Home Textile Industry Pattern Shuffling Specialization And Individualization Is The Way Out

Statistics show that from the first half of last year, the sales growth of China's home textile industry is decreasing month by month.

In the first two quarters of 2012, a number of home textile giants including Luo Lai home textiles and Meng Jie home textiles showed different levels of performance growth decline.

And so on.

A home textile enterprise official said that the whole home textile industry is facing a situation of general decline in sales performance. With the increase of inventory pressure of major enterprises, many problems such as serious homogenization and imbalance of industrial structure have been exposed, leading to the urgent need for China's home textile enterprises to break through difficulties.

The sales market is flagging.

In the past few years, China's home textile industry has been in a period of rapid development, driven by strong domestic demand, and the high export growth for several consecutive years has given birth to a large number of industry giants and listed companies.

Data show that the average annual output value of China's home textile industry is as high as 654 billion yuan, with an average annual growth rate of 20%, which is listed as one of the high growth industries in China.

In the past ten years, the industry has been called the golden ten years of the textile industry.

However, with the data released by several textile giants this year, China's home textile market is showing an overall downturn.

According to the announcement of mid July results released by Luo home textile in mid July, the net profit attributable to shareholders of listed companies fell 17.70%, to $134 million.

Previously, there was a big change compared with the expected growth of 0% to 30%.

Also known as the three giants of home textiles, Meng Jie home textile and fuanna operating status is not optimistic.

Due to the 2012 reports disclosed by the two companies in mid and late 8 months, data reporters in the first half of the year did not know.

But according to a quarterly report of Meng Jie home textiles in 2012, the company achieved operating income of 268 million 810 thousand yuan, down 9.93% from the same period last year.

There has been a negative growth.

Compared with the three giants in different degrees of sluggish, other home textile enterprises are also having a bad time.

A Haimen home textile enterprise leader told reporters on the phone: "the giants are having a bad time. Our business conditions are not very good for small and medium-sized enterprises.

The home textile industry has been hailed as the "safe haven" of China's economy, and has enjoyed a sweet and fast developing period in 2011. However, why did it suddenly become cold after less than a year?

The sale of home textile industry is divided into export and domestic demand from a large aspect. The main driving forces of domestic demand are divided into three parts: relocation, wedding and renewal.

The market share in 2011 was 21%, 16% and 63% respectively.

Lin Xiaoli, senior researcher of Qian Xun consulting, told reporters that compared with the rapid development of last year, the sales performance of home textile industry in the first two quarters of this year is due to the two-way atrophy of exports and domestic demand.

Lin Xiaoli analysis said that because of the three major overseas markets - the United States, Europe and Japan were affected by the financial and sovereign debt crisis and other factors, the consumption demand for home textile products was shrinking, while some countries such as India and Pakistan took part in orders.

The market has become smaller and competition has intensified.

"The regulation of the real estate industry has also had an impact on the domestic demand market of the home textile industry."

Lin Xiaoli believes that domestic textile industry's important supporting point is domestic demand. The state's regulation of the real estate industry is very severe, which severely dampens many industries related to real estate, and the home textile industry is inevitable.

"The first two quarters of 2012, the whole home textile industry performance decline situation is more severe.

The main reason is the downturn in the real estate industry.

In 2011, real estate regulation affected downstream supporting industries, and consumer confidence was affected.

Gao Xiaoshi, an analyst with home textile industry who also holds the above view, told reporters that at the same time, the rising labor costs and channel costs caused the price of products to rise, and consumers reduced the replacement frequency and reduced the consumption of home textiles.

Overheated investment risk

Although the data show that China's home textile industry is facing many difficulties, the enthusiasm for expansion and new investment projects will not be reduced.

Recently, Nanchong has introduced Fuyuan home textile investment 300 million yuan to build production base, and the fragrant silk yarn industry invested 250 million yuan to build silk production base, and meta Group invested 200 million yuan to build super fine denier silk and 10000 tons of nylon production project.

