Has The Demand Side Of Textile And Garment Industry Improved?

The structural change of demand side of textile and garment industry is very obvious. The company that holds structural change will have good performance.

Aiming at next year's textile and garment sector, we can grasp three main lines, sports consumption brought by demographic changes, and pformation of her economy and business.

However, investors should also pay attention to the two major risks, the impact of cotton prices and the long-term impact of the TPP agreement.

If we talk about demand side, it is the structural change I just mentioned.

In the past, China has gone through such a stage, especially in the 2004 and 2005, when the department store industry was particularly prosperous. At that time, if a suit price was 999 yuan, it was not easy to sell, and the front was 2 and 3, and immediately sold it. Even some of the companies in history sold suits of tens of thousands of yuan. At that time, the clothing consumption preference was "not expensive or not", because at that time there were no smart consumer goods such as smart phones, and so on.

First of all, the overall macroeconomic background, a major domestic trend is the extensive expansion of channels is very serious, we not only have department stores and shopping centers, the supply of offline channels itself is over; at the same time, there are still a lot of highly competitive online business platform.

Therefore, in this case, we deeply feel that brand is king in the process of channel expansion, that is, a brand may be contended by multiple channels under the online and offline channels, and its entire profit and performance will be relatively better.

Second, in our whole

There are also some structural changes in the middle of the plate.

For example, from a global perspective, like sports Nike, Adidas, and many "fast fashion" brands are very popular, some leading brands in mainland China have achieved great success. Compared with traditional brands, their typical characteristics are: inventory turnover is very fast and the rate of markup is low.

The rate of increase is an important index for us, which is equivalent to the retail price divided by its production cost.

In this multiple, the traditional brands need to turn around for two hundred or three hundred days, and then the rate of increase is 5-8 times. But the leading brands who operate under the new mode may have 100 days' turnover, and the rate of increase is only 2.5-3 times, for example, the production cost of 100 yuan, which is only sold for 250-300 yuan.

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From the perspective of global consumption trends, young people prefer brands with high cost performance, fast fashion and leisure sports.

But now, the whole

The real change is that young people want to spend less money on more styles of clothes.

Young people will make purchase decisions in three aspects: first, the price, the price must be low, then the quality is better, the two aspects are cost-effective, and another factor is fashion.

It must be said that clothing consumption demand has increased substantially. This is not true, but its structural change is very obvious.

Companies that grasp structural changes have good performance.