Is There Any Profit In The Textile Industry? The Next Generation Of Z Will Become The Main Force.

First, textile industry revenue and profit analysis

At present, the per capita clothing consumption expenditure in China is less than 200 US dollars per year, and there is still a gap between the consumption level of textile and clothing which is more than 1000 US dollars from developed countries. This shows that China's textile and apparel market still has considerable room for development.

Favorable factors in textile and apparel industry

In the first half of 2019, the statistics of 67 major listed companies achieved operating income of 107 billion 520 million yuan, an increase of 0.4% over the same period last year, resulting in a net profit of 7 billion 150 million yuan, down 15.8% from the same period last year, and the growth rate of revenue and net profit was further lower than that of 2018 and 2019Q1.

Business income of China's textile and garment industry in the first half of 2016-2019 years (100 million yuan)

Net profit of China's textile and garment industry in the first half of 2016-2019 years

Two. Analysis of the revenue and profit of the molecular industry of the textile and garment industry department

1, wool textile industry revenue and profit analysis

The wool textile industry achieved revenue of 3 billion 260 million yuan in the first half of 2019, an increase of 7.8% over the same period last year. The growth rate of 2019Q2 sales slowed down significantly, mainly under the pressure of macro-economy, while the raw material fluctuated greatly, and sales volume was affected.

The wool textile industry achieved a net profit of 190 million yuan in the first half of 2019, an increase of 15.5% over the same period last year, and the growth rate was significantly higher than that in 2018.

Income of China's wool textile industry in the first half of 2016-2019 years (100 million yuan)

Net profit of China's wool textile industry in the first half of 2016-2019 years

2, cotton spinning industry revenue and profit analysis

The cotton textile industry achieved a profit of 21 billion 720 million yuan in the first half of 2019, down 0.9% from the same period last year, achieving a net profit of 1 billion 390 million yuan, down 9.6% from the same period last year.

The growth rate of the cotton textile industry increased from a high level in 2017 to a slight decline in the first half of 2019, mainly because:

1) affected by the continued escalation of trade frictions between China and the United States, the downstream customers are cautious about placing orders, and some orders transfer overseas to influence demand.

2) the domestic apparel consumption boom is not high, affecting the order quantity of upstream enterprises.

3) cotton prices continued to decline in 2019, and sales prices of cotton spinning enterprises decreased according to cost plus pricing. Net profit growth is slower than revenue growth, mainly due to a decline in gross margin.

Income of China's cotton textile industry in the first half of 2016-2019 years (100 million yuan)

Net profit of China's cotton textile industry in the first half of 2016-2019 years

3, printing and dyeing industry revenue and profit analysis

The printing and dyeing industry achieved a revenue of 349 thousand yuan in the first half of 2019, down 1.4% from the same period last year, and realized a net profit of 280 million yuan in the first half of 2019, an increase of 7.7% over the same period last year. The printing and dyeing industry is facing the terminal demand depression of garment industry, the order volume has some influence, but the profit side growth is better than the revenue side, mainly because the coal price in the first half of 2019 has decreased compared with the first half of 2018, so the cost side has declined.

Income of China's printing and dyeing industry in the first half of 2016-2019 years (100 million yuan)

Net profit of China's printing and dyeing industry in the first half of 2016-2019 years

4, excipient industry revenue and profit analysis

The excipient industry achieved a revenue of 4 billion 90 million yuan in 2018, an increase of 6.2% over the same period last year, and a 2 billion 20 million yuan gain in the first half of 2019, a decrease of 0.3% over the same period last year, resulting in a net profit of 210 million yuan, down 7.4% from the same period last year. The decline in revenue and net profit growth of the excipient industry is mainly due to the fact that the business of zipper buttons has been affected by the international competitive environment and the product structure has changed. At the same time, because the terminal consumption environment is sluggish, brand customers will choose lower priced products for cost consideration when choosing accessories, and the order quantity of metal zipper with higher unit price and higher gross profit rate will decline. In the excipient industry, there is also a phenomenon of business differentiation. Weixing shares, as a leader in the industry, is leading the industry both in terms of revenue growth and profitability, and slowly widen the gap with other competitors.

Income of China's excipient industry in the first half of 2016-2019 years (100 million yuan)

Net profit of China excipient industry in the first half of 2016-2019 years

5, men's clothing industry revenue and profit analysis

The men's clothing industry achieved a revenue of 10 billion 90 million yuan in the first half of 2019, an increase of 10.5% over the same period last year, and a net profit of 480 million yuan, down 0.4% from the same period last year. The performance slowed down significantly compared with 2018, mainly due to the downward pressure of the macro economy in the second half of 2018. The consumption demand of the industry was depressed, and in the first half of 2019, it was affected by the higher base factor in the same period last year.