In Tianjin, the international textile city of light textile economic zone is listed as the key construction project this year.

In the near future, a total investment of 600 million yuan of enterprises settled in Shuyang, known as the 10 billion level Textile Industrial Park.

According to the statistics of the national development and Reform Commission, in the first 5 months of 2012, the textile industry accumulated more than 5 million yuan and fixed assets investment was 260 billion 958 million yuan, an increase of 18.53% over the same period last year. The growth rate dropped by 17.69% compared with the same period last year, and 5759 new projects.

"One side is

On the other hand, it is a new project in full swing.

The home textile industry is a bit of a mystery.

An insider told reporters that over the years, China's home textile industry has seen several investment boom, both the existing enterprises to increase investment and other industries to participate in the investment, even though the export situation is very severe this year, but the expansion boom has never stopped.

"From the whole life cycle of the industry, the home textile industry is at a stage of growth, but there is a structural imbalance in the home textile industry, rather than the whole industry is saturated and has to go into recession."

Gao Xiaoshi, an analyst with the home textile industry of the foresight Industry Research Institute, believes that if the new project is not high in technical content, the excess capacity design and the consumption level do not match, which will aggravate the vicious competition in the industry.

"Since the industry is in the stage of growth, expansion and new investment and construction of home textile projects belong to the normal development trend of the industry."

Gao Xiaoshi believes that from the 1-5 month textile industry project solid investment growth decline can be seen, the project's upsurge has weakened.

As for the overinvestment in the market, Yang Zhaohua, President of the China Household Textile Industry Association, said in an interview with reporters that the home textile market is a market led investment, not a government led, so there will be no excess.

"The market is in pursuit of interest, and where the market funds go to indicate that funds are considered profitable."

Similarly, in the view of Lin Xiaoli, senior researcher of thousand inquiry agency, the new project launched shows that the whole industry is optimistic about the market prospect.

"Due to the low concentration of the industry market, the two or three line brand is likely to become the first-line brand in the more intense market competition of the home textile industry, which has encouraged the continued expansion of the industry."

Lin Xiaoli told reporters that the recent launch of new projects are mostly high-end projects. At present, the low-end products in the home textile industry are highly competitive, and the high-end market is relatively loose.

In recent years, the proportion of high-end products consumption accounts for a substantial increase in total consumption, and the strength of enterprises to identify this market segment to expand is a reasonable driving force driven by interests.

However, Zhu Qinghua, a light industry researcher at CIC, said in an interview with reporters: "in the face of many difficulties in the development of the entire industry, some enterprises will not only shrink their scale but instead expand their business scale and expand blindly, which is very unfavorable to the long-term sustainable development of enterprises. Enterprises may even lose large quantities of money and fall into production.

If enterprises want to be bigger and stronger, they can take advantage of this opportunity to carry out mergers and acquisitions within the industry instead of continuing to expand their capacity. "

Pressure on stock to push domestic demand

In fact, it is precisely because the market is generally optimistic about the home textile industry, so that capital flows rapidly.

For many years, the high export growth has also injected a rapid expansion of many enterprises.

However, when exports and domestic markets are both flagging, the pressure of product inventory is tightly pressed on enterprises, and it is hard to breathe.

The semi annual report released by Roley home textiles in 13 in August showed that the company's inventory reached 768 million yuan, up 48.50% over the same period last year.

In fact, since the middle of last year, the company's stock has climbed all the way.

High inventory is not the problem of the home textile company. The other three home textiles giants, Meng Jie home textiles and fuanna, are also troubled.

Although the two semi annual reports have not yet been released, the data released in the first quarter of 2012 show that the stock has reached 405 million yuan, which is about 20 million yuan more than the 384 million yuan disclosed in the 2011 Annual Report.

At the end of 2011, Fuyuan finished 520 million yuan in inventory, up 25% from the same period last year, and accounted for 36% of the total inventory. Although it has declined, its turnover rate is only 1.6.

In fact, the inventory pressure of the three industry giants is just an embarrassing epitome of the high inventory of the entire home textile industry.

