Brand Clothing Plays The Music Of The Neon Dress.

International experience shows that when per capita

In the short term, this year's price increase in clothing retail sales has become the most important driving factor.

In 2010 1~7 month, clothing retail sales increased by 23.87%, of which the price increased by 12.98%, the highest price for the last five years.

The increase in the price in the first three quarters increased by 43.5% compared with the previous quarter, and the net profit increased by 29.99% over the same period last year, which is faster than the growth rate of 16.98 and 31.2 percentage points respectively. The gross profit margin is also 23.01 percentage points higher than the gross profit margin of the plate.

High price and high price restrict short-term stock price

However, the recent cotton price has become a negative factor restricting the short-term performance of brand clothing stocks. Cotton prices broke through the 30 thousand yuan / ton mark in November 2010 and hit a record high.

"Cotton price rise is an inevitable trend, but over 30 thousand yuan / ton is irrational."

People in the cotton spinning industry say.

Wang Liping, an analyst at Shenyin and Wanguo [3.79 0.27%], thinks that although the price of cotton has dropped back in recent years, it may still be maintained at a high price of 23 thousand ~2.5 yuan / ton.

The rise of labor costs has brought great pressure to labour intensive clothing enterprises.

In 2010, the labor cost of Jiangsu, Zhejiang, Shandong, Guangdong and other textile industrial clusters increased by 20%~30% on average, higher than that of the same period.

If the high CPI is not effectively suppressed, it will further push up labor prices.

Chen Ping, the representative of securities affairs of seven wolves, said: "the rising labor costs and the high price of raw materials directly reflect the rise in the price of purchased garments, which will form a certain pressure on the company. However, because the company bought cloth purchases six months in advance, it has no impact on the overall profitability."

In the context of rising labor costs and high price of raw materials, the ability of garment enterprises to pfer costs is particularly important.

The production cost of brand clothing accounts for about 15%~20% of the terminal price, and the sensitivity of downstream consumers to price is not high. It is easy for enterprises to pass the price rise by raising the price.

Wu Xiaoyu, a researcher at Xiangcai securities, said, "with the coming of winter, the price increase may rise further, and this profit is likely to be reflected in the fourth quarter results".

Who will be the king of clothing?

Clothing companies want to win in the fierce market competition, brand awareness and the ability to grasp the fashion is the most important factor.

From the current listed companies, the ranking of brand names and fashion is ranking [36.30 0.83%], seven wolves, news birds [31.06 2.85%] and Kaiser shares [40.70 -0.25%].

The seven wolves have entered a steady growth period. The sales volume of the latest orders is rising by two liters. It is expected that sales will be gratifying at the end of the year. The sales volume of the birds in the three quarter will increase. The growth of its business series business will be stable, and the fashion business will increase faster. The group buying / export business (Bao bird business) recovery is higher than expected; [29.60 -2.63%], as the leading clothing manufacturer in the north market, has the largest scale of men's suit production base in China, with obvious scale benefit, but the product grade is lower than that of the wedding birds. Kaiser shares are the high-end men's and women's wear Brand Company in the country, which are mainly direct sales outlets, and the company has invested heavily in the shops.

Wang Liping, an analyst at Shen Wan, said that he was optimistic about the growth of companies, especially those in the second tier cities, which already had a certain brand awareness and sales channels and were expanding to the three or four tier cities and rural markets. For example, the leading brands of casual wear and apparel were nearly 700 new stores in 2010. The retail terminal revenue in 2010 is expected to be around 12 billion ~130 billion yuan. By 2015, the retail terminal is expected to achieve a scale of 50 billion yuan and the income scale will increase by 4 times. Guotai Junan analyst is optimistic about [97.58 -0.80%], which believes that the growth of the youth leisure clothing market in the three or four tier cities is strong, but the price earnings ratio is relatively high.