Analysis Of The Problems Faced By Business Casual Men's Clothing Industry

China's clothing consumer price index has been negative year-on-year since 1998. But in 2011, the growth was recorded for the first time, indicating that clothing prices have become a common phenomenon in the whole industry. One of the immediate problems is inventory. Since 2011, Bussiness Casual The stock is expanding rapidly, which is mainly due to the weakness of the overall market and the over optimism of the brand.

In the first quarter of this year, net profit of seven wolves increased by 37.7% compared to the same period last year, and operating income increased by 26.2% over the same period last year. The main reason is that the company has increased its channel and brand building, deepened product design and R & D, and has achieved good results in supply chain management. The company has expanded its sales scale and increased its performance accordingly.

The company expects net profit attributable to shareholders of Listed Companies in the first half of this year increased by 30% to 50% over the same period last year. According to the order growth of the company, the performance between January 2012 and June is expected to be higher than that of the same period last year. At present, the two order meeting in 2012 has ended. The order of the seven wolf wolf has increased by about 30% and 25% respectively, mainly due to the increase in the order quantity of the high priced products.

According to the statistics of China Business Information Center, in 2011, the average sales price of the major large-scale retail commercial clothing increased by 10.46%. In the same period, brand clothing prices rose by 20.3%, and brand clothing showed stronger. Pricing power 。 But sales of branded clothing increased by only 3.37%, less than 5.14% of the industry.

The selling rate of the seven wolves sold in autumn and winter 2011 is only 65% to 70%, while that of the spring and summer products in 2012 is even lower. As a typical example of vertical integration of business casual men's clothing, "nine Mu Wang" usually sells at a rate of 80%, but the sales of products in spring and summer of 2012 are not satisfactory.

In 2011, the stock of major brands increased significantly. After entering the 2012, the brand increased the intensity of inventory clearance, making the inventory of the brand owners no further deterioration under the overall performance of the market.

When China's sports brand breaks out of stocks, there is hardly any sewer on the market. Up to this day, the major men's wear brands have basically established a three-dimensional inventory digestion mechanism from factory stores, terminal promotions to special sales. On the whole, the electricity supplier as one of the channels, the pressure of selling inventory is still not large.

Analysts pointed out that Domestic brand The rate of increase is higher than that of foreign brands of the same grade. It is understood that the general mid-range men's wear rate increases 4 times to 6 times, seven wolves, nine Mu Wang 4.6 times to 4.7 times, slightly higher than the Polo in Europe and the United States market 4.2 times the rate of increase. With the help of higher direct and self production ratio, YOUNGOR achieved a price multiplying rate of less than 4 times, and the location of the news bird was higher, but the proportion of the company's direct operation was relatively low, so the increase rate was higher in the middle end brand. How to find a solution to the crisis in today's rising prices is a major challenge for business casual men's clothing industry.