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    Xinjiang Garment Industry Breaks Through A New Situation To Stimulate Clothing Consumption

    2014/12/22 12:55:00 25

    Clothing IndustryClothing ConsumptionXinjiang Cotton

    This year is definitely the year of Xinjiang for policy. Ten preferential treatment of Xinjiang textile and garment industry in July policy The launch of the Xinjiang cotton target price reform pilot project in September and the introduction of the Eurasian Silk Road Economic Belt in November stimulated the enthusiasm of Western clothing companies.

    Although Xinjiang is an important cotton producing area in China, it is not perfect enough. industry chain Matching, high cost of logistics and transportation and generally high prices make the price sensitive garment industry uncertain. This is why many garment enterprises have decided to transfer their factories to neighboring Anhui, Jiangxi or to Vietnam, Kampuchea instead of Xinjiang after considering the comprehensive consideration. As a fully market-oriented garment industry, policy driven will indeed be right. Clothing enterprise The westward movement has certain attraction, but in order to realize the long-term development of the garment industry in Xinjiang, it is still necessary to identify the core advantages of Xinjiang in industrial development and rely on the market to drive it.

       Semir terminates its acquisition of GXG

    In January 2nd, Semir clothing announced the announcement of the "lifting of the framework agreement for the purchase of shares". It was announced that as of December 31, 2013, the company and the transferor of the equity agreement failed to reach agreement on the specific terms of the equity transfer agreement. The two sides formally terminated the transaction on the basis of the "framework agreement" signed by the two parties. At this point, Semir clothing acquisition of Ningbo zhe Mu sang Holdings Limited 71% stake failure, which also means that in 2013 the biggest acquisition of China's clothing industry officially "aborted."

    In fact, since last year Semir signed a framework agreement with China zhe mu, the capital market generally believed that it had a high premium on zhe mu, and the deal was not cost-effective. In addition to the net assets of zhe zunshang's only 272 million yuan, its net profit of 206 million yuan in 2012 has also been questioned. As an online platform for China zhe Mu's reputation, it is also an important channel for GXG sales. Although GXG has performed well in the "double 11" promotional activities over the past years, the development mode of online volume win has made many of the online fashion brands popular, and I believe that GXG will not be an exception. Therefore, under the pressure of economic downward pressure, Semir's eventual abandonment of takeover is not necessarily a wise move.

       Boss, "lost contact"

    In July 25th, the official micro-blog announced the announcement that Ding Hui, chairman of the company, had lost contact with the company. According to people close to the company, Ding Hui and his wife owed at least 1 billion 500 million yuan. At the beginning of January this year, NOGE was just listed in Hongkong.

    The obsession with listing has caused many garment enterprises to be caught up in the channels of blind shops. Many listed companies are expected to open shops to rapidly pull up performance growth, so as to achieve successful listing. And through a painful lesson, he learned a lesson for eager to be listed clothing companies: sometimes, listing does not mean success, but rather makes them die faster. Indeed, in a bull market environment with good economic development and high market investment enthusiasm, enterprises may be able to obtain large amounts of capital through continuous listing. Once the investment environment is cold, enterprises will easily fall into a business crisis because of financial breakage. In the early days, shops for sprint IPO are also easy to run because of lack of funds. Actually, listing is only a means, not a final purpose. To achieve the healthy operation of enterprises, we must rely on steady and steady return to the products and business itself.

       Leisure wear is closing shop trend.

    In the first half of this year, the latest earnings report of Baleno's parent company showed that as of the end of March 2014, the number of outlets in the mainland market was as high as 388, accounting for 10% of the total number of stores. In mid June, the famous sportswear brand, Bai Xian Da Ge collapsed, owed debts of up to 230 million yuan, and nearly 200 suppliers were implicated. At the same time, the famous casual wear listed companies such as the US group, Semir, Giordano and so on also have a large number of Customs shops.

    As one of the fastest growing clothing categories in China's apparel industry, leisure wear enterprises have achieved the leap and development from volume to brand by grasping the "golden 10 years" of garment industry, and a large number of excellent casual wear brands have also appeared in China's apparel industry. But with the change of market environment and the transformation of consumption, the market has gradually changed from a seller's market to a buyer's market. But at this time, casual clothes enterprises are not careful to deal with the trend of market consumption transformation. Instead, they increase the strength of sales by joining the agency mode to achieve the maintenance of high sales. However, the problems such as outmoded style, insufficient innovation and excessive expansion of channels are not well received by enterprises. In the end, the sluggish economic environment has become the fuse for all its contradictions.

       Conclusion of substantive negotiations between China and South Korea fat

    In November, the Sino Korean Free Trade Agreement (fat) substantive negotiations ended. According to the minutes, the two countries will complete the negotiations on remaining technical issues before the end of the year, and then sign the FTA copy. At the beginning of next year, the relevant departments of the two countries will formally sign the agreement. After the entry into force of the agreement, China and South Korea will gradually abolish more than 90% of the commodity tariffs in 20 years.

    Trade between China and South Korea has been on the rise in recent years. Therefore, the signing of fat between China and South Korea is a good thing for both sides. South Korea has been China's trade surplus for many years. The signing of fat between China and South Korea is bound to have some positive advantages for our textile and garment export enterprises. At the same time, with the invasion of Korean culture, Korean clothing has been sought after by more and more Chinese consumers, which will further increase the import of Korean clothing by Chinese retailers. However, behind the good trade between China and South Korea, we should also see that although China's clothing exports to Korea have been showing favorable balance, our exports to South Korea are mostly OEM products with relatively limited profit margins, while South Korea's exports to China are mostly garment products and fabrics, with a relatively high profit rate. Therefore, once the implementation of fat between China and Korea, Korean clothing exports to China completely duty-free, is bound to have a certain impact on local clothing brands. In this regard, to do well in products and reshape the core values must be put on the agenda of local enterprises.


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