The Current Situation Of Fujian's Clothing Industry: Inventory Top Down Winter Clothing Discount Sales Promotion

October 23rd evening, men's wear leading enterprises Seven wolves The three quarterly report shows that although the third quarter performance has risen by nearly 40%, the growth rate of single quarter revenue has declined, while the third quarter revenue growth is slower than the first, second quarter's year-on-year growth rate.

According to the analysis, the third quarter growth rate of the seven wolves is slowing down. In fact, in 2012, many Fujian clothing Enterprises are all "pressure mountain" year, pressure is not only reduced orders, profit compression, cost increase, more direct and more impacting force is high inventory. Reflected in the terminal retail market, it is "endless" discount promotions.

stay Fujian clothing Enterprises and distributors shout "can't afford to lose". At the same time, the whole industry is always watching the speed of "going to stock".

　　 Clothing enterprises: performance growth slowed, stock increase

On the evening of 23 July, the seven wolves announced the three quarter reported that the first quarter of the three quarter of the seven wolves to achieve operating income of 2 billion 513 million yuan, an increase of 19.71% over the same period. It is worth noting that although the third quarter performance has risen by nearly 40%, the growth rate of single quarter revenue has declined, while the growth of 13.43% in the third quarter is slower than that in the first, second quarter.

Seven wolves securities representative Chen Ping said, mainly because of the poor environment, consumer's willingness to drop, resulting in late delivery of sales terminals. A month's shipment was postponed this year, and wholesale revenue declined, resulting in a third quarter slowdown.

In addition, the company's accounts receivable increased by 15.09%, an increase of 157.32% over the end of last year, the announcement said, which was mainly due to the pressure of customers' funds. The company increased its channel support and increased the credit limit of agents for the delivery in autumn and winter.

On the stock side of concern, the seven wolves inventory was 736 million yuan at the end of the three quarter, up 49.71% from the end of the two quarter, and the proportion of total assets rose from 10.33% at the end of the two quarter to 13.33%. Chen Ping said that the three quarter is the centralized storage period of autumn and winter goods, and the increase in autumn and winter stocking.

In addition, China Merchants Securities believes that the retail market is sluggish this year, resulting in a slight decrease in the sales of the seven wolves sold in spring and summer in 2012 compared with last year, and to a certain extent, increased inventory pressure. It is understood that the selling rate of seven wolf's summer wear is estimated at around 60%, and the products that are not sold will continue to be converted into stock.

　　 And the seven wolves are only Garment industry High inventory of "iceberg".

It is reported that the first half of this year, including Anta, XTEP, XTEP, PEAK and other 42 domestic listed apparel Spin The total inventory of enterprises is as high as 48 billion 300 million yuan. Companies 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.

Retail market: this year's discount cycle is too long to reach the target.

In fact, the most direct manifestation of the high inventory in the apparel industry is the "endless" sales promotion in the retail market.

"Autumn clothing 5-7 fold", "the lowest 70 percent off", "some winter clothing new product 15% off"... Towards the end of October, in the major stores and clothing brand stores in downtown Fuzhou, the autumn dress was "crazy clearance", and some brands of winter clothes were listed on the discount team.

At the department store of Dayang department store, almost all clothing counters are engaged in "late autumn promotion". Most of the clothing brands are directly hit 50 percent off or 40 percent off, except for part of the "full reduction" and "full delivery" strategy. On Jin Tai Road, many boutiques of boutique women have posted discount labels in prominent positions, such as "two new pieces of winter clothing, twenty percent off" and so on.

"This year's discount cycle is particularly long. The new products in autumn are on sale, and they have been on winter clothing more than half a month ago, and they still have to continue to offer discounts." A woman dress shop on Jintai Road said helplessly.

In the South Street, a total of five stores of Metersbonwe stores, in the past only fifth floors to do special stores, the recent four or five floors have changed to "special sale".

Although there are many sales promotion methods, the popularity of the stores seems to be not enough. "The price is too expensive. Just a sweater and cardigan, you can get six hundred or seven hundred yuan after the discount, and then look for it." Citizen Liu Xiaojie said.

Reporters visited a number of clothing brand counters also found that although the promotion efforts are always half off or even lower, but after the discount, the price of autumn clothing is still "strong", a brand of women's clothing after a half off, it needs nearly six hundred yuan.

"Compared with previous years, this year's preferential sales form is more varied, the discount cycle is longer, but there is still a certain gap from the intended target. Customers seem to have no need for purchase. Semir South Street store guide said frankly.

In fact, apart from domestic brands, some international brands have already cut prices. Recently, reporters at the ZARA store in Wanda, Cangshan, saw a new sweater jacket priced at 399 yuan. According to the clerk, the same kind of coat sold for 599 yuan in previous years. Coincidentally, in the HM store, all kinds of "big sale" signs are also full of shops.

