Behind The High Inventory Of Clothing, There Are Real Estate.

< p style= "text-align: left >" up to the three quarter of 2012, < a target= "_blank" href= "http://www.91se91.com/" > textile > /a > A A, "a", "left", "clothing" industry, the total inventory of listed companies is up to $73 billion, resulting in a "clothing inventory enough to sell for three years" argument, so that the whole industry has been questioned, but in fact most of the inventory is caused by diversified projects such as real estate.

However, the clothing industry is still threatened by high inventory, resulting in tight cash flow. The traditional mode of expansion through franchised stores needs to be adjusted.

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< p > < strong > < < clothing stock to wear for 3 years' is not sensational. < /strong > /p >

< p > 2013 in cold weather, people wrapped in < a target= "_blank" href= "http://www.91se91.com/" > clothes < /a > thick, but heavy inventory pressure makes it difficult for clothing enterprises to feel a touch of warmth.

Especially after the end of 2012, the argument of "inventory selling for three years" made the whole industry questioned.

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< p > in the first half of 2012, Lining, Anta, XTEP, XTEP, PEAK and the total inventory of these 6 domestic sports brands amounted to 3 billion 721 million yuan.

By the end of the third quarter, YOUNGOR's stock had reached an astonishing nearly 24 billion yuan, and the stock of red bean also had a stock of 3 billion 978 million yuan.

Jihua Group was 3 billion 481 million yuan, and a target= "_blank" href= "http://www.91se91.com/" > clothing "/a" and Semir clothing also reached 2 billion 199 million yuan and 1 billion 439 million yuan respectively.

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< p > however, these are only fragments of the entire garment industry, and the situation of the high storage situation presented by these links is even more severe.

According to WIND statistics, in the first three quarters of 2012, the inventory of Listed Companies in shwan textile and garment industry totaled 73 billion 70 million yuan, up 10.3% over the same period last year.

Statistics show that in the first 10 months of 2012, the total profit of clothing and apparel industry was only 70 billion 810 million yuan, up 6.9% from the same period last year, far below the 38.3% growth rate of the same period last year.

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< p > such a high inventory amount is indeed worrying, and the saying that "3 of the people in Stock clothing can't wear out" is spreading.

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< p > < strong > the high inventory of real estate stock index threatens the survival of enterprises < /strong > /p >

< p > many of the textile and apparel companies have diversified operations, such as real estate, nonferrous metals, new energy, chemical and other businesses. Inventory in the financial statements does not eliminate other businesses except the textile and garment business.

This led to the high inventory of clothing industry.

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< p > among them, the vast majority of YOUNGOR's inventory of nearly 24 billion yuan is real estate projects, and Liu Xinyu, YOUNGOR's secretaries, said that clothing in the stock market accounted for only 1 billion 700 million yuan, while red bean shares also indicated that a large proportion of them belonged to the cost of real estate development.

Equivalent to the real estate project clothing enterprises 3 years of inventory on the body.

Although the risk of clothing enterprises to do real estate projects is also very large, YOUNGOR and other enterprises have encountered many difficulties and suffered a lot of failures in the course of their operation. However, the saying that "stocks are enough for Chinese people to wear for 3 years" is not objective.

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< p > however, the inventory problem of clothing industry is still serious due to the inventory of items such as real estate and so on, which has made the garment enterprises face great challenges.

The turnover days increased from 171 days in the beginning of the year to 185 days at the end of 9, while the accounts receivable turnover days increased from 28 days in the beginning to 36 days at the end of 9.

This will increase the operating cost of the company, and the company will have to supplement its working capital through borrowing and so on, which will lead to higher cost and passive operation.

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< p > in addition, although the proportion of the total cash flow of the garment industry as a share of revenue has changed from the end of 2011, the corresponding accounts receivable turnover rate has dropped sharply, indicating that the company has issued the inventory to the lower level dealers, but it has not been converted into a real cash flow.

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< p > once the company has difficulties in cash flow, franchisee's profit space will be further compressed, so it is possible to take a large discount to promote sales growth and forced inventory.

As a result, consumers will not be able to buy clothes without discount, which will destroy the value of clothing brands.

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< p > < strong > industry operation mode leads to inventory crisis < /strong > < /p >

< p > the main reason for today's high inventory crisis in clothing industry is the imbalance between supply and demand.

From the demand side, since the second half of 2011, economic slowdown, weak consumption and high prices have made residents' clothing consumption more cautious. Besides, online shopping channels have also diverted consumer groups.

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The bigger problem of P is that the supply side's operation mode has laid mines for high storage.

< a target= "_blank" href= "http://www.91se91.com/" > brand clothing < /a > the expansion of the company, especially in the initial stage of development, mostly chose the franchisee mode to carry out rapid channel expansion. The number of home textile shops increased by more than 15%. The average number of stores in the 2009-2010 years of the card slave Road, search special and Mei Bang clothing all increased by more than 20%, while the Pathfinder started up late, and the store grew by more than 50%.

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Less than P, there are few ways to expand the membership through mass distribution abroad.

Take the international brand H&M and ZARA represented by fast fashion as an example, the proportion of two brands is straight to 50%-80%.

In the first half of 2012, the United States had worked hard for three years, and its direct business accounted for only 35%. In the first half of the year, it accounted for less than 10% of the total number of leisure brands, and the proportion of the other men's clothing brands represented by the seven wolves was only about 15%.

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< p > this rapid and franchise expansion has made great achievements in the early stage of enterprise development, but with the lack of brand store management.

For the franchisee to set up shop location, decoration, ordering and marketing guidance is not enough, leading to poor store operation quality, the price control ability is not strong, the franchisee blind discount, thereby affecting the brand image and so on.

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While P is expanding rapidly, all kinds of costs are also increasing.

The rent of the core business circle of the first tier cities continued to rise. In September 2012, the first floor rental of Shanghai's high quality retail property was as high as 60.8 yuan / square meter / day. The 100 square meter shop calculated that the rent cost of only one year was as high as 2 million 220 thousand yuan.

On the manual side, since the economic crisis in 2009, the cost of labor has increased by more than 15%. In 2011, the number of listed companies increased by more than 20%.

As a result, franchisee profit space is compressed, to further divide up gross profit.

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< p > worse effect is that under the mode of franchisee, it is difficult for garment enterprises to understand the situation of terminal market, lack of market expectation, deviation of price and market, and once the order quantity exceeds the market demand, it is very easy to lead to inventory backlog at all levels of distributors.

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Since P 2012, clothing prices have been narrowed and consumer demand continues to be weak. Most Brand Company digest large quantities of stock with the form of vigorous promotion, and inventory can play a certain role.

But at the same time, it also affects the normal operation and sustainable development of the company. After the labor pains, the adjustment of the industry development mode is imperative.

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< p > < strong > epilogue < /strong > < /p >

< p > supply and demand contradiction has led to increased inventory of garment companies. Discount sales have become the main way to digest inventory. This phenomenon is concentrated in 2012, and it also raises market doubts about the operation mode of garment enterprises and worries about the future development of the industry.

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