The Most Serious "Haze" Of Clothing Industry In Ten Years

　　 clothing The industry is facing a tough time - data show that last year, retail sales of all kinds of clothing increased by only 2%, the lowest in 10 years. According to the 2012 earnings report, 40% of the apparel listed companies fell sharply, and the high inventory level became the "pain" of most garment enterprises. In order to get rid of inventory, enterprises were willing to control the number of orders, but at low prices and low discounts, even the "discount wave" had even hit the "spring new products".

　 Last year, 40% corporate profits fell.

Chinese clothing achieved a total revenue of 1 billion 565 million yuan last year, down 11.82% compared to the same period last year. Net profit attributable to shareholders of listed companies was -4417.48 million, down 1608.34% compared to the same period last year. Chinese clothing has become the largest publicly listed garment company that has disclosed its 2012 performance forecast.

However, the haze of the garment industry has not only happened in Chinese clothing, but in the apparel listed companies that have disclosed the 2012 performance, the performance of the 40% garment enterprises has declined sharply. According to American state Clothes & Accessories The 2012 annual report released last year achieved operating income of about 9 billion 510 million yuan, down 4.38% compared to the same period last year. Net profit attributable to shareholders of listed companies decreased by 29.55% over the same period last year. The same performance for casual wear reported that revenue of 7 billion 37 million yuan last year, a decline of 9.33% over the same period last year, and net profit attributable to shareholders of listed companies decreased by 38.24%.

Anta sports is not optimistic, for the first time in 5 years, there has been a decline in performance. According to its 2012 earnings report, last year Anta's turnover fell 14.4% to 7 billion 623 million yuan, net profit fell 21.5% to 1 billion 359 million yuan, while gross margin fell 4.3 percentage points to 38%.

According to the China National Business Information Center, in 2012, the retail sales of clothing commodities of all the major retail enterprises in China increased by 12.3% over the same period last year, 8.1 percentage points lower than that in 2011. Retail sales of all kinds of clothing increased by 2% over the same period last year, 2.9 percentage points slower than the same period last year, the lowest growth rate in nearly 10 years.

"2012 is the most difficult year for China's garment industry." at the end of last year, there were generalizations in the industry, and the high price of raw materials and the rising labor force also gradually annexed the profits of the garment industry.

"Go to stock wars"

However, the industry generally believes that compared with the rise in costs, the clothing industry is facing a bigger problem is a large number of stock squeezing. 2012 is also known as the "inventory year" of the clothing industry. Flush data statistics, by the end of 2011, 18 A apparel enterprises accumulated inventory merchandise 8 billion 682 million yuan, to the middle of 2012, the stock remained at 8 billion 494 million yuan line. In the first half of 2012, 42 listed apparel companies including Anta, XTEP and XTEP were listed. Spin The total inventory of enterprises is as high as 48 billion 300 million yuan. Among them, Lai Shixian, chief operating officer of Anta, revealed that Anta had a sales ratio of about 5 times last year. It is expected that it will not deteriorate this year and will remain at a level of 5 times.

"Under the pressure of the capital market, some clothing brands pursue speed, shop and production speed has been greatly improved, but their single store efficiency has declined, resulting in an increase in inventories." Ma Gang, a commentator in the clothing industry, made a speech here.

Under the pressure of high inventory, all kinds of clothing companies began to "go to inventory war". Many stores have names of "factory stores", "special stores", "discount stores", and even sell at ninety percent off price. Take Lining as an example, "cleaning up inventory" has become Lining's top priority, so many discount stores and factory stores have increased rapidly. The 2012 semi annual report showed that as of June last year, 952 brand stores were closed and self operated stores increased. In the same period, Lining had a total of 271 factory stores and 394 discount stores, which doubled compared to the end of 2010, while the discount for factory stores was as low as seventy percent off.

At the end of last year, Lining put in a $1 billion 400 million to 1 billion 800 million yuan "channel revival plan" at the end of last year. In this plan, Lining at 60 percent off price offset accounts receivable, repurchase channel inventory.

Zhang Tao, vice president of Anta, told reporters that in controlling inventory, Anta changed part of the order system to a distribution system, and changed the buyout mode of dealer orders to a flexible way to sell as many products as possible. At the same time, in order to reduce the potential stock and discount rate on retail channels, Anta actively controls the number of orders. In the latest third quarter 2013, orders for Anta will drop by 10% - 20%. Anta is not a case. Data show that in the first quarter, orders for brands such as Anta and XTEP dropped by about 20%, while PEAK dropped 20% - 30% over the second quarter of the order meeting.

Are there any discount for spring products?

For the clothing market in 2013, most industry analysts were not optimistic when export growth slowed down and terminal sales were weak. Ma Gang generalizes, 2012 is the clothing industry stock year, 2013 is the clothing enterprise adjustment year, "this year will let many small enterprises be eliminated."

Data show that during the Spring Festival of 2013, clothing retail sales increased by only 5.1%, down 17% from last year, and 50 of apparel retail sales fell by 15%. Lei Yu, a clothing analyst at Changjiang Securities, said that at the end of last year, the discount was too large and some sales were overdrawn. In addition, the atmosphere of buying new clothes for the Spring Festival is reduced, and other commodities can be bought at the usual time except for the purchase of new year products.

In fact, after a year of "bad war" in 2012, the stock war will continue this year. Reporters recently visited that the majority of brand spring clothing in the shopping mall has been listed, which is different from previous years, including UNIQLO, H&M and other brands. In spring, the price of new products is not obvious.

"This is a crucial transformation period for the garment industry." Suntech consulting pointed out that the Chinese clothing market is now experiencing a very similar period with the experience of Europe and the United States in the 50s of last century. The clothing market in the future will not make profits by lowering costs and expanding production, but more depends on brand awareness and innovation in design.

Gao Dekang, chairman of Bosideng group, also said yesterday that the key to Chinese clothing industry to get out of the predicament is brand and the key is to go out. "Some of China last year Clothing enterprise Encounter "inventory door", some are really the problem of style, do not keep pace with the times to develop personalized products. He reminded that garment enterprises should catch up with the prevailing trend in terms of management and product development, otherwise there will be more inventory.