Domestic Clothing Brand Retail Demand Has Not Yet Been Improved.

Affected by CPI's fall, domestic

Retail demand has not yet improved.

From the price index, as of May 2016, China's CPI grew by 2.1% year-on-year, but the growth rate of clothing CPI was down to 1.60% year-on-year.

According to the latest statistics of the National Bureau of statistics, in June 2016, China's CPI rose 1.9%, down 0.1 percentage points from last month, and returned to the "1" era after 4 months.

In June, PPI fell by 2.6% over the same period last year.

CPI's year-on-year growth has dropped for two consecutive months, mainly due to a fall in food prices, especially in fresh vegetables and fresh fruits.

In June, the price of fresh vegetables dropped by 6.5% compared with the same period last year. The negative growth for the first time in a year and a half has affected the decline of CPI in June by about 0.15 percentage points, and the price of fresh fruit has dropped by 3.4% over the same period last year, which has affected the decline of CPI by about 0.06 percentage points.

According to the data, in June, the clothing CPI in China increased by 1.4% compared with the same period last year. In 1-6 years, the clothing CPI in China increased 1.6% compared with the same period last year.

It is learned that the demand for domestic clothing brand retail has not yet been improved due to the fall of CPI.

Analyst Mi Hanjie said today, from the price index point of view, as of May 2016, China's CPI growth year-on-year growth rate to 2.1%, but the clothing part of the CPI growth rate down to 1.60%, the differentiation shows the clothing.

Industry demand is still in the doldrums. The trend of textile and apparel retail price index also confirms this point: the PRI of textiles is hovering around 0.5%, while the retail price index of textile shoes and hats has remained at about 3% for 15 years, and experienced a sharp downward trend in the first half of 16 years, and its growth rate was at 1.62% low as of April.

All kinds of statistical indicators show that the industry is weak and the industry will continue to adjust.

Mi Hanjie believes that under the external environment where the per capita disposable income growth is slowing down and the industry's overall demand is sluggish, consumers are experiencing a shift from the pursuit of brand's ostentatious consumption to the pursuit of cost-effective consumption.

The current clothing market is experiencing an inflexible change - high-end brands will attract consumers and occupy a specific market through more precise product positioning and personalized brand culture, while the middle and low end market is making continuous efforts to improve the performance price ratio.

Because of the high share and wide audience, the middle and low end market is becoming the mainstream of the market, and the trend of price performance in the clothing market is becoming increasingly prominent.

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Mi Hanjie also said that the era of rapid growth of domestic brand clothing sales was gone. From the 50 and 100 retail sales of key retailers, the terminal sales in the first half of 2016 did not improve.

Affected by the warm winter last year, there are many backlogs on the brand clothing inventory, which overlay more rain this summer. This year, clothing terminal sales will also bear some pressure.