Clothing Industry Inventory Pressure Still Exists Sports Brand Transformation Failed

The clothing industry in 2012 was spent in the cold winter. A large number of sports brand shops and huge inventory of the whole industry like a thorn deep into the heart of the clothing industry, the statistics part. Apparel enterprises As a whole, the apparel industry did not get rid of the haze of the industry, but there are signs of recovery, but it is still not obvious. Brands are still singing the transformation war.

　　 Key words: Guan Dian

As of June 30, 2013, Lining closed 410 stores, PEAK closed 289 stores, and 256 stores closed at 331 degrees. China's trend (kappa holders) closed 611 stores, Anta closed 241 stores, XTEP closed 75 stores... "Guan Dian" is still a sensitive term. According to the statistics of the online trading company, the sports brands closed 2048 stores in the first half of the year, and Lining, Anta and others all indicated that the performance in the second half of this year has been reversed, but the store will continue. Not only the sports brand, but also several men's clothing brands including seven wolves and nine herding Kings also closed nearly 400 stores in the first half of the year.

　　 Keywords two: declining performance

The report shows that Lining lost 184 million yuan, and PEAK and 331 net profit fell by more than 60% over the same period last year. China's trend and Anta also fell 5% and 18% respectively compared with the same period. Sports brand only outdoors brand Pathfinder performance red, net profit more than 60% growth, the number of stores also increased.

Affected by the downturn in the whole industry, Men's wear Business has also been in the doldrums since last year. In addition to the growth of revenue and net profit of the card slave Road, several other businesses have declined in varying degrees. YOUNGOR has abandoned real estate, the net profit of clothing business has dropped by 37%, and the expansion speed of each business has also declined significantly. It has even begun to close. It seems that the performance growth brought by expansion not only goes to a dead end in the sports brand, but also has little effect in the field of traditional clothing brand.

In contrast, casual wear Semir and the search for women's clothing brand performance are the only bright colors.

　 Keywords three: industry recovery?

Although most businesses still continue to shut down shops and revenues, they can still see the results of inventory going through the past year. The total number of Customs stores is decreasing, the gross profit margin of some enterprises is rebounding, and the industry confidence is also recovering. The sports brands have indicated that the most difficult time has passed.

PEAK CEO Xu Zhihua said at the interim results conference that the company's net interest rate has improved from over 5% at the end of last year to 7.7% in the first half of this year. Due to the optimization of channel inventory in the first half of the year, it is expected that stock prices will be reduced in the second half of the year. He expects net interest rates to continue to rise in the second half of this year.

　　 Lining The company said that the average turnover period of channel stock dropped from 9 months to less than 7 months, the total inventory decreased by more than 30%, and the gross interest rate increased from 43.2% to 43.6%. Lining, executive vice president Jin Zhenjun, said that the first phase of the group reform plan has been successfully completed, and that the inventory target has been completed by half. A lot of capital investment still needs time to reflect the book effect. The most difficult period of the group has passed.

Ye Qi, senior vice president and executive director of XTEP, has also publicly told the media that it is optimistic that the industry will recover in the second half of this year, and that next year it will enter a normal and healthy state.

Although there is a good signal in inventory, the new season orders from several brands will not be as optimistic as expected. According to the associated business network reporter, 31st order 2013 winter orders will be reduced by about 17% compared to the same period, the order amount of XTEP international Q4 order meeting in 2013 declined by about 15%~17%, and 2014 Q1 orders recorded a decline in digits; while Anta sports 2013 Q4 orders also fell by 5%~15% compared to 2014, and Q1 orders in 2014 also had a single digit increase.

Shoes and clothing industry commentator Ma Gang also said that inventory return to benign can not represent the industry recovery, "just as the TPG team gave Lining's diagnosis: the first step to inventory, the second step is to integrate supply chain, channel and marketing resources, and third steps to transform the business mode transformation".

　　 Keywords four: Transformation

It is undeniable that transformation is forced and inevitable. Transformation is a difficult process, no matter whether it is deep tillage and market refinement. After buying GXG this year, Semir took the agency of high-end children's clothing in Italy, and made enough gesture to enter the high-end market. In contrast, the transformation of sports brand is more urgent.

Lining invested 1 billion 800 million yuan last year to start the "channel revival plan". Although people have great controversy over this plan, Lining has begun to move forward in a new direction under the leadership of executive vice president Jin Zhenjun. In addition to a series of actions such as eliminating inventory, improving operation structure, supply chain mode and product marketing mode, Lining has made the biggest change to the problem of excessive expansion of the channel and excessive inventory, which is to change the traditional operation mode and build a quick response mechanism of the supply chain, which is guided by retail. Therefore, Lining launched the first product after transformation for 60 days to try out this quick reaction mechanism, which is regarded as the action of Lining to develop "fast fashion sports". Lining is still targeting young people, but because of the strategic mistakes made before the "90's" strategy, Lining has become more cautious. No matter "fast fashion sports" or "professional sports", people still can't see his specific direction for the time being.

On the other hand, enterprises are starting to invest more in other fields. The success of the Pathfinder is closely related to the choice of a subdivided category. The market of outdoor brands and children's wear brands is still regarded as a "blue ocean". Data show that in 2012, Anta children's clothing store increased from 632 in 2011 to 833, and it is estimated that by the end of 2013, this number will reach 950-1000. XTEP plans to add 100-200 children's clothing stores to two or three line cities during the year. As an early entry into the children's wear market, there are 1678 children's wear stores. Zhao Feng, director of brand communication center, said that "children's clothing stores will exceed 2000 at the end of this year". Of course, Lining is also developing their children's clothing stores and outdoor areas.

At present, the transformation of sports brand is adjusting around its own channels and market segments, while other enterprises are still trying to make many brands. In addition, local clothing companies also face the squeeze from Zara, UNIQLO, and other foreign giants such as Nike and Adidas, especially for the two or three tier cities. We hope that the signal of inventory improvement can bring confidence to the industry. We will wait and see what happens next.