Clothing Industry: Inventory, Demand Intertwined, Development Resistance.

Under the continuous fermentation of inventory crisis, Garment industry Half a year's losses and losses.

According to the data of 80 listed companies, including the clothing industry and its upstream textile industry, 80 companies had a total inventory of 67 billion 166 million yuan in the first half of the year. Among them, 11 companies in the clothing industry, including YOUNGOR, ormosia group, China group, Mei Bang dress and Semir fashion, all stock more than 1 billion yuan. Besides the inventory of American bond clothing is less than that of last year, the remaining 4 companies have increased their inventories over the previous year.

Group analyst vanguard believes that shrinking orders and inadequate textile factories are the main reasons for the increase in clothing inventories. "Inventory problems affect capital turnover and business continuity, and discounting inventory by discount will affect the brand image of an enterprise. How to deal with inventory crisis is a dilemma.

Stock

Semir clothing semi annual report, due to the company Stock increase Accordingly, the provision of inventory depreciation increases, terminal channel costs and labor costs rise, which increases the company's operating costs.

In the first half of this year, Semir's apparel revenue reached 2 billion 511 million yuan, down 16.54% from 3 billion 9 million yuan in the same period last year. Compared with the same period, the decline in operating profits was more exaggerated, from 43.41% yuan in the same period last year to 338 million yuan in the first half of this year. Net profit attributable to shareholders of listed companies decreased by 437 million yuan to 248 million yuan, down to 43.22% percent year-on-year. Meanwhile, in the first half of, the net cash flow of Semir clothing was -1.11 billion yuan, which was also negative in the same period last year.

Semir is not isolated. Compared with casual wear, sportswear brand is more miserable. The stock of Li Ning Co was 1 billion 138 million yuan, and the turnover days of inventory increased to 95 days from 72 days in the same period last year. The turnover of inventory in the first half of the year was 45 days, an increase of 5 days compared with the same period last year.

PEAK's average stock turnover days increased from 49 days in the previous year to 86 days.

A brand clothing dealer said that the problem of high clothing inventory this year was particularly prominent, mainly due to the market downturn, which exceeded the manufacturers' expectations.

Xiong Xiaokun, a light industry researcher at CIC, said that compared with last year, orders in overseas markets, especially in Europe and the United States, declined sharply, and the amount of single orders fell sharply.

This statement has been confirmed by some service production enterprises. A Wenzhou garment factory owner told reporters that on some varieties this year, overseas orders have generally fallen by more than half.

As a matter of fact, from the fourth quarter of last year, Lining, great bird, Semir and Smith Barney were all facing the crisis of unsalable inventory. In the face of the continued economic downturn, this crisis does not seem to have been alleviated.

　 Digestion

Throughout the first half of several major garment enterprises, stocks in the first half of the decline, only the United States. Clothes & Accessories 。 According to its semi annual report released on 29, the end of the company inventory fell to 1 billion 750 million yuan, the proportion of old goods continued to decline, showing that the size and structure of its inventory decreased quarterly and optimized.

Mei Bang senior executive said that this year, for the inventory problem, on the one hand, the United States and costumes on the one hand through the strong self operated retail terminal system to do well in the integration of old products and new products, at the same time, strengthen the allocation and allotment of goods, and strengthen the development and production capacity of short and fast products in the background supply chain.

On the other hand, the differential layout of the company's discount channels also played a positive role, and the inventory digestion effect was significant.

In addition, during the reporting period, the United States and costumes were taking measures to actively explore the market. In the first half of the year, 346 new shops (7% growth rate), with an area of 47 thousand square feet (growth rate of 5%), including 192 new outlets and 154 new shops were added.

According to an analyst at Shandong's Shen Guang consulting organization, in the long run, Direct stores will continue to be the main trend of the future development of garment enterprises, because they can enable enterprises to better control the terminal market and reduce franchisees' links, so that enterprises can get more profits from them, solve the real needs of consumers, enhance the brand image of the company, conform to the long-term development strategy of enterprises, and is also a relatively mature fashion enterprise operation mode.

However, in the view of these analysts, this inventory is still a great pressure for the us to take the "fast fashion" route: "because the fashion is strong, the inventory is best to digest in 1 years." Not every enterprise can rely on a strong sales terminal to digest inventory. In order to deal with inventory problems, Lining clothing has begun to reduce the volume of orders with dealers.

In the announcement of Lining's latest business operation and financial situation report, in order to deal with the harsh environment of the industry and avoid new inventory pressure on the retail side, the group took the initiative to communicate with the distributors and control the order arrangement, so the order gold in the fourth quarter of 2012 was further reduced compared with the same period last year. Data show that in the fourth quarter of 2012, at the Lining Products dealer ordering meeting, the order amount and order quantity of Lining clothing products both dropped, and the drop was over 20%.