Terminal Sales Slowdown, Textile And Garment Enterprises Increase Business Risk

Pressing goods is a common practice for textile and garment enterprises to promote sales, but when terminal sales are slowing down, their business risks also increase.

Since the first decline in clothing retail sales in October, worries have begun to permeate the industry.

The industry believes that this may be textile and clothing terminal consumption affected by the economic environment and the growth rate of decline.

According to the data released by the China National Business Information Center, in November, the number of retail sales of clothing for hundreds of major retail enterprises increased by 10.26% over the same period last year, and the growth rate continued to fall, which was 6.47 percentage points lower than that in October.

Hangzhou often hosts a number of clothing brand ordering meetings. From the dealer's performance at these orders, we can feel the warmth and warmth of the textile and garment industry in the coming year.

In a clothing brand's order meeting, a dealer from Shanghai told reporters: "this year's business is not good. At this time last year, our store's daily sales can reach about 100000 yuan, and now, the daily sales volume is less than 50 thousand yuan."

Another dealer also had the same feeling: "after entering the autumn, the clothes in the shop do not know why, they do not sell, if manufacturers again.

According to incomplete statistics from journalists, in the first three quarters of this year, 34 textile and apparel listed companies continued to advance vigorously, achieving total business income of 62 billion 277 million yuan, an increase of 23.19% over the same period last year, and realized a net profit of 5 billion 801 million yuan, an increase of 48.78% over the same period last year.

However, behind the "rising tone", the accounts receivable and inventory of these companies are also increasing, and the efficiency of capital operation is generally decreasing.

According to flush iFinD statistics, in the first three quarters of this year, 26 comparable listed companies had a total inventory of 41 billion 430 million yuan, an increase of 23.97% over the same period last year. At the same time, the inventory turnover rate generally declined compared with the same period last year. At present, only 8 companies such as Chinese clothing (000902) and Meyer (600107) have achieved positive growth, while YOUNGOR (600177) and mebang apparel (002269) have declined to varying degrees.

It is understood that due to tighter monetary policy this year, dealers' capital chain is also generally tight.

However, most listed Brand Company are more optimistic about the industry and their own brand prospects. Therefore, they have increased their support for distributors' funds and credit.

The main forms of support include reducing the proportion of advance payment, ordering the dealer to postpone paying a certain percentage of the payment, and paying the shop decoration fees.

In fact, the growth of inventories can be understood in two ways.

According to the insiders, under the condition of a more prosperous terminal consumer market, increasing the financial support for dealers can fully mobilize the enthusiasm of distributors and enhance the efficiency of channel expansion. But if the terminal consumer market turns cold, the increase of dealer accounts receivable will bring greater business risks to brand dealers.