Chinese Garment Enterprises Fall Into A Long "Ice Age"

China clothing Enterprises fall into the long "ice age". Reporter recently learned from Wan Lian Securities Research Report, as of October 15, 2012, Shen Wan Spin Of the 79 listed apparel companies, 48 have released the third quarter 2012 results. Among them, a total of 6 increase, a slight increase of 14, 10 surplus, pre reduction 4, continued losses 5, the first loss of 4. "From the current performance forecast, the three quarter performance of textile and garment enterprises will be worse than the two quarter and the first half of this year." Wan Lian securities analyst Jin Zhen thinks.

Sales continued to slow in the third quarter. Clothing enterprise The inventory snowball continues to roll. Reporter statistics learned that in the first half of 2012, the total inventory of 42 Chinese garment enterprises including the five major sports brands listed in Hong Kong amounted to 48 billion 300 million yuan. At the same time, raw material costs continued to rise slightly. A survey of global retail producers and importers by C apital B usiness C redit, a commercial financial company, shows that 26% of the surveyed fashion brands are ready to shift their factories from China to other countries.

　 Performance is lower than expected to aggravate inventory pressure.

Reporter statistics learned that in the first half of this year, including Lining, Anta The total inventory of 42 listed clothing and textile enterprises in China is 48 billion 300 million yuan, including 360 degrees, XTEP, PEAK and so on. Among them, YOUNGOR, Hong Kong and Jihua Group, which have the largest inventory, are not comparable because of large inventory of real estate. In addition, most of the enterprises with the largest inventory are American States. Clothes & Accessories Semir's clothing and Lining's stock are 1 billion 753 million yuan, 1 billion 473 million yuan and 1 billion 138 million yuan respectively. Inventory of less than 100 million yuan only 4.

Although the increase in inventories of individual businesses is not surprising, the trend continues in the third quarter. By the end of August, Nike's revenue growth slowed by 2.5% over the previous fiscal year, and its net profit fell by 12.1%. The growth of H & M and UNIQLO also slowed down compared with the first half of the year, and ZA R A declined for the first time in recent years. The biggest fall in autumn clothing this year even exceeded 30%, in order to cope with the weak terminal consumption.

"Mesoscopic data have not yet been released, but micro data show that: in September, the number of retail sales of 100 key enterprises increased by 10.6% over the same period last year, slowing by 6.1% compared with August." Wang Wei, an analyst with China Merchants Securities, said that the performance of clothing retailing in September was poor. Although it had been expected, it was still worse than expected. It was mainly due to the higher base last year, the reduction of Mid Autumn Festival holidays, the Diaoyu Islands incident, and the lack of discount on autumn clothing.

Affected by this, Textile and garment enterprises The three quarter performance was significantly worse than the same period last year. According to the statistics of WIN D and WAN Lian securities, as of October 15, 2012, 48 listed companies of Shen Wan textile and apparel announced third quarterly results, and the number of pre growth and slightly increased companies accounted for 41.67%. Slightly less companies accounted for 21%, while the proportion of slightly reduced, pre reduced and loss making enterprises reached 48%. "In the fine molecule industry, Brand clothing Chinese men's wear, outdoor products and high-end women's clothing company's performance expectations are relatively good. Jin Zhen said.

　 High inventory and high cost production line transfer

"Inventor inventory increased substantially compared with the end of the two quarter." Guo Haiyan, an analyst at CICC, said that this year's sales volume of spring and summer products was low and the capital chain was under pressure. As a result, a large number of finished products were put into storage in the autumn and winter, resulting in a substantial increase in the company's book inventory from 140 million yuan to 340 million yuan.

The selling rate of the seven wolf's summer wear is estimated at around 60%, which means that the products that are not sold will continue to be converted into stock. In the autumn, while the inventory increased, the prices of raw materials in the upstream garment enterprises continued to rise. In September this year, the price of domestic cotton continued to rise slightly by 1%; the price of main yarn varieties increased slightly, and the price of embryo cloth varieties was flat. Cotton prices continued to rise in October.

Under such circumstances, a survey of global retail producers and importers by C apital B usineSSC redit, a commercial financial company, shows that 26% of the surveyed foreign brands are ready to transfer their factories from China to other countries. 40% of enterprises said they were considering evacuating production plants from China, and then chose Vietnam, Pakistan, Bangladesh and Philippines as new production bases.

Prior to this, Adidas and South Korean clothing brand "H clothing" will evacuate the production base from China. The US clothing brand C oach also announced that due to the rising labor costs in China, the company will transfer 50% of its capacity from China to lower cost production countries, such as Indonesia, Thailand and Vietnam.

　 data

Industry giant inventory in the first half

Nandu reporter statistics learned that the first half of this year, including Lining, Anta, 31st degree, XTEP, PEAK and other 42 domestic clothing and textile enterprises inventory total of 48 billion 300 million yuan. Among them, YOUNGOR, Hong Kong and Jihua Group, which have the largest inventory, are not comparable because of large inventory of real estate. In addition, the largest inventory companies are American barrack, Semir costumes and Lining, with a stock of 1 billion 753 million yuan, 1 billion 473 million yuan and 1 billion 138 million yuan respectively. Inventory of less than 100 million yuan only 4.