Textile And Garment Industry: Upstream Overcapacity, Downstream Inventory Backlog

In 2016, the textile and garment industry will continue to maintain a low growth rate, benefit from backward production capacity and integration of production capacity. Leading enterprises are expected to further expand market share and raise bargaining power, with emphasis on aviation shares and Mei Xinda.

To manage the potential market space is huge, it will certainly spawn new business models, and focus on Huafu color spinning, Antarctic electricity supplier and Huas shares.

Main points

The current situation of textile and garment industry is grim, and the supply side reform is imperative: China's economic development has entered a period of growth adjustment and economic slowdown has become a reality. The traditional demand side's three carriages have little impetus to economic growth. The supply side reform is a good way to stabilize China's economic growth and stimulate the potential economic vitality in the medium and long term.

The industry, as a traditional import and export trade industry, can not escape the fate of the declining trade volume under the downward trend of China's import and export trade.

The problem of overcapacity and pollution in the upper and middle reaches, the serious backlog of inventory in the downstream garment enterprises, and the problem of Shanzhai popularity are urgently needed to adjust and upgrade the industrial structure through reform.

"Three down, one down and one subsidy" will increase the total factor productivity and urge the industry to adjust and upgrade. "Three goes, one down and one subsidy" will increase the total factor productivity, and will be implemented in every aspect of the textile and garment industry chain to catalyze the structural adjustment and upgrading of the textile and garment industry.

In terms of capacity, textile and printing and dyeing fields will strengthen mergers and acquisitions while eliminating backward production capacity.

For a long time, overrun by inventory backlog will accelerate the pformation of enterprise production mode and strengthen.

Management, deleveraging and adjustment of asset structure are imperative. To reduce costs, the industry will change the traditional management concept and seize the key link of logistics.

Good integration of production capacity leading enterprises.

Management has spawned new business models: Hang min shares and Mei Xinda, as leaders of the printing and dyeing industry, will benefit from the promotion of capacity in the printing and dyeing industry to further expand market share and raise bargaining power;

As the leader of their own industry, Hua Si shares in the main business, while actively layout the "industrial +X" ecology, while paying attention to the level of supply chain management.

Thus, in the process of pushing forward the supply side reform, we will take advantage of multi directional layout.