Future Market Analysis Of Casual Wear Industry

International fast fashion brands gathered in the north, Guangzhou Shenzhen and first tier cities, shops, TOPSHOP and other mid-range price brands have tried to land, individual brands began to sink, explore the two or three line city shop.

The international fast fashion brand brings to China's casual wear industry is the intensification of competition, the market segmentation and the pressure of efficiency.

In the process of channel sinking in China, the speed of expansion is slower and more difficult due to the differences in market demand, business environment, the cost of trial and error, and the mode of self expansion.

In recent years, with the rapid development of shopping centers and online shopping, new challenges have been posed to the competitive environment of the industry and the business mode of enterprises.

As for online shopping, at the present time, we believe that the impact of online shopping on mass casual wear brands still exists, but the space that is further eroded by the pure electricity providers is not very large. It is expected that the future competition will be more and more between the traditional mass leisure clothing brands.

From the analysis of the characteristics of industry, the change of consumer behavior and the growth path of international giants, we believe that the development stage and competition pattern of domestic casual wear industry are essentially different from those faced by domestic sportswear, and the probability that local casual wear will repeat the mistakes of local sports apparel enterprises is very small.

We believe that casual wear itself is not more cyclical than other clothing categories, and the terminal demand of the industry is still in a stage of rapid growth (15% - 20%). After this round of adjustment, we believe that the supply and demand structure of the industry will be healthier.

In the past few years, the local mass casual wear enterprises had extensive expansion and expansion on the basis of agency or affiliation, and had a high degree of homogenization. When the volume reached a certain level, they would expose some inherent problems, while foreign investment shocks and online shopping and other factors aggravated the competition in the industry, leading to a further advance in the industry shuffling.

In some ways, the short-term adjustment or pressure of our local enterprises is not only for some personal reasons, but also for the extensive expansion of the previous years or the repayment of the supply, and the gap between the financial statements and the terminal sales of the company.

China's clothing and consumer market is a vast, deep and rich market.

The advantage of enterprises lies in a better understanding of the needs of local consumers, a better understanding of the operation mode of the local business environment, a richer channel base and a broader mass base. In particular, the advantages of the two / three / four tier cities are more prominent, and the challenges faced by foreign enterprises in the process of subsidence and expansion also provide sufficient time for local enterprises to move forward.

We believe that the domestic enterprises that may win in the leisure wear industry may come mainly from two aspects. (1) the product positioning, target group positioning or channel positioning and the full differentiation of international brands (2) already have a good brand, channel foundation and management system.

Investment strategies and recommendations:

From the international experience of industry investment, the mass casual wear field is the most popular audience, and it is also easy to produce a large market value company. This is also one of the advantages of casual wear as an investment target compared to other clothing brands.

As for the A share listed companies in the mass leisure sector, we believe that the [21.80 -1.36% shares of the US bond market research group (002269, buying) has already passed the most difficult period. The US bond has a higher starting point. With its good foundation in brand operation, product design and understanding of the Chinese market and the spiritual characteristics of active innovation, it is expected that the probability of gradual upward development will be higher in the future. At the same time, we are relatively optimistic about the difference in market positioning, and at present, the smaller and stronger growth is in the [19.70 -1.89% share research report (002503, buy).