Transformation And Adjustment Of China's Garment Enterprises Drive A Rise In Profitability

Hong Kong listed companies semi annual report released by Anta sports in 2013 shows that the company is still in the predicament of "de Stocking", achieving 3 billion 367 million yuan in the reporting period, down 14.4% from the same period last year, and achieving a net profit of 626 million yuan, down 18.7% from the same period last year.

Although operating income and net profit grew negatively in the first half of the year, Anta sports's performance was better than market expectations. It was called the first appearance. clothing Companies with upward inflection points.

" Garment industry The semi annual performance of listed companies should not be very good, but the situation will be better after the three quarter of 2013, and the industry inflection point is likely to emerge. The news bird, Dong Fang Fang Fang, told the securities market weekly.

Affected by the macroeconomic situation, clothing consumption has been weakening and the competition environment in the industry has become increasingly fierce. Clothing enterprises have been greatly impacted since the second half of 2011.

The business environment is facing double pressures of rising costs and overstock. The competition environment is facing both sides of the international brand and e-commerce. The superposition of various unfavorable factors further prolongs the recovery time of the garment industry.

The second half of 2012 is particularly evident. The annual performance of clothing listed companies in 2012 is generally lower than the market expectations. The growth rate of listed companies such as the wedding bird, the seven wolves, and the long list share are all down or lower than the market expectations. Clothes & Accessories The net profit of Meng Jie, home textiles, Jia Linjie and other companies even dropped by more than 20%.

In the first half of 2013, the market downturn did not improve. The sales figures of some companies were even lower than that of the same period last year. However, with the advance of "de Stocking" in the industry, the inventory pressure in terminals and channels has been alleviated. At the same time, the profit model of the industry is gradually changing, which is conducive to solving the common problems in the industry of declining profitability.

The industry generally believes that clothing Spin The industry is expected to usher in an upward turning point in the industry in late 2013.

　　 Inventory is progressing smoothly.

As of March 31, 2013, except for the inventory of companies such as news bird, search special, red bean and card Nu Di Road, the number of other major garment enterprises has declined, compared with the three quarterly report period in 2012, among which, other major garment enterprises have declined, including the US stock balance in current period from 2 billion 199 million yuan to 1 billion 865 million yuan, while nine Mu Wang dropped from 779 million yuan to 584 million yuan, and the wolf wolf dropped from 736 million yuan to 465 million yuan.

A quarterly report in 2013 showed that the final inventory of the report was 815 million yuan, an increase of 3.95% from the beginning of the year, representing an increase of 9.40% over the three quarter of 2012. Dong Fang Fang Fang revealed that although the inventory of some companies has not declined from the financial statements, the progress of the enterprises in the industry is still good.

"In fact, the inventory of an enterprise consists of two parts, one is the inventory in the company, that is, the data that investors can see in the financial statements, and the other is the inventory of the channels. Although the data from a quarterly report show that the inventory of the birds has not decreased significantly, but in fact, the amount of goods stored in the company is decreasing, and the effect of the inventory is still very good. The overall inventory pressure of the birds has been relieved. Fang Xiaobo said.

In the case of continuous downturn in the industry and unprecedented pressure on inventory, most companies chose to slow down the expansion of the channel and concentrate on increasing their inventory. As of April 2013, the number of shops closed by the nine Mu Wang was more than the number of new shops, and the company had reduced more than 40 shops. The number of shops opened in the first half of 2013 was also negative, and the number of new shops opened in the first half of the year has also been abolished, and the number of new shops has been reduced to more than 30. The number of new shops within half a year has been reduced to less than 30, and more than ten have been closed. Compared with the previous years, the company has obviously slowed down the channel expansion; the Guotai Junan company research report also predicted that in 2013, the main brand of card slave road was about 80 new stores, and the growth rate dropped to 18%, compared with the 125 main brands in 2012.

At present, the major Brand clothing The growth rate of enterprise direct sales is higher than that of the order meeting, which reflects to a certain extent that the effect of the major brands' clothing inventory is indeed there.

