Underwear Industry Will Usher In A New Round Of Reshuffle

Recently, Shangdao Women's Marketing, China's first consulting organization focusing on women's marketing, issued a Research Report on China's Underwear Industry, which mentioned that the annual sales of China's underwear market has reached more than 100 billion yuan, and is still growing at a rate of nearly 20% every year. It is called clothing The last gold market in the industry.

However, the reporter visited the Hangzhou market and found that at present, the middle and low-end Underwear The sales situation is general, and even affected by various aspects. Small and medium-sized businesses in the wholesale market generally reflect that their business is not as good as before; The sales of some brands of underwear are good, and they are expected to continue to expand their market share in the future. Insiders pointed out that the underwear industry will usher in a new round of "shuffle".

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　　 Underwear industry Will usher in a new round of "shuffling"

　　 Information disclosed in the semi annual report of brand underwear

Under the background of economic downturn, people buy new products clothes A large number of garment enterprises' semi annual reports have become the best evidence. In the first half of this year, Sima Clothes & Accessories Both revenue and net profit declined. The company achieved a revenue of 2.511 billion yuan, a year-on-year decrease of 16.54%; The net profit was 248 million yuan, a year-on-year decrease of 43.22%. This is the first quarter of this year after the decline in the company's net profit fell again.

The data from the National Bureau of Statistics shows that the cumulative year-on-year growth rate of clothing retail sales of 100 large retail enterprises in China has dropped to a lower level than that of the financial crisis in 2008.

In the clothing industry, the performance of some underwear enterprises has become a highlight. Listed on Hong Kong Stock Exchange Underwear brand An Lifang recently announced the results of the first half of 2012. The company earned a total of HK $113 million, with a 23.1% increase in net profit and more than 81% in gross profit; Limited Brands, the parent company of the famous underwear brand Victoria's Secret, recently announced that the same store sales in August increased by 8%, and the biggest contributor was Victoria's Secret, which increased by 9%.

Industry insiders pointed out that Ann Lifang has been better in the past two years than in the previous two years, which is indeed a bit of a surprise; Victoria's Secret From 2009 to now, its sales in China are also growing at a geometric base, which is related to both the increase of overseas purchasing and its low base in China.

　 Achievements of some brands' underwear are brilliant

Ju Fengping, the national marketing director of Zhejiang Aimeilai Slimming Clothing Co., Ltd., recently traveled across the country. According to him, the sales of the company's products in the first half of this year increased by 15% to 20% compared with the same period last year.

　　 "Underwear is an industry with great growth potential. It will not be on the market until the early 1990s in China. At present, the underwear industry has a very broad market prospect in China, and more and more venture capital companies want to enter this industry. This year, the underwear industry as a whole is much better than the traditional industry. The growth rate of the underwear industry is higher than the growth rate of the entire clothing industry. This is mainly The reason is that with the improvement of people's living standards and income levels, the previously suppressed needs begin to be released. In the past, people paid more attention to appearance, but now women pay more and more attention to internal beauty, especially things that are close to the body and touch the skin, because this will affect their health. "

Lu Ming, the founder of Zhejiang underwear brand Mengxianjiao, also told the reporter: "Mengxianjiao is aimed at high-end customers of beauty salons, focusing on adjustable breast enhancement underwear. Although the price is two or three thousand yuan, the price that the public generally can't accept, the business this year is very good. Mengxianjiao does not follow the path of small profits and quick turnover of other enterprises, so as to maintain a stable position."

In the flagship store of Shuihua underwear on Fengqi Road, the reporter saw customers coming in soon. Although this is a new store, Ms. Wang, the salesperson, said that the rate of customers coming in to pay for it is still high. According to the person in charge of Hangzhou Shuihua Underwear Store, since this year, the sales of more than 30 Shuihua stores in Hangzhou have increased compared with the same period last year.

In a department store in Hangzhou, the salesperson of "Fendisi" underwear said: "Our brand popularity is not high. This year's underwear sales are not very good, but brands like ancient and modern ones are selling well. For high-end customers, large brands are often more popular with customers. For example, our turnover in August was about 30000 to 40000 yuan, and there are more than 100000 yuan in ancient and modern times."

