American State Clothing "Beautiful" Half A Year Did Not Disclose The Huge Inventory

At the end of August this year, Shanghai Metersbonwe

The Limited by Share Ltd gave up a rather beautiful "semi annual report".

However, in

Industry is generally trapped in the first half of high inventory, the earnings report is extremely "dazzling."

A few days ago, some media exposed Metersbonwe's allegedly whitewash the report to cover up 800 million yuan stock's news.

Despite Metersbonwe's quick response to refute the fact that it is not true, any current trend in the clothing industry may cause a storm.

Financial fraud?

According to the half year report released by Metersbonwe, Metersbonwe achieved a revenue of 4 billion 600 million yuan in the first half of this year, an increase of 21.21% over the same period last year, and a net profit of 432 million yuan, an increase of 14.83% over the same period last year.

This contrasts sharply with Semir's apparel which has fallen by 43.22% in the first half of the year.

What is more "unusual" is that in the first half of this year, which is generally trapped in high inventory in the clothing industry, the stock balance of Metersbonwe as of June 30th has dropped sharply from 2 billion 560 million yuan at the beginning of this year to 1 billion 750 million yuan, a drop of 32%.

Recently, media reports quoted the views of the relevant people, and questioned Metersbonwe's franchisee's operation status, revenue recognition principle, inventory changes, personnel changes and other reasons.

According to Metersbonwe's secret of doing accounts: covering up 800 million stocks, quoted a source as saying: "Metersbonwe's digestion of 800 million yuan inventory in the first half is suspected of false sales and artificially adjusted income".

Then came the suspension of Metersbonwe in October 15th.

However, in the evening of October 15th, Metersbonwe announced after the suspension that the above financial media reports questioned the inventory digestion and financial accounts making, and the identification of "whitewash statements" and "suspected financial fraud" were seriously untrue.

Metersbonwe said that reducing new product orders, controlling production scale, opening sales channels and network sales were the main means to reduce inventory.

According to its announcement, in the first half of 2012, the direct retail terminal system of Metersbonwe maintained a growth of 22%, which provided strong support for effectively reducing the inventory scale.

Meanwhile, in order to control inventory size, Metersbonwe's new product purchases decreased by 29% compared to the same period last year.

By the end of 6 2012, Metersbonwe's inventory had dropped by 800 million yuan compared with the beginning of the year. Among them, the sale of old products brought about a decrease of 1 billion yuan in inventory and an increase of 200 million yuan in the new product (1 billion 600 million yuan in the production of new products and 1 billion 400 million yuan in sales).

In addition, the company denies a large number of pressure on franchising channels, saying: "in the first half of this year, the proportion of wholesale sales revenue declined, reflecting the macroeconomic impact on franchisee confidence and market expectations.

There is no mandatory provision for the franchisee's predetermined quantity and spot supplement.

Clarification notice also mentioned that in recent years, the inventory level of franchisee is lower than that of the direct channel of the company. In particular, the retail sales revenue of franchisees has increased more than that of franchisees since the beginning of this year. The return of the franchisee is healthy and the overall profitability is good. In the first half of the year, the financial report shows that the receivables of the franchisee decreased by 450 million yuan, down 51% from the end of last year, and the inventory management ability of the franchisee was further enhanced.

High inventory jeopardize the apparel industry?

Although Metersbonwe's "crisis public relations" is very timely, but affected by the big environment, and most domestic clothing enterprises adopt the way of "agent + Affiliate", not only the middle links are too many, but also the synergy of the supply chain is poor.

According to the financial data provided by garment enterprises in 2011, Lining's inventory amounted to 1 billion 130 million yuan, accounting for 15.5% of the total assets. Metersbonwe's inventory was about 2 billion 550 million yuan, accounting for 29.8% of the total assets. The total inventory of Hai Lan's home was about 3 billion 860 million yuan, accounting for 56.82% of the total assets.

Not only that, the number of stocks of seven wolves, nine bru kings, Semir and other brands is also high.

And Vigna S fashion, ladies house, Shu Lang dress and other recent IPO clothing enterprises are not, stock rate is also high, most of which exceeds four or five of assets.

