Terminal Sales Slow Down, And Business Risks Of Textile And Clothing Enterprises Increase

Weight is Textile and garment enterprises Sales promotion is a common practice, but when terminal sales slow down, its operational risk also increases.

Since October, when the growth of clothing retail fell for the first time, anxiety began to pervade the industry. Industry insiders believe that this may be the beginning of the decline in the growth rate of textile and clothing terminal consumption affected by the economic environment. The domestic clothing terminal market in the next six months is not optimistic.

According to the data released by China National Business Information Center, in November, clothing of 100 key large-scale retail enterprises in China Retail sales The year-on-year growth rate was 10.26%, and the growth rate continued to fall, which was lower than 6.47 percentage points in October and the lowest growth rate since the beginning of the year.

Hangzhou often holds order meetings for some clothing brands. From the dealers' performance in these order meetings, we can feel the warmth of the textile and clothing industry in the coming year.

At the order meeting of a clothing brand, a dealer from Shanghai told the reporter: "It's not easy to do business this year. At this time last year, our daily sales could reach more than 100000 yuan, but now, the daily sales are less than 50000 yuan." Another dealer also felt the same way: "After the fall, the clothes in the store could not be sold for some reason. If the manufacturer continues to press for goods and collect money, it will not act as an agent for this brand next year."

According to incomplete statistics by reporters, 34 textile and clothing companies in the first three quarters of this year listed company The company continued to advance vigorously, achieving a total operating revenue of 62.277 billion yuan, up 23.19% year on year; The net profit was 5.801 billion yuan, up 48.78% year on year. However, behind the "boom", the accounts receivable and inventory of these companies are also growing, while the efficiency of capital operation is generally declining.

In the first three quarters of this year, 26 listed companies with comparable data had total inventories of 41.43 billion yuan, up 23.97% year on year; At the same time, the inventory turnover rate has generally declined over the same period of last year. At present, only 8 companies such as China Garments (000902) and Meierya (600107) have achieved positive growth, while 18 companies such as Youngor (600177) and Meibang Garments (002269) have declined to varying degrees.

It is understood that due to the tightening of monetary policy this year, the dealer's capital chain is also generally tight. However, most listed brand companies are optimistic about the prospects of the industry and their own brands, so they have increased their financial and credit support to dealers. The main forms of support include reducing the proportion of advance payment for orders, allowing dealers to delay paying a certain proportion of payment for goods when shipping, and paying store decoration fees in advance.

In fact, the growth of inventory can be understood in two ways. First, clothing enterprises generally hold optimistic expectations for terminal sales, and expand rapidly by increasing the proportion of goods in stock; Second, the terminal consumption has been hit, and the existing stock of clothing enterprises has not been sold according to the original plan. Combined with this reporter's investigation and interview, the reason for the inventory growth of A-share garment enterprises should be attributed to the latter.

Industry insiders believe that, under the condition that the terminal consumer market is relatively prosperous, increasing the financial support for dealers can more fully mobilize the enthusiasm of dealers and improve the efficiency of channel expansion. However, if the terminal consumer market turns cold, the increase of dealers' accounts receivable will bring greater business risks to brand operators.