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A well-known brokerage analyst said: "the beginning of this year, the main Clothing brand The intensity of terminal sales discounts has generally increased, and in the traditional way, electricity providers have been increased as an important channel to inventory. Most brand new products are also lower than the previous year's discount. For example, the 2012 new discount of card Nu road is 20 percent off, and 2013 is 30 percent off. The company slowed down the channel development efforts, increased the intensity of the inventory, these measures reduced the profitability of enterprises in the short term, but at present, the industry bottom is in the transition period. At this time, the pressure of inventory is dropped and the light load is more conducive to long-term development. From the current situation, the major enterprises in the industry with relatively high inventory pressure should be able to achieve an ideal inventory effect by the end of 2013.

However, Li Jiajia, an analyst at Guotai Junan, released in August 2nd that the terminal demand of the garment industry has not been reversed, high inventory and low profitability. The high growth mode of "raising prices + opening stores + squeezing dealers" is unsustainable. Demand is sluggish, rent and labor costs are low, electricity providers and international giants are irresistible. High inventories end the golden age of the rise in volume and price of clothing industry. Franchisees do not want to open shops and orders. The growth rate of orders will slow down significantly, and the growth of enterprises will drop sharply. All this shows that the market has been extremely pessimistic about the clothing sector. The brand clothing company will keep inventory until the end of 2013. Now it is in the painful process of channel reconstruction and improving terminal management ability. Clothing enterprise We are actively exploring the growth mode revolution, and we will make great efforts from big data, all channels, Buyer Mode and supply chain integration. The transformation of the garment industry will be a U bottom.

　 Transformation and adjustment to drive up profitability

"In the first half of 2013, although sales terminals did not get better, they did not become worse. This is a relatively optimistic signal for us. At present, a large brand clothing enterprise is doing one thing is to improve the efficiency of management and management, through a variety of positive and reasonable means to control costs, improve profit margins. Fang Xiaobo said.

The direct bird business model has always been in the leading position in the industry. Under the condition of poor industry environment, the company has tightened its external credit policy, strengthened the management of sales terminals, and maintained the high level of self production in the industry. At the same time, the company also plans to extend the industrial chain to achieve the goal of "more precise and effective operation and management" proposed by the company.

More than 60% of the sales were completed by ordering. The company's future development strategy will be changed from the current futures system to the spot system, and plans to invest 600 million yuan to build production and logistics bases in Henan, and strengthen the management of the upstream and downstream of the supply chain, so as to reduce costs and raise turnover rate.

The seven wolves chose the way to change from producing clothing to providing services, emphasizing the shopping experience that impressed customers, and extending the industrial chain to the upstream. At the same time, the provincial agents were reduced, and the direct organization was added to improve the efficiency of management and control the cost.

According to the earnings data, the cost rate of the nine herdmen was 18.46% in the first quarter of 2013, but 25.96% in 2012. The data for the seven wolves were 14.97% and 19.64% respectively, and the shares of the group were reduced from 34.01% at the end of 2012 to 29.37%, and the card slave road also decreased from 31.29% to 26.85%.

As the earliest to complete the initial transformation. Clothing enterprise Anta sports has achieved remarkable results. The company's semi annual report shows that due to the resumption of confidence in dealers and the increase of orders for new products in the first quarter of 2014, the number of orders for orders in the first quarter of 2014 increased by a single digit, achieving the first positive growth since the third quarter of 2013.

Through the national unified inventory management, actively developing the inventory channels, and by refining the category management and improving the flexible supply chain and other methods to improve the profitability of the company, Anta sports half year gross profit margin reached 41.18%, compared with 41.8% in the first half of 2012, a 0.7 percentage point decrease, higher than the market expected.

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The research report released by Shang Pu pointed out that in 2012 Garment industry The downturn does not mean the decline of the industry. In 2013, it will be a very important transition period for the garment industry. If a smooth transformation can be made and a good brand is built, a large brand enterprise will get the opportunity.

A well-known brokerage analyst said: "the global economic rebound trend began to gradually clear, which has a certain role in promoting the steady recovery of the apparel industry. Although there are still some external and internal constraints, such as the continuous rise of production factors and manpower costs, the domestic and international market demand has not been significantly recovered, most companies face multiple historical obstacles, but overall, in the second half of 2013, the overall situation of the garment industry will gradually begin to improve. The whole year is expected to be better than 2012, and there will be a clear trend towards a good trend at the beginning of 2014. In particular, the efficiency of large enterprises with higher management level will be more obvious, and SMEs still face greater pressure. It can be said that the worst days of the clothing industry are over.