Garment Industry Begins To Recover, Star And Net Red Become Main Driving Force

This year, in the context of consumption upgrading and industry recovery, apparel home textiles consumer stocks have shown strong overall performance.

Clothing industry statistics show that: in June, the 50 major retail sales of clothing in China increased by 2.9%, the growth rate increased by 3 percentage points compared with the same period last year, which improved significantly compared with the 4/5 month of the more volatile weather.

In 2018 1-5, the retail sales of clothing, shoes, hats, knitwear and cosmetics increased by 9.1% and 14.80% respectively, up 1.9 and 4.7 percentage points respectively over the same period last year.

The fundamentals of the industry have shown signs of recovery since 2017 and accelerated in the first quarter of this year.

Brand leading enterprises support the active layout of the Chinese newspaper market.

This year, in the context of consumption upgrading and industry recovery, apparel home textiles consumer stocks have shown strong overall performance.

Judging from the performance, in the two quarter of 2018, the overall income of the brand clothing industry showed a strong recovery. From the perspective of the fine molecular industry, the children's clothing industry is the most prosperous at present, and the revenue growth is over 20% during the statistics period.

In June, Amoy sales data from the whole network benefited from 618 major promotional activities.

All of them have achieved rapid growth, men's wear, sports and leisure, and men.

The performance of women's clothing was brightest, which increased by 32.38%, 29.50%, 23.19% and 21.45% respectively.

Sun Yu, an analyst of the textile and apparel industry of China Merchants Securities: compared with the first quarter of the two quarter, there was also a lack of such a cold winter, including the external factors such as the delayed Spring Festival. So the growth rate of the two quarter is a bit slower than that of the first quarter, but the slowdown is also a normal phenomenon.

As far as the fine industry is concerned, from the perspective of more prominent areas of income growth, first of all, children's clothing is still in a high economic cycle, so the performance of children's clothing is still outstanding.

Like Semir's balbala brand, the current growth rate is still above 20%.

The semi annual performance forecast of Huamao textile shows that: in the first half of 2018, net profit of 1.2-1.3 billion yuan is expected to reach 802.6%-877.8%, an increase of 802.6%-877.8% compared with the same period last year. Vigna S expects net profit of 2018 yuan in the first half of this year to be 1.1-1.2 billion yuan, an increase of 145%-165% over the same period last year.

Hinur also issued a semi annual performance notice, which is expected to achieve a net profit of 100-1000 yuan in the first half of 2018.

In the first half of 2018, 145 clothing and home textile listed companies totaled 875 billion 720 million yuan in market value. From the ranking of market capitalization, Shenzhou ranked first in the world, followed by Anta sports, and third as the home of Hai Lan.

China Merchants textile and garment industry analyst Yu Sun Yu: at present, like high-end women's clothing, the entire two quarter's leading brand's same store growth rate is still maintaining stability in double-digit growth.

High end casual wear, such as the ratio of the overall revenue of the whole terminal, should also be maintained at around 30%.

So the whole two quarter performance of children's clothing and high-end consumption is outstanding.

On the level of listed companies, apart from those industries that have just been analyzed, the performance of leading companies in home textiles, including the leading companies of mass leisure, is also better than that of the industry.

Xu Chuanbao, chief investment adviser of Jinyuan securities, from the perspective of China's domestic demand, the consumption of infants and young children will be greatly invested. Therefore, from the perspective of subdivision of growth, children's clothing industry is more prominent, and the leading companies should also focus on it.

Star network red effect quickly drive the market

Fans economy breakthrough

With the strong push of the younger generation of consumers and online consumption, the pformation of the garment industry is continuing, and the fans economy has become an important breakthrough.

In recent years, the net red star effect has affected the consumer groups. Feedback has shown a very high speed of development on the apparel platform, and also reflects the characteristics of clothing consumers' satisfaction to the fans effect in consumption demands.

With the 1980s and the 1990s becoming the main force of clothing consumption, garment manufacturers not only keep up with the trend and innovate in product design, but also have to cater for the tastes of these groups. Celebrity endorsement is a very direct and effective way.

Han Zhiqiang, general manager of Shenzhen Wan Qi Clothing Co., Ltd., said that the star and the money often have strong attraction, and the purchasing power of fans can not be ignored. With the star effect, the brand will also form a new way in publicity and presentation forms, and the exposure and dissemination degree will be greatly improved.

Henan dealer Lv Weixian: the star style will take a lot of goods. Since customers like it, the sales volume is very large, increasing by 20% annually.

Han Zhiqiang, general manager of Shenzhen Wan Qi Clothing Co., Ltd.: from the beginning of the year to the present, the benefits generated by star money are more than one hundred million.

Many customers will look for clothes according to the star's wear, and sell all the styles in a few days.

The first half of 2018 achieved a total sales of over 4 billion, an increase of 17% over the same period last year.

It is understood that there are more than 1000 net red shops on Taobao platform.

In 2017, "double eleven" activities, the top ten sales of women's clothing shops in the red shop accounted for a total of seven seats.

Some of the red merchants will have a turnover of tens of millions of dollars in the new business.

Behind billions of sales are millions of fans in social media.

Represented by a young and beautiful fashion designer, with the taste and vision of the red people as the leading factor, the selection and visual promotion are adopted, gathering popularity in social media and relying on a large number of fans to conduct targeted marketing, thus converting fans into purchasing power.

VIP, an analyst of textile and apparel industry in China Merchants Securities Co., Ltd.: the viscosity of the VIP customers is improved. At present, from the promotion of the precision marketing ability of the terminal shopping guide, the proportion of VIP sales of each leading company is gradually increasing.

Online bottlenecks force businesses to turn around

Experience economy is the growth point of counter attack

With the domestic electricity supplier

Competition intensified, endless price war, so that many electricity providers and low prices were equated.

