Clothing Growth Is Still Uncertain. Two Ways To Select Brand Clothing Enterprises

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In the sub sectors, the year-on-year promotion in August led to a year-on-year increase in the retail sales of all calibre garments, but the overall inventory pressure of spring and summer wear in 2012 was still higher than in the past.

Combined with uncertain economic factors, the recent spring and summer ordering in 2013 will be generally not optimistic. The average growth rate of men's clothing companies is about 10%, and the pressure on the growth of casual wear companies is still very high.

In view of the higher proportion of autumn and winter clothing sales in the whole year, the terminal sales in the late 9-12 months will directly affect the expected growth of the industry in 2013.

We believe that the "high growth" companies have strong expansion momentum, and the future is expected to lead to handsome growth in performance.

In terms of manufacturing sub sectors, we consider that the growth rate of manufacturing and manufacturing companies will gradually increase in the next 6-12 months.

At present, the valuation of the plate is at an expected low level. We suggest that we pay close attention to the changes in the operation of the plate.

In terms of raw material prices, the price of raw materials in some industries is rising gradually (such as polyester staple fiber), but

Low demand and rising pressure; in terms of downstream demand, industry exports in August dropped by 3.35% compared with the same period last year, and there was uncertainty in external demand.

If late demand rises and drives raw material prices up, the sector will have some investment opportunities.

Two ways to select brand clothing enterprises

Our future choice of brand clothing enterprises mainly follows two points: first, whether there are investment opportunities in the development stage of the subdivision; and the two is to choose the enterprises with strong retail capability and strong channel control potential.

The upgrading of the back-end industry is dominated by the strategy of extension and expansion, supplemented by certain retail capabilities and channel control capabilities.

We still emphasize that the back-end industry will have more channels and more opportunities in the next 2-3 years, which will still be the focus of our recommendation. However, it is important to note that the differentiation of the industry pattern will intensify in the coming years, and the investment value of the target will also be differentiated.

In the backend industry, we mainly recommend outdoor and high-end women's clothing in the second half.

Among them, the outdoors is still in the golden period of extension and expansion, with a high degree of prosperity.

In terms of consumption promotion, the front-end industry is based on retail capability and channel control, or has potential as the main stock selection basis.

The channel thrust of front-end industry has been largely released, and brand pull has not yet been fully formed. Retail capacity and channel control power are the main support for endogenous growth, and also the guarantee for the formation of brand pull in the future.

Because

The pattern is relatively stable, and the healthy growth of the leading companies can be expected.

In the front-end industry, we mainly recommend business casual men's clothing industry.

The development pattern of the mid-range business and leisure industry is relatively stable, leading brand operation is upgraded, and development is stable; the high-end business and leisure industry is facing certain pattern of shuffling opportunities, with certain leading strength and foundation brand, and can develop rapidly in the small scale background.