Textile Industry Is The Upstream Industry Of Garment Manufacturing Industry.

According to the market demand and investment advisory report of 2016-2021 years in China's textile and garment industry, textile and garment industry is China's traditional light industry, which is divided into textile industry and garment industry.

The absolute yield of textile and garment industry in 2016 is -8.69%, which is basically the same as that of A shares.

The absolute yield of -6.89% is better than that of -9.94% in clothing retail.

The textile industry refers to the general name of the production department that processes raw materials such as clothing and other textile products, and the clothing industry refers to the total production of textile products into clothing. From the perspective of the relationship between the upstream and downstream, the textile industry is the upstream industry of the garment manufacturing industry.

Textile manufacturing in 2017: continue to pay attention to depreciation and cotton price rise. Since the 15 year reform, the depreciation of RMB has been over 11%. Devaluation is expected to increase export revenue and enhance the competitiveness of export commodities.

In the 16 years, domestic cotton prices rose sharply due to the reversal of supply and demand.

With the development of dumping and storage, the impact of national cotton reserves on the market will be smaller, while the market demand for cotton will remain stable in the medium and long term, and the supply area will shrink in terms of planting area and output trend. The medium and long-term cotton prices are expected to grow steadily and benefit the traditional textile leading enterprises.

Clothing retail in 2017:

In order to integrate efficiency, consumption upgrading and structural opportunities and consumption have not improved significantly, we should pay attention to two directions: first, supply chain integration, reduce the loss of intermediate links and enhance efficiency; two, consumer upgrading, and consumers are more interested in the structural opportunities brought about by quality and personalization.

In terms of supply chain integration, there is huge room for internal management to enhance efficiency and provide third party management services externally.

In terms of consumption upgrading, first of all, the baby industry and the full liberalization of the second child policy will boost the number of newborns, and the industry will continue to boom.

Consumption is cyclical adjustment, light luxury first benefit; third personalized demand to boost the development of brand designers, and create platform for designers and consumers to solve marketing, trading and other pain points, the market space is huge; fourth overseas brands to expand the Chinese market to provide electricity providers for the operation of the industry to provide a broad space for development; fifth, high-speed growth of cross-border import electricity suppliers, tax reform new deal is expected to reshape the industry competition pattern.

To grasp the investment opportunities brought about by the reform process of the state-owned enterprises and accelerate the investment opportunities brought to the relevant companies in the industry, from the programmatic policy document to the detailed reform guidelines document, the path of the reform of the state-owned enterprises is more and more clear. With the beginning of some state-owned enterprises, the reform has entered the stage of policy implementation.

In 17 years, the rate of reform of related state assets will accelerate significantly, bringing many investment opportunities to the industry.

It is recommended to focus on the central enterprises entering the pilot list and the local state-owned enterprises with fast reforms.

Textile manufacturing: recommendation 1) undervalued enterprises with steady growth, benefited exchange rate depreciation or cotton prices rising, such as Lutai A, Huafu color spinning, urge shares, Xinye textile and joint stock shares, and 2) benefiting from Shanghai state change's Shenda shares.

Clothing Retailing: recommendation 1) Hai Lan home, where performance is expected to improve; 2) PEG<1, Semir clothing that benefits the baby economy; 3) the pformation of supply chain management; 3) overseas acquisitions to create light luxury group; 4) pformation of the home life of Luo Lai life and Meng Jie shares; 5) benefit from the central enterprise reform of the China group; 6) to create a platform for designers to create a platform for the Bai Bao dragon.

For more information, please pay attention to the world clothing shoes and hats net report.