The Clothing Industry'S Cash Flow Improved, And The Store Expansion Continued To Slow Down

Chunxi Road Clothes & Accessories Xiao Gu, the shop salesperson, has obviously felt some changes recently. "There is not much discount, and many new products are not discounted. Last year, on the whole Chunxi Road, new products were at least 70% off." Experienced high inventory pressure, reduced export orders, and declining profits clothing The industry has recovered significantly recently.

A small Gu who sells in a brand clothing store in the Chunxi Road Business District has obviously felt some changes in the store recently. "There is not much discount. Many new products are not discounted. Unlike last year, many stores on Chunxi Road have a discount of 60% or 70% for new products." Xiao Gu has been in the clothing industry for less than two years, during which she has experienced many special sales activities to clear inventory.

Last year, "clearing inventory at a low price" was not a big feedback behavior of a clothing store, but a burden reduction action that the entire clothing industry had to carry out.

"The prophet of the spring river water warming duck", in Xiao Gu's view, the discount began to decrease, which seemed to be one of the harbingers of the industry's recovery.

Has the clothing industry, which has experienced high inventory pressure, reduced export orders and declining profits, really started to recover?

After investigation, the reporter found that most of the inventory, cash flow and profit of the clothing industry are getting better, but some brands still have greater inventory pressure.

A few days ago, reporters from West China Metropolis Daily visited many businesses in the Chunxi Road Business District Brand clothing Although there are still huge discount messages hanging at the door of many stores, the salesperson said frankly, "This is only the minimum discount for a small number of old models. Most of the new models are not discounted."

In Metersbonway store, some clothes are on sale at "199 yuan for two" and "139 yuan for one", and only one men's shirt is on sale for new summer clothes. The salesperson said that since this year, there has been no discount on new clothes. Senma and Anta offer even less. The salesperson said that the new summer clothes were sold at the original price and there was no discount.

"Our discount activities have decreased this year." Almost all the clothing stores visited by the reporter heard a similar statement.

Manager Ye, the person in charge of Youngor in Chengdu, told the reporter that Youngor has participated in trade fairs since last winter, and its sales have increased greatly through the trade fairs. He revealed that the inventory pressure of some other brands has been continuing from last year to now, but many clothing enterprises have alleviated the inventory pressure. "Many clothing brand stores and shopping malls have reduced preferential activities, and the discount is not as strong as last year. Last year was the most difficult time, and now the overall situation of the industry has begun to recover."

　　 Online channel sales of inventory are hot

The reporter's investigation found that while the discount of retail stores has become less, the sales inventory on the Internet has become more popular.

It seems that a trend is forming for platform e-commerce to open channels for tail goods and brand specials. Following the launch of "brand sale" by Vanke and "famous product sale" by "Yihaodian" clothing store, e-commerce platforms including Tmall and JD.com are starting to develop clothing tail sale channels. Shao Long, general manager of Tmall Clothing Business Department, revealed that in 2013 Tmall will focus on building a "brand special sale platform", where Tmall will provide traffic resources, brand operators will operate independently, sell inventory and clear the tail goods.

Not long ago, Dangdang also officially opened the famous product special channel "Tailings Collection", and entered the hot area of limited time sales of clothing tailstock.

According to relevant analysis, the clothing end product category will become another explosive e-commerce distribution category after books, cosmetics and clothing. [Data] Inventory: decline of many large brands

Whether the inventory pressure of garment enterprises has really been alleviated due to the shrinking discount of regular price stores and the booming online sales inventory?

After the disclosure of the annual reports of listed companies last month and the first quarter reports of this year, the reporter found that after the "destocking" war in 2012, the inventory pressure of many large brands of clothing has eased.

Among them, the inventories of seven wolves, Fuanna, Meibang Garments and Huasi Holdings have declined in the past year. In the first quarter of this year, the inventory of many garment enterprises was still further reduced.

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The ending balance of Meibang apparel inventory in the first quarter was 1.865 billion yuan, down about 7% from 2.006 billion yuan at the end of 2012. At the same time, the inventory turnover rate was the same as that of the same period last year, but slightly improved compared with the beginning of the year.

