China's apparel industry development trend is not optimistic

October 06, 2020

China's apparel industry development trend is not optimistic In 2013, the domestic apparel industry continued to suffer from cold, the inventory was overstocked, sales growth was weak, market demand shrank, and overall industry profitability fell. Under the influence of these unfavorable factors, the domestic garment industry is struggling. At present, China's garment industry has reached an important moment of transformation and upgrading. In the future, China's garment industry needs continuous strengthening in brand building.

The change in the domestic apparel industry has come. In the future, China's garment industry faces both challenges and opportunities.

At present, the growth rate of the main business income, total profits and total taxes of the domestic apparel industry has slowed down to varying degrees. Among them, the main business income of the apparel industry in the third quarter was 379.6 billion yuan, showing a declining trend for two consecutive quarters. The apparel industry finished product was 69.7 billion yuan, which continued the seven-quarter slowdown, and the apparel industry suffered a loss of 17.0%. The total loss of loss-making enterprises was 720 million yuan.

At present, the domestic apparel industry's early-warning index is 80.0, continuing to operate in the cold “light blue light district”, and the endogenous growth of the apparel industry itself is still insufficient.

In addition, since October, with the major apparel companies have announced the results of the third quarter report, the overall performance profile of the apparel industry in 2013 is gradually clear. Affected by the overall downturn in the apparel industry, the performance of various apparel companies generally performed poorly.

Among them, Metersbonwe's 2013 third quarter results show that in January-September 2013, revenue fell by 19.9% ​​overall, and net profit decreased by 49.12%. The performance of Seven Wolf in the third quarter of 2013 showed that it achieved revenue of 2.31 billion yuan from January to September 2013, a year-on-year decrease of 8.11%. According to the third quarterly report released by the King of Animal Husbandry, revenue from January to September this year was 1.761 billion yuan, a year-on-year decrease of 1.18%; profit was 426 million yuan, a 9.6% drop. Both operating income and net profit fell.

After experiencing a long period of “off the store tide”, sports brand apparel still showed no sign of improvement. Taking 361° as an example, its operating data for the third quarter of 2013 shows that the company opened 186 new stores and closed 443 stores, and the number of stores decreased by 257. According to public statistics before this, in the first half of 2013, Li Ning, Anta, Peak, China Trends, 361°, and Xtep 6 brands closed their stores altogether with a total of 2249 stores, and 6 companies closed stores on average every day.

The garment industry is facing such a dilemma, which is caused by multiple factors, and this situation will continue in the short term. The inventory remains high, and the “de-stocking” operation continues, but the market demand has shrunk, which makes the Chinese garment industry face greater challenges.

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