And in the middle street Ting clothing wholesale market, the special sale has become the norm. Mr. Huang, who has been in the wholesale and retail business for more than 6 years, said that this year's pressure is particularly high. In order to digest inventory, the shop started sales promotion more than half a month earlier than last year, but its stock is still increasing.

　　 Upstream enterprises: industry downturn, profits fell sharply

The downturn in the clothing market has also spread to a group of upstream textile and garment enterprises represented by Xun Xing shares. Statistics show that the growth rate of Xun Xing zipper Polytron Technologies Inc from mid 2010 to mid 2012 was 38.45%, 18.98% and -14.34% respectively, while the net profit growth rate was 58.95%, 98.38% and -52.94% respectively.

Xun Hing shares has seen negative growth in revenue for the first time in three years, and this year's net profit has dropped by nearly 6.

The company said that under the influence of macro-economic environment, the consumption of the clothing and bags enterprises was slow, resulting in slow inventory demand, reduced demand for zippers, reduced orders and reduced operating income, resulting in a sharp decline in profits during the reporting period.

"This is a matter of expectation. This year is a year for apparel enterprises to inventory, and the demand for zippers is the first to be affected." Xie Jingbo, the representative of Xun Xing stock securities, was also hit by the economic downturn in 2007, but this year's impact may be even greater. It is mainly due to the large economic base and the poor environment both at home and abroad.

According to the announcement of its quarterly bulletin, the net profit of the first three quarters is 12 million 448 thousand and 100 yuan to 31 million 120 thousand and 300 yuan, a decrease of 80% to 50%, compared with 62 million 240 thousand and 700 yuan in the same period last year.

　 Analysis: behind the surge in inventories is the lack of innovation.

As a matter of fact, the price of upstream raw materials is also rising, while the inventory of garment enterprises is increasing.

According to statistics, in September this year, domestic cotton prices 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.

With the depreciation of the renminbi, the rising cost has become a major trend. Affected by uncertain factors such as fluctuations in raw material prices, domestic and foreign cotton fabric leading enterprises and shares disclosed three quarterly reports last night, showing that business income of 864 million yuan, down 4.31% from the same period last year, and net profit of 38 million 63 thousand and 500 yuan, down 28.56%. At the same time, Zhonghe shares are expected to decline 20% to 40% in 2012.

It is understood that because of fashion trends, capital flows and other reasons, clothing industry backlog time is up to a year or so. Therefore, some enterprises that are less able to resist risks are likely to be "crushed" by the high inventory in the current economic downturn, because these commodities are not only depreciating, but also deducting the cash flow of garment enterprises.

Fujian clothing and apparel industry association pointed out that the clothing industry is very difficult to achieve "zero inventory." But from a deeper perspective, behind the sharp increase in inventory this year, in fact, it is also a comprehensive reflection of many problems existing in the brand positioning, design concepts and sales channels of many garment enterprises. "If it is not properly handled, it will probably create a vicious circle like Domino."

Nowadays, in the face of high inventory, many garment enterprises are trying to climb out of this painful mire. Among them, discount sales promotion, with the help of the "electricity supplier" channel, and the two or three line city centralized digestion are the most commonly used methods.

Insiders pointed out that, even though the above several ways successfully digest the inventory, the fundamental internal causes of high inventory prices have not changed. From high storage to digestion inventory to high inventory cycle, the pressure and challenges faced by garment enterprises at present can not be changed.

"At present, there is a general lack of innovation in the management mechanism and methods of garment industry in Fujian and even the whole country. In addition, there is no relevant data analysis and support, as well as a truly efficient and flexible supply chain system and sales channel system, which are important factors causing inventory runaway. Fujian clothing and apparel industry association pointed out that the relevant personages.

Of course, some clothing enterprises in Fujian also realized this problem and began to try to find new growth points. In recent years, due to the slump in the traditional industries, Zhonghe shares mentioned in the 2011 Annual Report to seek opportunities and try to develop the second industry. In September 15th of this year, Zhonghe shares and Xiamen Huangyan Trading Co., Ltd. signed the capital increase contract for Xiamen silk stone Trading Co., Ltd., to determine the value of 100% stake in Xiamen's silk and Stone Co., which was valued at 160 million yuan, and increased by 320 million yuan from the company to Xiamen Shek Shi, thereby holding 66.67% stake in Xiamen silk stone, and indirectly holding Shenzhen Tianjiao, Fujian front lithium industry, Jin Xin mining industry, and marching toward lithium battery materials.

In fact, YOUNGOR, Hong Kong and China group are involved in real estate and other industries, and the seven wolves have already diversified in financial, real estate and other industries.