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    The Overstock Of Clothing And Textiles Is Serious, And Development Faces Many Problems.

    2012/10/22 14:01:00 16

    OverstockGarment IndustryExportCotton Price

     

    The report on Metersbonwe's inventory has attracted the attention of the market. However, as a member of the clothing and textile company, it is faced with great concern.

    Inventory backlog

    And the receivables turnover rate is not the Metersbonwe family.


    The 87 clothing and textile industry reported in 2012 that the cumulative stock was 73 billion 200 million yuan, which was 69 billion 900 million yuan in 2011 and 50 billion 100 million yuan in 2010.

    The decline factor of sales boom is far greater than that of industry expansion. According to the China Daily report, the turnover rate of 61% of the 87 companies in clothing and textile companies decreased compared with the mid 2011, of which 34 companies had a decline in inventory turnover for more than 1/3 in two consecutive years.


    Domestic brand positioning and pricing are restricted.


    The clothing and textile companies are divided into two parts: clothing and textiles.

    In the apparel companies, Semir, which had developed rapidly in the first two years, was defeated. The net profit of the three quarterly report was 50% lower than that of the previous year.

    Products with market identification and uniqueness of 25.23,0.00,0.00%, 18.710,0.00,0.00%, and other companies have fled the market, the clothing industry which looks relatively simple has begun to further differentiation.

    Someone has done a more sophisticated job. Some people have withdrawn halfway. Others are still breathing.


    In addition to the slowdown in economic growth and the decline in exports,

    Garment industry

    It is also influenced by the big international companies.

    CICC analysis said that international brands are the ceiling of domestic brand positioning and pricing, especially in sports, youth leisure (fast fashion), luxury goods, and domestic brands are facing great competition pressure.


    This has also begun to appear on the statements of listed companies. The presence of international brands such as H&M and ZARA has a great impact on Metersbonwe, Semir and other leisure brands.


    So the high inventory that is presented is not unusual.


    The slower and slower turnover of inventory corresponds to the slower turnover of accounts receivable, and the decline in corporate returns.

    In the same 87 companies, 60 accounts receivable turnover declined, including Semir clothing (20.33,0.00,0.00%), China International, 34.24,0.00,0.00%, 19.65,0.00,0.00% and so on.


    For the example of fuanna, a grass-roots survey conducted in July showed that "the pressure from the dealer office is very high. This year, the pressure of the company to withdraw money is particularly large. Over the past decade, this year has been the most stressful payment. In 2008, when the financial crisis happened, franchisees did not have such a big performance pressure this year."

    This is also reflected in the case of Metersbonwe.


    Home textiles companies are more affected by online shopping, while casual clothing such as Semir and Metersbonwe mentioned above are not only affected by online shopping, but also squeezed by international brands.


      

    Textile companies

    Exit

    Maximum impact


    Textile companies are facing more pressure from export decline than domestic apparel companies.

    Three in the Quarterly Bulletin, most of the companies whose net profits fell year-on-year were import and export companies.


    In the context of the continuous downturn of international market demand and the gradual weakening of domestic cost advantage, the export growth rate of the industry has been slowing down since 2012, especially since the domestic and foreign cotton prices have been upside down this year, and the external competition pressure faced by the industry has further intensified.


    Since the 3 quarter, the export situation of the industry has continued to deteriorate, and the total growth rate of textile and clothing exports has slowed down compared with the first half of the year.

    According to the statistics of the General Administration of customs, China's textile and apparel exports totaled 162 billion US dollars in 1-8 months in 2012, down 0.7% from the same period last year, and the growth rate was 2.3 percentage points lower than that in 1-6 months. Among them, the total export volume of textiles was 62 billion 500 million US dollars, down 0.7% from the same period last year, the growth rate slowed down 2 percentage points compared with that in 1-6 months, and the total export volume of garments and accessories reached US $99 billion 500 million, a year-on-year growth rate dropped by 0.7% percentage points.


    2012 (2012.09-2013.08) cotton temporary purchase and storage price increased 600 yuan / ton to 20400 yuan / ton compared with last year, which will be domestic.

    Cotton price

    A high price difference between cotton and cotton may continue, which will continue to increase the risk of the loss of orders to other low-cost countries such as Southeast Asia. At the same time, with the continued sluggish external economy and the depressed demand, Wang Wei, 10.59,0.00,0.00%, expects that the export situation will still be more complicated by the end of the year, "said Mr. Wang Wei."


    The more the winter is, the more competitive the company is, and the company that survives at this time is more likely to be born again.

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