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    Is The Spring Industry Coming Back To The Warmer Garment Industry?

    2020/1/6 10:00:00 34

    Clothing IndustryLa Natsu BellBird Of Wealth

    "Slow recovery" is the development keynote of the garment industry in the past 19 years. 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.

    In the past 19 years, some enterprises have collapsed in the winter, and many enterprises 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"

    The 19 year is the "winter" of many garment enterprises. In August 2019, 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 apparel industry only listed in the A shares and H shares, La Natsu Bell once favored by capital, but last year, he fell into an embarrassing situation of performance losses. In May 19, the company sold a 54.05% stake in Hangzhou's Agel Ecommerce Ltd, a subsidiary of the 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 19, the company sold its home furnishings company 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, a total of 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. Last year, the market value was reduced by about 30000000000 yuan, the brand image was constantly damaged, and net profit fell 359%, which made the once popular casual wear brand beset.

    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 19 year 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. Last year, after the withdrawal of Topshop and NEW LOOK from the Chinese market, some international brands announced their withdrawal from China last year.

    In April 19, Forever 21 announced the suspension of its online operation. Its flagship store and Jingdong flagship store were also suspended at the same time in April. 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 last November 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 its first half fiscal year last year, sales increased by 7% and net profit increased by 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's share price fell more than 5%, a half year to a big drop. 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 19 quarter and fourth quarter after the eight consecutive quarterly decline, but the two time of being recalled due to quality problems reduced some consumers' 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 last year. After that, the company announced that it would no longer carry out financial equity investment in the non principal sectors, and chose to handle financial equity investment projects and give up financial services. In December of 19, YOUNGOR opened up shop with Cage, an American sports leisure brand, exploring new retail mode, aiming at developing young market.

    In addition, the famous men's brand Hai Lan home and the down jacket giant Bosideng chose to focus on the upgrading direction of the main industry. In September of 19, 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 last year continues 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 men's clothing has changed its focus business to Wen's business, and publicly stated that it will continue to invest more in the future.

    Tianfeng Securities Research Report shows that the 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.

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