There has been no substantive breakthrough in the conversion rate of electricity providers, which has brought huge pressure to the electricity providers at the operational level.

The bottleneck of performance growth forced the electricity supplier to find new growth points, so many brands of clothing e-commerce began to expand below the line.

Li Baihe, who has been engaged in clothing business for many years, has a monthly sales of about 200 thousand yuan. When he talked with him about the promotion of e-commerce platform, Li Baihe's reaction was love and hate.

Promotion can detonate sales in a short time, but sales will drop to a low level on the one or two day after promotion.

More importantly, they have to face the surging tide of return.

According to past experience, Li Baihe estimated that the return volume could reach 30%~40%.

RXP brand leader Li Baihe: clothing is a relatively special product. He needs to try it on himself. Sometimes it is not just the right size but also the temperament and feeling of the whole person.

In the electricity supplier, you can only see the appearance of the clothes and the appearance of the models.

Many customers find their bodies and models look different when they buy them back, so they will have a return idea.

Poor customer experience is the biggest pain in online sales, and more and more homogenized products on the line also cause more competition.

Li Baihe said that online low price strategy can easily increase sales volume, but to a large extent, it has dampened brand tonality and is not conducive to long-term brand management.

Adding online stores, enhancing customer experience and improving conversion rate is also their long-term strategy.

Zhang Weixin, a wholesale woman in Hangzhou, has often participated in the clothing trade fairs in cities such as Shanghai, Shenzhen and Guangzhou in recent years. She hopes to let dealers from all over the world understand their brand and clothing quality and expand the channels under the line so as to keep sales volume increasing at an annual rate of 40%.

Zhejiang cocoa Selena dress technology director, Zhang Weixin: last time when I went to Shanghai to participate in the exhibition, I also negotiated more than ten customers. Now they are all butting up. Now I am in Shenzhen, and I have reached more than 20 customers in two days.

This will be very smooth to some of the usual data on the shop can not sell out, to make a good compensation.

The total sales last year basically reached more than 100 million, and sales in the first half of this year have reached about ninety million.

After many rounds of crazy price war, consumers are more and more rational. In the process of buying, they have more and more requirements for commodity experience.

The electricity supplier's disadvantage in experience directly affects the growth of the electricity supplier's performance.

Therefore, the entity store under the layout line is becoming a trend.

The cost is high.

Domestic clothing companies have pferred capacity to reduce costs.

Since the fourth quarter of 2017, the apparel terminal consumption boom has picked up. The growth rate of clothing, shoes, hats, needles and textile retail sales has begun to increase.

But the rising cost of labor, raw materials and energy has led more and more garment companies to turn their production capacity to the mainland.

Gong Laixin is a senior executive of a garment enterprise in Shanghai. This year, Shanghai and Jiangxi run in two places.

He told reporters that over the past two years, with the continuous expansion of categories and styles, the annual order volume of enterprises has reached eight million units. However, the factories in Shanghai can not meet the demand for production capacity. The gap of about four million pieces has forced them to make strategic shift and build factories in lower cost cities.

From Shanghai to America

Gong Laixin, deputy general manager of Manufacturing Co., Ltd.: the coastal areas are very short of land, so they have to build factories in large quantities in coastal areas.

Now the space is very small, this is a big pain point, the second point is that many clothing enterprises do not have their own supply chain, or supply chain is facing more and more difficult employment problems, fewer and fewer clothing enterprises, many young people do not want to do this kind of work.

Designer Xu Dajuan is the head of a clothing company. She is good at working on knitted sweater fabrics, because the style and texture of the clothes are distinctive. The sales volume of the company has been increasing continuously in recent years.

In order to control costs, she chose to expand the market in three or four line cities which are close to the raw materials and have lower labor costs.

Xu Dajuan, director of Hebei Yi Pin Hou Clothing Co., Ltd.: 2014, there are only about 10 stores. By the end of 2017, the number of shops has increased to 50, and the total turnover has increased by 60% to 70% every year.

In recent years, many parts of the mainland have made use of cost advantages to attract famous domestic garment enterprises to invest and build factories in the mainland, including more than 60 domestic and foreign brands, such as Anta, XTEP, 31st degree, Baleno and so on. The arrival of these brands has also made rapid progress in the local clothing and apparel industry.

He Xinping, member of the Standing Committee of Yudu County Committee of Jiangxi Province, said: in 2017, the whole industry chain basically reached 30 billion, and strive to achieve more than 40 billion of the entire industrial chain in 2018, so our goal is to strive to achieve 100 billion industrial clusters in 2020.

Last year, efforts were made to increase imports, invest 3 billion, and build 1 million 20 thousand standard factories. Last year, 62 textile and garment enterprises have signed up, and this year they are ready to build 500 thousand square meters.

So far, there are about 50 companies waiting to sign contracts with us.

Shen Yongfang, President of Shenzhen clothing association, from the development of accessories and accessories to the integration of the whole industry chain, all the processing and production are not completed in Shenzhen.

Like Yudu is a processing area, processing is very developed and not far from Shenzhen, so a lot of processing can be carried out.

According to the Research Report on the market prospect and investment opportunities of China's clothing industry in the past 2018-2023 years, it is expected that in 2018, China's clothing output will reach 29 billion 102 million, clothing.

Retail sales will reach 1 trillion and 98 billion 580 million yuan, an increase of 6.08% over the same period last year.

Xu Chuanbao, chief investment adviser of Jinyuan Securities: the growth of China's textile and clothing is more beneficial to domestic consumption upgrading. For example, rural revitalization, building a well-off society in an all-round way will stimulate the consumption of some three or four line cities.

The performance is still very good.

The pressure on the entire textile service in the second half of this year may be larger than that in the first half, mainly in terms of exports.