Therefore, under the current situation of shrinking exports, the expansion of domestic sales has become the first choice for major enterprises.

"Inventory backlog is a major problem that seriously affects the development of enterprises. Solving the inventory pressure is also the most concerned and troublesome problem for enterprises. This phenomenon is particularly evident in the home textile industry."

An industry insider told reporters that at present, home textile enterprises are selling normally in half of the time, and half of the time is digesting inventory.

"Inventory pressure has become a common problem in the industry."

Chen Yunlai, chairman of Jiangsu Mei de Ni Textile Co., Ltd., told reporters.

This year, the focus of home textile enterprises will be on expanding domestic demand, and through product innovation, brand building and channel construction, to guide residents' consumption of home textiles and reduce dependence on export markets.

"Domestic demand is an important supporting point for the home textile industry in the situation of low external demand and a relatively passive industry based on the international market."

Lin Xiaoli, senior researcher at Qian Xun consulting, believes that because of the broad market prospect of home textiles, a large number of private capital have been involved in the household textile industry, and garment enterprises and fabric enterprises are also entering the industry chain advantage. First, the market demand is low; two, the product is not well done, the homogenization is serious, and it can not well cater to the consumption demand, and the pressure of enterprises will gradually increase.

As for the pressure of enterprise inventory, Gao Xiaoshi, an analyst of home textile industry of foresight Industry Research Institute, suggests that enterprises can increase publicity and cover different levels of consumption in an all-round way.

In terms of channels, it can increase the size of franchisees or direct stores, increase investment in online shopping, group buying and supermarket channels, and expand new channels.

It is also possible to adopt the exclusive extension competition means, such as merger and acquisition strategy, and finally achieve the improvement of market share.

"Home textile enterprises often focus on how to solve unsalable stocks through channel promotion and terminal promotion.

Inventory backlog is on the surface of inventory problems, but it is essentially a system problem of R & D, management, finance, marketing, market information feedback and operation mode.

To solve the inventory problem of home textile enterprises, we must tackle both internal and external causes. "

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Industry shuffle or not inevitable

No doubt, at present.

It is facing many difficulties, but this is closely related to the blind investment of enterprises and the expansion of low-end products.

Due to the development of home textiles in the past two years, its huge potential is favored by the market. The outbreak of the economic crisis has led to many industrial export setbacks, but home textiles survived. So many industries began to enter the home textile industry, and a small number of small and medium-sized home textile enterprises with weak production capacity entered.

There are already more than 20 thousand enterprises in the home textile industry, a large part of which are attracted by the low threshold and large market, and the enterprises that rely on the advantages of the industrial chain.

The involvement of new enterprises and the increase of new practitioners have not brought new concepts and technologies to the industry, but they are equivalent to duplication of construction at the same level.

Lin Xiaoli, senior researcher of thousand inquiry agency, told reporters that when the market situation is optimistic, almost all enterprises can get a good profit. Once the market is in a downturn, these enterprises themselves do not have the ability to deal with crisis. They are being eaten up by big enterprises to the two or three line market, and they are struggling with internal and external troubles.

In the next few years, home textile industry shuffle is inevitable.

"Although the scale of the home textile industry is huge, the market concentration is very low, and the lack of industry leaders is also the reason for the expansion of the powerful enterprises in the industry."

Lin Xiaoli figures out that in 2011, the market scale of the domestic textile industry exceeded 170 billion yuan, and the leading industry of the industry was 2 billion 380 million yuan, but the market share was less than 2%, while the total market share of the top ten enterprises was less than 15%.

Lin Xiaoli believes that at present, the domestic textile industry has already seen a precedent for capital operation, and will enter the stage of survival of the fittest in the future. What big enterprises need to deal with is how to expand market share with the help of capital market in this period. The medium and small enterprises need to deal with how to survive and develop better in this period.

