Apparel Enterprises Overseas Orders Declined Significantly

Wang Qian: China's first Spin Chief editor and chief analyst, he has been engaged in management, research and development in textile field for a long time, and devoted himself to the analysis and research of textile industry. industry chain Have a deeper understanding.

Last year Cotton price And domestic labor costs and price increases. Clothing enterprise We are entering the autumn and winter ahead of schedule.

"Guangzhou daily" reported the day before yesterday: "in the double squeeze of rapid increase in production costs and market shrinkage, the winter of domestic small and medium-sized manufacturing enterprises has arrived unexpectedly, and a large number of clothing and footwear factories are in semi shutdown state, and a few enterprises have begun to fail."

Guangdong is China's clothing production "heavy land", local clothing enterprises at present, the state of survival. Investor We are concerned about the sustainability of domestic garment enterprises' performance.

The annual report of listed companies listed in the end of April revealed that the gross domestic product sales of domestic garment industry last year were divided sharply in 2010. According to Wind information statistics, according to Shen Wan industry classification, last year, A shares listed in 35 clothing enterprises, the sales rate of the birds of the highest interest rate was 54.19%, the net interest rate reached 19.29%, while the gross profit margin of Chinese clothing sales was only 5.9%, and the net interest rate was only 1.16%.

Most enterprises mentioned cost pressures in their annual reports. In fact, from September to early November last year, cotton prices rose steadily, from 18 thousand yuan per ton to 30 thousand yuan, or about 70%. At the same time, there was labor shortage everywhere, and domestic labor force rose again and rose by more than 20%.

Recently, however, domestic cotton prices have plummeted. According to Xinhua News Agency yesterday reported that the current domestic cotton price is only 8 yuan / kg, spinning, weaving and other follow-up industry chain in the face of big fluctuations in cotton prices "at a loss", many enterprises therefore limit production, stop production.

Will the sharp fall in cotton prices push up the profit margins of the garment industry? In the fierce competition of garment industry, can garment industry pass on the cost pressure through product price increase? What is the order status of domestic garment enterprises? This bull market forum invited Zhou Shaoxiong, chairman and general manager of Fujian seven wolf industrial Limited by Share Ltd, Zhou Chengjian, chairman of Metersbonwe Limited by Share Ltd of Shanghai, chairman of Zhong Zheng and chairman of the board of directors of Boshiwa International Holding Limited, and Wang Wang, chief analyst of China's first textile network, jointly answered the topics of concern of these investors, and explored the reasons for the profit differentiation of China's textile industry. {page_break}

　　 Enterprises are facing difficulties in order reduction

Industry growth or slowdown in the two quarter

Guest view: this year the order situation is worse than last year, mainly due to the poor overseas orders, and many enterprises downstream are facing the problem of less orders. In the two quarter or even the second half of this year, the operation of enterprises will obviously slow down.

Oriental Morning Post: from the published annual reports and quarterly reports of listed companies, the net asset yield of domestic garment enterprises has been significantly divided. What is the cause of this situation? What is the expected growth rate of garment industry this year? What is the profit growth rate of the company?

Zhou Shaoxiong: this year, textile and garment enterprises have maintained a good growth momentum after overcoming difficulties such as rising costs. It is not easy to evaluate the judgement of "net asset return rate has obvious differentiation".

For this year's profit growth of garment enterprises, on the one hand, we must look at the macro environment, such as inflation factors, rising cost pressures, changes in domestic market demand, and the improvement of the level of operation of the whole industry. On the other hand, for a single enterprise, in addition to the influence of macro environment factors, it is related to business management, product design, market expansion and so on. For the seven wolves, in recent years, we have maintained a relatively steady and rapid pace of development, the first quarter of this year's performance is also consistent with our expectations.

Zhou Chengjian: our first quarter results in 2011 rose sharply, mainly due to the low base in 2010. At the same time, with the enhancement of the company's product competitiveness, the promotion of channel support strategy and the improvement of terminal retail management level, coupled with the enhancement of product competitiveness and the promotion of structural marketing strategy in the direct channel, the company's gross profit margin has increased substantially compared with the same period last year.

