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Inflation Background, Optimistic About The Ability To Raise Men'S Clothing And Home Textile Companies

2011/4/27 14:47:00 97

Inflation High Price Background Textile And Clothing

March plate performance review: overall slightly win over the market, textile performance is stronger than clothing.

Textile and clothing

(first class industry) in March, it won 3.5 percentage points for Shen Wan A, of which the textile (two level industry) outperformed the Shen Wan A index by 6.9 percentage points, and the clothing industry (two class industry) won the 0.2 percentage points of Shen Wan A.

April point of view: a quarterly market + orders will be expected, clothing home textiles is expected to rebound.

It is estimated that the growth rate of textile and apparel products in 2011 will be around 33%. Recently, the valuation of brand clothing enterprises has returned to a low level of 25 times. A quarterly report is growing faster and orders will be expected to become a catalyst for the two quarter garment home textile industry rebound.

From the perspective of sub sectors, this year's pressure on raw material cost increases the price of terminal products. We are more optimistic about the high-end business casual men's and home textiles with high price, high unit price, and less sensitive to customers.

In April, we recommend a man who has a higher quarterly growth rate and a better expected men's clothing and home textile company, including seven wolves, wedding bird, Roley home textiles, fuanna and Meng Jie home textiles.

Industry Outlook: we estimate that when CPI continues to run high for a period of time, when the value approaches or exceeds 4, it will have crowding out effect on mass clothing consumption.

This is reflected in the fact that even if the income of residents increases, a greater proportion of them will be used to buy the necessary consumer goods that have risen in price, and the proportion of expenditure on alternative consumer goods will be reduced.

As the optional consumer goods, clothing has a certain "extrusion" relative to the necessary consumer goods, such as food and daily necessities.

In the main text of the report, we draw a picture showing that CPI value 4 is the dividing point, and there is a reverse relationship between the clothing consumption expenditure of urban residents and the growth of food consumption expenditure.

stay

High price background

Below, the profit growth of business casual men's clothing and medium and high-end home textiles is increased by raising the gross profit margin, and because the consumer groups have gift giving needs, they are not sensitive to price.

We expect that, under the high background of CPI this year, the sales growth of the overall clothing retail terminal will not be greatly increased after the higher cost increases the price of the product.

From the perspective of thin molecule industry, the driving factors of profit growth and the competition pattern of industries are different. In the report text, we have drawn a quadrant diagram with "coordinate volume and price increase" whether the brand is affected by foreign brands.

We find that sportswear and casual wear are low in price and mainly depend on volume growth, and are more impacted by foreign brands. At present, competition is in the Red Sea area, while commercial casual men's clothing and high-end high-end home textiles have higher unit price, which can increase the cost pressure and gross profit margin through raising prices, and brands are also more competitive in China, and the competition pattern is in the blue ocean area.

Clothing and home textile income grew more and more in 2010. In 2011, a large part of the increase in clothing and home textile income was due to price increases.

At the lower stage of CPI, we anticipate that sports and casual wear can rely on the rapid growth of sales volume to make the profitability stronger. In the CPI period, the business casual men's clothing and the high-end high-end home textiles have higher profitability.

CHIC Exhibition

Revelation: in 2010, for men's wear industry in China, it was the beginning of the N entrepreneurship.

At the end of March, we participated in the China International Clothing and accessories fair. We inspected men's wear, women's wear, children's wear, casual wear, leather and fur and other exhibition areas. What impressed us most is the men's wear exhibition area. In the main body of the report, we also attached pictures of the brand terminal exhibition hall at the exhibition.

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 competitiveness, explore industrial chain cooperation, brand cooperation and other modes; and the brand concentration of domestic market is further improved.

From the recent seven wolves to buy Hangzhou Kenna, set foot in the luxury brand; the news bird chose to invest in some clothing companies abroad, and indirectly engaged in international brand agents; YOUNGOR rebuilt the six brand series of clearer categories. We found that the current situation of China's men's wear industry is to promote the multi brand strategy cautiously, to develop towards internationalization and high-end, and further enhance the overall brand image and influence.

It is expected that the improvement of this brand will ultimately be reflected in the rise in the level of corporate efficiency and valuation.