase the proportion of foreign trade to 30%-40%, operate in multiple sectors, and improve our ability to resist risks.” Liu Jianbo said that in the past, we relied too much on a single market and were very passive in receiving orders. Next, the company must expand Cross-border e-commerce platform supply chain services “while ensuring domestic orders, strive to increase the volume of foreign trade orders.”
Having been in the apparel industry for more than ten years, Liu Jianbo knows the importance of “playing the first move well”. In Liu Jianbo’s view, after every crisis, there is a major reshuffle of the market. Consumers will be more rational, have higher requirements for services, and need to provide better services. Only with competitive products and services can we seize the opportunity.
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