The Domestic Market Potential Of Garment Enterprises Is Higher Than Market Expectations.

Although it is not easy to discern the investment opportunities in the exhausted capital market, but if we can take the time to assess the situation and not be affected by the market sentiment and set the investment target of the medium and long term, some large excellent clothing enterprises listed in Hongkong will be an investment choice by actively expanding their market share with their strong distribution network.

Although there are reports that more than 10000 textile small and medium-sized enterprises fail in the first half of 2008, this will more or less affect the production capacity and profits of large garment brands, because they rely mainly on these local textile and manufacturing plants for foundry production.

However, according to the author's recent survey of the clothing industry in Fujian, there is a strong contrast between the actual situation and the allergic reaction of the capital market. Although Quanzhou belongs to the three line city, its status and influence as a clothing capital are very heavy, which makes us more clearly see the operation of the large-scale domestic clothing brands listed in Hongkong.

It has been observed that each large well-known domestic brand in Quanzhou has at least twenty or thirty stores in the area, and distributors are planning to expand the number of stores in the next few years under the condition that distributors are distributed so densely.

In the eyes of some investors, if the famous brand operators want to expand their market share, they urge the distributors to increase the number and stock of the business shops. The distributors seem to be extremely passive.

However, the fact is that there is an interactive relationship between brand operators and distributors.

Although the recognition of large brand products is strong in the market, if the large-scale shop opening plan can not bring profits to distributors, the latter will not blindly follow suit.

At present, different brands rapidly expand the two or three line cities rapidly, which means that the market potential of the domestic low and middle end consumers is much higher than that of the market.

Compared with the thriving front-line cities, consumers of two or three tier cities have significantly lower purchasing power for high-end products.

In fact, structural changes in brand preferences and consumption behaviors will not change significantly for quite some time.

The price gap between international brand products and domestic products is calculated in multiple terms. Therefore, the demand for international brand products in the two or three tier cities will not be as strong as expected in the market.

Since the beginning of this year, the price of the domestic clothing brands listed in Hong Kong has been substantially adjusted, and the response of investors to the prospects of domestic retail industry has been so sensitive that the valuation of such shares has fallen to the level of attraction.

In fact, the domestic clothing brands listed in Hong Kong are strong enterprises. They have keen touch and strong competitiveness in the domestic market.

In addition, domestic garment enterprises are in an integrated stage. The situation of eliminating weakness and staying strong is inevitable. Large domestic brands will take this opportunity to expand their market share.