The Current Situation Of Garment Industry: Low External Demand, Pressure On Domestic Demand, Brand Clothing, Low Discount, Clear Inventory

"37 degrees high temperature, buy down jacket, really crazy." MiuMiu, who has been used to shopping online, sweats on the side. He complains to reporters with excitement. He has not visited the special field for a long time. It is cheap. He simply can't afford hold. He spent more than 800 yuan in 1 hours.

A similar scene has been staged in Guangzhou recently. In September 7th, Guangzhou Wangfujing member's special 62% off. clothing Female shoes Most commodities are limited to 70 percent off. On the same day, the Guangzhou Friendship Store held a Thanksgiving Carnival (3.8).

This year's mainstream, resource-based Wangfujing and Guangzhou friendship have produced 62% off clear goods, which reveals unusual signs. At the end of last year, the economic downturn, although the sales decline was covered by new year's day and Spring Festival nodes, but now, through the first quarter of 2012, the two quarter of the weak consumption, its lagging inventory impact began in garment enterprises.

　 Low discount exposure high inventory

In September 7th, Guangzhou Wangfujing and Guangzhou friendship store had a big discount, which contributed a small upsurge to Guangzhou traffic. On the same day, reporters at 7 p.m. in the ring road to see, the long car dragon densely filled with more than two lanes, the road has become a parking lot. In order to cope with the "sweeping" traffic flow, traffic police departments specially built a driveway to enter the gold rush road. But even so, traffic congestion is still serious. "There are too many people. Our car stopped at Tianhe and came by subway." A consumer told reporters in the south.

Until 11 in the evening, Guangzhou friendship Ring Road shop still crowded. Although merchants specially set up areas for the cash register and add manpower, the queuing dragon at the cash register remained at around 10-20 people.

"The previous season promotions were mostly organized by department stores, but this year it started by Clothing brand Spontaneous price reduction. A person from Guangzhou stock market revealed that these promotions no longer cover up "how much to buy", but simply cut prices directly.

The survey found that compared with the 50 percent off promotions of two times a year, 62% off and 70 percent off were the lowest in Guangzhou friendship and Wangfujing history. But there is no minimum, only lower. Last week, IT, a clothing and light goods store in Taigu Hui, even played 1 promotional games in the whole market. In September 14th, modern department stores will set off 64% off low price tides for 10 consecutive days.

In the past few days, we saw in Guangzhou Dongfang Baoshi, Zheng Jia square, Zhonghua square, Guang Bai department store, modern department store and other shopping malls, while the major clothing brands launched new products in the autumn and winter seasons, the sales of commodities for the Spring Festival and summer season were basically about 2-5 fold, while some of the brand new products went on the shelves with a 7-8 discount.

"The end of August and the beginning of September are all garment enterprises' clearance cycle. At this time, many brands have only 50% of the new products on shelves. The task of a large proportion of stores is to digest the stock in the first two quarters." Hu Liping, deputy general manager of Guangzhou Xinguang Department Store Co., Ltd., said that this year's mainstream, resource-based Wangfujing and Guangzhou friendship all produced 62% off clean goods, which revealed unusual stock signals in the industry.

We can see the above clues by looking through the semi annual reports of several clothing and footwear listed companies in 2012. It is reported that in 1-6 months of this year, Daphne's average inventory turnover period slowed down significantly, from 149 days in the first half of last year to 202 days, almost 2 months, while the Li Ning Co slowed from 72 days to 95 days, and almost slowed down for another month. This is undoubtedly a microcosm of the apparel industry's stock increase. According to earnings report, in the first half of this year, Semir Clothes & Accessories The stock has expanded to 1 billion 500 million yuan, while the figure at the end of last year is only 1 billion 100 million yuan. PEAK's stock also rose to 530 million yuan, and its inventory was only 420 million yuan at the end of last year. Last year, the inventory of [11.66 -0.17% shares was 510 million yuan, but it has increased to 658 million yuan in the first half of this year. Anta's stock rose from 618 million yuan last year to 628 million yuan in the first half of this year.

　　 clothing Shoe enterprises Extension expansion to inflection point

"Compared with the normal level, this year's clothing enterprises generally have several times higher inventory pressure." Chief analyst, Wang Qian, a senior garment analyst in China, said that China's garment industry is mainly an export-oriented economy, with sales of clothing products not going out, and external demand being depressed.

Compared with the economic crisis of 2008, this year's domestic demand market showed a more depressed trend, with a negative growth. In the first half of this year, the growth rate of clothing exports dropped by about 10%. From the caliber of some large shopping malls, the growth of the domestic market in the first half of this year is also slowing down. I am afraid there is zero growth in quantity. The growth rate of domestic sales in the past year is generally around 10%. In Wang Qian's view, the development of garment enterprises has turned to a turning point from the fundamental trend. It is hard to reverse the trend by increasing the extension and extension.

