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Post Epidemic Situation: Promote Domestic Clothing Brands To Return To A Higher Boom

2021/9/16 14:00:00 32

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This year is a year worth remembering in the clothing industry. The resonance of two factors has promoted the domestic clothing brands to return to a higher boom.

On the one hand, in the first half of this year, domestic consumption recovered in an all-round way. Under the low base number last year, the clothing industry took advantage of the situation to carry out internal training, laying the foundation for performance growth; On the other hand, in the context of the continuous improvement of the quality of major clothing brands, Chinese people's consumption of domestic clothing is increasing. Hongxingerke's "generous donation" in the flood disaster in Zhengzhou in July stimulated the "wild consumption" of Chinese goods.

From the business data of the first half of the year, China's clothing industry has stepped out of the haze of "crying abuse" in the same period last year. According to the Statistics Bureau, in the first half of this year, the retail sales of clothing, shoes, hats, needles and textiles reached 673.8 billion yuan, a substantial increase of 33.7% year-on-year, far higher than the growth rate of 23% of the total retail sales of consumer goods in the same period.

Performance and stock price double harvest, net interest rate soared

Up to now, the semi annual reports of Hong Kong stock and A-share clothing listed companies have been disclosed one after another, and most of the enterprise report cards are quite beautiful.

According to wind data, there are more than 60 clothing enterprises in Hong Kong stock market and about 40 clothing enterprises in a share market.

In the first half of this year, Hong Kong shares and A-share clothing sector ushered in a bumper harvest in both performance and share prices. Among them, the clothing sector of Hong Kong shares has increased by 26.43% year-on-year, and the industry's revenue and net profit have increased by 29.5% and 212.8% respectively; The A-share clothing sector has increased by 30.2% year-on-year, and the industry's revenue and net profit have increased by 18.05% and 52% respectively.

With the sharp rise in share prices, the total market value of Hong Kong shares and A-share clothing sector also exceeded 1.2 trillion yuan.

Different from the dismal picture of many enterprises' net profit being cut short last year, a large number of stores were forced to close and their arms were broken for survival. In the first half of this year, the performance of many clothing brands broke out, and the growth rate of net profit far exceeded the growth rate of revenue. In the Hong Kong stock market, 21 enterprises, including Li Ning (02331. HK), Anta (02020. HK) and urban beauty (02298. HK), had a net profit growth rate of more than one time during the reporting period; During the reporting period, the number of A-share plate's net profit growth doubled also reached 15. Among them, the net profit of children's clothing leader Senma clothing (002563. SZ) soared nearly 30 times in the first half of the year, which was mainly due to the sale of kidiliz and the recovery growth of sales.

In the first half of this year, the net interest rate of the clothing sector of Hong Kong stocks was 13%, an increase of 6.6 percentage points over the same period of last year; The net interest rate of A-share clothing sector was 9.16%, with a year-on-year increase of 2.5 percentage points.

During the reporting period, the net interest rate of the clothing industry soared sharply. In addition to the recovery of consumption, it is closely related to the continuous improvement of the overall operational efficiency of major enterprises in brand upgrading, channel structure optimization and digital transformation. After experiencing the inventory crisis seven or eight years ago, "operation efficiency is the king" has become the success path pursued by major clothing brand enterprises.

By opening up online and offline channels and supply chains, and enhancing the intelligent and digital transformation of enterprises, many garment enterprises have increased their online revenue, decreased the proportion of various expenses, and continuously improved the discount terminal, thus increasing the net interest rate. Taking taipingniao (603877. SH) in the field of leisure clothing as an example, the reform effect of taipingniao in recent years is obvious. Under the condition of large-scale income and substantial optimization of expenses, the net interest rate in the first half of this year has been greatly increased to 8.19%, with a year-on-year increase of 4.55 percentage points and a year-on-year increase of 4.09 percentage points over the same period in 2019.

Sports clothing outbreak, men's and women's wear strong

According to the nature of consumption, clothing industry can be divided into four major sub industries, namely men's wear, women's wear, public leisure and sports.

The clothing sub industries in these four areas are in different stages of development, and there are some differences in consumption structure, consumption mode and consumption psychology, which leads to different competition patterns and growth conditions in each field.

Sports market has become the most popular clothing segment in China since this year. Driven by the "Xinjiang cotton incident" and the support of sports brands Acting as the vanguard in the rise of domestic products, sports brands headed by Anta and Li Ning have risen strongly, and the market concentration has increased most rapidly.

