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    PEAK Shutting Thousand Stores, Lining Pass, More Than 900 Stores, Cold Wave Hits China'S Clothing Industry

    2012/11/8 13:52:00 35

    PEAKLiningClothingChina'S Clothing Industry

     

    Six months ago, on Pudong New Area mountain road, Shanghai.

    clothing

    There are more than a dozen shops, but it has closed 7788 in the past month.

    This is just a microcosm of this year's "depression" of the garment industry.

    Reporters yesterday learned that PEAK sports released the latest report shows that as of September 30, 2012, its authorized retail outlets in China were 6739, compared with the end of 2011, a net decrease of 1067.

    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

    shoes

    The amount of orders decreased, clothing orders fell sharply, and the average wholesale price of products increased by zero.


    First there are sports brands such as Lining and PEAK, followed by Semir, United States, Daphne and other leisure.

    Clothes & Accessories

    This year, the number of layoffs and closures in the domestic garment industry has been increasing. This has also led 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.


    Sports clothing brand market has not been spared.

    This year, the number of PEAK's retail outlets has dropped sharply.

    According to the report released by PEAK in May, as of March 31st this year, the number of retail outlets in the group was 7523, which was 283 lower than that in the end of 2011.

    As of June 30th this year, the number of retail outlets was 7059, down 464 from 3 months ago.

    From June 30th to September 30th, PEAK retail outlets closed 320.


    In this year's semi annual report, Lining, Anta sports, PEAK, 31st degree and China's 5 sports brand listed companies suffered a slump in revenue.

    Among them, in the first half of 2012, PEAK lost 2 billion 256 million yuan to 28.5% yuan to 1 billion 610 million yuan, while net profit also dropped to 240 million yuan, down 43.3% from the same period last year.

    Lining's net profit fell by 85% in the first half of the year.

    Lining executive vice president Jin Zhenjun revealed that in the first half of the year, the company closed 952 stores.


    It is worth mentioning that, according to relevant reports, compared with Anta, XTEP and 31st degree,

    Peak

    The number of stores is the most closed.

    According to the bulletin, the first 3 companies reported that the total number of Anta sports stores decreased by 110 to 9187 in the first half of 2012 compared with the end of 2011, while the number of XTEP brand stores increased by 7 to 7603, while that of 360 degrees increased by 185 to 7865.

    "The whole garment industry must really get out of the difficulty next year."

    Xu Zhihua, the chief executive of the Peak Sport Products Co Limited, told the media that the current progress was still in anticipation of the company's inventory target at the beginning of this year.


    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 small commodity market, said in an interview 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 the sales promotion power and increasing the advertising input.


    "It's really going to be cat winter this year."

    Miss Huang, who has made a living in a clothing store in Changzhou, Jiangsu, told reporters that clothing business is becoming more and more difficult now. It is not as good as a year in a year.

    "Originally this street has opened five or six clothing stores, now closes, changes, has changed the line to do other business."

    Miss Huang told reporters that in the past October and November, the monthly turnover could reach about twenty thousand yuan, which has dropped by more than half this year.

    "Light rent is more than 1000 yuan a month, plus the cost of incoming goods and the cost of return oil, and so on, capital preservation is fast, not to mention making money."


    "High inventory" is this year.

    Clothing enterprise

    Generally encountered.

    Wang Bing, an analyst with the clothing industry of Sun Xin securities, told the media that this year's macro-economic downturn continued. GDP is facing a downturn. The cold market as a whole is the main reason for the pressure on the clothing enterprises to face 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."


    "Clothing is the most valuable commodity."

    Zhang Weilian told reporters that a large backlog of products, not only occupied the company's operating capital, spent manpower and material resources, but also elongated the turnover cycle of products, the overall profit will be lowered.

    "Clothing is different from other industries, it is difficult to achieve" zero inventory ", but this year's surge in inventory also exposed some small and medium-sized enterprises weak management and resilience.


    In Wang Bing's view, the key to break the encirclement at present is the following: first, the overall macro-economic improvement and the increase of consumption; secondly, enterprises themselves should strengthen internal control and management, speed up the de stocking and raise the gross profit margin of single products.


    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 and implementing structural tax cuts.

    policy

    And push the camp to the pilot project.

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    Read the next article

    Wenzhou Apparel Manufacturers Strive To Find New Markets

    The clothing manufacturers in Wenzhou add up to only more than 2000, which is affected by the global economic downturn. The cyclical downturn of the market environment is not unexpected. The garment manufacturing industry is once again exposed to chronic diseases. It is difficult for most small and medium-sized factories to cooperate with foreign trade companies. Wenzhou clothing manufacturers are also looking for new markets.

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