The Apparel Industry Has Been Sluggish, But Underwear Companies Have Sprung Up.

With the economic downturn, people's desire to buy new clothes is also dropping.

A large number

The semi annual report of enterprises is the best evidence.

Among them, sports and leisure brand performance was the most bleak, the net profit in the first half of 361 fell by 22.9%, the net profit in the first half of dropped by 43.3%, the income in Kappa decreased by nearly 40% in the first half of the year, and the 569 stores were closed; in the first half of, the net profit fell by 80%, and the whole year was expected to be lost.

Statistics from the National Bureau of statistics show that the total retail sales volume of 100 large retail enterprises in China has dropped to a lower level than that in the financial crisis.

In the financial crisis, the thriving luxury goods industry also showed signs of slowdown this year. Even during the discount season, most customers are holding a wait-and-see attitude.

Gucci growth dropped from 11.6% to 10%, while BURBERRY sales in China dropped from 30% to 15%, while Herm s two less than 5% in the two quarter.

The garment industry has been sluggish, but underwear enterprises have sprung up.

In the first half of 2012, the underwear brand of the Hong Kong Stock Exchange announced that the company made a total profit of HK $113 million, a net profit of 23.1% yuan and a gross profit of more than 81%. The famous underwear brand Vitoria's Secret parent company Limited Brands announced on Thursday that it was the same store in August.

The amount increased by 8%, while the biggest meritorious service was the secret of Vitoria, which increased 9% of the same store sales.

Why can underwear brands thrive in the doldrums of industry? Some people in the industry attribute this to the lipstick effect. When the economy is in a downturn, the "cheap little luxury" industry, which can give people psychological comfort and satisfaction, will grow against the trend.

The "lipstick effect" economic theory was first put forward in the Great Depression of the United States in 1930s.

Lipstick as a "cheap and unnecessary thing" can play a "comfort" role for consumers, especially when the soft and moist lipstick touches the lips.

Economists believe that in the economic downturn, people will still have strong desire for consumption, but will instead buy goods with high cost performance.

This has been corroborated by the worldwide economic and financial crisis in 2008, when the lipstick and mask sales in the United States increased, while hairdressing, massage, watching movies and other "relaxing consumption" were also popular.

The sluggish sales show a sharp contrast.