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2012 Textile Market: Investment Opportunities Brought By Consumption Upgrading And Consumption Fashions

2011/12/28 9:00:00 18

2012 Textile Market Consumption Upgrade Fashion

Growth comes mainly from raising prices.

In the context of shrinking external demand and high domestic inflation, textile and garment exports in the first three quarters,

Domestic trade

The growth rate is around 23%, and the driving force for growth is mainly from raising prices.

The negative impact of price increase on volume increase is obvious, from the perspective of shifting cost and terminal pricing ability: (1) domestic trade is better than export; (2) clothing home textile enterprises are better than textile manufacturing enterprises.

This fully illustrates the two breakout directions of domestic garment enterprises: independent brand and domestic demand market.

As a matter of fact, domestic clothing brands are mainly priced at medium prices, and there is still much room for upgrading the first and second tier brands that have entered the domestic market.

The effect of raising prices and upgrading is not good enough to show that consumers do not recognize the connotation value of domestic clothing brands.

Be willing

To pay too high a brand premium.

The revolution has not yet been successful, and brand clothing enterprises still need to work hard. In the first three quarters of the first quarter, the performance of home textiles, public leisure, men's wear and women's wear brand enterprises has been promoted under the background of further urbanization, gradual upgrading of consumption and individualism of fashion.

eye-catching

Good fundamentals and certainty of growth are also the main reasons for investors to favor the home textile market.


Through the four dimensions of domestic and foreign demand, industry policy and labor cost of raw materials, we conduct a SWOT analysis of the textile and garment industry. We believe that industry opportunities outweigh risks in the future. Our view is short term prudence and medium long term enjoyment.

In 2012, the macro-economy declined slightly, the nominal consumption growth rate will decline. We predict that the increase in clothing sales will be relatively mild. Based on the direct proportion of clothing price index and CPI, CPI will decline in 2012 compared with the same period, and clothing brands do not have substantial reasons for raising prices. Because of this, we will have a relatively normal performance in 2012.

Supply side, we understand that a number of enterprises 2012 spring and summer orders will show a trend of volume and price rise.

Therefore, we are worried that the optimism of enterprises may encounter cold reception in the consumer market next year. Too much inventory will lead to a lot of effort in inventory digestion.

It is estimated that the growth rate of garment industry will be around 15-18% in 2012.


Suggestions are focused on: (1) benefiting from the upgrading of consumption, the jewellery category with the value of preservation and appreciation: Chao Hongji.

(2) in recent years, consumer fashions and individualism are gaining popularity. Men are increasingly willing to spend time, energy and money to care for themselves.

Because men's clothing industry needs better market demand, and men's clothing arrangement is less volatile, and brand clothing is the highest stability, the smallest fluctuations in the sub sectors.

Therefore, we recommend a brand name for men's clothing with wider brand influence and endogenetic extension of two wheel drive: seven wolves and Hinur.


(3) benefiting from the further progress of the urbanization process, the income level of the middle and low income persons has improved and improved in recent years. In the future, increasing the income of the middle and low income groups is the key content of the central and long-term economic work in the central and long-term areas, aiming at expanding domestic demand from the increment.

The market has also proved to us that the sinking of the channel does not mean that products should be allocated with low prices. The consumption potential of the three or four tier cities needs to be developed.

We recommend the mass leisure target with the first advantage in the three or four line cities: search for special.

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