Clothing Inventory Does Not Solve The Wave Of Discount

When I came to the shopping mall in Wangfujing in Beijing, I heard all kinds of clothes selling at a discount. In the survey, it is found that discount clothing is not only short code short, even the new discount that is just listed this year is also very large. Often on the shelves soon, it will have to discount 6 or 30 percent off. Until August, the discount will be increased.

A brand agent revealed that this year's sports brands such as Lining, kappa and so on are more than 30%. Even Anta, which had the smallest inventory, increased its stock to 26.13% last year.

Faced with this threatening discount, consumers are dazzled. "Now the big economic environment is low, the pressure of clothing inventory is bigger, so we can only discount for the sake of elimination." A senior official in the industry said, "clothing is different from other products. Because of the fashion trend, the storehouse must be sold at a discount for up to a year."

　 The apparel industry is in the doldrums.

"Under the influence of economic environment, the demand for clothing is smaller now, and the home textile industry is in excess of demand." The senior official said, "in the first half of this year, textile exports fell by 10%, and domestic demand growth slowed down to almost zero. This makes the clothing industry Stock Increase, in order to consume inventory, businesses have to offer discounts.

According to the statistical data of foresight Industry Research Institute, in the 25 clothing and home textile listed companies that have been released in 2012, only the reported birds and the card slave road performance increased by 30% to 60% and 50% to 60% respectively. Compared with the same period last year, companies such as search, special, costumes, Pathfinder and fuanna have failed to achieve a modest increase this year.

In addition, there are two clothing listed companies, China apparel and ST ray B forecast continued losses. Among them, the net profit of Chinese clothing in the first half of the year is expected to be 19 million yuan to 18 million yuan, down 217.02% to 200.34%, and ST ray B's net profit loss in the first half of this year is about 13 million yuan, or 193.45%.

According to the prospective network, due to the debt crisis, orders for clothing brands in Spain, Italy, Ireland and Greece have also declined. A person who specializes in textile export indicates that the export volume of the company has dropped by 1/3 compared with that of last year. The company is considering export to domestic sales. However, since the company used to make foreign brands, there is a problem of market sales if it is to be sold domestically. "There are too many domestic brands, and the competition is fierce. The market is not easy to open." The man said.

In view of this, the above senior personages believe that "now is the lowest stage of the garment industry, and it is also an inflection point of the garment industry." He said there will be a polarization trend in the clothing industry. In the past, the era of volume winning has passed, and clothing companies in the future will have to consider the brand of products and the assurance of fashion. {page_break}

Lining is expected to digest inventory for two years.

Compared to the overall decline in the overall performance of the apparel industry, the sporting goods industry has been more competitive this year, with a further increase in discount sales, and the pressure on retail terminals to go stock is still grim.

Lining, listed in Hongkong, said in a notice of "business operation and financial situation report" that in order to deal with the harsh environment of the industry and avoid new inventory pressure on the retail terminal, the Group actively took the initiative to communicate with the distributors and control the order arrangement. Therefore, the order amount in the fourth quarter of 2012 was further reduced compared with the same period last year. According to the prospective network reporter, data show that in the fourth quarter of 2012, Lining Products dealer orders meeting, Lining clothing products orders amount and order quantity declined, and the decline is over 20%.

　　 Lining In response to the challenges of business environment, the group will focus on the strategy of focusing on core business and improving operational efficiency. In the next two years, we will focus on cleaning up retail inventory, adjusting store layout, controlling the pace of new shop opening, cleaning inefficient stores and improving retail efficiency, and strengthening sports marketing, upgrading brand equity, optimizing products and supply chain.

In fact, we can see from last year's annual report that Lining, who has always been the leader of the local sports brand, even though the company's revenue has narrowly missed Anta, net profit is close to the bottom. According to the financial report, in 2011, Lining recorded a net profit of 3 million 858 thousand, a decline of 65.2%; Anta's 17 million 301 thousand, an increase of 11.5%; a 360 degree increase of 11 million 359 thousand, an increase of 16.8%; XTEP of 9 million 664 thousand, an increase of 18.8%; PEAK of 7 million 777 thousand, a decline of 5.4%; China's trend was 1 million 22 thousand yuan, slipping away from 1 million 22 thousand.

Some analysts said that Lining's previous brand positioning was not clear. Although he wanted to be close to the first-line brand, he could not get the trust of consumers, making the company's products only in the middle of the high-end wolf position. "The company is eager to catch up with the internationalization of front-line brands and products, but the domestic market has not yet opened up, making the internationalization of the company not ideal." In the short time, Lining's dealer in Spain closed down, which made Lining's internationalization strategy cast a shadow.