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    Reasonable Performance Differentiation Of Textile And Clothing Leading Brands Give More Strength

    2011/3/2 14:13:00 82

    Performance Differentiation Textile And Clothing

    Due to the revival of demand and the improvement of the industrial operation environment, the overall performance of the textile and garment industry in 2010 has been fairly determined.

    However, the performance differentiation trend caused by cost is becoming more and more obvious. Some leading brand companies with strong cost pfer capability can take the lead in the fierce competition in the future and achieve the volume and price rise of products.


    Growth is clear and differentiation is obvious.


    As of February 24th, 4 listed companies in Shen Wan textile and garment industry announced the annual report in 2010. Net profits attributable to shareholders of the parent company all increased.

    11 listed companies released a performance bulletin, excluding the performance of the 4 companies declined slightly, the rest showed an increase.

    48 companies released performance forecasts, of which 42 were preview companies, and 6 were preview companies.


    From the performance, it is easy to see that the textile and garment industry has achieved no suspense in achieving steady growth in overall performance last year.

    Under the background of obvious economic recovery at home and abroad, both exports and domestic demand markets have shown a good momentum, creating a good operation environment for the textile and garment industry. The industry will continue to maintain a good trend in the coming period.


    However, companies in the industry also showed significant performance differentiation. The main reason for this trend is the rise in costs and

    Enterprise pfer

    Cost capability.


    As investment income and government subsidies amounted to 320 million yuan, Huamao shares achieved a total revenue of 1 billion 956 million yuan in 2010, an increase of 23.73% over the same period last year, and net profit of 360 million yuan, up nearly 4 times compared with the same period last year.

    The Tianshan textile company, which also turned its profit into profits, made a profit of 289 million yuan last year, with a total profit of 5 million 890 thousand yuan, of which the government subsidy amounted to 5 million 850 thousand yuan.

    The development of the main businesses of the two companies is not satisfactory.


    Driven by soaring cotton prices, domestic clothing in 2010

    Fabric

    A substantial increase in the price of excipients and the increase in the cost of labor have further squeezed some enterprises' profit margins.


    Last year, net profit fell by 63% of the same year, said the company's total revenue and the previous year slightly increased, but the cost of production has been greatly improved, while the price of clothing products in foreign markets is relatively stable, resulting in a substantial decline in gross profit margin. At the same time, the appreciation of the people's currency also has a negative impact on the company's efficiency.


    Similarly, the textile and garment enterprises with better cost pfer capability have also realized the product price rise as the cost is rising.

    The achievements of three home textile companies, such as Futian, fuanna, Luo Lai home textiles and Meng Jie home textiles, have achieved remarkable growth.


    Fuanna said the company's home textile industry is in a period of rapid growth, and the market potential is huge. With the continuous improvement of the living standard of domestic residents, the consumption power is increasing.

    Fu Shi shares said that the company vigorously expand the market and expand

    Distribution channel

    We should speed up the adjustment of the market structure to the dominant market and raise the price to different degrees in the domestic and international markets.


    Leading brands give more power to {page_break}


    The industry expects that in 2011, China's textile industry is a steady and steady market demand. However, the situation of low gross margin and fierce competition will not change in the short term. In the context of rising pressure on raw materials and labor costs, the trend of future textile and garment enterprises' performance differentiation will continue to intensify.


    In February 24th, China's cotton price index was 30365 yuan / ton, and stood at a high price of 30 thousand yuan, up 10% over the beginning of the year.

    As one of the main raw materials of the textile industry, domestic cotton 95% is used for spinning, weaving, printing and dyeing, and then processing into garments. The pressure of rising prices of raw materials is continuously being pmitted to downstream industries such as weaving, printing and dyeing, clothing and home textiles.


    China's first textile network analyst Wang Qianjin believes that high cotton prices will accelerate the polarization of the textile and garment industry.

    Because of the strong bargaining power of backbone enterprises and the large reserves of raw materials, the impact of the high cotton prices on the production and operation of such enterprises is not large, and the most frequently affected SMEs are those in a disadvantaged position.

    This is also a necessary stage to eliminate backward production capacity. Industrial resources gradually flow to large enterprises with high added value in the process.


    As a result, leading enterprises in the industry with certain brand advantages, channel advantages and product advantages will win more market share, steady growth in orders, gross margin will also steadily improve, strong performance growth and more investment value.


    Dongfang securities Shi Hongmei also said that in the upgrading of consumption, more and more consumers began to pay attention to the environment of dress taste, personality and fashion. It is expected that the domestic brand clothing enterprises will maintain high-speed growth in 12th Five-Year, while also optimistic about the growth of the leading companies for garment enterprises.

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