The first half of 2016-2019 years China's men's wear industry income (except Hai Lan's home, 100 million yuan)

In the first half of 2016-2019 years, the net profit of Chinese men's clothing industry (after deducting the non return to the mother, except Hai Lan's home and wedding bird, 100 million yuan)

6, women's clothing industry revenue and profit analysis

Women's clothing industry achieved 4 billion 110 million yuan in the first half of 2019, an increase of 9.5% over the same period last year, resulting in a net profit of 670 million yuan, down 7.9% from the same period last year.

Although the growth of women's wear industry performance is still slower than that of 2018, there is little fluctuation in revenue and a quarterly rebound in the first half of 2019, mainly due to the polarization of the garment industry. Most of the women's clothing companies are positioned at the top end, and the proportion of VIP sales is high. The purchasing power of customers is less affected by the economy (the proportion of clothing consumption expenditure is very low, and there are social and business needs). Fluctuations in net profit were mainly due to the high proportion of direct battalions, relatively rigid costs, a slight slowdown in revenue growth and a sharp rise in the cost rate.

Income of Chinese women's clothing industry in the first half of 2016-2019 years (100 million yuan)

Net profit of Chinese women's clothing industry in the first half of 2016-2019 years

7, leisure apparel industry revenue and profit analysis

The leisure wear industry achieved a profit of 12 billion 710 million yuan in the first half of 2019, a decrease of 9.9% compared to the same period last year, and a net loss of 380 million yuan after deducting the net profit, which was 167.7% lower than the same period last year. The performance of casual wear industry has declined sharply, mainly because the overall prosperity of the leisure industry is not high. Both domestic and foreign brands are undergoing adjustment. Some foreign leisure and fast fashion brands are withdrawing from the Chinese market (such as Topshop, NEW LOOK, Forever 21).

Income of China's casual wear industry in the first half of 2016-2019 years (100 million yuan)

The net profit of China's casual wear industry in the first half of 2016-2019 years (after deducting to the mother, 100 million yuan)

8, shoes and hat industry revenue and profit analysis

The shoe and hat industry achieved a profit of 4 billion 300 million yuan in the first half of 2019, and realized a net profit of 270 million yuan, down 33.1% from the same period last year. Shoe and hat industry has been weakening in recent years, mainly because leather shoes are the main industry of relevant listed companies, but the trend of recent years is sports shoes and casual shoes.

Income of China footwear industry in the first half of 2016-2019 years (100 million yuan)

Net profit of China footwear industry in the first half of 2016-2019 years

9, home textile industry revenue and profit analysis

The domestic textile industry achieved a revenue of 5 billion 720 million yuan in the first half of 2019, an increase of 3.8% over the same period last year, achieving a net profit of 480 million yuan, down 12.6% from the same period last year. In the first half of 2019, the performance of home textile industry was weakening. Besides being affected by the downward pressure of the macro-economy, it was also affected by the slowdown in the sales of commercial housing in 2018. Because of the major demand for home textiles, less than 1/3 of the family moved and wedding needs were related to the sales of commercial housing.

Income of China's home textile industry in the first half of 2016-2019 years (100 million yuan)

Net profit of China's home textile industry in the first half of 2016-2019 years

10, children's clothing industry revenue and profit analysis

The children's wear industry maintained a high level of popularity, because the brand started late and the market concentration increased greatly, so the performance of the leading children's wear company maintained a high growth rate. In the first half of 2019, the children's clothing industry achieved a revenue of 5 billion 280 million yuan, an increase of 24.3% over the same period last year. After deducting the profit, the profit was 630 million yuan, an increase of 22% over the same period last year.

The gross profit margin of children's clothing industry was relatively stable, and the gross profit rates in the first half of 2018 and the first half of 2019 were 43.7% and 43.2% respectively.

In 2018, children's clothing industry sales cost and management fee rates were 24.2% and 5.6%, respectively, down 1 percentage points and 0.3 percentage points respectively compared with 2018. In the first half of 2019, the turnover rate of annual inventory and accounts receivable turnover were 2.3 and 5.1, which declined slightly compared with 2018 and remained basically stable.

