Apparel Industry Status: The Fourth Quarter Garment Enterprises Are Expected To Get Rid Of The Shackles Of High Inventory.

Inventory problems

Enterprises have been over a year, this year's clothing industry continues to last year's grim market situation, the first three quarters of domestic sales and exports have not seen a favorable turn, clothing enterprises inventory backlog problem in the market downturn gradually highlights.

However, analysts said that the garment industry is following the economic trend and gradually stabilized, and terminal consumption has also been higher than expected market changes. The fourth quarter garment enterprises are expected to get rid of the shackles of high inventory and enter the stage of "burden reduction".

Inventory backlog highlights

Insiders pointed out that high

It mainly affects the capital turnover of enterprises, the higher the inventory is, the more funds are deposited, and the capital turnover of enterprises is even more difficult.

This will not only affect the business activities of enterprises, but also lead to the decline of corporate profits.

Data show that the first half of this year

The total amount of inventory items of the 35 listed companies was as high as 46 billion 480 million yuan, an increase of 3 billion 680 million yuan compared with the same period last year.

The largest amount of stock in a listed company is YOUNGOR, which has already disclosed 23 billion 872 million yuan in the semi annual report, and 3 billion 844 million yuan and 3 billion 431 million yuan in Hong Kong Group and China group respectively.

In high inventories, the backlog value of stock products increased, and the total amount of the 35 companies increased by more than 14 billion 100 million yuan, representing an increase of 5 billion 720 million yuan over the previous year, an increase of 40% over the previous year.

Although the overall situation of the apparel industry in the three quarter was more optimistic, net profit increased significantly in the first half of the year, but the stock of enterprises continued to increase.

According to incomplete statistics from China Securities Daily reporter, the inventory of home textile enterprises released in the three quarter of this year is generally higher than that of the home textile enterprises, such as the stock amount of red beans and China International Group reached 3 billion 978 million yuan and 3 billion 481 million yuan respectively, which increased again over the medium term scale. In addition, the turnover rate of enterprises' capital also declined further, among which the most obvious turnover rate was that of the company, such as Langer, Pathfinder and Hinur.

The export market is grim and domestic sales are not optimistic.

Terminal sales sluggish, so that clothing enterprises inventory backlog continues to rise, companies are looking for ways to discount sales promotion, increase the electricity supplier channels, and switch to the two or three tier cities.

For distribution business, clothing inventory accumulation is undoubtedly "pressure mountain", dealers feel that this year's repayment pressure is the largest in nearly ten years.

De stocking in progress

The improvement of export environment, the recovery of the US economy and the worsening of the EU financial crisis, as well as the stabilization of cotton prices and better than expected CPI, will provide good external conditions for the apparel industry to go out of the doldrums.

Wang Jian, an analyst with Zhejiang textile and apparel industry, believes that the clothing industry, which is increasing in inventory and has a significant decline in capital turnover over the past year, will enter the stage of "burden reduction" in the four quarter when the external environment is more stable.

Analysts pointed out that this autumn and winter products brand companies have less price increases, some brands.

And even choose a price reduction strategy, and running price cuts will help boost consumer desire to buy and fundamentally improve terminal demand.

The market is strengthening confidence in downstream consumption. In view of the fact that clothing consumption is in the post cyclical stage of manufacturing in the middle reaches, the de stocking of manufacturing industry is coming to an end.

Statistics released by the National Bureau of statistics on 18 may show that textile and garment export growth in September has improved significantly.

Professor Guo Yan of China Clothing Institute believes that the Mid Autumn Festival, the National Day golden week and the upcoming Christmas and new year promotion season will greatly stimulate consumer enthusiasm in the market, and it is expected to speed up the process of garment enterprises going to inventory.

Wang Jian, Zhejiang Merchants Securities, said it was the first to be affected by internal and external troubles last year.

Enterprises, because of the earlier change of the sales strategy of enterprises, and the overall stability of the fourth quarter industries, the recovery trend will lead to other fine industries, such as men's clothing, home textiles and other industries.