Analysis on the Development Situation and Prospect of China Garment Industry

Guidance: The external factors in the industry are expected to improve in 2016. Cotton prices and international crude oil prices remain low, helping to maintain the stability of corporate costs; *** Devaluation is expected to benefit export-oriented enterprises, industry leading overseas production capacity will enable the industry to upgrade from low-cost advantages. To the advantage of the industrial chain. In addition, the industry's “Thirteenth Five-Year Plan” will encourage smart manufacturing and industrial fiber usage to continue to grow, and leading companies in the sub-industry are expected to usher in improved performance.

The sports industry will be one of the main directions of industrial transformation. With the introduction of more market-oriented measures in the sports industry, it is estimated that by 2025, the total size of the sports industry will exceed 5 trillion yuan, and the sports industry will usher in a golden decade. At present, the growth in the production and sales of sporting goods, clothing, shoes and hats has slowed down, and the high-value-added, high-margin sports service industry (upstream game resources and media distribution in the middle reaches) has been in a long-term slump. Traditional sports apparel companies need to find breakthroughs, and integration of upstream resources in the industry chain will be the future development trend. In the face of considerable market prospects, apparel brand companies are accelerating the distribution of children's clothing industry. Most of the existing industry leading brands are in a healthy development stage driven by both expansion and endogenous growth and endogenous growth. With the increasing emphasis on safety, comfort, certain fashionability and compatibility with the purchase of children's wear, industry share is gradually being concentrated on brand leading companies.

Judging from the basic panel block rotation, the sub industry adjustment order is generally sports shoes, casual wear, home textiles, men's shoes, men's wear, high-end men's wear and women's wear. At present, the sub-sector has reached the men's wear industry. It is expected that the bottom-line performance of the menswear industry will be more flexible in 2016. The female underwear and baby industry is still in a stage of rapid growth. The high-end men and women's wear is at a low level and needs to be revived.

The development of industry companies presents two major trends. The first is the integration of channels, the flatter channels, and the increased supply chain efficiency. Followed by the platform, from heavy assets to light assets, becoming resource integrators rather than producers, becoming a platform for connecting suppliers and distributors to fully increase resource utilization.

M&A transformation will continue

The sports industry will be one of the main directions of industrial transformation. With the introduction of more market-oriented measures in the sports industry, it is estimated that by 2025, the total size of the sports industry will exceed 5 trillion yuan, and the sports industry will usher in a golden decade. At present, the growth in the production and sales of sporting goods, clothing, shoes and hats has slowed down, and the high-value-added, high-margin sports service industry (upstream game resources and media distribution in the middle reaches) has been in a long-term slump. Traditional sports apparel companies need to find breakthroughs, and integration of upstream resources in the industry chain will be the future development trend. In the listed companies, many companies such as elegant birds have laid out their sports industry in various directions. The data shows that 66% of residents participate in sports every week, and the proportion of people who exercise each day has reached 14.8%. Running participation was the highest, followed by badminton, and football with the most fans resulted in lower participation due to venue restrictions.

The basics of the children's wear industry are significantly better than those of other sub-sectors. With the birth peak, the full liberalization of the second-child policy and the increase in the overall disposable income of residents, the willingness to consume children's clothing has gradually increased. According to the 2012-2015 Children's Wear Industry Report released by the National Bureau of Statistics, the annual growth rate of the total output value of the children's wear industry reached 25% to 30%. The market capacity of China's infant clothing and cotton goods and daily necessities is expected to reach 227.98 billion yuan this year, 2017. The scale of the children's wear industry will exceed 300 billion yuan. With the further increase in industry concentration, SMEs are gradually phased out, resources are gathered to leading companies, and core competitiveness is improved. It is expected that the CAGR of children's wear in the next three years will exceed 20%, and it is expected that by 2017, the children's wear industry will have a market size of close to 300 billion yuan.

