The structural crisis of clothing retail industry in Europe has been going on for more than ten years. The novel Coronavirus epidemic triggered by this year's novel novel gives a new impetus to the clothing industry.On the other hand, e-commerce is developing rapidly.Gildas Minwell, director of the French Fashion Institute (IFM) Economic Watch, expects online apparel trade to grow by 20 per cent in 2020 and 3 per cent in 2019
The European clothing retail industry has been facing a structural crisis for more than ten years. This year, the novel Coronavirus epidemic triggered an economic crisis, which made a new breakthrough for the clothing industry.
Arcadia Group, the parent company of British fashion brand Topshop, filed for bankruptcy on Nov. 30 as business declined amid the outbreak crisis, Le Figaro reported.The Acadia Group has yet to lay off staff and is continuing to operate, with more than 9,000 employees still enjoying "part-time unemployment" when it reopened in the UK this week after a month shut down during the epidemic lockdown, according to Deloitte.But the bankruptcy decision leaves the fate of the group's nearly 500 stores and 13,000 employees in doubt.
The French management of Swedish fast-selling clothing brand H&M sent a notice to unions in late October, saying it would convene the Social and Economic Committee to negotiate a collective agreement with the unions as part of a restructuring plan, le Parisien reported.The scale of the job cuts involved in the social plan is not yet known, but the group, which employs about 5,000 people in France, is a sign of a crisis in the clothing industry.
The French federation of trade unions (CGT) is responsible for the national secretary of the clothing and footwear he di ferri recalls, garment industry has begun layoffs of bankruptcy in 2020, such as social programs, including the United States brand Gap closed champs elysees flagship store in Paris, the French Vivarte group and Orchestra, Damart, Naf Naf, Camaeu, Promod, Andre, textiles, clothing, footwear brands have announced restructuring and job cuts.
Johan Petiault, director-general of the French National Trade Federation, said the economic crisis caused by the outbreak was complementary to the structural crisis in the garment industry, which "has been in crisis for more than a decade in fact.Turnover has fallen by 17% in the past 12 years.Retailers are facing a challenge from online competitors, from giants like Amazon to upstarts like Vinted, which sells used clothing online.Meanwhile, the price war waged by brands such as Kiabi and Primark continues, with about half of the goods sold in clothing being discounted.And consumer habits have changed. In the 1960s, French consumers spent nine percent of their budget on clothes, whereas now it's only four percent. More and more young people are focusing on sustainability and they think differently."
Against this backdrop, 'all the lesser known brands will be affected,' says Cedric Dulock, president of consulting firm Dia-Mart.As in the case of Promod, Camaeu, Jules&Brice, they are caught between low-cost brands and premium fast-selling brands favoured by consumers such as Zara, Sandro and Massimo Dutti.The same goes for Celio, which has announced the closure of 102 of 478 stores and the loss of 383 jobs in France, but which has a good brand image and believes it can still turn the corner.
While Cedric Dulock is bullish on Celio's ability to emerge, the outlook for how many more clothing brands will go out of business for some time to come is not good for the industry.In the past three years, the "yellow waistcoat" movement, protests over retirement reform, and two successive rounds of epidemic lockdowns have all exacerbated the structural crisis in the clothing retail industry.Cedric Dulock points out that France's garment industry has lost 40,000 jobs, or 19 per cent, out of 220,000, and that failure to catch the Christmas season would be a disaster.
On the other hand, e-commerce is developing rapidly.Gildas Minwell, director of the French Fashion Institute (IFM) Economic Watch, expects online apparel trade to grow by 20 per cent in 2020 and 3 per cent in 2019.