Wang Qian: after the financial crisis, the change of the whole industry is polarization. Good companies have further enhanced their strength due to the advantages of capital and other aspects, and small businesses are less obvious because of their weaker strength. In the first quarter of the past two years, the growth rate is relatively high, and it is likely to be around 50%. However, from the current situation, we can see that in the two quarter or even the second half of this year, the operation of enterprises will obviously slow down. Now the industry faces many unfavorable factors, which will be constrained by many factors such as high cost, raw materials, labor and so on.

Dongfang Zaobao: at present, what is the company's order status? What is the proportion of overseas orders? Is the product mainly OEM or self produced?

Zhou Shaoxiong: at present, the company's order is in good condition, and its growth momentum is good. As the main market of the seven wolves is in China, orders are mainly from the domestic market.

Wang Jin: this year's order situation is worse than that of last year, mainly due to the poor overseas orders, and many enterprises downstream are facing the problem of less orders. From the point of view of export, the proportion of OEM is relatively high.

Zhou Chengjian: at present, the company has no overseas orders, and its products are all domestic OEM (meaning OEM or OEM). Domestic orders maintained good growth. {page_break}

　　 Manufacturers can hardly transmit pressure by raising prices.

Production shift to control costs

Guest view: cotton prices rose fastest last year, more than doubling from the lowest point to the highest point. Manpower costs rose by more than 20%. With the increase of domestic labor costs and other costs, some of the raw and auxiliary materials will be transferred. For domestic enterprises, more and more global procurement will be adopted.

Dongfang Zaobao: which price of raw materials has risen fastest in the past year? How much is the manpower cost of garment enterprises? How can the company effectively reduce costs or push upward pressure on costs?

Zhou Shaoxiong: at present, all kinds of costs, including raw materials, manpower and so on, are on the rise. The company mainly tries to reduce the cost to downstream by improving internal management, increasing the effective utilization rate of resources and reducing costs.

Wang Jin: cotton prices rose fastest last year, more than doubling from the lowest point to the highest point. Manpower costs vary from place to place. Generally speaking, it is generally over 20%.

Oriental Morning Post: enterprises generally seize the blank market, increase sales channels and expand the trend of single store area. But at present, the pressure of commercial shops rent is very high. How to overcome the risk of big shop management?

Zhou Shaoxiong: there are two kinds of growth: one is horizontal growth: to seize the market and increase channels; the other is vertical growth, that is to increase the efficiency of single stores. This is also one of our urgent tasks at present.

Seven wolves will invest larger funds this year, plan to open 800 new stores, and continuously improve operational efficiency and enhance vertical growth level. This is not only the focus of big shop management, but also the focus of all terminal management.

Zhong Zheng Yi: large shops, if the market is unstable, the risk will increase simultaneously. Therefore, on the one hand, we should increase the development and maintenance of members, on the other hand, we should reduce operating costs and enhance the management efficiency of store operations.

Wang Jin: enterprises need to strengthen their internal management. Last year, Lining was faced with the pressure of over expansion, so the store was adjusted, so we must consider the cost from opening stores.

Oriental Morning Post: along with the upgrading of the textile industry, is there any global procurement plan or local production?

Zhou Shaoxiong: we have purchased from abroad in terms of fabric, and local production. We also have plans for overseas market expansion, such as signing contracts with international buyer companies in 2010, and buying Hangzhou Kenna agent international brand in 2011.

Zhong Zheng Yong: we are now buying all over the world.

Zhou Chengjian: now mainly local production, but the industry will have the trend of global procurement.

Wang Qianjin: in the medium to long term, China's textile industry will gradually shift from local sourcing to global sourcing. From the next five to ten years, because of the competitive advantages of China's own textile industry chain, it is difficult for other places to complete the replacement in the short term. However, with the increase of domestic labor costs and other costs, some of the raw and auxiliary materials will be transferred out, and more and more domestic enterprises will adopt global sourcing.

