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    This Year, The Profit Margins Of Garment Industry Continue To Decline.

    2012/11/16 11:43:00 59

    Casual WearSportswear BrandGarment Industry

     

    First there are Lining, PEAK and other sports clothing brands, followed by Semir, American and so on.

    Casual wear

    This year, the domestic garment industry is facing a wave of layoffs and closures.

    Yesterday, Mr. Ding, a clothing agent in the city, told reporters that the peak season for sales in October, which everyone used to be optimistic, was also empty.

    Taking into account the market inertia, Mr. Ding is still not optimistic about next year's market, so he turned off 4 stores and laid off 20 employees.


    Sports apparel brand profit margins continue to decline


    The latest performance of Nike and Adidas showed that the first quarter of Nike fell by 12%, the first three quarters of the growth rate of Adidas increased by 14%, the net profit and the number of stores increased in the first half of the year, compared with the end of last year, Lining was -84.5% and -952, PEAK was -43.3% and -1067, and 360 degrees were -22.9% and -185, Anta was -17% and 29, with 0.3% and 165.

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


    Lining, Anta, PEAK, 31st degree and China trend 5 sports apparel brand listed companies are also not ideal.

    Yesterday, the reporter in the downtown Xinhua Street Anta, Nike and other stores to see, few of the people patronized, only the salesman is crying out.

    Some sportswear brands, which used to have little discount, are now hanging out the banner of "buy twenty percent off pieces, buy two pieces and thirty percent off", but customers do not buy it.


    When asked about Lining and so on this year

    Sportswear brand

    At the time of the sales quotations, Ms. Jin, director of the sports and leisure clothing floor of a shopping mall in the city, said, "the market is very poor.

    "She told reporters that she had heard about the nationwide shutdown and layoffs, but this situation did not appear in Jinhua, because these sportswear brands were distributed by agents in Jinhua, not direct manufacturers.

    In spite of the difficulties, the agent will continue to support it.

    "Compared to the third quarter, the market in the first half of this year was even worse.

    "Ms. Jin said that through promotions and preferential activities, business has improved somewhat. The monthly turnover of a single brand can reach hundreds of thousands of yuan, and the difference is only about ten million yuan.


    Speed up digestion inventory and expect economic prosperity to rise


    In the global economic downturn, sports apparel brands such as Nike are falling into the predicament of declining performance and high inventory.

    "Fashion clothing, children's clothing and other brand clothing is also difficult to escape, is the whole industry depression.

    "Mr. Ding told reporters that the whole garment industry is depressed.

    He believes that Jinhua's clothing industry, 2/3 is a capital preservation, loss, 1/3 can make money is good.


    The most valuable part of clothing is inventory.

    According to industry analysis, high inventory is a common problem faced by garment enterprises this year. A large backlog of products has not only occupied funds, but also wasted manpower and material resources. It also prolonged the turnover period of products and reduced overall profits.

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

    "


    This year's macroeconomic downturn and the consumer market are the main reasons for the pressure on clothing companies to face inventory pressure.

    "In the past few years, the garment industry has been expanding rapidly, and the stock pressure has been obscure by the good economic situation.

    Now the economic downturn, the crisis is exposed.

    "Mr. Ding told reporters that the market, shopping malls, supermarkets, along with street clothing shops, exclusive stores, the phenomenon of homogenization has been very serious.

    Some people see the low threshold of clothing management, and blindly follow up. Only when they enter the business do they know that business is difficult to do.


    Insiders say that

    Garment industry

    The key to the improvement of sales situation lies in the improvement of the macro-economy and the increase of consumption.

    Enterprises should strengthen internal management, speed up the inventory and increase the gross profit margin of single products.

    The current macroeconomic data have been improving.

    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, and consumption has already recovered.

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