Five Years Of Brand Clothing

　 Clothing consumption enters a stage of high growth

As a necessities of life, the development of the garment industry has benefited from the increase of the average consumption ability of the society, and has also benefited from the upgrading of the consumption demands of all sectors.

The "12th Five-Year plan" defines the theme of "expanding domestic demand" and "enabling low-income people to have the ability to consume", and takes the general rapid increase of urban and rural residents' income as one of the five major goals of economic and social development. It is estimated that assuming that the per capita disposable income of urban and rural residents will continue to maintain an annual growth rate of about 9%, rural residents will earn over 1000 dollars in 2013, and urban residents will earn more than 3000 dollars in 2012. It is expected that a new round of consumption structure change will be launched in the rural market. The outstanding performance is that the demand for clothing products will increase rapidly, and the consumption of clothing and the unit price of clothing will both rise, and the elasticity of demand income will be larger. The urban residents will also usher in a new round of huge changes in consumption structure. After the income level rose to 3000 US dollars, the improvement of clothing consumption demand will gradually decrease, followed by the increase of sustained consumption demand, that is, on the basis of the original consumption preference, we will continue to improve the quality of consumption, and the increase in consumption is limited, but the consumption unit price will increase significantly.

After the implementation of the "income doubling plan" in Japan in 60s, clothing, Home textiles Footwear, which is closely related to people's daily life, has been growing for many years. Clothing has increased by 29 years from 1963-1991 years, with a compound growth rate of 6.2%. Home textiles increased from 1963-1983 years to 21 years, and the compound growth rate was 7.3%. Footwear increased from 1963-1992 years to 30 years, with compound growth rate 5.4%. In the 70-80 era, when Japan's per capita GDP reached US $3000-8000, these consumer goods showed a trend of accelerated growth.

At present, the disparity between per capita consumption of clothing and other developed countries in China is very huge, and the future development space will be very broad. In every field of clothing, with the largest number of clothing per capita, for example, the gap between the two countries is still large, let alone the industries such as consumption promotion and popularization, and later accessories. From the perspective of per capita consumption, clothing was taken as an example: in 2009, the per capita sales of clothing in the United States amounted to about 680 US dollars, while the per capita consumption of clothing in Japan was around us $750; in 2009, however, the per capita consumption of clothing in China was less than US $40; in terms of footwear, Japan's per capita footwear consumption reached US $157 in 2009, and the figure in the United States also exceeded US $85, while the per capita consumption of footwear in China was less than US $10.

China's textile and apparel consumption began to grow rapidly in 2005. Over the past 2005-2010 years, the textile and apparel retail sales above the quota increased by 23%. In 2010, China's per capita GDP was about 4500 US dollars, which was similar to that of the US in the late 1960s. According to the historical experience of clothing consumption in the United States: GDP per capita has entered more than $3000, clothing consumption has entered a high growth cycle, and has maintained a GDP growth rate of 2-3 times in thirty years. China's clothing consumption has entered a high growth cycle. It is expected that the sales growth of clothing consumption during the "12th Five-Year" period will exceed the annual compound growth rate during the "11th Five-Year" period, and the annual compound growth rate may exceed 25%.

　 Brand enterprises have the ability to pass on the cost.

In traditional Garment processing In the manufacturing cost structure, raw material cost accounts for 60%-75%, processing and manufacturing cost accounts for only about 25%. At present, the cost of raw materials and processing costs are rising, and the rigid rise in manufacturing costs is bound to pass on to the next link. In particular, cotton prices rose most fiercely, first spread to the weaving industry, and then to the printing, dyeing, clothing and accessories manufacturing industry.

Judging from the raw materials, the main clothing raw material It is cloth of various materials, and cotton and all kinds of chemical fibers upstream. In 2010, domestic and foreign cotton prices rose significantly, and drove the prices of all fiber raw materials up. From the cotton price point of view, the domestic 328 grade cotton rose from 15000 yuan / ton in the beginning to 31000 yuan / ton in November, or more than 100%, especially after the new cotton came into the market in September. The cotton price rose rapidly, forming a daily price inflation situation. In less than 3 months, it rose from 18000 yuan / ton to 31000 yuan / ton. Since February 18th this year, cotton prices have dropped from a high level, but considering the gap between supply and demand still exists, cotton stocks are also at historically low levels, with limited space to fall.

After the price of raw materials continues to rise, the major terminal clothing brands have adopted the strategy of raising prices to shift the cost pressure. Among them, home textile and sports goods market is the hottest price trend, and the prices of major brands such as Lining, Anta, XTEP, 361 degrees, Roley home textiles, fuanna, news bird and so on have risen to varying degrees. On the whole, prices have risen by more than 10%. From this we can see that because of the large profit margins and strong bargaining power to the end consumer groups, the brand clothing has little impact on the decline in cotton prices.

In the early stage of inflation, the effect of raising the price in the name of cost is not obvious. However, in the middle and later stages of inflation, with the decrease of the actual purchasing power of consumers (the products that are continuously increased), the ability of enterprises to increase the price of products will gradually encounter bottlenecks or directly affect the sales volume of products, and only those companies that have high quality, technological superiority, design characteristics, channel service advantages and brand premium can win in inflation. From a larger perspective, limited by the limited resources, the upstream raw materials of consumer goods are on the rise for a long time, and enterprises can offset the rise of upstream prices by raising the price of terminal products. The middle production is only the advantage enterprises can develop and grow through competition, while most enterprises maintain their operations and some enterprises are eliminated in competition.

In 2010, clothing products had begun to raise the price trend. The retail sales volume of major large department stores increased by 25.53% over the same period last year, of which the price rose by 13.58% compared to the same period last year, the highest level in the past five years. The number of sales in the same period also reached 11.95%, which was significantly higher than that in 2008 and 2009. From the end of spring and summer, autumn and winter in 2011, the average price increase of spring and summer products reached 15%, while the autumn and winter products are expected to raise prices by 20%, which has basically shifted the upward pressure on costs. As the average increase in orders is over 30%, the number of sales is expected to increase by double digits.

Since 2007, dozens of well-known brand clothing, home textiles and other enterprises have been listed. At present, the market value of brand companies has accounted for 40% of the total market value of the apparel industry. The average growth rate of revenue and net profit of key brand clothing companies in 2010 was 36% and 34% respectively. These booming companies represent the future direction of China's consumer goods industry, and more brand companies will be listed in the future. {page_break}

　　 Characteristics of excellent brand clothing enterprises

Beginning in 1960s, with the rise of popular culture, the world garment pattern changed dramatically, and the era of high fashion dominating the world ended. In the United States and Japan, fashion oriented clothing design is aimed at the masses and has made the representative brands such as GAP (Gap), H&M, ZARA, UNIQLO (UNIQLO) and ESPRIT (Si Jie). In the process of growing up, Brand Company, a public garment, is also accompanied by a capital myth of constantly doubling its share price.

For example, in the middle and late 90s of last century, GAP had a compound annual growth rate of over 20%, a compound annual growth rate of more than 25% of net profit, and a 9 fold increase in the net profit, which was much higher than that of the S & P 500 index. In the twenty years from 1990 to 2010, the annual compound growth rate of business receipts and net profit was 15.98% and 25.63% respectively, and the annual compound growth rate of the corresponding company's stock price was 32.53%. During the period, the price of the company's stock increased by 270 times, much more than that of the same period in 90s.