Textile And Apparel Industry In October Third Weeks Weekly: Store Digitalization "Spanformation" Is Coming Soon.

　　 Spin The apparel industry lost 2.03pct. This week, the Shanghai Composite Index fell 2.17%, SW textile and apparel. industry Down 4.20%, SW textile and garment industry lost 2.03pct. Among them, SW textile manufacturing decreased by 5.25%, and SW apparel home textiles decreased by 3.56%.

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The layout of "digital stores", brand clothing enterprises to accelerate spanformation and upgrading. In October 20, 2018, Red bean The share announcement will expand the implementation location of "offline experience flagship store" project from the original 10 first tier cities and the second tier cities to almost all provinces and cities nationwide. It is expected that the location of the stores will be reduced relative to the difficulty of location selection, so as to accelerate the implementation of the investment projects. In addition, Hong Kong shares are also grasping the construction of smart stores. The plan is to set up more than 2000 smart stores in the country before 2020, and sign a cooperation agreement with the Jingdong in April this year, and jointly create the "characteristic intelligent stores" and "unbounded retail" mode. This week, the "noble bird" also announced a strategic cooperation framework agreement with Jingdong. The content of the cooperation also includes the upgrading of offline stores and the creation of "unbounded retail" mode. We found that this year, the "digital store" represented by "smart stores" and "O2O experience shop" has become a breakthrough for the brand new layout of apparel enterprises. On the one hand, enterprises such as ormosia, Taiping, and noble birds have been building "intelligent stores" through cooperation with Jingdong or Alibaba. The implementation of the "smart store" is based on the online and offline data access. The main manifestations include the online and offline inventory, the opening of the membership system, the unified settlement of accounts receivable, and the introduction of RFID technology. After the intelligent upgrading of traditional stores, the digitalization of channels and the spanformation of online and offline traffic can be realized and the competitiveness of channels can be enhanced. On the other hand, red bean stocks, Pacific bird, modern Avenue and other enterprises are actively layout "O2O experience shop". Hong Kong Group opened its first experiential store in Lishui, Nanjing in June 2016, and its sales volume has reached about 15000000 yuan in 2017. Taiping bird also upgraded the collection store of Hangzhou Joy City in August 2018 as the "tide experience platform". "O2O experience shop" can be seen as a further escalation of "smart store". It will also be equipped with intelligent experience devices in the store, such as 3D body dressing mirror, 3D shopping wall and smart window. It can significantly enhance customer experience and participation, and the drainage effect is better. We believe that the digital spanformation of stores has become one of the main trends in the apparel industry. However, due to the large initial investment and the scarcity of online platform cooperation resources, it is very difficult for small and medium-sized enterprises to implement digital upgrading of stores in a large scale. The industry listed companies have better cash flow, wide financing channels, and have long-term partnership with major electronic platforms such as Ali and Jingdong. They have more opportunities and conditions to comprehensively layout "digital stores" to realize the integration of resources on line and offline, and the concentration of channel advantages will accelerate the concentration of market share of leading companies, and continue to look for brand clothing leading enterprises to actively implement digital spanformation.

Recommended target: medium and high-end women's clothing is mainly recommended for fashion. Semir Home textiles recommends Luo Lai's life; textile manufacturing recommends blon East.

Risk warning: terminal consumer demand is weak; exchange rate volatility risks; cotton prices fall or fluctuate significantly.