The Rich In The Clothing Industry Showed Big Shrinkage In The Rich List.

With the general improvement of China's social consumption, consumers have a more profound understanding of "people rely on clothes and clothes". The number of rich people in the garment industry is also playing an increasingly important role in the "new wealth 500 rich list".

And 2012 different brands

Behind the wealth differentiation, the password for the next "clothing" road upgrading is hidden.

It is becoming more and more important for Chinese people to go out everyday.

With the rise of Lining, 02331.HK, KAPPA, Semir (002563), Mertes Bonwe (002269), seven wolves (002029), and Luo Meng, more and more rich people in the clothing industry appeared in the "new wealth 500 rich list".

The growth of wealth on the "Yi Road" and the rise of the group to create wealth are closely related to the upgrading of consumption in Chinese society.

2005 new wealth 500

In the list, "clothing and accessories, cosmetics" industry is listed, but only two rich people in the clothing industry are on the list, namely, the 76 Lining family and 91 Yuan Bairen.

Lining, a gymnast prince, founded Li Ning Co after he joined the business sea, and was listed in Hongkong in 2004.

Yuan Bairen's main asset is Zhejiang longitudinal and light textile group. Its main business is in the upstream garment industry.

The wealth of the two people in that year was 1 billion 900 million yuan and 1 billion 720 million yuan respectively.

In 2009, Zhou Chengjian, the American Apparel, became the black horse of the year, sitting on 16 billion 620 million yuan to become the richest person in the industry, and rushed into the top ten list, ranking third among the 500 richest people.

In 2011, the top two of the clothing industry was the top 4. The top four industry tycoons such as Semir Qiu Guang he, Mei bang, Zhou Chengjian, Anta (02020.HK) Ding Shizhong, Bosideng (03998.HK) Gao Dekang and so on, had nearly 100 billion.

In 2012, although the industry's richest man, Qiu Guang he's figure shrank by 40% compared to 2011, his 21 billion 380 million yuan figure was still 10 times higher than that of Lining, the richest man in 2005.

On the whole, the relative share of the clothing industry has increased significantly. The number of the rich from the textile and garment industry has reached 25. The proportion of the 500 rich has increased from 1/250 in 2005 to 1/20, and the 152 billion 200 million yuan in the 25 industry has also accounted for 4.92% of the 3 trillion and 91 billion 920 million riches in the 500 richest list.

With the prosperity of clothing rich people, the first inflection point of clothing consumption is rising. In 2003, when the per capita income of urban residents in China reached $1000, the proportion of clothing consumption expenditure began to show a significant upward trend.

According to the National Bureau of statistics, the total retail sales of consumer goods in China in 2009 amounted to 12 trillion and 534 billion 270 million yuan, an increase of 15.5% over the same period last year.

Clothing consumption increased by 18.8%, which was 3.3 percentage points higher than that of social consumer goods.

Brand benefit differentiation

Although in the short span of 7 years of 2005-2012 years, the speed of the garment industry's wealth building has seen an amazing jump, but the overall strength is strong, the differentiation of the different types of clothing brand rich people has become the biggest aspect of this clothing list.

The pursuit of "fast fashion" casual clothes and sports clothing companies which highlight the "Sports" characteristics have experienced a sharp drop in share prices and a huge plunge in their entrepreneurs' wealth in 2012.

In 2009, Zhou Chengjian, the American Apparel, took the third place of the "New Fortune 500 rich list". This is also the best place in the history of the clothing industry. However, its ranking in 2012 has dropped to 22, and its wealth has dropped from 17 billion 500 million yuan in 2011 to 17 billion 500 million yuan. The decline in the single year has reached 42.6%. Compared with the Semir, Qiu Guang and family 38.9% in the leisure wear field, the 31.3% family of the Ma Hong family has been more shrunk.

What's wrong with the United States? If we look at the performance alone, investors will be wrong.

Annual report data show that in 2011, the United States apparel business income of 9 billion 950 million yuan, an increase of 33% over the same period, net profit of 1 billion 210 million yuan, an increase of 59% over the same period last year.

Its weighted average return on net assets rose from 24% in 2010 to 33%. At the end of the year, the asset liability ratio was 54%.

In addition to the faster growth of performance, the US channel expanded further in 2011, with more than 1000 stores and a total of 4700 stores, with an increase of 27%.

More than 30% of revenue growth, 59% of net profit growth, 27% of the expansion rate of stores, why investors still do not buy? High inventory and upgrading high-end fatigue is the two main reason for market confidence.

After 2010, the stock of American barrack went up all the way. By the end of 2009, the value of American barrack clothing was only 900 million yuan. By the end of 2010, it had increased to 2 billion 500 million yuan by the end of 2010, and it climbed to 3 billion yuan in 2011.

For the apparel industry, the value of the off-season inventory has undoubtedly shrunk dramatically. In order to clear up the discount stores, although many choices in the two or three tier cities and non core business circles, it is still difficult to avoid the impact on the brand target groups - price sensitive young consumers, but also will reduce their operational efficiency.

The days of inventory turnover in the United States have risen from less than 70 days in 2007 to 166 days in 2011, and the business cycle has also been delayed from 82 days to 204 days (Table 3).

In addition, it is reasonable to drag down the gross profit margin. According to the analysis, the cost of receiving the discount channel is significantly lower than that of the conventional ones, and the sales discount for the direct and franchise discount stores is 50 percent off and 70 percent off respectively.

If the company handles 1 billion yuan inventory with an average of 60 percent off, it will reduce the annual gross profit margin by about 3 percentage points.

High inventory is a stubborn thing, but after all, it reflects historical performance, and its rising momentum has been curbed in the second half of 2011.

