Downturn In Garment Industry Leads To Sales Decline

80 percent off of winter clothes

Almost all the major department stores and shopping centers in Wangfujing, Xidan or Chongwen. Clothing brand They are promoting sales. In the Wangfujing boutique Bosideng boutique down area, the reporter saw "Bosideng new feather down 200, minus 50" signs. In fact, this is not the only way to promote the new down jacket. In many down garments, there are three rows of new down coats marked "319 yuan", "399 yuan" and "549 yuan".

Bosideng shopping guide told reporters that the rush price of the new down jacket was equivalent to 80 percent off. However, even in the Bosideng area, even though the brand has given such a high degree of activity, there is still no scene for consumers to rush to buy. The shopping guide said that this year, Bosideng down jacket was launched as soon as it went public, and its sales promotion efforts were stronger than in previous years.

But sales of Bosideng are inversely proportional to the intensity of the activity. The guide says that although activity discount is attractive, it does not attract many consumers. "Our sales volume is not as good as before. Last year we had a counter in the four floor of Wangfujing department store, but this year it turned from a special counter to a special area and withdrew to a negative two level. Next June, we may also remove the special area. " The shopping guide said.

In the shopping mall, Bosideng went all the way, but the flagship store in the form of a single store can only rely on discounts to retain its popularity. Reporters visited the largest Bosideng flagship store in Beijing, Xidan, and saw the sale of some "down jacket 50 percent off" at the door of the shop.

Closing shop is actually survival.

According to the financial report, in the first half of this year, Lining closed 1200 stores, 1067 PEAK stores, and 77 Bosideng non feather down businesses. This year, garment enterprises began to close up and close shop, which is closely related to their sharp decline in performance and high inventory. According to the financial report, Lining's net profit dropped by 85% in the first half of this year. PEAK's total revenue in the first half of 2012 dropped 28.5% yuan to 1 billion 610 million yuan from 2 billion 256 million yuan. Net profit It also dropped to 240 million yuan, down 43.3% from the same period last year.

Although there is also an increase in net profit, it is also losing weight. In the earnings report released by Bosideng, the number of non down clothing businesses decreased by 77, including 14 Bosteng men's shops.

Bosideng relevant responsible person once said in an interview with the media that this year the whole garment industry is in a bad condition, and sales in men's clothing is not as good as before. Therefore, Bosideng did not give men's distributors too much pressure on targets. The official said Bosideng might continue to reduce the number of men's clothing stores in the future.

Sales decline due to multiple factors

Due to the macroeconomic impact, global consumption continues to slump, leading to a sharp reduction in the export trade orders of garment enterprises. Ma Gang, an independent critic of footwear industry, said that because China is a big exporter of garment trade, domestic clothing enterprises have been in the predicament of overcapacity after shrinking global orders.

" Export apparel If we can't go out, we will turn to domestic sales, which will make the domestic market more competitive. Ma Gang said, "after decades of development, China's garment industry has entered a period of weakness and needs to be upgraded. The blind expansion of enterprises before opening up the malpractice is also revealed with the saturation of the clothing market.

The cost of rentals, manpower, raw materials and other aspects, as well as the cost of circulation, make the price of terminal retail apparel rising. Nowadays, clothes and shoes in the mall are less than 100 yuan, and there are only a few thousand yuan below. Industry analysts believe that the virtual high price also makes consumers discouraged at the time of purchase, the amount of consumer purchase compression, the sales of enterprises will also decline.