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    Garment Industry Is Facing Deep Adjustment, Cross Boundary Is Not Good.

    2014/8/29 0:04:00 33

    ClothingDepth AdjustmentCross Boundary MisconductAnd Rejection

       Ji Ding Hui After the loss, Hope, also a fast fashion brand in Quanzhou, was unable to find the chairman Zhang Rui table. As early as February this year, a lean clothing company in Quanzhou, which has been in operation for 25 years, has failed to hit the market in Canada and Thailand. Then it was maintained by private lending, and eventually auctioned off for 25 million yuan due to its arrears.

    Not only Fujian clothing business owners "lost contact". In May this year, the chairman of Teng Xu Clothing Co., Ltd., known as the "business woman" in Wenzhou, Zhejiang, was defeated by Xu Yunxu and his mother. In August, the police offered a reward for two people on the grounds of "cheating the huge amount of export tax rebates". For a while, the reports of "Quanzhou clothing in Waterloo" and "Wenzhou garment industry collapse" came in all directions. The Fujian and Zhejiang provinces were successively defeated, and some even thought that China's clothing industry was experiencing a great recession.

       Boss After the loss, will the enterprises collapse? A head of the China Clothing Association (hereinafter referred to as "China clothing association") said that these enterprises were due to the failure of funds rather than products. The success of the clothing brand is that hundreds of channels are readily available. If someone takes 2 billion of them tomorrow, the brand will not necessarily fall. The loss of bosses is an individual phenomenon and has little impact on the entire garment industry.

    As a matter of fact, with the successive releases of the listed companies, the performance of the garment enterprises is not gloomy. In the first half of this year, Anta sports (02020.hk) turnover increased by 22.4% compared to the same period last year, and net profit increased by 28.3% over the same period last year. PEAK sports (01968.hk) increased turnover by 10.1% in the first half year, and net profit increased by 34.64% compared to the same period last year. The turnover in the first half of the year increased by 4.6%, and net profit increased by 28.3% over the same period last year. 01361.hk

    They are the three major companies that have been baptized by the six major sports brands in 2013. In 2013, 31% adult sportswear retail stores were reduced by 783 compared with 2012, while PEAK authorized outlets decreased by 471, while Anta closed 318 stores.

    Li Mei, director of the famous clothing industry consulting and director of China Research International Media Department, told the media that sports brand is the highest concentration in the entire garment industry. The listed companies have accounted for more than 50% of the market share. Before and after the 2008 Olympic Games, the brand of sports has been expanding. Now, after several rounds of shuffling, a number of brands have been eliminated, and they are moving up from bottom to bottom. And the men's wear brand market began a new round of shuffle adjustment.

       Men's wear Business performance is really poor. In the first half of the year, 601566.sh declined 16.56% compared with the same period last year, and net profit fell by 24.8% compared with the same period last year. In the first half of the year, China's 01234.hk turnover decreased by 0.2% compared with the same period last year, and net profit increased by 2.4% over the same period last year. Shandong brand 002485.sz has plunged sharply, operating income has dropped by 24.75% and net profit has fallen by 135.26%.

    At the same time, the men's clothing brand also set off a "shop tide", the first half of this year, the nine King closed the store 73, the Chinese Lang off 140. As of press release, the 002029.sz, which has not yet released the Chinese newspaper, closed 505 stores last year.

    Orient Securities research report pointed out that the overall adjustment of men's clothing enterprises is later than the whole industry. After the 2013 inventory and channel adjustment measures, inventory pressure has been reduced, but the effect of active adjustment and business spanformation is not yet obvious. It is estimated that the process of inventory adjustment and channel adjustment will continue in 2014, and the fastest improvement will be in 2015.

    The collective diving of men's business performance is deeply influenced by the environment. After the introduction of the central 4 trillion investment plan in 2009, many local governments found local clothing enterprises, giving many preferential terms to encourage enterprises to lend. However, this part of the funds in the hands of garment enterprises has not been used to improve the industrial structure or channel construction of clothing itself. In 2008 and 2009, many business owners felt that the garment industry was developing slowly and instead of investing in real estate and other industries. In the early days of the defeat, all the funds had been occupied. Only private lending was carried out. Finally, the capital chain was broken, leading to many entrepreneurs running away.

    Zheng Chenai, President of the Wenzhou clothing trade association, once told the media: "in the spanformation and upgrading of the garment industry, there are certain problems in the policies formulated by the local governments. Many of these projects, such as spanition to clean energy and shipbuilding, are administrative rigid rules that ultimately interfere with the market. Enterprises should do something that they can do, instead of spanforming them without risk. " By the end of 2012, Wenzhou's high-end men's clothing brand, Chuang Ji, was almost bankrupt because of the "biggest ship in Wenzhou". Finally, the Wenzhou municipal government came to Shandong Ruyi group to split and reorganize its clothing business.

    "On the other hand, many men's clothing brands are mainly made up of high-end suits, which are affected by the" eight provisions ". Both groups and individual consumption are weak, which is also an important reason for the decline in corporate performance. Said the head of the industry association of China Garment Association. One of the reasons for the change in performance is Hinur, who is in the front office. "Because of the decrease in the number of major client businesses, the group customized business is less than expected."

    "Recently there is no good news in the clothing circle, and every day is bad news." Li Mei told the media that when he saw the news of a brand running in a horse enclosure, the circle would be unable to help wondering if the family would collapse in two years.

    Even the fashion crocodile group has been discounting the shops. The Danish Fashion Group, the first to enter China, has four brands, namely, only, Vero Moda, jack&jones and selected, of which the first three years occupy the top three position of women's wear and men's clothing sales in the whole country. Now, in many shopping malls, we can see three brands of discounted goods, but the swarms of consumers are gone.

    The industry leader of China Garment Association said that the apparel industry is undergoing a deep adjustment period, but not at the worst. The biggest reason for many enterprises' difficulties is cross-border. If you just do the main business and maintain a healthy sales, even if the profit is shrinking or even no profit, it will be fine for several years.

    "For example, it has more than 3 billion yuan in stock in the past few years, but in the past few years, it has done a good job in inventory. For such a large enterprise, there are more than ten billion inventory is normal, it will not affect the cash flow, the profit may be reduced, but after all, it is making money." The official said that the fundamental reason for the difficulty of the current clothing brand is product homogenization, overcapacity and weak consumption. And "Chinese consumers have no loyalty to the brand. After 80 and 90, the consumers are more rational, giving priority to cost performance. Zara, h&m, UNIQLO and other fast fashion brands have grasped this point and are very successful."

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