Clothing Industry: Not Afraid Of Cold Or Uncertainty

If clothing companies choose the best season, the answer is probably winter. The reason is that it is a common thing to take out a down jacket and sell the price of thousand yuan. Summer The clothing also sells this price, but has the low request to the brand, the design, the material and so on.

Severe cold is a good thing for clothing enterprises, but if the cold weather suddenly comes, clothing enterprises may face the "dilemma" that they can not earn money and tighten their belts.

Accident is not good.

In 2008, a snowstorm and freezing disaster swept over half of China, but the performance of Bosideng in the production of down garments was worse than before. Because of the late arrival of winter and the high inventory of the down jacket production enterprises, the more and more panic is, the prices begin to fall down on the down garments. Bosideng is also forced into it. When the disastrous weather finally arrives, the price war on the down jacket is coming to an end. As of the fiscal year of March 31, 2008, Bosideng earned 5 billion 279 million yuan, a decrease of 6.3% over the same period last year.

This year, some European countries have seen decades of extreme cold weather. Europe It may usher in a little ice age. Is this a good thing for clothing enterprises?

It is not only Bosideng such a down garment production enterprise that is suffering from sudden changes in weather.

In 2011, a quarterly report showed that the company's inventory amounted to 3 billion 160 million yuan, an increase of about 600 million yuan compared with the 2 billion 550 million yuan at the beginning of the year, and the amount of inventory should be kept within 2 billion yuan according to the scale of the American state dress. This means that the amount of stock in the United States is at least 1 billion yuan. There are many reasons for such a large inventory amount, one of which is the unexpected change in weather.

Zhou Chengjian, chairman of the American Apparel, explained: "in October 2010, the weather was warmer. It didn't really enter winter until December. Winter clothes were too late to digest. After the winter of 2010, the spring of the new year came late again. The bamboo shoots that should have grown on Qingming Festival came out a month late, and the sales progress of spring clothes was also affected." Coupled with the shortage of labor in 2010, clothing in spring and summer has been dragged to 4~5 months before delivery. The best time to market is missed, resulting in a huge increase in stock.

An industry insider is going to freeze the weather. increase It is a discreditable evaluation of clothing enterprises. He told the first Financial Daily reporter: "the weather is the most difficult thing to predict. The forecast of the weather bureau, for example, rains only 50% or other probability. It is not sure that it will rain for a few days, and the weather forecast for a year or longer is not necessarily credible."

The above said that clothing enterprises do not particularly like winter. What enterprises most want is the arrival of the whole year, step by step, and do not have too many accidents.

Supplement is more reliable than forecasting weather.

A garment industry practitioner told reporters, what kind of changes will happen in the future, it is hard to say that if we predict that the next winter will be very long and very cold, prepare a lot of cold resistant raw materials, and organize the production of cold clothing. Once the weather is not as good as expected, enterprises, especially large enterprises, will be in a huge inventory crisis. The risk is too great. From the perspective of sound management, enterprises will not gamble in the future to enter the little ice age. Even if the real little ice age is coming, enterprises will be able to produce products in the form of making up orders and tracking bills.

According to the insiders, if the raw materials such as cotton yarn, fabric and so on are adequately stocked, the number of workers is adequate, and the production equipment of the enterprises is in the normal production state. Since the domestic enterprises receive orders to dress for delivery, the whole cycle is fast. If 2~4 weeks are longer, 4~6 weeks, if supply chain management is appropriate, it is not very difficult for China to make quick fill orders in China, so there is no need to prepare early.

Compared with the changing weather, the clothing companies are more afraid of the "cold winter" of the whole economic environment and the uncertainty of economic development.

A clothing trade company in China exports about 100 million yuan of clothing every year, of which 70%~80% accounts for the total amount of clothing exported to European countries. The head of the company told reporters after the Spring Festival this year that in the past year, the company should have about $8 million in funds, but now only 4 million dollars, mainly because the order is not satisfactory. The average price of the latest orders is down by 5%~8% compared with the same period last year. The number of orders is about 30% less than that of last year. This year, the company's goal is to keep revenue equal to 2011. This is the best result.

According to the data released by the General Administration of Customs in February 10th this year, the first textile network showed that in January 2012, China's textile and apparel exports totaled 21 billion 519 million US dollars, down 0.42% compared to the same period last year, and the growth rate dropped sharply compared with 20.04% in 2011. It was the first time that there was a negative growth trend after the 2008 financial crisis, of which 7 billion 677 million US dollars in textile exports, down 6.80% from the same period last year. clothing Its exports amounted to $13 billion 842 million, an increase of 3.51% over the same period last year.

First textile network analyst Wang Qian said that if the factors of clothing price increase were deducted, the number of Chinese clothing exports might be negative.

"I am not worried about the cold weather in Europe. I am more concerned about when the European economy will be able to recover," said the head of the clothing trade company.