"Stall Economy" Will Bring New Vitality To The Garment Industry.

In May 28th, after the closing of the three session of the thirteen National People's Congress, Premier Li Keqiang, responding to reporters' questions, praised some cities to take the lead in loosening the "stall economy". The central civilization office also made it clear that in this year's evaluation index of civilized cities in the country, no occupying road management, street market and mobile traders should be listed as civilized cities. Promoting the healthy development of the "stall economy" is in line with the requirements of normalization of epidemic prevention and control, meeting the diverse needs of the public and increasing the number of jobs. It is the proper meaning of the task of "six stability" and the implementation of the "six guarantees" task. To do a good job in the urban governance problems coexisting with the people's livelihood, we should concentrate our efforts on optimizing "putting, managing, and serving" to bring new vitality to protecting people's livelihood, promoting employment, stimulating consumption and economic recovery, and bringing more "smoke and gas" to the city.

What is the possible impact of the "stall economy" on physical clothing retailing? Li Leqian, chairman of the China Textile Business Association's clothing trade committee, replied.

"Stall economy" will accelerate the reduction of store rents.

For the physical industry, the arrival of the "stall economy" may not be bad news. Over the past few years, many of our physical stores have not done well in business. The rent of the shops is higher year by year, reducing the profit margins of the physical clothing shops. Now the State encourages the healthy development of the "stall economy", and many places also relax control. Placing a booth without paying rent means that the demand for shops in the future may decrease. Under this background, the rent of shops in all places may decrease.

"Stall economy" or will bring drainage to the entity store.

Generally, the street with "stall economy" will be more lively and prosperous. The low price booth can attract consumers to gather, causing consumers' desire to buy, to a certain extent, will drive the surrounding entity shops. The physical clothing retailers can consider extending the closing time and reasonably using the open space at the entrance of the shop to attract more people into the store.

The influence of "stall economy" on low-end consumer goods

The "stall economy" may have a greater impact on low-end consumer goods, clothing for middle-aged and elderly, shoes and hats shops, and the higher coincidence degree of the consumers of the stalls and the consumers of these shops means that the competition for low-end consumer goods will become increasingly fierce in the future. Under the dual influence of online shopping and "stall economy", entities engaged in fast fashion clothes or lower end running goods may have to consider whether product positioning needs to be adjusted.