Clothing Industry In Zhejiang: A Window To Observe The Clothing Industry

The clothing industry under the haze is also attractive.

At the end of October, the Chinese designer brand Jiangnan cloth clothing from Hangzhou was listed in Hongkong. This is the first Chinese designer brand in Hong Kong.

The survival state of the two garment enterprises reflects the current situation of Zhejiang's clothing industry to a certain extent, and it is also a window to observe the clothing industry.

Metersbonwe, a leading Chinese fashion retailer, has been losing money and has closed more than 1500 stores in 3 years.

The listing of Jiangnan cloth clothing has led to many speculation in the market.

In the publicly issued prospectus, the company makes the following statement for the purpose of raising funds: it will improve the supply chain and logistics infrastructure to optimize product replenishment, delivery coordination, inventory and quality control.

For example, a new logistics center with a total construction area of 90 thousand square meters is expected to have an annual sorting and distribution capacity of about 12 million 800 thousand products, with a total capital expenditure of about 319 million yuan.

It is easy to see that the logistics center in this plan is aimed at

The big problem: high inventory.

For garment enterprises, inventory is always one of the main pain points.

In the third quarter of this year, the inventory balance of Zhejiang newspaper bird bird clothing Limited by Share Ltd was 1 billion 80 million yuan, which is nearly 30 million yuan more than that of the end of 2015.

Public reports show that Metersbonwe, a leading domestic fashion retailer, has been beset by high inventories for several years.

The annual report shows that in the first half of 2016, the loss of US bond apparel inventory fell to 118 million yuan, an increase of about 68% compared with the same period last year, and the turnover days of inventory also rose from 149 days in the same period last year to 185.26 days in the first half of 2016.

Since its first loss in 2015, the United States has not been able to get out of the shadow of losses.

In the three quarter of 2016, the results showed that the operating income of the United States was 4 billion 711 million yuan, an increase of 8.83% over the same period last year. Net profit -1.54 billion yuan, 12.73% less than the same period last year.

Face

Overloading, clothing enterprises to deal with not many measures, closing poorly managed stores are more common.

By comparing the data of the annual report, the reporter found that only in the first half of this year, the number of shops under the wedding bird line dropped by more than 90.

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The number of stores has dropped from 5220 in 2012 to 3700 in 2015, according to the announcement.

Over the past 3 years, more than 1500 stores have disappeared.

In addition to closing stores, discount sales are also a traditional practice for most garment enterprises to inventory.

A reporter's visit found that the annual sale of Mei Bang clothing will be sold to inventory, with some discounts as low as seventy percent off. Some of Lining's products are also less than half off in outlets outlets.

For this way to clean up inventory, industry analysts believe that a big price for celebrity endorsements, but if the discount is rampant, brand image is likely to be affected.

Since 2010, due to the sluggish demand, inventory backlog has been a deadlock in the apparel industry.

For garment enterprises, product backlog not only takes up the company's operating capital, but also increases the management cost and profit cost of the company, lengthen the turnover cycle of the product, thereby reducing the overall profit of the company.

The overall profitability of domestic garment enterprises is not good enough due to inventory.

Reporters combed red beans, YOUNGOR, Semir, Meyer, seven wolves and many other apparel industry listed companies released the three quarter of 2016 earnings report, 5 well-known clothing enterprises, only 1 achieved a double growth in business revenue and profits.

Among them, red beans realized business income of 1 billion 740 million yuan, an increase of 0.46% compared with the same period last year; Semir apparel realized business income of 7 billion 124 million yuan, an increase of 15.47% over the same period last year; the business revenue of Meyer reached 302 million yuan, down 11.14% compared to the same period last year.

"The overall trend of clothing is coming down, and the whole world is facing the problem of overcapacity."

Li Rucheng, chairman of YOUNGOR group, said recently in an interview with reporters.