The “her economy” surrounding the huge consumer market for women is another transformation hotspot. According to statistics, the current domestic female consumer groups have reached 480 million people. As the main force of the consumer market, the female group shows higher consumer expenditure elasticity and purchasing enthusiasm in the rising stage of disposable income and social status. In terms of sub-sectors, the growth and investment opportunities in the clothing, underwear, cosmetics, medical cosmetology, tourism, jewellery and other markets among female consumer products are higher than those of essential consumer goods and will become one of the major growth drivers for the optional consumer industry. In addition, the rapid development of the Internet has also given birth to "her economic" business model innovation. In the next five years, the mass market for female casual wear will achieve a compound growth rate of 8.1%, and the market size is expected to reach about 200 billion yuan in 2019.

For cross-border e-commerce, online shopping categories mainly focus on clothing and footwear. According to data from the China Electronic Commerce Research Center, China’s cross-border e-commerce transactions in the first half of 2015 were 2 trillion yuan, a year-on-year increase of 42.8% and a penetration rate of 17.3%. In the current downturn of import and export trade, cross-border e-commerce shows a booming trend. In the past five years, the scale of cross-border e-commerce transactions has rapidly expanded from 0.84 trillion yuan to 3.75 trillion yuan, with a compound growth rate of 34.88%. The penetration rate has also increased from 4.0% to 14.2%, and it is expected to continue to improve in the future. Analysts pointed out that the industry is still in an early stage of development and is expected to be one of the important directions for the transformation of related companies.

Multiple benefits improve performance

After many years of development, high-end textile manufacturing enterprises have accumulated advantages such as production scale, supporting system of industry chain, research and development capabilities, and a large number of customers. Under the strong dollar background, the industry's exports will obviously benefit from the depreciation of *** and the short-term competitiveness brought by depreciation. Enhanced (price advantage) helps increase the volume of export orders. On the other hand, in the context of depreciation of the local currency, exchange gains and losses resulting from the settlement of orders in U.S. dollars will increase company performance. Companies with relatively large export business in the industry, stable orders, and high gross profit margin of the main business will benefit first. In addition, the continuous increase in domestic labor costs is also accelerating the pace of the textile manufacturing industry. It is expected that the shift from the low-end production capacity of the industry's leading players to Southeast Asia in 2016 and overseas mergers and acquisitions seeking to achieve tariff and low-cost advantages will continue.

The low cost of the textile and chemical fiber industry in 2015 is expected to benefit the industry leaders in 2016. In 2015, with the temporary cotton purchasing and storage policy withdrawing from the historical stage, the average cotton price dropped drastically from around 19,000 yuan/ton in the era of storage and storage to around 14,000 yuan/ton, and international oil prices also fell in a cliff-type manner, which caused some early purchases. A large number of high-priced raw materials companies are in a situation of losing sales. The performance in the fourth quarter of 2014 and the first quarter of 2015 was at a low point. With the completion of high-value inventories, industry costs are expected to improve in 2016.

Most segments of textile and apparel industry have a large market space, but the threshold is low, there are many small and medium-sized enterprises, and the competition is fierce. Changes in the business climate will significantly affect the profit level. The limited scale of revenue and profit leads to a high percentage of small-cap companies in the industry. As of January 6, 2016, 22 textile and apparel companies had a market capitalization of less than RMB 5 billion and 31 companies had between RMB 5 billion and RMB 10 billion. There is an abundance of transitional targets and potential shell resources.

The performance in 2016 is more optimistic. First of all, the possibility of worse fundamentals is very small. In the context of rapid Internet development, continuous consumption upgrades, and global flat development, the textile and apparel industry has emerged many new trends and new themes in its industrial development. Traditional products The consumer thinking has been fully expanded into the new consumer thinking of “product + service”, and the development space of the industry and the company is further opened. In 2016, the textile and apparel industry will have more investment opportunities in the new consumption trend of “New Trends + New Normals”.


Report details page: http://service.made-in-china.com/market-analysis/industry-analysis-report/650264.html
More reports: http://service.made-in-china.com/market-analysis/industry-analysis-report-1.html