However, Gao Xiaoshi, an analyst of home textile industry in the foresight Industry Research Institute, thinks: "because the technical threshold of the home textile industry is not high, and the higher cost is spent on mergers and acquisitions, the technology of purchasing is not as good as relying on the development characteristics of the enterprises themselves, so as to optimize and reorganize the internal resources of the enterprises and make them stronger and bigger."

"Because domestic textile consumption has not yet formed a stable consumption mode, the competition of the domestic textile industry presents the characteristics of low industry concentration, lack of regional characteristics and the formation of a national leading brand.

Although there are 2 enterprises, there are only 50 enterprises with an output value of more than 100 million yuan.

Gao Xiaoshi believes that at present, there are few enterprises with high added value home textiles, which is a good opportunity for many enterprises to develop.

For the voice of industry restructuring, Chen Yunlai, chairman of Jiangsu Mei de Ni Textile Co., Ltd. believes that as the capital market begins to enter China's home textile industry, the home textile industry will undoubtedly enter a period of elimination.

Industry dilemma to be solved

"Three feet of ice are not cold in a day.

The home textile industry is facing many difficulties now, and it is not optimistic from the big changes to the strong encirclement.

The industry insiders, who consider themselves pessimistic in the industry, told reporters that in the short term, apart from the intensified competition in the market itself, the design style of the industry giants is not obvious, and the national characteristics are lost.

Difficult to compete with European manufacturers on quality and color is also a major factor in export and domestic sales.

At the same time, many small and medium sized home textile enterprises are carrying out the doctrine of taking liberties, both in the product itself and in the enterprise mode.

In addition, the production of medium and low grade products is excessive, while the proportion of products with high technology and high added value is low.

With the weakening of sales, the weakening of independent brands and the lack of innovative ability, industrial structural problems have been fully exposed. The superposition of old and new problems in China's home textile industry makes the home textile industry seem to be in danger.

However, for the above argument, Chen Yunlai, chairman of Jiangsu Mei de Ni Textile Co., Ltd. does not agree.

In Chen Yunlai's view, after nearly 20 years of development, China's home textile brands have begun to break the previous phenomenon of imitating European and American styles. More and more home textile enterprises have begun to attach importance to product R & D and design, and the deepening of brand awareness of home textile enterprises has made more and more functional beds in China's home textile industry. Through technological innovation, many domestic textile brands have become the tools for many home textile brands to break through.

Different from the optimistic attitude of business operators, senior researchers in home textile industry have different views.

"China's home textile industry is at the margin of the reshuffle, and the two level differentiation is obvious, that is, the strong Heng Qiang, the weak and the weak.

Some enterprises that do not form brand depend on low price to impact the market, and the quality of products is not guaranteed. They will be phased out in the competition.

Leading brands with strong brand, leading design, excellent supply chain management and strong channel response capabilities will gradually win.

Gao Xiaoshi believes that facing the ever-changing external environment, home textile enterprises must stand at the high point of the industry, take the overall situation into consideration and judge the trend of the trend.

With the acceleration of the urbanization process, it is bound to pull the consumer market, including home textiles.

Therefore, the larger market space will be in the domestic market, and the expansion of the domestic market share is a breakthrough strategy.

The future development path of home textile industry is mainly reflected in providing professional and personalized product services.

And truly develop from this aspect, enterprises need to form their core competitiveness and reflect differentiation.

Zhu Qinghua, a light industry researcher at CIC, believes that under the premise of expanding domestic demand, enterprises should invest more in product research and development, constantly improve production technology and improve the professional quality of employees, so that products can really be accepted and liked by consumers.

"Home textiles as a necessities of life, the market is there, the problem is how enterprises cooperate to guide the market growth, and how enterprises compete for a bigger share."

Lin Xiaoli believes that the dilemma and action is a big proposition.

"Not only does the enterprise need to differentiate itself from product design, build multiple brands, differentiate the terminal service experience, and avoid homogenization, but most SMEs break the siege by themselves. It is more difficult for the government and industry associations to actively guide this part of enterprises to find the right location and make fine products, specialized products and unique products.