According to the practice of previous years, January to February is the peak season for sports shoes and clothing products. However, due to the impact of the new crown pneumonia epidemic, since late January, almost all domestic sports shoes and clothing offline stores have been forced to close, and sales have fallen sharply.


Under the epidemic, reduced passenger flow, frozen production capacity, declining profits, and backlogs of inventory ... These issues are all putting the test to the sports shoes and apparel industry.


Double doors: shrinking production capacity and high inventory


Affected by the new crown pneumonia epidemic, the offline stores and factories of most sports brands were temporarily closed. For sports brands that rely on offline sales, the entire industry has suffered a lot.


Adidas said via email that the company's sales have fallen by 85% in the weeks since January 25. Puma executives also said that its sales and earnings for the first quarter were impaired, and that full-year profits are expected to be lower than expected. Nike officials also announced in early February that it would close nearly half of its stores in China.


Hu Haobo, founder of R2 running shoes, which deeply plows the domestic road running market, said in an interview with Xinhuanet that since most of his running shoes are sold through the Internet, compared to the same period last year, online sales alone have maintained a small increase. . However, he also said frankly that offline sales were dismal due to the impact of the epidemic.


Hu Haobo originally planned to launch new cross-country shoes after the year, but due to factory shutdown, he is now optimistic that it will not be launched until at least May or June. In his opinion, the epidemic has a relatively large impact on the production capacity of Nike, Adidas and other large footwear and clothing brands. "Because the premise of sales is capacity, and most domestic footwear and clothing foundries are in complete shutdown during the severe epidemic period. On a slow climb. "


He analyzed that although approximately 80% of the output of major brands such as Nike and Adidas have been transferred to Southeast Asia, the overall sales volume in the first and second quarters will be somewhat affected by the inability to expand domestic production capacity. Down.


For domestic sportswear companies, they face the problem of inventory backlog. "According to the normal production model, in order to ensure the supply of goods, shoes and clothing will be produced in advance before the season change. Some sports brands may have produced some shoes and clothing in the first quarter, which is the spring. If they cannot be processed as soon as possible, these goods may become backlogged. Inventory. "Said a Jiangsu clothing factory owner.


The backlog of inventory will have a negative impact on sports shoes and clothing companies, affecting their cash flow. In a sense, cash flow is more important than profit. Cash flow is a necessary condition for enterprises to maintain normal business operations.


Based on this, Han Mu, the founder of Rilakkuma Sports, told Xinhuanet Sports that "for shoe and apparel companies with a backlog of goods in the first quarter, there may be a vicious cycle effect, which will affect orders in the second quarter."


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