A Single Corner Of Clothing: Small Consumer Spending Overturn

This year

It can be said that "the cold is pressing". As the economic downturn is faster than expected, the clothing companies are caught off guard, leading to a sharp increase in inventories in the first half of the year, and many companies have to adjust their performance expectations in the second half of the year.

However, some of the "minority" brands are "overtaking corners". For example, sales of outdoor clothing increased by 30% over the same period this year, becoming a "flower of a weak market".

Clothing industry generally high inventory

According to recent news, Li Ning Co's only branch in Hongkong has been completed early this month.

Why did the Li Ning Co shut down the Hongkong branch? The spokesman did not make a positive statement, saying only that he would pay more attention to the mainland market in the future.

However, some analysts believe that Lining Hongkong branch is the pilot of the internationalization of Lining brand, and its closure is closely related to the pressure of Lining inventory.

Overseas market, especially in Europe and the United States, the sharp decline in orders, the sharp shrinkage of single orders, is the main reason for the aggravation of clothing inventory, and inventory problems will seriously affect the capital turnover and continuous operation of enterprises.

Reporters inquiring Li Ning Co 2012 semi annual report found that as of June 30th this year, Li Ning Co inventory of 1 billion 138 million yuan.

The number of days increased from 72 days in the same period last year to 95 days.

In fact, the Li Ning Co case is not an isolated phenomenon.

Reporter search

The semi annual report of 80 listed companies, including the textile industry and its upstream textile industry, saw that the total inventory of the 80 companies in the first half of the year amounted to 67 billion 166 million yuan.

In the clothing industry alone, the stock of 11 companies including YOUNGOR, Hong Kong Group, China group, Mei Bang dress and Semir apparel all exceeded 1 billion yuan.

The rapid economic downturn has made the listed companies somewhat "muddled". The main task of the second half of the year has become "de Stocking". Many listed companies have to lower their performance expectations. For example, Kaiser shares listed on the SME board are expected to decline by 5% in the first three quarters. In their semi annual report, Jialin Jie expects that the net profit attributable to shareholders of Listed Companies in January 2012 ~9 will be 29 million 984 thousand and 800 yuan to 41 million 978 thousand and 700 yuan, with a range of -50% to -30%.

Semir shares are expected to net profit to shareholders of Listed Companies in January 2012 ~9 to 404 million 167 thousand and 100 yuan to 646 million 667 thousand and 400 yuan, a change of -20% to -50% over the same period last year.

According to incomplete statistics from reporters, up to three quarterly reports were expected to be up to 22.

Small consumer spending curve overtaking

But there are also companies that are building new ways to increase their investment in the global crisis and prepare for overtaking corners.

Yesterday, Wan Jingang, general manager of Guangdong camel dress limited company, told reporters that the traditional brand clothing was really bad this year, but professional outdoor clothing showed a steady growth trend. Camel clothing was listed as the first half of the growth rate of 30%.

The reporter found that the "Pathfinder" of the listed company similar to camel dress was also "moist". The Pathfinder 2012 report showed that the company achieved ~6 revenue of 380 million yuan in January, up 52.4% over the same period last year, with a total profit of 84 million 250 thousand yuan, an increase of 63.9% over the same period last year, and the net profit of the shareholders belonging to the company was 59 million 230 thousand yuan, up 36.1% over the same period last year.

Although the company has yet to give a forecast for the three quarter, analysts at Soochow securities say that the 30% increase in the first 9 months is expected.

As for the "independence" of the "minority" clothing, Wan Jingang also said that first, the industry is relatively new, compared with the Red Sea competition of ordinary clothing shoes and hats, it is still in the blue ocean stage, and more importantly, it is based on the huge market base of China. "Although the relative proportion of the professional outdoor clothing audience is not high, the space and capacity of the market will not be small by multiplying this huge base."