Textile And Clothing: The Economic Growth Slowed Down By &Nbsp; The Industry Has Better Defensiveness.

In 2011, the rally was fierce.

In 2011, the key word of textile and garment industry is "price increase". Luxury brands are fully recovering from global luxury consumption and domestic.

Price rises vary widely.

After the price rises, the terminal feedback is different, the luxury brand is increasing and buying; the domestic brand is experiencing a slowdown in consumption, and the consumption channel is spillover from the traditional shopping mall to the online shopping platform such as the Taobao mall; and the export enterprises have difficulty in receiving orders.

Weather, Spring Festival and other factors impact 2012 growth expectations:

The objective facts of the late winter and early spring festival will result in the accumulation of retail channel inventory, which will affect the cash flow of retailers, which will make retailers' goods booking and new store expansion tend to be conservative in 2012, thereby affecting the expected growth of brand business in 2012.

After rising, find certainty.

We believe that in 2012, the rate of increase in industry will be greatly slowed down, and sales recovery will take time. The slowdown in overall retail sales is a matter of great probability.

Against this background, we suggest that we invest in luxury brand investment, looking for brands with High Asia Pacific income and increasing investment in the Asia Pacific region, such as Salvatore Ferragamo, Prada, Coach and so on. On export investment, we suggest that companies that increase the volume of orders significantly increase; in domestic brand investment, we propose to find sub sectors with stable performance and low inventory pressure, such as men's wear and outdoor products.

In addition, we suggest that we closely follow the inventory adjustment and valuation changes in the home textiles and general leisure industry next year, and the leading companies of the above industries, such as the home textiles and the American state garments, will be better targets for next year's collection.

Maintain the industry's "leading city -A" investment rating:

In the context of economic slowdown, compared to other industries, the textile and garment industry performance stability provides a better defensive. We maintain the textile and garment industry "leading city -A" investment rating, investment target selection stable performance of the sub industry leading companies, heavy recommendation: nine cattle, seven wolves, Pathfinder.

Risk warning: (1) domestic sales of winter clothing are consistently lower than expected; (2) deterioration of terminal consumption in Europe and America.