Good Consumption Will Promote The Fashion Enterprises To Go Public

The consumption stimulating policy of the Ministry of Commerce is the focus of recent government policies. From the perspective of real economy development, this policy will be the long-term "nuclear power" of China's real economy development, Large probability speculation is given from the perspective of capital operation potential and industry development opportunities.

Cui Yu, analyst of the IPO consulting department of CIC Consulting, believes that big consumption is policy The industry is good driven by the good. From the market perspective, this good has no difference in stimulating consumption. Considering the development scale of domestic clothing enterprises, we believe that because clothing enterprises are in the brand building period, the expansion of the consumer market and the third consumption structure upgrade will bring a new development platform to China's clothing industry. According to the rise steps of some clothing brands in Europe and Japan, we believe that China will form a number of clothing brands with international competitive advantages in the next round of consumption boom.

First, the expansion of the domestic consumer market will lay the foundation for the development of enterprise scale. At the early stage of the development of China's clothing industry, it relied on orders from overseas markets, but with the rising comprehensive cost of China's clothing industry, foreign trade clothing enterprises profit Due to certain restrictions, the development potential is gradually shrinking. The expansion of the domestic market will provide channels for domestic sales of enterprises. It is speculated that the clothing industry market will achieve a sales growth rate of about 30% based on the market expansion scale brought about by the structural tax reduction in 2012.

Second, the upgrading of domestic consumption structure will win time for the brand building of clothing enterprises. Brand is an important step in the development of China's clothing industry. China's clothing enterprises are transforming from rough development to intensive development. Enterprises expect to use high profit margins to support long-term operations. In the third consumption structure upgrade, the upgrading of consumer taste will become a trend, and the pursuit of quality and brand will become the key consumption orientation of emerging consumers. This phenomenon will improve China's clothing consumer brands and achieve high profit margins for China's clothing enterprises. Some clothing manufacturing enterprises will improve their overall competitiveness by building brands.

Zhang Yanlin, research director of CIC Consulting, affirmed the above speculation. He said that the market is the basis for the development of the industry. There is a dead cycle in the development of some clothing enterprises in China, and they are slow in upgrading the industrial structure. Some people have always believed that this is business inertia and that operators are not suitable for the trend of economic development. In fact, from our research on garment enterprises in Zhejiang, we can see that the market is the key to the reform of operators. For the purpose of stable operation, most enterprise operators gave up the proposal of rash transformation. However, this phenomenon will change with the arrival of the stimulus consumption policy. It is expected that the transformation power of operators will be more active. With the continuous expansion of the market scale, the trend of these enterprises entering the capital market will become more obvious.

The Investment Analysis and Prospects Forecast Report of China's Clothing Industry 2011-2015 released by CIC Consulting pointed out that in 2010, inland provinces had become regions where clothing enterprises were actively investing, especially in the central and western regions, which still maintained a good momentum of development. Jiangxi, Anhui, Henan, Hebei, Hubei, Hunan and other provinces bucked the trend and achieved rapid development. From January to November 2010, the total sales revenue of textile and clothing manufacturing industry reached 1053.6604 billion yuan, with a year-on-year growth of 25.24%; The total profit of textile and clothing manufacturing industry reached 53046.2 million yuan, up 35.85% year on year. In 2010, China's enterprises above designated size completed a total of 28.523 billion pieces of clothing production, an increase of 18.60% year on year, 11.66 percentage points higher than the same period in 2009, and 2.57 percentage points higher than that from January to March.
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