Since the COVID-19 outbreak, problems such as poor supply and marketing, inventory backlogs, and tight funding have been the main dilemmas faced by Guangdong apparel companies.

Guangdong is the largest apparel province in China, the apparel industry is one of the nine pillar industries in Guangdong, and Guangdong’s apparel output accounts for 1/4 of the country. According to analysis, the impact of the pandemic on the apparel industry may continue until August, and corporate liquidity and cost pressures are very large.

In order to reduce the adverse impact of the pandemic on the apparel industry, Guangzhou has launched 15 measures in February to reduce the rent for two months of small and medium-sized enterprises and individual industrial and commercial households operated by offline physical stores across the city. Currently, rent reduction has been implemented 830 million yuan. But in fact, even if rent-free for one year, without the restoration of passenger flow, logistics and cash flow, the sales of merchants cannot be revitalized. At present, the factors affecting the apparel industry are mainly two aspects, one is that the pandemic has affected the flow of passengers, and the other is that the crude oil price war in the international market directly affects the global financial and consumer markets. The most important thing now is to restore the confidence of clothing businesses, then to stimulate the domestic clothing demand, and the way of stimulating is not to increase the production of factories, but to effectively stimulate the domestic consumers’ demand for apparel.