80% Product Or Inventory Will Affect Next Season'S Orders.

Sales sluggish, stock surging, discounted goods... Since the second half of last year, the haze of high inventory has begun to shroud on the top of the shoe and clothing enterprises in China. Recently, the quarterly reports of A share listed companies and the 2011 Annual Report reveal that inventories of record highs have become a common problem in textile and garment enterprises this year.

A record high inventory has become a common problem facing the footwear industry in 2012. Whether we can clean up inventory and return funds as soon as possible determine whether the enterprise can go on the market in the next market competition. To this end, Quanzhou economic and Trade Commission, Quanzhou evening news agency, Quanzhou electronic commerce center, Quanzhou E-Commerce Association launched a series of reports on "e-commerce in action" from today on, through e-commerce and other ways to help small and medium-sized enterprises to process and adjust backlog of goods and idle materials, revitalize the assets of enterprises, thereby promoting the "two pioneering" of SMEs.

Sales sluggish, stock surging, discounted goods... Since the second half of last year, the haze of high inventory has begun to shroud on the top of the shoe and clothing enterprises in China. Recently, the quarterly reports of A share listed companies and the 2011 Annual Report reveal that inventories of record highs have become a common problem in textile and garment enterprises this year. Data show that in 2011, the total inventory of 84 listed companies in textile, clothing and fur industry reached 70 billion 832 million yuan, an increase of 25% over the 56 billion 742 million yuan in 2010.

Inventory pressure again increased

In the first quarter of 2012, according to the latest release of the American Apparel, the stock price is 2 billion 300 million yuan, the turnover is 2 billion 600 million yuan, and the inventory accounts for more than 88% of the revenue. CICC reported that the new stock in spring and summer in 2012 was about 250 million yuan, and the inventory in autumn and winter in 2011 was 700 million yuan. In 2011, the inventory was 800 million to 900 million yuan in spring and summer, and 500 million to 600 million yuan in 2010 and winter, and the rest was earlier. This means that in addition to the new spring and summer 2012 and the autumn and winter section of 2011 as normal operating stocks, the rest of the goods over 1 billion 300 million yuan can be regarded as off season goods.

In fact, the problem of high inventory is also bothering other brands of shoes and clothing. Previously, in Anta , Peak , 360 degree XTEP and other Quanzhou listed footwear enterprises in the 2011 earnings report, "inventory" has also become a plagued industry development problems.

Notice shows that Peak In 2011, the cash flow from operating activities dropped from 1 billion 166 million yuan in 2010 to about 310 million yuan, mainly due to the increase in company inventories and the increase in accounts receivable. PEAK CEO Xu Zhihua said that the current retail terminal inventory is about 1 months, distributors inventory is 5 to 6 months, the whole about 6 months. The 31st degree bulletin also showed that the stock in 2011 was up to 4 billion 512 million yuan, up 81.8% from 2 billion 482 million yuan in 2010.

Anta's previous annual report shows that as of December 31, 2011, Anta's stock amounted to 618 million yuan, up 36.1% compared with 454 million yuan in the same period last year. Anta's accounts receivable and other receivables were 1 billion 709 million yuan, up from 990 million yuan in the same period last year, with an increase of 72.6%.

In fact, compared with the listed shoe and garment enterprises with financial figures, the stock of some small and medium shoes and clothing enterprises may be more serious. "First and second tier brands can also be used to clean up inventory through discount sales. For small brands living in three or four lines or even without fame, even discount advantages are not obvious." The head of a shoe manufacturer in Jinjiang has to offer a clearance price of up to 90 percent off for the first and second tier brands of 3 and 60 percent off.

"Do not promote sales, inventory consumption can not go out; promotion, both the loss of this, but also easy to damage the brand image. All the money earned all year round is stored in the warehouse. " For shoes and apparel industry, excessive inventory has become a major problem affecting the development of the industry.

Sales sluggish, stock surging, discounted goods... Since the second half of last year, the haze of high inventory has begun to shroud on the top of the shoe and clothing enterprises in China. Recently, the quarterly reports of A share listed companies and the 2011 Annual Report reveal that inventories of record highs have become a common problem in textile and garment enterprises this year.

"Now leisure sports shoes and clothing products structure, more than 80% of inventory, and now most of the enterprises are selling inventory." A clothing brand insiders say there is a saying in the clothing industry that if a piece of goods has not been sold for 30 days, it will probably become a dead product. This is known as "brick".

For shoes and clothing enterprises, these over season commodities are being depreciated. "For example, three years ago, the goods had been basically" floor price ", which is the most merciless place in the industry. It is also because of this, inventory has become the biggest problem in the footwear industry, which is very difficult to solve and the cash flow can easily be crushed.

Affect next season order

It is understood that in accordance with the normal operation of the industry, 10% to 20% of the scope is regarded as safe stock, that is to say, 10 thousand clothing production, of which 1000 to 2000 belong to stock is common practice, which is also within the controllable range of shoes and clothing enterprises. But the reality is that most of the shoes and clothing enterprises have exceeded their controllable inventory. People in the industry say with a smile that even though all the shoe and clothing enterprises in China are now discontinued, they will only be able to sell domestic shoes and clothing sales enterprises for 3 years.

According to the practice of clothing industry, if these stocks exceed 3 years, the value of goods lost and warehousing costs will be reduced. It will not only bring profits to enterprises, but also become a burden for the future development of the company. In addition to the cash flow being occupied, the high inventory is the first to affect the growth of orders for footwear companies next season.

Chain reaction has emerged. PEAK sports recently announced the announcement of China's business operation. PEAK's sports orders amount (at wholesale prices) decreased by 20% to 30% in the fourth quarter of 2012. The decline in PEAK's orders covers its footwear and clothing products. Among them, the decline of footwear products is close to 30%, and the decline of clothing products is in the middle of 20% to 30%. Anta has also said before that, the impact of the overall economic environment and inventory clearance will lead to a negative growth in the number of units in the third quarter of 2012.