Bad clothing affects the fabric market

"In order to celebrate the New Year after 6 months, our store has decided to make short-sleeved 100 yuan and 4 pieces. See clearly! It's 4! It's really 4!"

Do you feel like you are passing through this kind of promotional advertising? This is a hand-written promotional advertisement located at the entrance of a men's wholesale store in the wholesale market near Hangzhou Sijiqing.

At the end of July and early August, autumn is coming to the market. So at the beginning of this month, the sales promotion of summer dresses has begun to rise and the discounts of some clothing even exceed the year-end promotions.

T shirt 10 yuan from tens of yuan Tao authentic Korean goods Yesterday, in Hangzhou Sijiqing clothing street in the first floor of China Star Foreign Trade, a men's clothing shop door hit a "100 yuan 4" ads. The staff member said that the men's T-shirts were randomly selected as long as 100 yuan, usually, the wholesale price of these T-shirts are 50 yuan / piece or more.

If you recently visited several professional clothing markets, you can almost see such a scene. In China Star’s foreign trade, in addition to the full-scale clearance sale with 100 yuan for 3 pieces or 4 pieces for 100 yuan, some shops sort out the seasonal special items, as long as at least 10 yuan/piece; in the Xinhang style clothing market, the original three 400 yuan a silk dress, promotional prices as long as 80 yuan; in the Evergreen clothing market, the old Sijiqing, the old Hangzhou and other professional clothing market, Dalu the seasonal T-shirt prices in the 10 to 40 yuan Between, dress price is about 50 yuan, jeans shorts are between 40 yuan and 50 yuan, rarely appear more than 100 yuan in the season clothing.

Korean clothing has always been a luxury product. Even in the professional wholesale market, it is normal for four or five hundred dollars to be purchased. However, recently, the expensive goods have also taken the initiative to lower prices.

In the South Korean clothing wholesale district, many shops have played a clearance sale of 50 yuan from the audience. The ordinary style of T-shirts has a promotion price of between 50 yuan and 100 yuan. The jeans cost about 100 yuan. The fabric is still a good long-sleeved shirt and jacket. The price ranged from RMB 150 to RMB 200. On the second floor of the Xinhang Women’s Clothing Market, the discounts on individual Korean clothing business households were equally attractive. They directly divided thousands of items into 50 RMB, 80 RMB and 100 RMB. District, 200 yuan capped. The cheapest clothes are only equivalent to about one fold at ordinary times.

A store's shop advocates Ms. said that recently, there are several reasons why marketers are focusing on promotions: Autumn is listed at the end of July or early August, and summer dress must be cleared before the autumn launch; merchants are seasonally decorated and inventory is cleared before the renovation; or Inventory pressure is too high and has to be promoted at low prices.

Shopping malls and online promotions are equally striking Brand stores cost price dumped goods In addition to the wholesale market, shopping malls and networks, this year's garments are equally striking.

Recently, near the Hangzhou Huancheng North Road Public Transport Corporation, the women's brand “Yixiang Liying” has achieved an unprecedented 2.5 percent off-site promotions. Yesterday, after the end of the promotion, "Yixiang Liying" began to arrange the decoration.

The person in charge of a brand of women's wear in Hangzhou, said Mr. Wang, the general brand of women's cost price in the 1.5 fold to 2.5 fold, "This kind of promotion is equivalent to the cost of sales, if you add the cost of shops and labor to lose money."

However, in Mr. Wang's view, this year's promotion efforts are indeed greater than in previous years, "previous season 50% off, off-season sales of goods in the three fold or so, this year, some seasonal goods hit a three-fold or so."

In the promotion of shopping malls, the mid-to-mid-year discount campaign started in late June. Discounts for many fashion apparel brands hit a minimum of 1.5 percent, and in the middle of last year, the lowest discounts the mall had announced were about 2.5 percent. In the most recent regular promotions, the sales force for spring and summer wear remains at a minimum of 30%.

