The Reshuffle Of The Underwear Industry Has Intensified, Landing In Capital Markets, Expanding The Territory, Meeting Ice And Fire.

It is also depressed by the economic environment.

Impact and other effects.

The industry is contrary to the overall downturn of the garment industry, and has maintained a relatively good growth momentum.

Since last year, a number of local lingerie leading enterprises have landed in the capital market successively, and the expansion plans of brands and stores have been thrown out in the same way.

However, in the forefront of underwear industry chain, manufacturers engaged in underwear production and processing are not having a good time, and the news of the closure of underwear factories also comes out from time to time.

In recent days, it has been called the "hometown of underwear" by the outside world.

Shantou Valley Rao town visit found that the same product, increased labor costs, many manufacturers of compressed bidding space, higher prices of raw materials, a large number of underwear manufacturers to promote pformation and upgrading of the gateway.

Industry shuffling intensified

According to the data, China's underwear market has annual sales of over 100 billion yuan, and its annual growth rate is nearly 20%, which is higher than that of the textile and garment industry in the past ten years, with an average annual growth rate of 18%.

"Underwear consumers in China are entering the awakening period from the enlightenment stage, and consumers are paying more attention to health, cost performance and so on, so the underwear industry has come to a stage.

But the overall capacity is still overcapacity, especially the number of underwear factories, which are all low-end manufacturing, and the industry as a whole is facing a shuffle.

And Jun consulting clothing business partner Li Jinliang told reporters.

For underwear manufacturers, this shuffling effect is most obvious.

Beginning in the late 80s of the last century, "the hometown of underwear" Gu Rao, has initially formed a complete knitted underwear industry chain, the town's knitted underwear production and operation of nearly 3000 places.

In the streets of Gu Rao, OEM and ODM billboards can be seen everywhere. These billboards are printed with photos of beautiful women wearing all kinds of underwear, and the address and telephone number of the factory.

Most of the underwear factories here are rebuilt from three to five floors of residential buildings, which include production, living and accommodation. Only 35 employees in small factories and 300 to 500 in large factories.

Zhang Dan, a lingerie instrucer with ten years of experience, told reporters that unlike the previous years, even in large factories, there were not many people in the valley during the day.

"In the past, factories always had goods to do, but now there are too many factories to rush orders, and the price is lower than one, but the cost of labor and materials is higher than before." Zhang Dan, who just left his old employer, said, "our factory will shut down over a period of time.

The factory director also wants to make some automated production lines for high-end underwear, but the cost is too high, and other manufacturers are also in such a pformation, but it is also very difficult to make money.

In response, Xiong Xiaokun, an analyst with CIC's light industry, pointed out: "customized products have become a major trend in recent two years, which requires underwear manufacturers to improve their product quality, technology and management.

But a large number of manufacturers do not have the ability to invest in technology and equipment, so the order volume is sharply reduced, and it is on the verge of bankruptcy.

Terminal enclosure competition

When the industry shuffled, the leading enterprises that completed the primitive accumulation of capital landed on the capital market, and rapidly expanded their territory.

Preliminary statistics, currently in A shares

The lingerie enterprises include Jian Sheng group and Hui Jie share. There are Ann Li Fang holdings, urban beauty and Virginia on landing H shares, while Tengfei technology, boudoir elegance, Shi man Fei, and pro boudoir are listed on the new third board and the four board respectively.

"The low concentration of the industry market and the landing capital market can expand the market with the power of capital, and M & A is a better way to achieve expansion, and the industry may usher in a M & a battle in the future."

Xiong Xiaokun told reporters.

Changjiang Securities research report pointed out that, because the industry's overall production process is more mature, and the integration of industrial chain requires strong capital strength and long time capital, the key to breaking through the underwear industry in short time is "terminal is king".

There are two ways for enterprises to develop terminal stores: franchised stores and self operated stores.

Among them, the enterprises represented by Hui Jie shares chose to build their own capacity and make their own production, all of them were direct stores, and there were less than 100 stores from 2014 to 2015.

with

The representative enterprises chose "join + direct camp". Data show that by the end of 2013, the number of affiliate stores and self operated stores in metropolitan beauty group was 5069 and 721 respectively.

By the end of 2015, this number had increased to 6937 franchised stores and 1121 self operated stores.

Yu Zhenqiu, chief financial officer of urban beauty, has revealed that urban beauty still plans to open 1000 to 1100 stores this year.

In Xiong Xiaokun's view, the alliance and the battalion have their advantages and disadvantages, and the difficulty of the industry regulation is also different.

Among them, "direct battalion is a heavy asset mode, fixed assets, manpower and other early investment is larger, the recovery cycle is longer than the franchise manager, but this mode of enterprise control ability of the store is higher, because the internal management of stores can be strong, so the burden of industry regulation to a certain extent can be reduced."

In contrast, "joining is a light asset operation. Stores can expand rapidly in a relatively short period of time to help companies seize market share.

However, the franchisee management is difficult and costly, and it brings greater challenges to industry regulation.

He said.