Oriental Morning Post: according to the company's long and short strategy, where will the main profit growth point come from? What are the main business risks?

Zhou Shaoxiong: in terms of men's wear market, at present, the market share of each brand is less than 1%, so we are very optimistic about the prospect of men's clothing industry. The main risks lie in three aspects: how to strengthen the talent pool, enhance the learning and growth ability of the channel, and improve the management concept.

Zhong Zheng Yi: one of the main profit growth points in the future is to further increase the flow of stores and single store sales. In addition, it will be one of the main profit growth points of the company through the continuous expansion of new stores and duplication of sales channels across the country.

Zhou Chengjian: our medium-term strategy is to develop other markets outside the mainland market by implementing the internationalization strategy, and further deepen the domestic market through the implementation of multi brand strategy. We are further improving and improving the coverage and total sales area of the marketing network.

Wang Qianjin: in the medium to long term, brand and channel are very important for enterprises to win high and stable profits. The expansion of large enterprises is bound to face risks such as business and so on. Fierce competition in the market and high investment also mean high risk. {page_break}

　　 Industry will face a new round of shuffle

The middle and low end brands are more impacted.

Guest view: at present, the competition in the domestic clothing market is more intense, coupled with the increasing cost of commercial housing at present, which is a pressure for the whole industry, and may cause more impact on some small and medium brands and low-end brands, so the apparel industry in the future will face a new round of shuffling.

Oriental Morning Post: many textile enterprises are taking a diversified road, such as YOUNGOR (600177, stock bar), which may be more like an investment enterprise. Shanshan stock (600884, stock bar) is being hyped by investors as new energy concept stocks. How do you see this phenomenon? How much does the company's non apparel products contribute to profit? What are the diversification strategies in the short and medium term?

Zhou Shaoxiong: we will focus on the field of clothing and make the seven wolves clothing brand into an international brand.

Zhong Zheng Yi: since the founding of the frog, from the original clothing manufacturer to brand, authorization and channel, it has never left the field of "children's consumption". In the future, Dr. frog will continue to plough deep in the field of children's consumption. We will enrich our products around children aged 0 to 14 years old.

Zhou Chengjian: Metersbonwe focuses on the apparel industry and has no investment in other industries.

Oriental Morning Post: is the company benefiting from the "consumer upgrade"? From the current sales situation, what is the sales growth rate in the rural market and urban market? What is the impact of Taobao's new sales channels on its sales?

Zhou Shaoxiong: we are not simply divided into rural market and urban market, but subdivided into five levels: super large, first tier, second line, three line, three line below. Now the first tier market, seven wolf sales growth has been greatly improved; and the three line and three line market has also been greatly improved due to the improvement of consumption capacity.

At present, the competition in the domestic clothing market is more intense, coupled with the increasing cost of commercial housing, which is a pressure for the whole industry, and may cause more impact on some small and medium brands and low and medium end brands, so the clothing industry will face a new round of reshuffle in the future. The official flagship store of the seven wolves in Taobao mall is developing rapidly every year, which is also a driving force for the company's performance.

Wang Qianjin: the base of town is relatively high. The average per capita clothing expenditure is about 1500 yuan per year, and only three hundred or four hundred yuan in rural areas. But in recent years, the growth rate of rural areas and cities is relatively close. In the future, rural growth is likely to increase.

Zhong Zheng Yong: e-commerce must be developed. In the next five to eight years, the most important consumer of the baby industry is the 1980s. This is a generation raised by the Internet. We have built our own e-commerce website, and now the website has been formally launched. In fact, we have worked with Taobao for a long time to achieve large-scale sales on the Internet. At the same time, we have opened a client on iPhone, iPad and other terminals to further expand online channels.

Zhou Chengjian: since the "bang bang net" was launched in December last year, the daily trading volume is more than 1000 single, with an average value of more than 300 yuan per sheet, so I think e-commerce should not only be a symbol of low price, but also should reflect the brand, high cost performance and high consumer experience. Our goal for e-commerce is to reach 100 billion yuan by 2020.