"High inventory and poor sales are common problems in the apparel industry.

Because of the need to cooperate with distributors in the sales process, the feedback information provided by the enterprises is neither fast nor pparent.

In this environment of sluggish economic growth and sluggish consumption this year, the clothing industry has been significantly impacted and the inventory problem has been highlighted.

Independent commentator of service industry, retail industry informatization and e-commerce observer Ma Gang think.

"The current economic situation has great impact on the high inventory of garment enterprises, but the clothing enterprises themselves also have big problems."

Lan Canhui, founder and general manager of Beijing personality times Clothing Co., Ltd. explained to reporters from another point of view the reasons for causing high inventory in the clothing industry: under the impetus of capital, some garment enterprises pursue development speed blindly, adopt many short-sighted ways to expand the market, violate the essence of commercial production, and make mistakes in channel management.

At the same time, domestic garment enterprises do not innovate in management mechanism and methods. There is no relevant data analysis and support. There is no effective and flexible supply chain system, which is also an important reason for inventory control.

Shen Jun, who has many years of experience in the clothing industry, told reporters that it is worth noting that the sales pressure of the garment enterprises is large, and the actual sales are hard to achieve.

In practice, solving the problem of high inventory depends on the adaptability of the enterprise.

"We still have to solve the stock problem from the retail point of view, such as cooperation with e-commerce, the help of a professional cleaning stock company, the cooperation with the factory stores, and the promotion of promotion, etc."

Ma Gang told reporters.

Lan Canhui suggested that foreign Outlets (Oteri J) is a very good way, but not for fast selling brands.

At present, discount sale is the most common practice. Wholesale market, especially the tail cargo market, is a good channel.

In addition, it is also a good choice to dump goods through the Internet.

He said.

However, LAN can also tell reporters that although there is no good inventory management mechanism for retail clothing brands, the problems will be very serious.

However, in the United States, Japan and Europe, there are also enterprises that have formed cost leading competitiveness through huge inventory. For example, the Canadian enterprise GILDAN, the largest T-shirt manufacturer in the world, has nearly 150 million goods sent out in the warehouse every day, and has accumulated strong production capacity and inventory management mode through low cost, huge inventory and quick response, and has occupied more than 60% of the market share of the US industry.

Therefore, domestic related industries need revolution, and retail brands should have low inventory or even zero inventory. Production and manufacturing need intensive scale to reduce costs and form a rapid supply mechanism, so that healthy industrial trends can be formed.

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No "hidden rules" to reduce "harm"

In the current situation, clothing enterprises are facing inventory pressure, and a lot of energy and money are spent on the digestion of inventory. This is a matter of life and death for many listed apparel enterprises.

In the stock market, many clothing brands have been sold off because of the high stock of stocks.

In this case, whether the report is good-looking is related to the survival of these enterprises.

As a result, Metersbonwe's "beautiful" report will become a target of public criticism, and it is also reasonable.

Although some people have pointed out that clothing listed companies, through various channels, to ensure that statements "beautiful" has become the industry's "hidden rules".

But according to reporters, this is not the case.

Shen told reporters that the majority of cases would exclude individual enterprises.

"If a listed company wants to win the favor of investors, it will ultimately depend on its own strength."

"Come out sooner or later."

Ma Gang slightly ironically pointed out the consequences of "whitewash". "Even if the report is done well this year, it will not always get good results next year. At that time, enterprises will still lose faith in investors."

For Metersbonwe, whether or not there is a high inventory problem, the impact has already been caused.

The Shenzhen Stock Exchange issued a notice on October 15th that public media appeared to have information on Shanghai Metersbonwe dress Limited by Share Ltd, which may have a greater impact on the company's stock trading price. According to the relevant regulations, the company's stock was temporarily suspended after the opening of the market in October 15, 2012.

Now, for Metersbonwe, it is very important to minimize injury. This is not an announcement from the enterprise. The boss can criticize the employee to solve it.

Shen Jun believes that enterprises should have a correct attitude to respond to this problem. The leaders of enterprises should also have broad mind and accept all kinds of doubts and even criticisms from all walks of life.