A Lot Of Inventory Has Become The Fatal Weakness Of Clothing Enterprises.

Inventory will swallow up

Many garment enterprises are under great pressure for the profit margins of enterprises.

According to flush iFinD data, 39 home textile garments were counted by Shen Wan industry. As of the first half of 2012, there were 34 home textile and garment enterprises with a stock exceeding 100 million yuan, of which 5 home textile and garment enterprises stock exceeded 1 billion yuan.

The amount of inventory directly causes the cash flow of garment enterprises to be tight, and enterprises are hard to turn around, which leads to crazy sales promotion by means of "price war", "promotion war" and "inventory war".

Inventory has become a stubborn disease of clothing enterprises, it is difficult to get rid of.

China's economic grassroots research -- 24 trillion, where to spend? Clothing home textile industry survey.

Home service enterprises in the first half of this year inventory exceeds 2011 full year

Nowadays, a large amount of inventory has become a fatal weakness of clothing enterprises.

Some fast developing garment enterprises are also difficult to develop by high inventory bundling.

Mr. Zhang, a dealer in a clothing store, told the twenty-first Century net: "this year's clothing is particularly difficult to do, and the stock has not caught up until the end of the year."

It is reported that the inventory and sales ratio of some garment enterprises is generally 8:1.

It is also hard for them to resist the inventory of clothing listed companies.

According to flush iFinD data, 39 home textile garments were counted by Shen Wan industry. In the first half of 2012, inventory exceeded YOUNGOR, Hong Kong stock, China group and United States.

Semir apparel inventory exceeds 1 billion yuan.

YOUNGOR, Hong Kong Group, China group, Mei Bang dress and Semir apparel in the first half of 2012 were 23 billion 761 million yuan, 3 billion 840 million yuan, 3 billion 381 million yuan, 1 billion 753 million yuan, and 1 billion 473 million yuan respectively.

The stock of 29 home textile and garment enterprises, such as Shanshan stock, wedding bird, nine herd king and seven wolf wolf, are between 1-10 yuan, and the remaining 5 enterprises are less than 100 million yuan.

From the inventory level in the first half of 2012, we can see that in the face of increasingly accumulated inventory problems, the high inventory will seriously affect the capital turnover and continuous operation of enterprises.

Over the past few years, clothing listed companies have seen an increasing inventory every year. Especially in 2010 and 2011, the inventory of garment enterprises has been increasing exponentially.

Semir clothing in 2007 -2011 inventory of 285 million yuan, 543 million yuan, 581 million yuan, 1 billion 34 million yuan, 1 billion 96 million yuan, to the first half of 2012, the stock is even faster, to reach 1 billion 473 million yuan, the end of the year is more likely to break through 2 billion yuan.

Similarly, the news bird and Semir clothing, in 2007 -2011 stock were 110 million yuan, 294 million yuan, 300 million yuan, 360 million yuan, 511 million yuan, to 2012 in the first half of 2012 to reach 658 million yuan in stock.

Like the wedding birds and Semir costumes, 24 of the 40 home textile and garment enterprises in the first half of 2012 have reached the total annual inventory of 2011, accounting for a small proportion.

An expert in clothing research told the twenty-first Century net that in 2010, consumers suddenly shifted to clothing consumption orientation. Some fast selling and fashion brands quickly entered the public view. Leisure brands and sports brands were gradually replaced, and the brand of fast selling domestic products in China in the past two years has continuously entered China, which has an impact on the mainland's clothing brand market.

Moreover, the threshold of clothing sales is very low, and many people are engaged in the industry.

Based on the above reasons, we can see that 2011 to now, there is no reason why domestic clothing enterprises are crying out loud.

Consumption decline, turnover too long, causing explosion

High inventory is one of the most fatal reasons for garment enterprises. The extension of inventory turnover days also represents a microcosm of clothing enterprises' inventory.

According to the flush data, the 39 companies in shwan industry statistics are home textile garments, and the inventory turnover days in the first half of 2012 are more than 100 days in 30 companies.

The top three listed companies with the longest inventory turnover were ST Rey B, YOUNGOR and Hong Kong stock. The turnover days were 10843 days, 1557 days, and 1199 days.

On the contrary, the shortest turnover days were 50 days, 48 days and 40 days.

From the data point of view, in addition to several garment enterprises, the remaining garment enterprises inventory turnover days accompanied by obvious increase in clothing turnover inventory.

The stock turnover days of Kaiser stock in 2007 were 216 days, 215 days, 202 days, 264 days, 507 days in -2011, and 593 days in the first half of 2012.

Analysts in the industry say that the inventory of today's clothing industry can be sold for three years without new products.

86 families

In the apparel listed companies, 40 companies suffered negative growth in revenue and 42 net profits fell.

Semir's net profit fell by 43%.

2011 Annual report shows that Li Ning Co's inventory in 2011 was 1 billion 133 million yuan, an increase of 40.64% over the 806 million yuan in 2010.

Higher inventories increased Lining's inventory provision to 188 million yuan in 2011, a 63.48% increase over the same period in 2010.

In September 12, 2012, Li Ning Co's Hongkong Tsim Sha Tsui branch was closed early this month, which is Li Ning Co's only branch in Hongkong.

This year, there is a strange phenomenon in shopping malls and clothing stores. Clothing sales are starting to go crazy, and some fast selling brands even sell at lower prices to sell more products.

"Price war", "promotion war" and "inventory war" are constantly starting, and price wars between clothing brands are also being fired.

Change funds, and then purchase the next quarter, to ensure their own cash flow.

In the first half of 2012, the consumption tendency of urban residents in China was 65.5%, down 0.8 percentage points from the same period last year.

However, as of the end of 2012 6, clothing inventories increased by 17.4% over the beginning of the year.

With the decline of residents' consumption level, the consumption level of residents must have declined.

Mr. Zhang, the above clothing agent, said that many brands had raised their sportswear for instance at the 2008 Olympic Games. As a result, many sports costumes were already in stock after the Olympic Games ended.

Therefore, whether clothing enterprises or franchisees, must have a better grasp of fashion clothing.

"We also have a long period of inventory turnover, which is mainly due to the fact that

The volume increased, we storehouse once burst storehouse, the clothing sells not to come out, we also have no alternative. "