Cautious About Ditch Companies'S Profit Outlook

In 2009, the export volume of China's textile and clothing will have a negative growth of 5-10%.

The main reason is that the global economic crisis has led to a decline in consumer demand for textiles.

The decline in exports in the past two months has shown signs.

Textiles and garments are optional consumer goods. Although they are not as important as automobiles and houses in the economic crisis, they are more likely to be adopted by consumers than "shrinking food".

Export disruption will inevitably lead to the export of some export enterprises to the domestic market, and the competition of textile and clothing in the domestic market will become more intense.

The quality of products of general export enterprises is superior to those of domestic enterprises, but the lack of brands and channels.

And the high profits of the domestic market brand and ditch companies are enough to attract the export enterprises.

Although it is not easy for export oriented companies to pform into domestic brands and ditch companies, but their low price, strong quality and supply ability, and adopt some low-cost, short process supply and sales mode, coupled with the economic crisis, consumers' low quality and cheap products are enough to make a strong impact on the current brand and ditch companies market.

This trend has been reflected in recent years of construction and continuous booming discount stores and tail stores.

Therefore, we are cautious about the prospect of domestic brands and ditch companies.