Don'T Let Stock Pile Up Your Clothing Store.

There is such a "laughable talk": even though all the garment enterprises in China are now discontinued, it is only in the warehouse that they can at least sell the clothing sales enterprises in the country for 3 years.

The seriousness of the problem of overstock in clothing industry is evident.

"If a garment company earns money, it is

Statistics show that in 2010, China's clothing inventory reached 20% of the production volume, about 15 billion, and the annual growth rate remained at 10%.

According to the forecast of normal growth rate, there will be 17 billion pieces of garment tail cargo in 2011.

Because of the obvious seasonal and fast updating of clothing products, how to deal with increasing inventory has become one of the most headache problems for the clothing industry.

If the product is overloaded, it will not only occupy the company's operating capital, but also waste manpower and material resources. It will also increase the management cost and profit cost of the company, lengthen the turnover period of the product and reduce the overall profit of the company.

Low price

In the sportswear market, many enterprises are experiencing high inventory nightmare. Adidas, MP, Lining, XTEP, China trend and other sports brands are investing a lot of manpower and material resources to clean up.

Lining and America are suffering from inventory problems.

Inventory is beset by far more than Li Ning Co. High inventory nightmare is still spreading in the industry.

The international sporting goods brand Adidas reported in the second quarter of 2011 that its net profit for the quarter was 140 million euros ($200 million), an increase of 11% over the previous year, which is better than analysts' expected 137 million 300 thousand euros.

Sales in Adidas Greater China amounted to 552 million euros, up 37% from 403 million euros last year. Excluding exchange rate factors, it grew 38% over the same period last year, ranking first in Adidas's six largest market.

Adidas executives stressed that Adidas's inventory in China has recovered to a healthy level.

In 2008, as a sponsor of the Beijing Olympic Games, Adidas was too optimistic about the market.

But what is dramatic is that Lining seems to have encountered Adidas's post Olympic inventory problem.

Long term occupation of local sporting goods boss's throne has also been lost due to inventory trouble.

The semi annual report released by Li Ning Co on 24 showed that the stock amount was 992 million yuan, while the stock amount at the end of 2010 was 806 million yuan, and the stock amount increased by about 200 million yuan.

In the first half of this year, Li Ning Co revenue was 4 billion 290 million yuan, down by 5% compared with the same period last year.

In the first half of, the turnover increased by 4 billion 450 million to nearly 30% and net profit to 930 million yuan.

In terms of revenue and profits, Lining was Anta.

Data show that Lining accounts receivable time this year increased by 20 days compared with the same period last year, inventory turnover days may increase by about 25 days.

In 2010, the average period of trade receivable for the company was 52 days, with an average turnover period of 52 days.

That is to say, the products sold by dealers can not be sold, they become inventories, funds can not be recovered, and there is no money to buy Lining's new products, which leads to a decrease in the income of Lining in the new financial year.

Excessive inventory pressure on the company has become increasingly prominent, inventory problem has become the death point of Lining's performance growth.

Zhang Zhiyong, President and CEO of Li Ning Co, admits that this period of time has been particularly difficult. In the next two to three years, it will be a pitional period.