What Is The Reason Why Textile And Garment Sector Ranks The Top This Year?

The structural change of demand side of textile and garment industry is very obvious. The company that holds structural change will have good performance.

Aiming at next year's textile and garment sector, we can grasp three main lines, sports consumption brought by demographic changes, and pformation of her economy and business.

However, investors should also pay attention to the two major risks, the impact of cotton prices and the long-term impact of the TPP agreement.

First of all, the overall macroeconomic background, a major domestic trend is the extensive expansion of channels is very serious, we not only have department stores and shopping centers, the supply of offline channels itself is over; at the same time, there are still a lot of highly competitive online business platform.

Therefore, in this case, we deeply feel that brand is king in the process of channel expansion, that is, a brand may be contended by multiple channels under the online and offline channels, and its entire profit and performance will be relatively better.

Second, there are also some structural changes in the whole brand clothing sector.

For example, we look from the whole world, like sports Nike, Adidas, and many others.

"Brands are all very popular, and some leading brands in mainland China have achieved great success. Compared with traditional brands, their typical characteristics are: inventory turnover is very fast and the rate of markup is low.

The rate of increase is an important index for us, which is equivalent to the retail price divided by its production cost.

In this multiple, the traditional brands need to turn around for two hundred or three hundred days, and then the rate of increase is 5-8 times. But the leading brands who operate under the new mode may have 100 days' turnover, and the increase rate is only 2.5-3 times, for example, the production cost of 100 yuan is sold to consumers only 250-300 yuan.

From the perspective of global consumption trends, young people prefer brands with high cost performance, fast fashion and leisure sports.

If we speak

Or the structural changes I have just mentioned.

In the past, China has gone through such a stage, especially in the 2004 and 2005, when the department store industry was particularly prosperous. At that time, if a suit price was 999 yuan, it was not easy to sell, and 2 and 3 were sold in front of it. Even some of the western-style clothes sold in history were sold by tens of thousands of yuan. At that time, the clothing consumption preference was "not expensive or not", because at that time there were no smart consumer goods such as smart phones and so on.

Embodiment.

But now, the real change in the demand side is that young people want to spend less money on more styles.

Young people will make purchase decisions in three aspects: first, the price, the price must be low, then the quality is better, the two aspects are cost-effective, and another factor is fashion.

It must be said that clothing consumption demand has increased substantially. This is not true, but its structural change is very obvious.

Companies that grasp structural changes have good performance.