During the reporting period, Anta, Li Ning, Tebu (01368. HK) and 361do (00361. HK) achieved high double-digit or three-digit growth in revenue and net profit. The share price has become the most eye-catching segment of Hong Kong Stock clothing sector. As of September 13, Anta's market value exceeded HK $450 billion.

It is worth noting that at the close of September 13, three of the top four clothing enterprises in Hong Kong stock market and A-share clothing enterprises are sports brands, which shows the favor of the capital market in the sports field.

As for men's wear, men's wear market is a mature field in China. Production, management, marketing, brand and other aspects are becoming more reasonable and perfect. The industry competition pattern is moving closer to the current sports market.

The scale of China's men's wear market is more than 500 billion. In this relatively mature huge market, the pattern of the strong is constantly strong. It is difficult for small and medium-sized enterprises to break through.

From the performance of men's clothing listed companies in the first half of the year, men's money is also easy to earn. In the first half of the year, the revenue and net profit of most men's wear enterprises increased to varying degrees. However, the trend of constant strength of the strong is accelerating. The head enterprises such as Hailan home, baoxiniao (002154. SZ), biyinlefen (002832. SZ) and seven wolves (002029. SZ) are growing rapidly.

Hailan home, the first brother of men's wear, has continuously expanded its product matrix, extending the brand positioning of "men's Wardrobe" to "the wardrobe of the whole family", achieving high double-digit growth in revenue and net profit. All sub brands also achieved good results in the first half of the year. The total revenue of other brands, such as ovv and Yingshi, reached 861 million yuan, up 35.92% year-on-year. The optimization of product portfolio also improved the gross profit rate and net profit rate of Hailan home during the reporting period.

The profit growth of men's wear industry is more and more reflected in the top enterprises. It is expected that the market concentration of the leading enterprises will be further improved in the future, and the industry differentiation will be more obvious.

But at the same time, some old men's wear is still not out of the quagmire. For example, sinore (now renamed "Cedar development") is hard to resist the market impact, and it has opened the tourism business expansion, and gradually stripped off the clothing business. In the first half of this year, hinour lost 3.53 million yuan and still failed to make a profit.

Women's wear market is larger, but also the most competitive field, showing a pattern of more, smaller and scattered. Under the heavy pressure of fierce competition, leading enterprises follow the trend of consumption upgrading and enter the medium and high-end women's wear or light luxury women's wear market one after another, in order to ensure profitability and seize market share in the "battle" between domestic and foreign brands. According to Euromonitor data, the retail sales of high-end women's wear in China's women's wear market will reach 22.9% in 2020, with an increase of 0.5% in four years.

In recent years, women's clothing enterprises such as winner fashion (03709. HK), luczy (002612. SZ), Desu fashion (603587. SH) and other women's clothing enterprises have achieved outstanding sales in recent years. Among them, the revenue of the fashion women's clothing business of langzi shares increased by 60.55% in the first half of the year, driving the total revenue growth of 45.6%.

However, the net profit of La Chapel (06116. HK) after deducting non recurring profit and loss for three consecutive accounting years (2018-2020) is negative. The data shows that in the first half of 2021, the company's operating revenue reached 278 million yuan, a sharp decrease of nearly 80% over the same period of last year; The net loss in the first half of the year was about 240 million yuan, which still failed to turn the deficit into profit.

Taipingniao (603877. SH), SEMAR clothing (002563. SZ) and Meibang clothing (002269. SZ) are the main leisure clothing listed companies. Taipingniao and SEMAR clothing, the two leading enterprises, recovered significantly in the first half of the year, and their profitability increased rapidly. By focusing on fashion clothing and increasing the size of online retail, the brand strength and product strength of these enterprises have been significantly improved.

Each sub industry of China's clothing market is in different stages of development, but under the trend of consumption upgrading, high quality has become the direction of transformation of major brands. The "Xinjiang cotton incident" and the background of the rise of domestic products show that the vitality of China's clothing market is not decreasing. In the face of international brands, the product power and brand power have been significantly improved, and consumers are more and more willing to pay premium for the quality and brand products.

From the performance and business data of the clothing industry in the first half of the year, the competitiveness of leading enterprises in each sub industry has been continuously enhanced, and the scale brand has formed a complete product matrix covering from high-end to public, and has gradually won the recognition of the Chinese people. This is also a sign that domestic products and international brands are competing in the domestic market on the same stage. In this era of the jungle, high-quality sub industry enterprises deserve our continuous attention.