Why Is The Clothing Industry "Freezing Point" This Summer?

Climate abnormality and consumption power are the main causes.

Why is the clothing industry "freezing point" this summer?

Climate abnormality and consumption power are the main causes.

The morning news came into July, and the smell of summer just arrived.

However, compared with the hot weather, the clothing industry in Hangzhou is not as hot as it used to be. Many clothing store owners use the "business gloomy" to describe it.

"The brand of domestic sports shoes and clothing has fallen below the issue price at the end of June."

Recently, garment industry independent commentator Ma Gang evaluation, clothing industry this summer is particularly "cold".

According to the survey data of the ECE system, the clothing industry in Zhejiang used to grow 20%-30% every year.

First half year

Negative growth in garment industry

"This is quite unusual.

This year's clothing enterprises can be described as "ice and fire". Orders for foreign trade enterprises have fallen sharply, while garment enterprises doing domestic trade have strong momentum of development and some are facing high inventory and high cost pressure.

Hangzhou Economic Commission textile department responsible person disclosed.

Since the global financial crisis in 2008, the foreign trade situation of the garment industry has not been optimistic.

"I was born in the silk industry. The original list of silk is not to worry at all. Nowadays, foreigners can not wear silk.

It's hard to imagine. "

The responsible person said that once the foreign trade enterprises could not get the list, some enterprises would consider turning to the domestic market and create their own clothing brand, which led to the increasingly fierce competition among local brands, but the domestic market was not as good as expected.

Abnormal climate leads to backlog of stock

Local clothing sales are weak, is it related to the selling season?

"In fact, the clothing industry does not exist in the peak season. There is ample market space for clothing throughout the year. Abnormal climate is the main reason for the high inventory of clothing this year."

Ms. Shen, Deputy Secretary General of Zhejiang garment industry association, said, "in fact, the inventory problem is normal for the clothing industry.

In a sense, the clothing industry also depends on the weather.

But this year's Spring Festival is warm and summer is late, leading to unsalable winter clothing and summer wear. This problem is particularly prominent this year.

Ms. Shen said frankly.

"Weather is indeed a very difficult risk to predict."

Zhou Junfeng, a responsible person of Nun garments in Hangzhou, is somewhat accustomed to this. Compared with last year, sales growth of physical stores slowed down this year.

"For example, it's summer now. Our winter clothing orders will be over. You can't predict the sales this winter.

If there is warm winter, there must be a backlog of stocks. "

Consumption is not as good as before this year.

"On the other hand, consumption power this year is somewhat less than in previous years."

Ms. Shen said that the growth of clothing performance in major department stores is not ideal this year. "The desire for consumers seems to be weakening."

"These two reasons are the main factors of high inventory. If the inventory problem is too serious, it will affect the capital turnover of enterprises, and enterprises are easily overwhelmed."

Industry experts pointed out that two indicators of rational clothing inventory are: first, to meet the daily sales needs, to ensure adequate supply of clothing for shop sales, to avoid loss of customers due to outage; two, capital occupation is reasonable, and there is no huge backlog of goods.

Generally speaking, according to the proportion of monthly sales, the monthly inventory ratio is about 1:5.5, which is normal and can meet the needs of sales. At present, many garment enterprises are much more than that.

Joe clothing base:

Inventory drives foreign trade plants.

Developing the local market

In recent years, the Hangzhou Qiao's clothing industry has gained unprecedented development and strength. Qiao Si has also become the main production base of Hangzhou women's clothing.

Recently, the reporter visited the gathering place of Qiao Si town clothing enterprise.

Reporters in the Qiao Industrial Park saw that dozens of small and medium-sized garment enterprises such as Difina, Li Heng and so on were gathered here.

The reporter interviewed several factory workers randomly.

Yu Xinhua, a Quzhou resident who has just been recruited into the factory this year, told reporters that many clothing companies are now offering favorable conditions to recruit more workers, bags, rooms and attendance.

A skilled lathe worker like him can earn more than four thousand or five thousand yuan a month in the factory.

Qu Weiping, general manager of a garment processing factory in the town, told reporters that many of the company's clothing companies have been maintaining orders for foreign trade garments, and have begun to operate their own brands in recent years.

In recent years, as foreign trade is becoming more and more difficult, many garment factories are actively trying to sell those "final" stocks which can not be shipped at the end, and the annual increase in production costs makes the garment industry less profitable.

The problem of inventory is a big test for the small garment enterprises.

"The more inventory, the lower profits for garment enterprises.

In the past, we were just like many garment factories, relying solely on exports. In the past two years, many production orders could only be sold out, forcing the clothing factories to increase their sales to the local market, enter the wholesale market in Sijiqing, and open Taobao shop and so on.

Zhai Weiping told reporters.

This reporter has learned that clothing inventory problems have existed for a long time in Qiao and even in Hangzhou garment enterprises.

To this end, from the government to enterprises, has been actively solving and coping.