The iFinD data of Flush also showed that the inventory of Seven Wolves last year was 560 million yuan, and by the end of the first quarter of this year, the inventory had decreased by 100 million yuan, the inventory of Lucie had decreased by 40 million yuan, and the inventory of Sima had decreased by 150 million yuan.

However, not all listed service enterprises have achieved success in digesting inventory. Among them, the inventory of Baoxiniao increased by 31 million by the end of the first quarter, and that of Kanudi Road increased by more than 26 million.

Liu Daijie of Chengdu Jinlang said frankly that most of the products sold by some brands in the market today are in stock. "The new ones can't be sold, and the old ones can't be sold, which has even become a vicious circle."

　　 Cash flow: up 62 times

In addition to the easing of inventory pressure spin The cash flow of the clothing industry also continues to improve. From 287 million yuan in 2011 to 19.486 billion yuan in 2012, a significant increase of 6263.06% year on year, ranking first in all industries.

Among them, the operating cash flow of Youngor increased by 5.291 billion yuan from 1.547 billion yuan in 2011 to 5.291 billion yuan in 2012, accounting for 1/4 of the total cash flow of the entire textile and clothing industry in 2012, which significantly improved the cash flow of the entire industry.

The cash flow of leading companies in the textile industry is also improving. Among them, the net operating cash flow of Meibang has reached 2.856 billion yuan, with a year-on-year increase of 192.47%. Sima's cash flow also increased by nearly 366 million in the first quarter.

However, in the first quarter, the cash flow from operating activities of Baoxiniao and Kanudi Road, whose inventory increased, was just the opposite, with outflows of 220 million yuan and 9.98 million yuan respectively.

　　 Store: expansion continues to slow down

The inventory quantity and cash flow of different brands are different, but the expansion speed of most brand stores is further slowing down.

According to the data of Meibang Garments, the expansion rate of the total number of stores slowed down to 8.9% from 31% of the previous year. It is estimated that the number of stores closed in the first quarter is slightly larger than the number of new stores opened, so the total number of stores is slightly lower than that at the end of last year. It is expected that the channel expansion speed of the company will continue to slow down in 2013.

Baoxiniao only added 54 brand stores last year, significantly slower than the 106 stores in the previous year. Seven Wolves saw a net increase of 31 last year and 451 in 2011.

Sima Clothing only added more than 500 stores last year, with an expansion rate of less than 10%. Everbright Securities analysis said that "Sima is now transforming from rough extension expansion to endogenous growth, channel expansion is slowing down, and refined management is being implemented." [In the future] fluctuations will continue to serve enterprises and should transform to "fashion and creativity"

Although the report data of many garment enterprises shows that the operating pressure has eased compared with last year, and the performance is improving. But it cannot be ignored that such data are still fluctuating.

The analyst of Everbright Securities commented when analyzing Sima Clothing: "The company has gone through the worst time. Although the pressure is still high, the trend is gradually improving, although the economic weakness makes the pace very slow."

The first quarter data of Meibang also showed that the performance fell by more than 40%. According to the analysis of insiders, this has something to do with the depressed market environment. The macroeconomic recovery in the first quarter was weak, and the consumption power of residents was still insufficient, which caused the pressure on the terminal sales of the clothing industry.

Luo Qian, the former deputy secretary-general of Sichuan Garment (Clothing) Industry Association, recently attended the Qingdao International Fashion Week. He told the West China Metropolis Daily that the orders for this year's Fashion Week were good, but he cautiously said that, "Figures can't fully explain the situation. I think the fluctuation will continue. Now the whole clothing industry is still in the process of accelerating transformation and upgrading."

In his view, after experiencing the pressure of high inventory, garment enterprises need to gradually transform from simple processing industry to fashion creative industry.

"Look at the former clothing enterprises. Their profits were very thin. They processed one piece of clothing clothes With only a few yuan, its production mode is almost gambling. Without investigating the market at all, we will bet on the popular styles this year. If we bet correctly, the products will not form a backlog, but once we bet wrongly, we cannot avoid high inventory. " Luo Qian said that garment enterprises should learn from the lessons of last year, change the development model, and designer With creativity as the core, we can form a customized idea just like "exceptions". Only after we place an order can we truly achieve zero inventory.