High inventories in the textile and apparel industry are difficult to alleviate

For profit growth, most of the men’s wear brands have benefited from the company’s revenue growth. Seven wolves said that the main reason is the company's sales growth, cost costs are effectively controlled. The Annunciation said that it was mainly due to the increase in operating income of the company, the effect of economies of scale, and the turning point in multi-brand operations. Kanudi Road said that thanks to the company’s increased income, total profit increased.

According to Shi Hongmei, an analyst of Orient Securities's textile and clothing industry, the men's clothing brand has a strong risk transfer ability. At present, the internal management and cultural deposit of the men's clothing companies have entered a stable period, and the advantages have gradually become prominent, while the local men's brand is in the commodity structure, design and quality. Both the visibility and the visibility have improved significantly. As a result, the overall performance has grown against the trend in the downturn of the apparel industry.

Unlike menswear, the casual wear performance report has a red light. The three quarterly reports of Semir apparel show that the company’s net profit attributable to shareholders of listed companies in the first three quarters was 474 million yuan, a year-on-year decrease of 41%; the first three quarters of Smithland’s net profit was 752 million yuan, a slight increase of 0.85% year-on-year, but the quarterly net in the third quarter Profit decreased by 13.4% year-on-year.

At the same time, the home textile industry also felt a sense of chill. The three quarterly reports released by the “Home Textiles Big Three” show that, with the exception of Fu Anna, which grew by 23.96%, Luolai Home Textile only slightly increased by 1.47%, and Mengjie Home Textile suffered a loss.

Industry analysts believe that the macroeconomic slowdown is one of the important reasons for casual wear and home textile industries encountering cold. In addition, the sinking of international brand channels and the impact of online shopping have also exerted pressure on the industry.

Inventory is difficult to clear and high inventory is a pain in the industry

Inventory problems have begun to affect business operations. In the announcement, Semir said that the company's inventories increased, and the corresponding provision for inventory depreciation increased, resulting in a decline in performance; Smithland said that it is necessary to improve the quality of new store development, speed up inventory turnover, maintain a better cash flow level, and strive to gradually improve performance. .

In fact, the textile and garment industry has a long history of inventory problems, especially in sports and casual wear. Venture Group analyst Wang Ge believes that domestic apparel companies have experienced explosive growth in previous years, and strong demand from scratch has driven some companies to blindly produce, resulting in excess capacity and inventories. At the same time, “with the continuous increase in domestic production and labor costs, the industry as a whole lacks innovation and serious product homogeneity. These are also the main reasons why the apparel industry’s inventories are increasing.”

Wu Ziheng, a senior observer in the retail industry, introduced that in foreign countries, many brands are designed and produced on a weekly basis. In China, the ordering meeting is held only once every quarter, and the number of single orders is inevitably increased.

In addition, the lack of end-user demand has also led to inventory difficulties. According to survey data from the China National Business Information Center, during the Mid-Autumn Festival and National Day Golden Week 2012, the retail sales of 100 large-scale retail enterprises nationwide increased by 8.49% year-on-year, which is the first time that sales growth in the Golden Week has fallen below 10% in recent years.