Men'S Clothing Industry: Market Capacity Continues To Grow

Judging from the recent performance forecast of annual reports, the performance of men's clothing industry listed companies such as wedding birds, seven wolves, and nine Mu Wang has increased significantly, and is expected to become a continuously active variety in the two tier market.

　　 Market capacity continues to grow

According to data, 2009 Senior men's wear The total retail sales amounted to about 58 billion 910 million yuan, and the average annual compound growth rate reached 26.1% in 2003~2009, indicating the rapid growth of the domestic senior men's clothing market.

Moreover, the domestic high-end men's clothing market capacity is still in the rapid expansion cycle. This is due to the rapid expansion of the number of middle class in China. In 2008, the number of middle class has reached about 85 million 500 thousand people, mainly in economically developed areas such as Beijing, Shanghai, Guangzhou and Shenzhen. The number of middle class in two or three tier cities is also increasing rapidly. It is estimated that by 2011, the number of middle class will increase to 104 million and the annual compound growth rate will be 7%. On the other hand, with the continuous improvement of the per capita national income level, the sensitivity of consumers to clothing prices has been declining, and the awareness of brands has been constantly improving. Choosing clothing has become a way of life that people pursue higher quality of life and highlight personal taste.

　 Brand advantage speed up quality stocks

From the present China Men's wear market A strong quality of brand consumption has emerged, and the quality of listed companies with brand advantage is expected to grow faster.

This has also been corroborated by two messages.

First, the improvement of industry concentration is beneficial to the listed companies with brand advantages. In 2010, the market share of the top ten brands of Chinese men's wear was 8%, while that of the United States and Japan reached 14% and 24% respectively. According to the statistics of China Business Information Center in September 2011, the concentration of the top ten brands of men's trousers is 33%, the concentration of the top ten brands of men's suits is 37%, the concentration of the top ten brands of men's shirts is over 40%, the sporting goods market is only 1/3 for men's clothing, but the market concentration of the top ten brands reaches more than 70%. Thus, compared with the sporting goods market, men's clothing industry is not yet saturated, and the market share of major brands is expected to improve, which is conducive to the rapid growth of the quality of listed companies.

Two, a listed company with brand advantage is expected to benefit from the upgrading of the consumption capacity of the two or three tier cities. According to Nelson consultation, there are 54 million households in China's second tier cities, with an estimated total income of 2 trillion yuan. In contrast, the number of households in the three or four line cities is as high as 160 million, with an income of 1 trillion yuan. The men's clothing industry listed companies are mostly located in the middle and high-end, and the layout of the two or three line cities will obviously benefit from the consumption upgrading of these cities in the future.

The performance data of relevant listed companies should also demonstrate this trend. The news bird expects net profit in the year 2011 to grow 35%~55% compared with the same period last year, net profit in 2010 was 2 billion 428 million 670 thousand yuan, and the seven wolves expect net profit of 410 million yuan in the 2011 year, an increase of 44.87% over the same period last year. The net profit of 2011 is expected to increase by 20%~50% compared with the same period last year, and the net profit last year was 143 million 644 thousand and 100 yuan.

　 Attracting funds from high growth

　　 Financial game model It has been shown that the chips of such stocks are highly locked, and there are obviously long-term funds for them. Under the dual impetus of good annual report results and high expectations, the stock price will rise again. In the process of operation, it is suggested that we should actively pay attention to the stocks of king, the seven wolves, the nine herd kings and the good news birds.