In the same shopping mall, Miss Yao, the salesperson of "Diana" underwear, told the reporter that she had been selling underwear for many years, and her biggest feeling was that the sales of underwear were getting better and better. The monthly turnover was about 70000 yuan or 80000 yuan. The maximum turnover in the month of Women's Day was 160000 yuan. It was good to have such a business in a small counter of more than ten square meters.

It is reported that since the first half of the year, the price range of Diana's underwear products has become larger and larger, and the prices of special price products and new products are much different, which more caters to the economic affordability of different consumers.

　　 The profit in the wholesale market is pitiful

Different from the hot sales of some brands of underwear products, the middle and low-end underwear products have encountered a cold winter.

Yesterday, the reporter came to Huanbei Small Commodity Market and visited several underwear sellers. He said that this year's underwear business was not as good as that of previous years, and some stores also opened new underwear stores online to increase sales.

Ms. Huang, who sells underwear, said: "The main reason is that the economy is not good. The underwear business was good the year before last, but not very good last year. This year, it's not as good as last year. It can be said that it's not as good as last year. The manufacturer also said that this year is the worst after doing so many years. From May to now, my store is operating at a loss."

The reporter learned that the price of Ms. Huang's underwear imported from Guangdong this year was basically the same as that of last year. This year, the price of cotton yarn fell, and the labor cost rose. The two were even. However, retail customers are much less than last year, leading to a decrease in wholesale. "Old Bai has no money on hand. In addition, his consumption is becoming more and more rational, and online sales have diverted many customers."

Another underwear seller, Mr. Chen, also said frankly that business in the first half of this year was 40% less than that in the same period last year, and both wholesalers and retailers were reduced. The profit is even lower. The profit of wholesaling a piece of underwear is only 0.4% - 0.5%, and 0.7% is already high.

"The whole underwear industry is not very good this year, and the booth rent is rising year by year. In addition, the market is not popular, and the wholesale volume is very small. Affected by the increase of online stores, young people are now buying underwear online, mostly older people come here to buy underwear."

Miss Liu, who sells underwear in Longxiang Clothing City, told the reporter that the underwear business this year is really bad. The total turnover of the two days is only a few hundred yuan. There is already a shop selling underwear that has changed its business to selling bags. She knows only one shop selling underwear that is doing well, but mainly if the boss has been doing it for a long time and there are many regular customers.

Industry insiders analyze that with the increasingly fierce market competition, the rising cost, the gradual transparency of underwear prices, and the gradual improvement of the national economy, the share of low-end underwear products will be increasingly squeezed. The demand for middle and high-end underwear will be higher and higher, and its market share will also be higher and higher. The growth rate of middle and high-end underwear will exceed that of middle and low-end underwear.

　 A new round of shuffling has begun

Liang Feng, CEO of Weizhe Underwear, told the reporter that since the global financial crisis in 2008, the "lipstick effect" of the underwear industry is quite obvious. As a necessity of life, underwear has been selling well. "In recent years, we have found through market research that Chinese women are gradually increasing their investment in underwear and increasing the budget for underwear consumption, which is good for the whole industry."

However, for the whole clothing industry, the gross profit has dropped slightly, and the underwear industry is also hard to escape. The overall sales situation of the underwear industry is good, but the profit margin is declining. There are many reasons. The domestic economic situation is not very good. Raw materials, staff salaries and operating costs are rising, supplier prices are rising, and there are more and more entrants to the industry. In addition, the volume of thermal underwear increased blowout last year, and the inventory is large, which has brought pressure to the operation of the entire underwear industry this year.

　　 "In addition, because the entry threshold of the underwear industry is low, this year, there are new underwear brands entering the market. The background of some new brands is good, and the supply of underwear is expanding. It is estimated that from October in the second half of this year to 2013, a large number of underwear enterprises will be eliminated, especially small and medium-sized OEM. At present, the underwear industry is in the process of shuffling."

Ju Fengping also pointed out that with the intensification of market competition, unlike the early development of the underwear industry, the price of underwear will become more transparent and more beneficial to consumers. However, the spring of underwear industry is far from over, and his company is also increasing market investment, doing well in the products of middle and high level consumers of underwear, doing well in market segmentation, and improving the brand image.