Women's clothing brand Evely has closed thousands of stores due to the epidemic, but the company said it has sufficient cash flow

Women's clothing brand Evely has closed thousands of stores due to the epidemic, but the company said it has sufficient cash flow

Women

Reporter | Jia Linwei

Editor | Zhou Zhuoran

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According to Yibang Power Network, Hangzhou Hanfu brand Eveli has been affected by the epidemic. , decided to temporarily close about 1,300 offline stores, accounting for two-thirds of the total. Since the outbreak of the epidemic, Eveli has lost nearly 100 million yuan, and its spring inventory is also under great pressure. However, Sun Gongke, general manager of Eveli, said in an interview that the company's current cash flow is still very abundant, which is helpful to cope with the current situation.

The parent company of Eveli is Hangzhou Yifenge Industrial Co., Ltd. founded in 2001. In addition to the main Hanfu "EIFINI", the company also owns three major brands: the girl's brand "SEIFINI Shifanli", the urban Hanfu "MM Maimeng", and the casual Hanfu "Pure: Moment".

Women

2019 and 2020 are the years when Yifengge will continue to exert its strength.

In September last year, EIFINI released a new series at Paris Fashion Week for the first time. In October, its first men's clothing brand "MEILLEUR MOMENT" began its offline layout. In the "Double Eleven" that followed, all Tmall stores of Yifenge's brands achieved the ninth consecutive sales volume on the day of the shopping festival.annual growth, reaching 351 million yuan.

With the overall sluggishness of the footwear and apparel industry in 2019, Yifengge was already in good shape, but the unexpected epidemic at the beginning of 2020 still blocked its plan to accelerate development.

Sun Gongke told Yibang Power Network that the biggest pressure at this time comes from rent and property costs, and he hopes that the owners can extend the rent exemption and reduction period and strengthen the intensity of exemption and reduction. We also hope that the government will introduce policies to reduce or reduce value-added tax and income tax in 2020.

Women

In fact, many property owners and local governments have reached out to help businesses.

As of February 10, governments in Beijing, Shanghai, Guangdong, Hebei, Shandong, Jiangxi, Hainan, Chongqing, Heilongjiang, Liaoning, Zhejiang, Fujian, Jiangsu and other places have issued policies to support the healthy development of enterprises and help them. Measures to help small and medium-sized enterprises overcome difficulties together. Twenty real estate companies, including Wanda, China Resources Land and Longfor, also extended a helping hand to merchants in their shopping malls and offered to reduce or reduce rents.

But as Sun Gongke said, compared with the unpredictable losses, the current preferential policies provided by various owners are a drop in the bucket. Wang Bing, the founder of Shanghai clothing brand Lulualways I Love Lulu, told Jiemian Fashion that if the retail situation still does not improve within a few months, he hopes that the landlord can accept the plan to extend the contract time under a fixed rent.

Women

Currently, the number of people shopping offline has dropped sharply, and brands are trying every means to guide consumers online.

Evli plans to guide customers to spend on Tmall, mini program malls, WeChat Moments and other channels through marketing methods such as live broadcasts and social groups. It is hoped that the accumulated demand from the customer base can alleviate the losses suffered during the special period. Lulualways and Jiumuwang are also emphasizing online sales. Peacebird also told Jiemian Fashion that it will focus on omni-channel sales and the improvement of flexible supply chains, launch spring discounts in online malls, online live broadcasts and other diversified sales models, and invite fans to "cloud shopping".

However, slow logistics during the epidemic will still lead to a reduction in online consumption willingness. Therefore, fashion companies need to be prepared for a protracted war.