Underwear In China: The Last Gold Market In Clothing Industry

Recently, the "underwear industry research report" released in China reported that the annual sales volume of China's underwear market has reached more than 100 billion yuan, and it is still growing at an annual rate of nearly 20%.

The last gold market.

However, the reporter visited the Hangzhou market and found that the sale of underwear in the middle and low end is generally influenced by various aspects. The small and medium-sized operators in the wholesale market generally reflect that the business is not as good as before, while the sales of some brand underwear are good, and the market share is expected to continue to expand in the future.

Insiders pointed out that the underwear industry will usher in a new round of "shuffle".

Brand underwear semi annual report revealed information

Under the background of a relatively low economic situation, people's desire to buy new clothes has declined. The annual report of a large number of garment enterprises has become the best evidence.

In the first half of this year, both Semir's clothing revenue and net profit declined.

The company achieved revenue of 2 billion 511 million yuan, down 16.54% from the same period last year, and realized net profit of 248 million yuan, a decrease of 43.22% compared to the same period last year.

This is a decline in net profit after the first quarter of this year.

Data from the National Bureau of statistics show that there are hundreds of large retail enterprises in China.

The cumulative year-on-year growth rate of retail sales dropped to a lower level than the 2008 financial crisis.

In the slump of the garment industry, the performance of some lingerie enterprises has become a highlight.

In the first half of 2012, the underwear brand named Anli Fang, which listed on the Hong Kong stock exchange, made a total profit of HK $113 million, a net profit of 23.1% and a gross profit of more than 81%. The famous secret brand of Vitoria, Limited Brands, recently announced that its sales in the same store grew 8% in August, while the largest meritorious service was the secret of Vitoria, which increased 9% in the same store.

Insiders pointed out that in the past two years, Anli Fang has been better than the previous two years, and it is indeed a bit of a sudden rise. The secret of Vitoria from 2009 to now is also showing a geometric base growth in China, which is not only related to the increase in overseas purchasing, but also to its relatively low base in China.

Some brand underwear gets red.

Zhejiang's Amy Lai slimming Clothing Co., Ltd., national marketing director, Feng Ping recently ran across the country. According to him, sales of the company's products in the first half of this year increased by 15% to 20% compared with the same period last year.

"Underwear is an industry with great potential for growth. It will only be on the counter in the Chinese market in the early 90s of last century. At present, the market prospect of underwear industry in China is very broad. More and more VC companies want to enter this industry.

This year, the underwear industry is generally much better than the traditional industry. The growth rate of the underwear industry is higher than that of the whole garment industry.

This is mainly due to the fact that with the improvement of people's living standard and the improvement of people's income level, the depressed demand has been released.

People used to pay more attention to appearance. Nowadays, women pay more and more attention to inner beauty, especially skin and skin, because this will affect their health.

Lu Ming, founder of Zhejiang lingerie brand, also told reporters: "the dream is facing the high-end customers of the beauty salon, mainly based on the adjustable breast underwear.

Although the price is two thousand or three thousand yuan, this general public can not accept the price, this year's business is very good.

"I don't want to take the road of small profits but quick turnover of other enterprises to maintain a stable position."

In the water flower underwear flagship store on Fengqi Road, the reporter saw that soon after, customers came in.

Although this is a new store, Miss Wang, a salesperson, says that the rate of paying customers to come in is still relatively high.

According to the director of Hangzhou water flower underwear store, sales of more than 30 flower shops in Hangzhou have increased compared with the same period last year.

In a department store in Hangzhou, the salesperson of "underwear" underwear said: "our brand is not well known. Underwear sales are not good this year, and these brands sell better than before.

For high-end customers, large brands are often more popular with customers, such as our turnover in August is about thirty thousand or forty thousand yuan, and there are tens of thousands of dollars in ancient and modern times.

In the same store, miss Diane, a saleswoman of "underwear", told reporters that selling underwear for many years gave her the biggest feeling that underwear sales were getting better and better. The monthly turnover was about seventy thousand or eighty thousand yuan, and the turnover of the 38 women's Day was 160 thousand yuan.

It is reported that since the first half of the year, Diane's

The range is bigger and bigger, the price of special products and new products is quite different, which caters to the economic affordability of different consumers.

The profit in the wholesale market is poor.

Unlike some brands of underwear products, the low-end underwear products encountered cold winter.

Yesterday, reporters came to the North small commodity market and visited several businessmen selling underwear. This year's underwear business is not as good as in previous years. Some stores have opened new underwear stores on the Internet, hoping to increase sales.

Ms. Huang, who sells underwear, said: "the main thing is the bad economy.

The underwear business was good last year. It wasn't very good last year. It wasn't as good as last year.

Manufacturers also said that after so many years, this year is the worst.

From May to now, my shops are running at a loss. "

Reporters learned that the price of underwear imported from Guangdong this year is basically the same as that of last year. The price of cotton yarn has dropped and labor costs have gone up this year.

But this year, retail customers are less than last year, leading to a reduction in wholesale.

"Old white surname has no money on hand, plus consumption is more and more rational, online sales also diverted many customers."

Another Mr. Chen, who sells underwear, also admitted that business in the first half of this year was 40% less than that in the same period last year, and wholesalers and retailers were also reduced.

The profit is even lower. The profit of wholesale underwear is only 0.4%-0.5%, and 0.7% of it is already high.

"The underwear industry is not very good this year, and the rents of the stalls increase year by year, and the market is not popular, and the volume of wholesale is very small.

Influenced by online shopkeepers, young people are now buying underwear online, most of them coming here to buy them.

Miss Liu, who sells underwear in Longxiang fashion city, told reporters that the underwear business was really bad this year. The two day's turnover was only a few hundred dollars. There was already a shop selling underwear to sell bags. Only one of them sold underwear could do it, but mainly the boss did a lot of time.

Analysis of the industry, with the increasingly fierce market competition, rising costs, the gradual pparency of underwear prices, and the gradual upgrading of the national economy, the share of low-end underwear products will be more and more crowded.

The demand for medium and high end underwear will be higher and higher, and the market share will also be higher and higher. The growth rate of middle and high end underwear will exceed the level of mid low end underwear.

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The new round of shuffling has begun.

Liang Feng, CEO of VIC underwear, told reporters that since 2008 the global financial crisis, the "lipstick effect" of underwear industry is quite obvious. As a necessities of life, underwear has been selling well.

"In recent years, we have found through market research that Chinese women are gradually increasing their investment in underwear and adding a budget to underwear consumption, which is a good thing for the industry as a whole."

However, for the entire garment industry, the gross profit has dropped somewhat, and the underwear industry is also hard to escape.

The overall sales situation of the underwear industry is good, but the profit margins are declining.

The reasons are manifold.

The domestic economic situation is not very good, raw materials, personnel wages, operating costs rise, supplier prices increase, and more and more industry entrants, coupled with the volume of thermal underwear last year, blowout growth, large inventory, this year's underwear industry has brought pressure on the operation.

In addition, because of the low entry threshold of underwear industry, this year, new underwear brands have entered the market. Some new brands have a good background, and the supply of underwear is expanding.

It is estimated that from October to 2013 of the second half of this year, a large number of underwear enterprises will be eliminated, especially small and medium-sized OEM operators.

At present, the underwear industry is in the process of shuffling.

Feng Ping also pointed out that with the intensification of market competition and the development of underwear industry, the price of underwear will be more and more pparent, which will be more and more beneficial to consumers.

However, the spring of the underwear industry is far from over. His company is also investing more in the market, doing well in the products of the middle and low consumption classes of the underwear, doing a good job of market segmentation and upgrading the brand image.