Seize The New Market Opportunity In The Integration Of Garment Industry

Apparel industry in the three quarter of 2011

Production and management is not optimistic.

The report on China's clothing industry prosperity index showed that in the three quarter, China's clothing output was 6 billion 678 million, down 7.6% from the same period last year, and the clothing manufacturing industry achieved 368 billion 950 million yuan in sales revenue, an increase of 23.7% over the same period last year.

Compared with the two quarter, a slight improvement has been made, mainly due to the two favorable factors for garment enterprises to enter the autumn garment production and the factory price rise in advance.

In the three quarter, the producer price of garment manufacturers rose 3.8% compared with the same period last year, or only the highest in the first quarter of this year (3.9%).

Since 2011, whether the sports brand clothing enterprises, or women's wear, suits and casual wear enterprises, have different degrees of raise prices.

In September 7th, at the thirteenth Jiangsu international fashion exhibition, Bosideng and other enterprises said that the price of new autumn and winter clothing launched this year will be affected by the rising cost of raw materials and manpower.

In the three quarter, the sales profit margin of garment manufacturing fell rapidly from 4.5% to 4.5% in the first quarter.

Rising cost is the main reason for the decline in profit margins.

On the one hand, the rise of wages and benefits coupled with the emergence of "labor shortage" has led to an increase in labor costs.

On the other hand, the rise in rents and the increase in pport prices have led to an increase in business costs. At the same time, the prices of water and electricity and other resources have risen, and the tight supply of energy has caused manufacturing costs to rise.

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Industrial data in August 2011 showed that clothing and accessories exports amounted to $17 billion 88 million, a decrease of 1.19% compared to the same period, an increase of 26.91% over the same period last year.

The cumulative value of cotton yarn exports is 291 thousand and 200 tons, down 24.62% compared with the same period last year.

At present, the increase in the export volume of textile and garment industry is mainly due to the growth of unit price, rather than the expansion of orders. The PMI of new export orders in August dropped to 48.30.

On the one hand, this shows that the bargaining power of China's textile and garment industry has increased. On the other hand, it shows that the external market economic downturn has led to the shrinking of external demand, and the pfer of some orders to Southeast Asia and other countries with lower labor costs and lower rental costs.

In the four quarter, the growth of external demand in China's textile and garment industry will be weakened due to the slow recovery of the US economy and the short term difficulty in solving the European debt crisis.

Industry reshuffle trend is obvious

After preliminary seasonal adjustment, the total loss of garment manufacturing enterprises in the three quarter of 2011 was 1 billion 240 million yuan, up 124.7% from the same period last year, and the growth rate was 100.3%.

Taking into account the decline in the level of sales profit, labor, production, pportation, financing and other aspects of the cost continue to take many adverse effects, the garment manufacturing industry deficit situation may expand further in the near future.

At the same time, as of the end of the three quarter, the apparel manufacturing industry accounted for 67 billion 500 million yuan of finished product capital, an increase of 28.7% over the same period last year.

Statistics show that in 2010, China's clothing inventory reached 20% of the production volume, about 15 billion, and the annual growth rate remained at 10%.

According to the normal growth forecast, 17 billion pieces of clothing tail products will be produced in 2011.

Because of the obvious seasonal and fast updating of clothing products, how to deal with increasing inventory has become one of the most headache problems for the clothing industry.

If the product is overloaded, it will not only occupy the company's operating capital, but also waste manpower and material resources. It will also increase the management cost and profit cost of the company, lengthen the turnover cycle of the product, reduce the overall profit of the company, and even seriously affect the survival of the enterprise.

High inventory may have little impact on large enterprises with strong bargaining power and strong risk tolerance, but for small and medium enterprises, especially those with tight funds, excessive inventory will inevitably increase the risk of enterprise operation.

At present, the concentration ratio of China's clothing market is low, and the number of small and medium-sized enterprises is huge.

However, the number of large-scale enterprises and brand enterprises is increasing.

When the market structure has not yet stabilized, enterprises with stamina will go up very quickly.

Therefore, the garment manufacturing enterprises will face the situation of "strong Heng Qiang and the weak ones". The production and operation of difficult enterprises will be more difficult. The difficulties of small and micro enterprises will intensify, and the integration of industries will accelerate.