Chinese Clothing Industry Encountered Cold Wave Assault

Six months ago, there were more than ten clothing stores on the dairy road in Pudong New Area, Shanghai, but they closed 7788 in the past month. This is just a microcosm of this year's "depression" of the garment industry. Reporters learned yesterday. PEAK Sports The latest report shows that its authorized retail outlets in China are 6739, a net decrease of 1067 compared with the end of 2011. At the same time, the group's order situation has not improved. The announcement shows that the total order volume of the group in the second quarter of 2013 (calculated at wholesale price) fell sharply from 20% to 30% in the same quarter of 2012. Among them, the amount of footwear orders decreased, clothing orders fell sharply, and the average wholesale prices of products were zero growth.

　　 The closing of the tide is repeated.

First there are sports brands such as Lining and PEAK. After that, there are casual clothes such as Semir, Smith Barney and Daphne. This year, the layoffs and closures of domestic garment industry are coming and going, and this directly leads to a decline in net profit of the company. Daphne group has just plunged into a "layoff storm" and laid off 300 people nationwide, which has made this year's sluggish clothing market more chilly. The three quarterly report released by Semir showed that in the 7-9 month, the total business revenue of the company was 2 billion 100 million yuan, down 5.53% from the same period last year, and the net profit was 225 million yuan, down 36.24% compared to the same period last year. The state of the United States is also not optimistic, and its quarterly report has negative growth. In 7-9, the total operating income of the company was 2 billion 594 million yuan, down 13.47% from the same period last year. Net profit was 320 million yuan, down 13.4% from the same period last year.

It is worth mentioning that, according to relevant reports, compared with Anta, XTEP and 31st degree, PEAK's stores are the most closed. Announcements show that the first 3 companies reported in the first half of 2012, compared with the end of 2011, ANTA Sports Products Limited The total number of stores decreased from 110 to 9187, while the number of XTEP brand retailers increased by 7 to 7603, while the net sales increased by 185 to 7865. "The whole garment industry must really get out of the difficulty next year." Xu Zhihua, chief executive of Peak Sport Products Co Limited, admitted to the media that the company's goal of eliminating inventory at the beginning of this year is still in progress.

In the face of increasingly fierce market competition, brand management has become the top priority for garment enterprises to get out of the difficult position. However, as the key link of brand circulation, terminal channels are facing various embarrassments. Some senior people believe that the status quo of PEAK is due to the poor foundation of its channel terminal and weak channel management capabilities. From the above data, we can see that PEAK lacks effective means and methods in retaining franchisees compared with other enterprises.

　　 Inventory "pressure mountain"

"So far, the net profit of clothing market has dropped by about 10% to 20% this year." Zhang Weilian, assistant general manager of Zhejiang Qianjiang clothing commodity market, told reporters that in order to pass the "cold winter" smoothly, the market also took some remedial measures, such as extending the business hours, extending the closing time of the previous 6 points to 8 o'clock in the evening, in addition, increasing sales promotion efforts and increasing advertising input.

"High inventory" is the common experience of garment enterprises this year. Garment industry Analyst Wang Bing told the media that this year's macro-economic downturn, GDP is facing a downturn, the whole consumer market is cold, clothing enterprises are facing the main reason for inventory pressure. "In the past few years, the garment industry has been expanding rapidly, and the stock pressure has been obscured by the good economic situation. Now the economy is in recession, the crisis is exposed." However, the trend of macro data is upward. According to the data released by the National Bureau of statistics, consumer confidence index was 100.8% in September this year, up 1.4 percentage points from August. Obviously, consumption has begun to pick up. However, experts believe that measures need to be taken to really stimulate consumption, such as expanding the policy of energy-saving household appliances, implementing the structural tax reduction policy, and promoting the pilot camp reform.