Textile And Apparel Investment Strategy Report In Spring 2020

Organization: Guotai Junan

The short-term impact of the epidemic on Garment Retailing will bring about the optimization of competition structure and promote the development of sports industry in the long run: affected by the epidemic situation, the retail environment is cold, and the retail sales of clothing will be impacted in the short term. The leading brands in China actively respond to the epidemic, alleviate the impact of the epidemic through the layout line, and actively promote the resumption of work. In addition, SMEs have the risk of breaking the capital chain, and the leading brands have a strong resistance to the epidemic, which accelerates the optimization of the garment industry structure. In addition, with the sustained development of the epidemic, the public has attached more importance to healthy life, and the volume of sports equipment industry has risen sharply, which has been favorable for the sports industry and the development of the sports industry. The 2019~2025 year compound growth rate of the sports industry is expected to be 9.43%.

Technology empowerment improves the efficiency of supply chain, and the effectiveness of supply chain optimization of domestic garment enterprises is very effective. Technology empowerment can empower the traditional consumer goods supply chain from three aspects, such as terminal, supply chain circulation and production, so as to solve the problems of asymmetric information, high cost and low output per capita in traditional supply chain. Overseas leading companies improve the efficiency of all aspects of the supply chain through technological empowerment and enhance their competitive edge. Domestic Antarctic electricity providers, Anta, Bosideng, Shenzhou International and other garment enterprises to rely on technology, grasp fashion trends and consumer habits, optimize production and logistics links efficiency, supply chain efficiency greatly improved.

The leading domestic supply chain, brand and channel end are constantly innovating, and competitiveness has been improved: domestic leading brands are optimized in three aspects, namely, 1) supply chain reform. Bosideng, Semir, Taiping bird and other domestic leading brands have been carrying out supply chain reform, increasing cooperation with upstream and downstream enterprises and achieving remarkable results. 2) brand design keeps pace with the international trend. The design of local brands is in line with the international trend, strives to create a better brand image. Lining's fashion products are recognized by the market, and 2019H1's revenue is increased by 33%. 3) channel structure optimization.

Domestic leading brands attach importance to the layout of electricity suppliers and shopping centers. Anta's double eleven sales in 2019 reached 1 billion 830 million, with a growth rate of 61.95%.

Investment recommendations: the epidemic will accelerate the optimization of the industry structure and highlight the competitiveness of the leading brands. It recommends the leading brands of various industries: 1) casual wear: Semir clothing, Taiping bird, Hai Lan's home; 2) high-end clothing: Song Li Si and di Su fashion; 3) sportswear: Anta sports.

Risk warning: clothing stores resume less than expected, Sino US trade friction, clothing consumption is less than the expected risk.