To Cope With Changes In Garment Market, Enterprises Need To Practice Internal Strength.

The three quarter,

The export situation is weak and the domestic sales growth rate is dropping. It is estimated that the four quarter textile manufacturing enterprises are still not optimistic, but the retail sales are warming or are expected to drive the improvement of the apparel retailing business.

From the basic aspect of the industry, the external demand continues to be weak, and the export situation of the textile and garment industry is still grim.

The global economic trend is uncertain, which results in the trade protection policies of various countries affecting the export volume of Chinese enterprises.

The adverse effect of cotton price inversion has accelerated the weakening of the international competitiveness of enterprises, resulting in a sharp reduction in the number of orders.

In terms of domestic demand, from 2012 to August, the retail sales of textile garments above the limit reached 586 billion 400 million yuan, an increase of 17.5% over the same period last year, and the growth rate increased by 0.5 percentage points from 1 to July, and the market is expected to gradually stabilize and pick up 1.

Estimate

The three quarterly performance of key companies in 2012 basically met expectations, of which textile and home textiles were basically flat, while textile manufacturers improved slightly, but their performance was still lower than expected.

Due to frequent discount promotions, the gross profit margin of textile and garment enterprises is expected to decline slightly in the three quarter.

From the sub industry perspective, men's clothing companies are relatively healthy, and the three quarterly report is expected to grow at 30%-40%. The results are in line with expectations. Casual wear and home textile enterprises still face greater business pressure, lower than expected performance; demand for export manufacturing enterprises continues to slack, and domestic and foreign cotton prices scissors are squeezing the profit margins of enterprises, and their performance is lower than expected, and the possibility of industrial recovery is expected to be less in the short term.

For the future direction of the industry, we believe that the overall sales in the fourth quarter of last year slowed down, and the base effect gradually reflected that the retail market was slowly recovering.

As the spinning and weaving enterprises will "deepen their internal strength" in the low level of the industry, pay attention to strengthening management capabilities and cost control, it is estimated that the cost of enterprise expenses will be gradually reduced in 2013, and the net profit margin will have room for improvement.

To sum up, we suggest that industries and enterprises should further speed up the pace of adjustment, enhance their comprehensive competitiveness, improve their internal strength and respond to changes and wait for the boom to pick up.