At present, my country’s annual per capita clothing consumption expenditure is less than US$200, which is still far behind the textile and clothing consumption level of more than US$1,000 in developed countries. It can be seen that my country’s textile and apparel market still has considerable room for development.
▲Positive factors for the textile, clothing and apparel industry
Analysis of operating income and profit of the textile industry
2019 In the first half of the year, the 67 major listed companies recorded operating income of 107.52 billion yuan, a year-on-year increase of 0.4%, and net profits of 7.15 billion yuan, a year-on-year decrease of 15.8%. Both revenue and net profit growth rates have further declined compared with 2018 and 2019Q1.
▲The operating income of China’s textile and apparel industry from 2016 to the first half of 2019
▲NetprofitofChina’stextileandapparelindustryfrom2016tothefirsthalfof2019
1Analysisofoperatingincomeandprofitsofthewooltextileindustry
Thewooltextileindustryachievedrevenueof3.26billionyuaninthefirsthalfof2019,ayear-on-yearincreaseof7.8%,andthesalesgrowthratein2019Q2acceleratedsignificantly.Slowdown,mainlyduetomacroeconomicpressure.Atthesametime,rawmaterialsfluctuatedsignificantly,whichaffectedsales.
Thewoolentextileindustryachievedanetprofitof190millionyuaninthefirsthalfof2019,ayear-on-yearincreaseof15.5%,andthegrowthrateincreasedsignificantlycomparedwith2018.
▲ China’s wool textile industry revenue from 2016 to the first half of 2019 (100 million yuan)
▲Net profit of China’s wool textile industry from 2016 to the first half of 2019 (attributable to the parent company after deductions, 100 million yuan)
2 Analysis of operating income and profit of cotton spinning industry
The cotton spinning industry achieved revenue of 21.72 billion yuan in the first half of 2019 , a year-on-year decrease of 0.9%, and a net profit of 1.39 billion yuan, a year-on-year decrease of 9.6%.
The growth rate of the cotton spinning industry has increased from high in 2017 to a slight decline in the first half of 2019, mainly because of:
1) Affected by the continued escalation of Sino-US trade friction, downstream customers are cautious in placing orders, and some orders are transferred overseas, affecting demand;
2) Domestic clothing consumption is not booming, which affects the upstream enterprises. Order volume.
3) Cotton prices continued to decline in 2019. The sales prices of cotton spinning companies are based on cost-plus pricing, and the sales prices have declined. The growth rate of net profit is lower than the growth rate of revenue, mainly because the gross profit margin has declined.
▲ China’s cotton spinning industry revenue from 2016 to the first half of 2019
▲Net profit of China’s cotton spinning industry from 2016 to the first half of 2019
3 Analysis of operating income and profit of the printing and dyeing industry
The printing and dyeing industry achieved revenue of 349,000 yuan in the first half of 2019, a year-on-year decrease of 1.4%; net profit was achieved in the first half of 2019 280 million yuan, a year-on-year increase of 7.7%. The printing and dyeing industry is facing sluggish terminal demand in the garment industry, which has affected order volume. However, the profit side has grown better than the revenue side. This is mainly because coal prices have dropped in the first half of 2019 compared with the first half of 2018, so the cost side has declined. .
▲China’s printing and dyeing industry revenue from 2016 to the first half of 2019
▲Net profit of China’s printing and dyeing industry from 2016 to the first half of 2019
4 Analysis of operating income and profit of the excipient industry
The excipient industry achieved revenue of 4.09 billion yuan in 2018, a year-on-year increase of 6.2%, and achieved revenue of 2.02 billion yuan in the first half of 2019 , a year-on-year decrease of 0.3%, achieving a net profit of 210 million yuan, a year-on-year decrease of 7.4%. The decline in revenue and net profit growth in the accessories industry is mainly due to changes in the product structure of the zipper and button business due to the impact of the international competitive environment. At the same time, due to the sluggish terminal consumption environment, brand customers will also choose lower-priced products due to cost considerations when choosing accessories. The order volume of products such as metal zippers with higher unit prices and gross profit margins has declined. There is also a phenomenon of operational differentiation in the excipient industry. As the industry leader, Weixing Co., Ltd. leads the industry in terms of revenue growth and profitability, slowly widening the gap with other competitors.
▲2016-1st half of 2019 Net profit of China’s home textile industry
10 Analysis of operating income and profit of children’s clothing industry
The children’s clothing industry maintains a high level of prosperity. Because branding started late and there is a lot of room for market concentration to increase, the performance of leading children’s clothing companies maintains rapid growth. In the first half of 2019, the children’s clothing industry achieved revenue of 5.28 billion yuan, a year-on-year increase of 24.3%. . After deducting non-profit items, the profit attributable to the parent company was 630 million yuan, a year-on-year increase of 22.0%.
The overall gross profit margin of the children’s clothing industry is relatively stable. The gross profit margin in the first half of 2018 and the first half of 2019 was 43.7% and 43.2% respectively.
The sales expense rate and administrative expense rate of the children’s clothing industry in 2018 were 24.2% and 5.6% respectively, a decrease of 1 percentage point and 0.3 percentage point respectively compared with 2018. In the first half of 2019, the annualized inventory turnover rate and accounts receivable turnover rate were 2.3 and 5.1, which were slightly lower than in 2018 and basically remained stable.
