China Apparel Association Clarifies Inventory Crisis In Garment Industry

< p > Wang Zhuo, Secretary General of the China clothing association, said at the media briefing held by the China clothing association in December 7th. "China's Apparel Association believes that inventory is the industry characteristics of clothing as a seasonal end product in the process of operation.

At present, with the a href= "http://www.91se91.com/news/index_cj.asp" > domestic market < /a > consumption is weak, some clothing brand stock increase situation, does not affect the production and operation of these brands, but can not be recognized as a "clothing crisis" in the whole garment industry.

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< p > according to the introduction, the inventory of clothing enterprises is generally divided into: spare sales and defective goods and raw materials in raw materials warehouse and excess raw and auxiliary materials inventory; inventory in the channel, including direct store inventory and dealer inventory; in pit inventory, inventory in logistics links and so on 3 kinds.

Wang Zhuo said that in view of the recent inventory crisis in China's clothing industry, it is actually confusing the concept of inventory and unsalable goods.

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< p > clothing is a fast moving product. Its seasonality is fast and its demand for inventory is relatively high. Therefore, it is normal for enterprises to maintain a certain level of < a href= "http://www.91se91.com/news/index_s.asp" > inventory < /a >.

In the inventory, unsold stocks, defective products and surplus raw materials are the unreasonable stocks.

However, the "inventory" contained in the earnings report of clothing listed companies is more extensive, not only refers to the concept of "overstock and unsalable products" in the general concept.

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< p > Wang Zhuo said that the inventory level will indeed affect the ordering and sales of dealers in the next sales cycle. For the current clothing industry inventory problem that draws attention from all sides, we believe that the overall inventory level of clothing listed companies is still in the controllable range, and most enterprises and even the whole industry do not reach the "crisis" level.

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< p > according to statistics, with the advance of the enterprises' de stocking in 2002, the growth rate of the inventory in the first three quarters of the year has dropped by quarter, which is obviously lower than the sales revenue growth.

However, in November of this year, domestic clothing sales showed some good signs, but Wang Zhuo thought the situation was still grim, mainly manifested in 3 aspects: low export prices, weak domestic sales, and declining corporate profits.

The analysis of three quarterly reports of 33 listed companies by China clothing association found that the total inventory of these companies was 49 billion 473 million yuan, and the growth rate basically kept pace with the growth of sales revenue, and the lowest level since 2008.

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< p > National Bureau of statistics data show that < a href= "http://www.91se91.com/news/index_f.asp" > China garment industry < /a > above scale enterprises in the first three quarters of 2012 finished products inventory of 256 billion 966 million yuan.

According to the China Apparel Association, in 2011, China's clothing sales amounted to 1 trillion and 400 billion yuan, and it was expected to reach 1 trillion and 700 billion yuan in 2012.

Wang Zhuo believes that the current Chinese garment industry is in a growth period, and enterprises and markets should adapt to the shift from high speed growth to low speed growth.

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