The frustration of the upgrading of the product structure is even more worrying. In the future, as the leader of China's casual wear, at the end of 2008, the United States launched the ME&CITY high-end city brand, aiming at the target group's preference for the campus's young Mts. Bang Wei brand, mainly targeted at 18-35 year old urban white-collar workers, and chose Miller, the hero of prison break, as his endorsement.

In 2010, the United States was divided into two major business divisions by the US and ME&CITY, and set up an independent team for ME&CITY to promote from designer to channel.

But the pformation and upgrading of the road is not smooth. In 2011, due to the need for self financing, ME&CITY abolished the promotion means of inviting big endorsements. In 2012, the flagship store in Huaihailu Road, Shanghai's gold trading area, quietly closed down. It is reported that the flagship store, which is more than 2000 square meters, has been in a state of loss. Zhou Chengjian himself admitted that the mode of porting the foreign brand of ME&CITY was unacceptable.

Not only the US and the United States have suffered this, but this is also the pursuit of "fast fashion" in China.

Brand is facing common industry problems.

On the one hand, the upside space is limited. The first tier cities and core business circles encounter the encirclement and suppression of international leisure fashion brands such as H&M, ZARA and UNIQLO. The latter is more skilled in product design, supply chain management and retailing skills; on the other hand, it also faces downtime of Online shop and small brand clothing.

In the absence of product design capability and supply chain responsiveness, the clothing merchantability is greatly reduced, and the high inventory is inevitable.

Behind the beautiful performance data, sales growth is more dependent on channel expansion rather than optimization of the brand's own product structure and pricing power.

Although such leisure brands still have room for survival, it is not hard to see that they are under pressure from both sides.

Despite the high storage and upgrading problems of casual clothing, its overall revenue and net profit have maintained a relatively fast growth, and there are still two ways to solve the problem.

By contrast, the brand of sports clothing that also suffers from nightmares and pricing difficulties is not that easy.

In 2011, China's sports apparel brand growth slowed down a year.

The net profit of Li Ning Co has fallen by more than 60%. At the same time, besides the trend of more than 3000 stores in China, 5 other listed sports enterprises have expanded to 8000 stores, the market capacity has been saturated, and the stock of enterprises has increased sharply. The inventory of 321 degrees, China trends, XTEP and Lining increased by 81.8%, 57.8%, 45.17% and 40.57% respectively.

Industry competition intensifies, the overall growth rate slows down, and the pressure of de stocking increases. These business problems finally reach to the rich. In 2012, China's trend (03818.HK) Chen Yihong's property dropped nearly 70%, from 91 in 2011 to 400.

The Ding Shuibo family of XTEP (01368.HK), the Xu Jingnan family and the Lining family of PEAK (01968.HK) are all suffering from the loss of their lives.

In order to clear inventory, Li Ning Co increased 136 factory stores and 178 discount stores in 2011.

The hard days are far from over. CICC believes that the sporting goods industry is still challenging in 2012. Local brands face many problems such as clearing inventory pressure, pricing difficulties, consumer demand turning and too many stores. The operation of these brands will still be difficult.

Mainland China has emerged the first high-ranking women's wear listed company.

The riches of the rich in clothing industry have been obviously warming up. But in the mining of the demand structure of Chinese consumers, the brand positioning ability is still not systematic. The rich people in the clothing industry who are on the rich list are mainly concentrated in casual clothing, sports brand, men's clothing, leather shoes and outdoor areas.

The performance of different fine industries is quite different. The wealth of the rich in men's clothing, leather shoes and outdoor areas is relatively stable, while casual clothing is beautiful but facing high inventories. Sports clothing is also suffering from both slow growth and high inventory.

However, in this year's list of 500 rich people, the clothing industry has also sprung up a fresh force - along with the mainland's first high-grade high-end women's clothing listed company's ranzi stock (002612), its founder Shen Dong day brother and sister first came to the list with the fortune of 4 billion 50 million yuan, ranking 282. Wealth has been on the top of the former industry Lining and Chen Yihong.

The new and old forces are different in their product characteristics. The three major brands of the group, which are operated by 00589.HK, are high-end women's brands. The retail prices of the main products are between 2000-5500 yuan. Direct stores and franchisees also choose high-end department stores or core business circles. They are similar to several enterprises such as baozi (00589.HK) and Mass Phil in the positioning of quality, price and consumer groups, and are in the forefront of the domestic high-end women's clothing brand. In 2010, their revenues and net profits reached 559 million yuan and 152 million yuan respectively.

Prospectus information shows that the annual compound growth rate of operating income and net profit in 2008-2010 years is 58.48% and 43.27% respectively. Meanwhile, compared to the general clothing brand, high-end women's clothing brands are still more likely to get a higher gross margin even though they are rentless in high-end shopping malls, and the comprehensive gross margins of 2008-2011 years are 50.82%, 54.47%, 56.71% and 59.96% respectively.

The strong backing of our performance is the gradual differentiation of the Chinese consumer class and the relative growth of the middle class with a certain spending power.

Boston consulting pointed out in the research report, "big gains in small cities: new opportunities for China's rapid growth". In the next 10 years, the number of middle class and affluent consumers in China (monthly income of more than 5000 yuan) will increase from the current 150 million to 400 million or more, and the growth of the middle class will be obvious.

And the brand positioning of LAN Zi is close to the consumption crowd in this field. The brand itself has the status and status symbol, which can produce higher added value.

At the same time, its development space is relatively safe: to avoid more well-known, but also more expensive international first-line brand; in the short term, there is no need to worry about the international two or three line brand with insufficient domestic identity.