How Far Is The Garment Industry From "Spring"?

"Slow warming" is the development keynote of this year's garment industry. Statistics from the National Bureau of statistics show that since 2012, the volume of clothing retail sales has increased year by year and the growth rate has slowed down year by year. Although individual garment enterprises are facing survival difficulties, the industry has maintained a basically stable development trend. Many enterprises have entered a new stage of strategic restructuring and transformation and upgrading. This year, some enterprises are falling down in the "winter", and many companies are seeking transformation and upgrading. Analysts believe that for the current garment industry, the industry "cold winter" under the opportunities still exist, especially in the field of subdivision never lack of opportunities.
 

Garment enterprises usher in "winter"

This year is the "winter" of many garment enterprises. The worst part is the once "shoe king" rich bird. In August of this year, the HKEx decided to cancel the listing of fortune birds. Subsequently, the company's application for restructuring plan was rejected, the rich bird went bankrupt, and the liquidation assets did not usher in the third auction.

As the only one in the apparel industry who listed A shares and H shares at the same time, La Natsu Bell, once favored by capital, has fallen into an embarrassing situation of performance losses this year. In May of this year, the company sold 54.05% stake in Hangzhou Agel Ecommerce Ltd, a controlling subsidiary. It is worth noting that the transfer price is almost the same as the purchase price four years ago, which is interpreted by the industry as a subsidiary exchange. In December of this year, the company sold its home furnishing company shape interindustry (Shanghai) Limited at a price of 1 yuan. Coupled with the bankruptcy of October men's clothing brand Jack Walker, La Natsu Bell in a year, has cleared three sub brands. At the same time, La Natsu Bell's performance has been stagnant due to the high rate of pledge and excessive litigation.

In addition, Metersbonwe, who has sprung up in the three or four tier cities, is struggling to survive. This year, the market value has been reduced by about 30000000000 yuan, the brand image has been damaged, and the net profit has plummeted by 359%. The news has troubled the once popular casual wear brand.

And once known as the three largest brand of Hong Kong fashion brand, burshon, Giordano, Baleno are also struggling to survive. It is reported that burshelon lost 2019 HK $139 million in fiscal year 139 million. Giordano's semi annual report and three quarterly report continued to decline in both revenues and net profits. In recent years, Baleno's stores have been decreasing.

Fast fashion retreat

In fact, international brands are also having a hard time in China. Following last year's Topshop and NEW LOOK's withdrawal from the Chinese market, some international brands also announced their withdrawal from China this year.

In April of this year, Forever 21 announced the suspension of online operation, and its flagship store Tmall and Jingdong flagship store were also suspended at the same time. In mid May, Forever 21 announced its withdrawal from the Chinese market and began to deal with offline stores. For a while, Forever 21 clearance and crazy sale became a hot topic for consumers. China Commercial Daily reporter noted that before the announcement of its withdrawal from China, the number of Forever 21 stores in China was only a dozen, which is far from other fast fashion brands. Coupled with the increasing number of local clothing brands in China, the target group of Forever 21 has been decreasing, and the market has been compressed and withdrawing from the Chinese market.

Gap, also a fast fashion brand, also said in November this year that its Old Navy will quit the Chinese market from 2020.

Although Zara and H&M are still sticking to the Chinese market, their development is also facing bottlenecks. Zara parent company Inditex group reported that the company's sales increased 7% and net profit increased 10%. Although the company said the growth rate has broken the record of the semi annual report, its gross profit margin in the first half is still lower than analysts' expectations. Affected by the news, Inditex group shares fell more than 5%, the biggest decline in six months. Some experts say that in the long run, Zara's performance in the Chinese market has not changed much, and its future development is more confused.

H&M has achieved profit growth in the fourth quarter of this year after eight consecutive quarters of declining performance. However, this year's two report of quality recall has caused some consumers to reduce their desire to buy.

In fact, whether they are Zara or H&M, the problem they face is not only whether the performance can grow, but also how to cope with the changes in the clothing market.

Nirvana or rebirth

From the general trend, the garment industry is still getting warmer and warmer. More and more enterprises begin to seek for their own transformation and upgrading.

Returning to the main business and focusing on the main industry seems to be the development route chosen by many garment giants. Among them, YOUNGOR, once the "three Ma Qi drive", announced its return to the main garment industry again at the beginning of this year. After that, the company announced that it would no longer carry out the financial equity investment in the non principal sectors, and chose to deal with the financial equity investment projects and give up the financial business. In December of this year, YOUNGOR opened up shop with Cage, an American sports leisure brand, exploring new retail mode, aiming at developing young market.

In addition, men's famous brand Hai Lan home and down jacket giant Bosideng chose to focus on the upgrading direction of the main industry. In September of this year, Hai Lan's family stripped the women's clothing brand from 380 million yuan, focusing on the development of men's clothing. In the same way, Bosideng has increased the research and development of the down garment technology. The Dengfeng series launched in October has continued to lead the down garment market in China.

In addition to transformation and upgrading, there are many companies playing cross-border, trying to find "cash cow" in the new field. For example, the brand of the men's clothing brand has changed the first business to the travel business, and has publicly stated that it will continue to invest more in the future.

Tianfeng Securities Research Report shows that this year's terminal consumption is weak, the brand clothing consumption end continues to bear pressure, the industry development is slow, but the development opportunities in the subdivision area still exist. The experts said that by the recent changes in the industry, most garment enterprises have begun to adjust their development ideas. However, there will inevitably be a crisis in the adjustment period. Most enterprises have groped for a more appropriate business model, and the clothing market will continue to expand in the future.