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Optimistic About Business Men'S Clothing With Competitive Advantages

2011/4/28 19:21:00 74

The report on the prosperity index of the apparel industry shows that in the first quarter of 2011, the prosperity index of China's clothing industry was 99.4 points, down 0.3 points from the previous quarter, and the apparel industry early warning index was 120 points, 6.7 points lower than the previous quarter, and the prosperity and early warning index all declined.

Specifically, in terms of external demand, according to customs statistics, from 2011 to March, the total export volume of textiles and clothing reached US $48 billion 600 million, an increase of 24% over the same period last year, and the growth rate increased by nearly 10 percentage points from 13.6% to 1 in February 1.

Among them, clothing and accessories exported $28 billion 460 million, an increase of 18.4% over the same period.

Data show that since 2010, China's textiles

Fabric export

The growth rate has always been higher than that of clothing.

We believe that although the cost of labor in China is rising, some of the labor intensive and low value chain production processes such as garment processing are being pferred, but the industrial chain links such as fabrics remain at home.

Since the beginning of this year, domestic and foreign brand clothing enterprises have increased the strength of overseas foundry production. Some of them have been exported to Southeast Asia to make garments and then sell them to Europe, America, Japan and Korea.

After years of development, the international competitiveness of China's textile export commodities has shifted from relying solely on labor cost advantages to high-quality labor, good infrastructure and sound industries.

Matching

And the strong competitiveness of design and R & D will change the overall competitiveness of exports.

In the first quarter of 2011, the consumption recovery of foreign economies led to China's clothing industry.

foreign trade

The situation is improving.

Exports to the US market are better than expected, and exports are expected to shift from last year's growth to last year's price increase.

The US manufacturing PMI index rose for the six consecutive month, and the US consumer confidence index hit a 3 year high in February 2011.

The major retailers in 2011 are deliberate to increase the cost by raising prices. It is expected that the price of clothing will increase in the next few months.

The increase in the retail price of American Apparel will bring positive benefits to China's clothing exports.

In addition, the recent high cost of cotton prices, the appreciation of the renminbi and the rise in the cost of labor will lead to the overall development of the industry. Some enterprises will be more affected, and large enterprises will show more advantages, and the degree of concentration will increase.

In terms of exports, cotton prices have become an important factor in the trend of the garment industry.

At present, small businesses in the industry are affected by the high cost of raw materials and the shortage of labor force. There are some difficulties in their operation. However, large enterprises have the ability to raise prices, the income can grow rapidly, and the gross profit rate can be relatively stable.

In terms of domestic demand, from 2011 to March, the retail sales of clothing, shoes and hats and knitwear in China's department stores above designated size were 201 billion 390 million yuan, up 22.3% from the same period last year.

Influenced by factors such as the cost of raw materials such as cotton, yarn, cloth, chemical fiber and so on, the price of clothing products has been generally raised, and some consumers' desire for consumption has been suppressed.

Therefore, the domestic sales of clothing industry in China continue to grow, but the growth rate has slowed down.

We expect that the sales volume of the whole clothing retail terminal will not increase greatly this year due to the rising cost and driving up the price of the products.

Looking forward to the two quarter, we are optimistic about the development of men's wear industry.

Due to the driving factors of profit growth and the competition pattern of different industries, the relative price of sportswear and casual wear is relatively low. The products of this category depend on volume and are vulnerable to foreign brands. At present, competition is in the Red Sea area. Business casual men's clothing is relatively high unit price, which can digest cost pressure and promote gross profit margin. The brand is also strong in China, and the competition pattern is in the blue ocean area.

At present, we believe that business casual men's clothing and high-end high-end home textiles have strong profitability.

Generally speaking, the brand strength of men's clothing industry is relatively strong, the impact of foreign brands is small, the gross margins of products are generally high, customers are stable, and the price sensitivity is not high.

In addition, in 2010, for men's clothing industry in China, it was the beginning of many adjustments.

With the pformation of industrial background and market environment, there are some new trends in men's clothing industry: industrial capital flows to large enterprises and large enterprises take the means of industrial resource reorganization, brand innovation, diversification of channels, and expansion of financing to improve their competitiveness. At the same time, they begin to explore various modes such as industrial chain cooperation, brand cooperation, and so on.

The recent adjustment of several men's clothing brands shows that the trend of China's men's clothing industry is prudently promoting multi brand strategy, developing towards internationalization and high-end, and further enhancing the overall brand image and influence.

It is expected that this brand strength will eventually be reflected in the rise of the company's valuation level.

Therefore, on the whole, we expect that the profitability of each garment industry will be divided, and the profit of men's clothing, especially business casual men's clothing, will be better than others.