Income of children's clothing industry in China in the first half of 2016-2019 years (100 million yuan)

Net profit of China's children's clothing industry in the first half of 2016-2019 years

Three, 2019 textile and garment industry's future development prospects

In the first half of 2019, the textile and garment home textile industry achieved 70 billion 974 million yuan in business income, an increase of 0.3% over the same period last year, achieving a net profit of 680 million yuan, down 20.7% from the same period last year. Among them, in the first quarter of 2019, the net profit of the textile and garment home textile plate was 37 billion 230 million yuan and 3 billion 170 million yuan, respectively, up 0.6% and 10.4% respectively.

Textile and garment home textile plate The main reasons for the continued downturn in the first half of 2019 were:

1) affected by the downward pressure of the economy, terminal consumption is in a doldrums.

2) the relevant company stores are developing cautiously, and the net stores are less than the same period last year.

3) in order to maintain healthy operation index and reduce inventory risk, discount sales promotion is intensified.

Although the home textile industry continues to slump, fine sportswear and children's clothing industry continues to boom (most of them are listed on the Hong Kong stock market), and all the leading companies in the fine molecular industry are better than non leading ones.

In 2019, the industry is still in the strategic period of development. Technology has provided tremendous opportunities for the development of the industry. The textile and garment industry in 2019 will grow further in brand orientation, enterprise transformation and industrial upgrading.

Prospect 1: the rise of Chinese brands and the enhancement of internal strength

With the transformation of the Internet and digital technology, all links of the industrial chain are maturing. More and more garment enterprises are upgrading the internal production efficiency, breaking the quality of products, meeting the increasing consumption demand of consumers.

In 2018, the sports market began to warm up. The domestic sports brand Lining and so on stepped out of the international arena, and got rid of the image of "soil", and subverted the stereotype of people's domestic sports brand.

In the sports market, Anta, which is the chief player in the sports market, is climbing step by step, and its high-end sports brand FILA has springing up everywhere in China.

In addition, once the memory of sports shoes - Hui Li, also returned to the public field of vision, seize the trend of retro culture, upgrade the brand.

In addition, a series of domestic brands such as Hai Lan home, Bosideng, Ordos and so on have deepened the impression of the brand in the public mind through the combination of internal and external businesses this year.

These Chinese brands, which are rising in the industrial revolution, have focused their efforts on the Z era - consumer favorite products, and actively build PLM commodity master data platform, with flexible supply chain, to achieve internal and external synergies, and enhance enterprise efficiency.

Outlook two: digitalization, indispensable

In recent years, with the transformation of textile and garment enterprises, the application of digitalization in textile and garment enterprises has been deepened. In 2019, digitalization will become more and more popular in the textile and garment industry, and will become the infrastructure of the industry in the future.

Because digitalization not only improves the efficiency of enterprise product production, gives consumers better consumption experience, but also highlights textile and garment enterprises in the industry competition.

Outlook three: consumption classification is obvious, Z generation becomes the main force.

In 2018, with the popularity of many products such as collation and purchase, it became a controversial topic of many industries in the year.

On the one hand, the upgrading of consumption is in full swing; on the other hand, the upgrading of consumption structure is divided, and the phenomenon of counter consumption upgrading appears frequently. Such consumption classification will continue in 2019.

In the stage of consumption classification, there are still a group of people who deserve the attention of textile enterprises, namely, the consumer groups in the Z era, that is, after 95 and after 00.

They gradually become the main force in the consumer market. They have unique consumption concepts and consumption behaviors. In the face of the new generation of consumer groups, textile enterprises should be well prepared, not only to control the quality of products, but also to improve efficiency and respond quickly to market demand.

Outlook four: personalized customization, gradually realized

Personalized customization is one of the most popular keywords in China's textile and garment industry in recent years. With the development of the 4 industry era and the upgrading of intelligent manufacturing, customization has gradually been accepted by industry and consumers.

As a whole, customization can be divided into four stages: whole single customization stage, part module customization, customization stage and comprehensive personality customization stage.

Customization requires higher requirements for product development process. Textile and garment enterprises need to manage every link from product sales planning and product display to supplier cost control, quality and compliance product design and development, so as to achieve intelligent integration from design, plate making to production.

epilogue

2019 is still the most important year for the transformation and development of China's textile industry. As the textile and garment industry continues to mature, textile and garment enterprises need "inline affiliation".

Through the digital reform, we can improve the production efficiency and enhance the brand influence through the rapid listing of the products that the consumers are satisfied with. believe The fire is high! Work together to push forward China's textile industry.

Data sources: public data collation, Reference source: China industrial network, China yarn network