Textile And Clothing: The Short-Term Impact Of Southeast Asian Epidemic On Textile Supply Chain

Core ideas

Textile and clothing: the substitution of sports brands in China continues. The epidemic situation in Southeast Asia has a short-term impact on the textile pattern. The domestic and external demand for textile manufacturing continues to warm up. The epidemic situation in South and Southeast Asia affects the supply side. In South Asia, affected by the blockade measures during the epidemic, India's clothing industry exports shrank seriously. The recent epidemic situation in Vietnam and Indonesia in Southeast Asia has been aggravated. The continuous epidemic situation in these places will have an impact on the global supply chain.

The overseas production bases of China's textile enterprises are mainly in Southeast Asia, which are less affected by the epidemic situation, and some of them have accepted orders from South Asia. We believe that companies with no epidemic situation in the factory location or with good factory epidemic prevention work can better undertake this round of order transfer, and are expected to seize the opportunity to realize reverse expansion of production capacity and increase the share of core customers. Continue to recommend: Huali group and Shenzhou International.

Light industry manufacturing: pulp price continues to be weak, optimistic about the rise of the leading market share of home furnishings. The recent zero data of furniture society shows that the trend of furniture consumption is obvious, and it is still optimistic about the rebound of furniture sales and the recovery of completion in the whole year. The leading brand 618 ranks high in the pre-sale market, and is optimistic about its e-commerce channel development. At the retail end, leading furniture enterprises maintain the pace of store expansion, actively layout e-commerce marketing and emerging channels, and the market share is expected to further increase. At the end of the project, the head furniture enterprise is expected to continue to increase its engineering orders by virtue of its product and brand strength, capital strength and strong production and delivery capacity. Optimistic about Opel home.

Market Review

This week, the textile and clothing industry rose 1.50%, light manufacturing rose 1.20%, and the Shanghai Composite Index rose - 0.25%.

The rise and fall of textile and clothing sub sectors were as follows: other clothing 4.75%, other textiles 3.06%, men's clothing 2.23%, casual clothing 1.94%, women's clothing 1.10%, shoes and hats 1.06%, wool spinning 0.58%, home textile-0.03%, silk-0.48%, printing and dyeing-0.57%, cotton spinning-1.68%, accessories - 3.26%. The rise and fall of the sub sectors of light industry manufacturing were as follows: Furniture 3.79%, packaging and printing 2.83%, papermaking - 0.23%, entertainment products - 0.71%, jewelry - 0.90%, other household light industry - 2.95%, and other light industry manufacturing - 3.57%.

Focus tracking

[Online app of incredibly home]

On June 3, a home localization retail app named "hawksbill" was launched. At present, most furniture categories are included in the app, which can be purchased online. In the store page, you can see all shop information in the mall. You can shop online and order. According to the Beijing business daily, at present, the "hawksbill" app has already covered two stores in Beijing, Shilihe and Jinyuan. By the end of June, it will cover all eight stores in Beijing, covering 5-8 cities in China.

Hawksbill app is an important step in the digitalization of yizhijia. It is like a home version of meituan, which can improve the decision-making efficiency and shopping experience of consumers, and promote the digital operation ability of home enterprises. The era of stock housing is on the way, and many home furnishing industry participants begin to arrange more front-end household consumption flow entrances such as whole decoration and online. Whether traditional store companies can maintain their own dominant position needs to be tracked continuously.

Key recommendations:

[key recommendation] Huali group, Shenzhou International, Li Ning, Anta sports, Vida international, gujiajia home [long term recommendation] rolai life, SEMAR clothing, Vader international, SIMORE international, Sun Paper Industry Risk tips: macroeconomic downturn affects purchasing power, epidemic development exceeds expectations, and policy risk.