Men'S Wear Business Is Expected To Grow Steadily

In recent years, with the continuous development of social economy, business and social activities are increasingly frequent. men's wear Enterprises benefit from deep urbanization and consumption upgrading, and get accelerated development. According to Frost & Sullivan's forecast, the retail revenue of Chinese men's wear market will reach 539.9 billion yuan in 2013, with a compound annual growth rate of about 15.8% from 2009 to 2013.

In the second quarter of this year, the terminal sales of A-share textile and garment listed companies slightly improved compared with the first quarter, but the growth rate of revenue and net profit of textile and garment companies in the first half of this year will still be lower than expected. However, in terms of the sub industry, the medium-term performance growth of men's clothing companies is still the most stable.

Business leisure men's wear enterprises grow fastest

According to industry insiders, "business casual wear" is a kind of men's clothing that wanders between suits and casual wear and adapts to various occasions: it is not as orthodox and regular as suits, but casual and relaxed, but it is upright, rigorous and atmospheric. In China, business casual wear enterprises in Jiangsu, Zhejiang and Fujian are mainly located at the middle end, such as jiumuwang (24.93, - 0.17, - 0.68%) (601566), qipinlang (24.12, - 0.83, - 3.33%) (002029), Youngor (8.78,0.04,0.46%) (600177), etc. The market generally expects that the growth rate of net profit of the first two men's clothing companies in 2012 is expected to exceed 30%. In the textile and clothing industry as a whole is lower than expected, business leisure men's wear enterprises show rapid growth, becoming the fastest growing sub industry of men's clothing industry.

Compared with the same period of last year, the net profit increased by 26.7% in the same period of last year. The main reason is that the company has made good achievements in increasing channel and brand construction, deepening product design and R & D, and supply chain management, which has promoted the expansion of sales scale and the corresponding growth of performance. The company expects net profit attributable to shareholders of listed companies to increase by 30% to 50% in the first half of the year compared with the same period last year. According to the order growth of the company's order meeting, it is expected that the performance from January to June 2012 will increase compared with the same period last year. At present, the two ordering meetings in 2012 have been completed, and the order volume of seven wolves has increased by 30% and 25% respectively, which is mainly caused by the increase of orders for high price products.

Jiumuwang's sales in the second quarter were close to those in the first quarter, with a slight slowdown in growth. According to the first quarter report released by jiumuwang, the company realized a revenue of 669 million yuan and a net profit of 208 million yuan attributable to the owners of the parent company.

The research report predicts that the sales revenue of men's business dress and business leisure will reach 340.4 billion yuan in 2013, with a compound annual growth rate of 16.94% from 2009 to 2013. At the same time, business dress and business leisure men's wear market revenue accounted for the proportion of men's clothing market continues to increase.

In the next decade, China's middle-income class and affluent consumer groups will add 270 million consumers. The middle-income class and rich consumers in small cities are more willing to increase consumption expenditure and upgrade consumption. From this, we can see that the strong support for the consumption of high-end men's wear is the relative growth of the middle-income class with certain consumption ability.

Potential of high end business men's wear enterprises

Benefited from the rapid development of business leisure men's wear industry, Seven wolves He jiumuwang has a stable growth in scale, strong channel management ability and scale advantage. Different from business casual men's wear, carnudi Road (42.93, - 0.80, - 1.83%) is positioned as medium and high-end business men's wear, which is less affected by the overall economy and has a small channel base, so there is a large space for channel growth in the future.

According to the forecast of Nielsen consulting, there are 54 million households in China's first and second tier cities, and the total income is estimated to reach 2 trillion yuan. In contrast, the number of households in the third and fourth tier cities is as high as 160 million, with an income of 1 trillion yuan. Most of the brands of Listed Companies in men's wear industry are located in the middle and high-end, and they are located in the second and third tier cities, which will obviously benefit from the consumption upgrading of these cities in the future.

Canudilu disclosed in the first quarter of 2012 that the net profit attributable to shareholders of Listed Companies in the first half of 2012 is expected to increase by 50% to 60% compared with the same period of last year. The company said that the company's business scale has expanded, and orders for ordering meetings have increased. It is expected that the performance from January to June 2012 will increase compared with the same period last year. {page_ break}

From the perspective of market segmentation, the market share of medium and high-end brands will not be squeezed by international high-end brands and international fast fashion brands in the next few years. For example, the price of high-end men's clothing from RMB 1500 to RMB 2500 is still high in the future. In addition, international fast fashion brands mainly pay attention to parity and fashion, and pay close attention to the market trend. Male consumers pay more attention to quality, and their fashion is lower than that of women. Medium and high-end men's wear is positioned as a combination of fashion and classics, with quality first.

　 There is a risk of lowering the high rate of price increase

Analysts pointed out that the overall price increase rate of Chinese brands is higher than that of foreign brands of the same grade. According to the information, the rate of increase from 9 times to 4 times is slightly higher than that in the European and American market. With the help of a higher proportion of direct sales and self-made products, Youngor achieved a pricing multiple of less than 4 times, and the brand positioning of baoxiniao (12.92, - 0.28, - 2.12%) (002154) was higher, but the proportion of direct sales of the company was relatively low, so the price increase rate was relatively high in middle end brands.

Domestic high-end men's and women's wear has a 7-10-fold increase rate, which is also higher than the international second-line brands. At present, Trinity's men's wear brands have a price increase rate of 6-6.5 times, which is 7.1 times lower than that of canudi road. In the long run, the tariff of imported clothing may be lowered, and the discount rate of international brands in China's shopping malls is low. At the same time, with the help of e-commerce marketing platform, the channel level in the Chinese market will be gradually reduced. Therefore, it is quite possible for international brands to lower the price increase rate in the Chinese market in the future, which poses a threat to local high-end brands.

The analysis shows that the low efficiency of the channel has become the cause of domestic clothing The main reason for the overall high rate of price increase. This includes: many mid-range men's wear brands are operated by franchising, or even multi-level agents. The number of intermediate links in the channel increases and the price is raised step by step, resulting in the phenomenon of high overall pricing rate. In addition, the middle-class men's wear is mainly located in exclusive stores, department stores, etc., but the discount points and the rent of shops are relatively high. The actual deduction rate of shopping malls usually reaches 20% to 40%, and the rental to sales ratio of shops usually reaches 10% to 30%. Moreover, the tax burden layer by layer, turnover tax, value-added tax, business tax, and urban construction tax and other additional taxes and fees increase the cost. In addition, inventory turnover is relatively slow, resulting in high storage costs. It is necessary to increase the price to resist the overstock of inventory and greatly reduce the sales of goods, thus forming a vicious cycle of "price increase, inventory backlog and discount".