▲ China’s children’s clothing industry revenue from 2016 to the first half of 2019
▲Net profit of China’s children’s clothing industry from 2016 to the first half of 2019
Future development prospects of the textile and apparel industry
In the first half of 2019, the textile, apparel and home textile sector achieved operating income of 70.974 billion yuan, a year-on-year increase of 0.3%, and a net profit of 680 million yuan, a year-on-year increase of 0.3%. down 20.7%. Among them, in the first quarter of 2019, the textile, clothing and home textile sector achieved operating income and net profit after non-deductions of 37.23 billion yuan and 3.17 billion yuan respectively, a year-on-year increase of 0.6% and a decrease of 10.4%.
The main reasons for the continued downturn in the textile, clothing and home textile sector in 2019:
1) Affected by the downward pressure on the economy, terminal consumption is sluggish;
2) Relevant companies are cautious in store expansion, with net store openings less than the same period last year;
3) In order to maintain healthy operating indicators, Reduce inventory risks and increase discounts and promotions.
Although the apparel and home textiles sector continues to be sluggish, the sub-sector sportswear and children’s clothing continue to prosper, and leading companies in all sub-sectors perform better than non-leading companies, and industry concentration continues to increase.
In 2020, the industry is still in a period of strategic opportunities for development, and technology has provided the industry with huge development opportunities. The textile and apparel industry in 2020 will see further growth in terms of brand direction, corporate transformation, and industrial upgrading.
Outlook 1: The rise of Chinese brands and the improvement of internal strength
As With the changes in the Internet and digital technology, all links in the industrial chain are gradually maturing. More and more clothing companies are, internally, improving internal production efficiency, making breakthroughs in product quality, and meeting the growing consumer demand of consumers; externally, they are deploying multiple brands. Enter market segments through matrix, mergers and acquisitions.
In 2018, the sports market began to pick up. Domestic sports brands such as Li Ning went global, getting rid of their “local” image and subverting people’s stereotypes of domestic sports brands.
These Chinese brands that have emerged amid industry changes have returned their business focus to the Z era – the products that consumers love. At the same time, they are actively building a PLM product master data platform to cooperate with flexible supply. chain, open up internal and external collaboration, and improve corporate efficiency.
Outlook 2: Digitalization is indispensable
In recent years, as textile and apparel companies Transformation has taken place one after another, and the application of digitalization in textile and garment enterprises continues to deepen. In 2020, digitalization will become more popular in the textile and apparel industry and will become the industry’s infrastructure in the future.
Because digitalization not only improves the production efficiency of corporate products and gives consumers a better consumption experience, it also allows textile and apparel companies to stand out in industry competition.
Outlook 3: Consumption grading is obvious, and Generation Z has become the main force
In 2018, with the With the popularity of group-buying and single-order products such as Pinduoduo, whether to upgrade or downgrade consumption has become a controversial topic among many industry insiders this year.
On the one hand, consumption upgrading is in full swing; on the other hand, the structure of consumption upgrading is differentiated, and the phenomenon of reverse consumption upgrading frequently occurs. This consumption grading phenomenon will continue in 2020.
In the consumption grading stage, there is another group of people worthy of the attention of textile companies – the Z era consumer group, that is, the post-95s and post-00s generations. They have gradually become the main force in the consumer market, and they have unique consumption concepts and behaviors. Facing the new generation of consumer groups, textile companies must be fully prepared. They must not only control product quality, but also improve efficiency and respond quickly to market demand.
Prospect 4: Personalized customization is gradually realized
Personalized customization has become the new trend in recent years. One of the hot keywords for the development of China’s textile and apparel industry. With the gradual advancement of the Industry 5.0 era, intelligent manufacturing has been upgraded, and personalized customization is slowly being accepted by the industry and consumers.
In general, personalized customization can be divided into four stages: the whole order customization stage, partial module customization, tailor-made stage and comprehensive personalized customization stage.
Personalized customization puts forward higher requirements for the product research and development process. Textile and apparel companies need to control products from sales planning and product display to supplier cost control, quality and compliance. Every aspect of design and development is managed to achieve intelligent integration within the enterprise from design, plate making to production.
2019 is about to pass, but 2020 is still the most important year for the transformation and development of my country’s textile industry. As the textile and garment industry continues to mature, Textile and garment enterprises need “internal cooperation and external cooperation”.
Internally, we will improve production efficiency through digital reform, and enhance brand influence by quickly launching products that satisfy consumers; externally, we must work together with many companies to develop, and I believe that everyone Gather firewood and the flames are high! Let’s work together to promote the progress of China’s textile industry.
With higher requirements, textile and apparel companies need to manage every link from sales planning and product display to supplier cost control, quality and compliance product design and development, and achieve internal control from design, plate making to production. Intelligent integration.
2019 is about to pass, but 2020 is still the most important year for the transformation and development of my country’s textile industry. As the textile and garment industry continues to mature, Textile and garment enterprises need “internal cooperation and external cooperation”.
Internally, we will improve production efficiency through digital reform, and enhance brand influence by quickly launching products that satisfy consumers; externally, we must work together with many companies to develop, and I believe that everyone Gather firewood and the flames are high! Let’s work together to promote the progress of China’s textile industry. </p
