High Inventory Has Become A Nightmare For China'S Apparel Industry.

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The nightmare is still there.

Industry spread.

Domestic clothing industry "one brother"

The annual report revealed that as of December 31, 2015, the company's inventory amounted to 9 billion 580 million yuan, accounting for more than 40% of the total assets.

As a matter of fact, Yang Dayun, a strategist from the domestic clothing industry, is more than just a haunting house. "Even if we do not manufacture or not produce in the next 15 years, the existing inventory of our clothing enterprises can meet the needs of the whole nation."

38 clothing companies inventory 35 billion 300 million Hai Lan home surge 57.4%

Since 2010, due to the lack of consumption in the domestic market and the continuous invasion of foreign brands, high inventory has become a nightmare for China's apparel industry.

Wind statistics show that there are 38 listed garment enterprises released the 2015 annual report, the total inventory of the end of the report is 35 billion 396 million yuan, accounting for 21.47% of total assets.

Among them, the largest inventory was Hai Lan's home, which reached 9 billion 579 million yuan, an increase of 57.4% compared with the same period last year, and the stock turnover period was 298 days, an increase of 39 days from the previous year.

As for the reasons for the sharp rise in inventory, Hai Lan's home explained in its annual report that it was mainly the expansion of business scale and increased stocking, and the warm winter climate in 2015 led to the unexpected sales.

In addition to Hai Lan's home, the first time in the 7 years since the listing, the amount of American state clothing inventory has also reached 1 billion 875 million, accounting for nearly 30% of the total assets.

In addition, the data of Jihua Group, Hong Kong share, Semir costumes, Saturday, and news birds are all above 1 billion yuan.

And the company with stock less than 100 million yuan has only 5 such as Sha Sha shares, bar Jie shares and so on.

High inventory nibble profits 2000 years in the US

For garment enterprises, the backlog of products takes up the operating capital of the company, and also increases the management cost and profit cost of the company, and lengthen the turnover cycle of the product, thereby reducing the overall profit of the company.

Taking American Apparel as an example, due to high inventory, the company's accounts receivable and short-term loans increased by 3.16% and 7.2% respectively in 2015, but the cash in the same period decreased by 7%. At the same time, the company's cash flow reporting ended at 185 million.

In an interview with China Internet Financial reporter, an analyst at CITIC Jian pointed out that in the case of accounts receivable growth, the company's short-term borrowing increased, while cash on the account decreased and cash flow from operations was negative.

As of the end of 2015, the seven wolves reached the highest level in the past 4 years at the end of the year, which was 843 million yuan, and the reserve price was set at 368 million yuan.

It is worth noting that the data is also the highest since 2010.

Data show that seven wolves prepare for 2010-2014 years' inventory price drop of 88 million 782 thousand and 100 yuan, 125 million yuan, 169 million yuan, 278 million yuan and 360 million yuan respectively.

In addition, the company's assets impairment amount in 2015 was 263 million yuan, which shows that the unsalable inventory is the biggest cause of asset impairment.

As profits have been eroded, clothing companies have begun to sharply shrink their stores.

Data show that the United States and the state owned clothing stores and franchise stores nationwide have reduced by 2000 in two years, including the flagship store in the Wangfujing pedestrian street.

In addition, the seven wolves closed 591 in 2015, accounting for about 1/6 of all stores, and the number of closure shops of nine Mu Wang, Xi Nu and cau NDI road was close to 100.

Force "electricity supplier" to inventory temporarily contributed little to the performance

In order to cope with the high inventory crisis, many garment enterprises have launched price promotions, but to a certain extent, they have hurt the channel dealers, and this is very easy to damage the brand image.

Many enterprises have launched a "pformation" sign in the plight, among which "online and offline synchronous marketing" has become the first choice for everyone.

According to incomplete statistics from journalists, more than 90% of the listed garment enterprises have put forward the "Internet pformation" plan.

Among them, the United States and costumes show the most positive performance.

Public information shows that in December 2012, the United States launched online business platform - Bong buy network; in 2013, the company upgraded some of its old stores into O2O experience stores, and began to explore O2O marketing; in April 2015, it released a platform with fashion matching experience as a carrier -- "fan" APP, which will be expanded to cloud from the point of operation.

It is worth noting that the frequent pformation of the American Apparel has not been effective, but it has caused the company to lose money because of its huge manpower and material resources.

In addition, Semir costumes invested in 100 million yuan in April last year to invest in ISE, a Korean electricity supplier company. In April, the 100 round pants industry announced the purchase of a 100% stake in cross-border e-commerce global Tesco in July, and not only shares the Korean fashion brand akakon, "star Wardrobe", but also buys Lianzhong international, while the good news birds cooperate with the US group and other group buying platforms to carry out O2O business cooperation with the US group and other group buying platforms to carry out O2O business.

However, in 2015, the annual report of the company, in addition to the Semir stock line terminal to get 1 billion 800 million yuan retail sales, the realization of the 70-80% growth, the rest of the business business does not seem to bring substantial contribution to the company's performance.