"In recent years, with the rapid expansion of commercial real estate, the size of clothing and footwear has also risen." Hu Liping said, but because of the repeated brand building and homogenization degree of various shopping malls, such as Tianhe Road commercial circle, Tianhe City, Zheng Jia square, Guang Bai, modern department stores and so on, almost all brands such as ADI, Nike, BELLE, Ou Shili and so on. There is not much room for sales growth of single store in such a high density layout.

Under this premise, in order to achieve the total sales growth, the domestic clothing enterprises generally use the extension type expansion, that is, constantly open new stores to improve sales. But this way is bound to incur a high cost.

　 Layoffs are closed under cost pressures.

China shopping center industry information center survey results show that in 2011, 2812 shopping centers in 106 cities nationwide, including premium shops rents increased by more than 30% last year. "In the past year, the rental price of our stores in Beijing has risen by no less than 50%, and Guangzhou's growth has also been 2-3." A well-known clothing brand dealer Zhang Xianfeng (alias) said that labor costs rose quite now, 5000 yuan a deputy shop manager's salary has been unable to meet. In addition to the basic salary of 1800 yuan, the average salesperson has a commission, at least 2500 yuan a month.

Zhuo Ya, who owns six women's clothing brands, has maintained a rapid development trend in the past few years, but due to the short suffering of the external market in recent years, the development of enterprises has generally slowed down, and the sales growth of the company has also slowed down. In the first half of this year, there was almost no growth in the same store, and some stores even dropped in the percentage of digits. Indeed, they felt the pressure from terminal consumption. The company's recent spring order meeting in 2013 was not ideal, and it was sold out at 60%-70%.

"The sales of ladies' homeowners declined by 30%-40%." A well-informed source broke the news that the company had not been listed before. In order to cut costs and cut costs at low cost, the company recently cut down labor and chop logistics warehouses in Guangzhou. "A lot of old employees in Guangzhou have been dismissed, and the turnover rate is high." In addition, Nandu reporters found that as a flagship flagship of the fast fashion transformation, Guangzhou Yi Dong Fang Bao Tai shop has been closed. Earlier, the Esprit flagship store in CITIC Pacific square in Shanghai also quietly ended. "In order to save costs, Lining closed 1200 stores in the first half of this year, and is expected to continue to close stores in the second half of the year." Lining senior executives revealed at the mid term performance conference.

Last year, 73 Spin After the two companies listed in last year's listed companies, the 71 companies were reduced by 22179 to 347068 last year. YOUNGOR's loss of 17199 people has undoubtedly become the most tragic company in the industry. On Saturday, it was also ranked the top five in the market. In August of this year, Daphne shoes staged a "layoff storm" again, with internal staff claiming that Daphne had drastically cut nearly 300 employees in Shanghai headquarters.

"The clothing industry in China belongs to a completely competitive market. This year, the first tier cities and the two or three tier cities are all grim and fierce competition. Wang Qian, chief analyst of the first textile network, said that shops and layoffs were also common.

　　 Domestic clothing brand dilemma: high or low

"Many domestic clothing brands are facing an awkward position, that is, high and low." Zhang Xianfeng said that in order to cope with rising costs, they constantly raised prices, but affected by channel promotions, the possibility of selling at a high price was very low, and the average selling price of basic sold products was also very difficult to reach 30 percent off.

"In fact, careful analysis of the data is not difficult to find that the sales growth of clothing enterprises is largely not the increase of passenger volume but the increase of passenger unit price." Hu Liping said that the increase in unit price is actually driven by rising commodity prices. According to Zhang Xianfeng, before Brand clothing The factory's tag price is 3 times the cost, but now the price tag for the factory has increased to 7-10 times. "This means that the domestic price of the original priced 300-400 yuan is now priced at around 1000-2000 yuan, which is almost the price standard of the mid-range international brand."

The price has been in line with the international standards, but the added value of domestic products is not high, and it is still lagging behind in many aspects such as design, development and operation. "CK, Lacoste "Tommy Hilfiger, Columbia and other brands have been expanding rapidly in recent years. For the introduction of these international brands, the discount points given by many shopping malls or department stores are generally in single digits, but domestic brands are basically around 20%-30%." Zhang Xianfeng disclosed that the shopping center will also subsidize the decoration fees to foreign brands, subsidize around 2500 yuan / square meters, and return the "bottom guard" to the brand dealers: to ensure that their monthly sales volume is not less than 500 thousand yuan. These most favored treatment is obviously not domestic brands.

At the same time, the impact of domestic brands on international fast fashion brands has further increased the difficulty of garment enterprises. "China's fast fashion apparel industry, production and sales ratio maintained at 60% to 70% is a good level, and ZAR A production and sales ratio is above 85%, almost no inventory pressure. Because there are no distributors and other links, the latter's selling price is relatively low, and it has a great impact on local brands on price.