The promotion of the network is not to be outdone. During the recent summer promotion period, where the customer's promotional efforts are as low as 20%, the delivery fee will be free of 59 yuan, and the cheapest fashion T-shirt is only 29 yuan/piece. Masamasuo, who has always been on the high-end line, has also launched a staggering 20% ​​discount on women's clothing. Such promotions are rare.

Mo Daiqing, an analyst at the China Electronic Commerce Research Center, said that in the field of e-commerce, it is also facing a huge inventory pressure, and some e-commerce companies have not sold out even after one or two years of accumulation. Under the pressure of inventory, anti-season promotions, and low-cost promotions for seasonal clothing are a major destocking method for many apparel e-commerce and footwear and e-commerce providers.

Clothing inventory hit a record high this year, the clothing is not good this year has been engaged in clothing business Mr. Qian found that the recent purchase price in the market is particularly cheap, "a decent dress, the previous goods to get five or sixty yuan, and now basically 100 Yuan can take 3 pieces."

In addition to cheaper prices, Mr. Qian also found that there were vacant shops in individual markets. “This was very rare in previous years. Before the shops were unloaded, the transfer information was taken away and there was no vacancy phenomenon.”

In fact, the garment market in Hangzhou in the first half of this year was bleak. Recently, the Hangzhou Municipal Administration for Industry and Commerce announced the operation of the Hangzhou City's commodity trading market in the first half of 2012. The famous Hangzhou Sijiqing clothing featured street area had sales of 3.852 billion yuan in the first half of this year, a year-on-year decrease of 8.07%, another Zhejiang regional focus. Market Hangzhou Hangpai boutique clothing market sales of 259 million yuan, a decrease of 77.76 million yuan over the same period last year, a decrease of 23%.

Because of the dismal business, the prices of shops that have been popular in previous years have started to fall. In the apparel market of Hangzhou Sijiqing District, the prices of some shops have plummeted by 23%.

In the eyes of people in the industry, the apparel industry is an industry that constantly struggles with inventory, and Mr. Wang, the head of a branded women's clothing store in Hangzhou, said that the clothing industry has huge inventories. There are two main reasons. On the one hand, garment companies have a macroeconomic perspective. Insufficient preparation, blind optimism over stocking in previous years was overly sufficient. Coupled with the low barriers to investment in the apparel industry, and the relatively high gross profit margin, other funds have been involved in the apparel sector in previous years, resulting in a continuous increase in the total amount of clothing each year.

In addition, after the foreign trade of garments was blocked, foreign trade companies turned to domestic sales, and thousands of new clothing brands appeared in just one or two years, which made the domestic apparel market more cruel.

Mr. Wang also found that the bigger the company, the bigger the inventory problem it faces. Taking Smith Barney as an example, the first quarter of this year's financial report showed that inventory was 2.3 billion yuan, and the revenue was 2.6 billion yuan, of which inventory accounted for more than 88% of the revenue. In the first quarter of 2010, the stock of Smith Bark was only 700 million yuan.

"In order to ensure that there are more sizes and styles for consumers to choose and match, usually the mass type of clothing store inventory is 3 to 5 times the sales. However, at present, some terminal inventory is 7 times as much, and even worse. Up to 10 times." A person in the apparel industry said that this is only the terminal data.

The apparel downturn affects the fabric market The Keqiao Textile Index, which was announced half the time before the suspension of cotton yarn companies, showed that on July 23, the textile price index was 104.87, which was a drop of 0.66 compared with the index in early June.

Judging from the situation in China Textile City, this year's apparel sluggishness continues to affect the fabric market. Recently, the sales of thin fabrics in China Textile City continued to drop sharply, and the overall market volume continued to shrink. Due to the light business, the current downtime rate of Shaoxing weaving mills has increased and the output has dropped. The stock of general fabrics has increased.

According to Zhang Yanjie, an analyst at ZhuoChuang Information Technology, at present, the operating rate of main cotton yarn production areas such as Shandong, Jiangsu, Henan, etc. is less than half, and in addition to being subject to domestic raw material costs and labor costs, the terminal textile and apparel inventory is large, which also leads to the current cotton mills. The main reason for underemployment is that "the overall stock of cotton yarn is more than a month, and normal stocks should be in the range of 10 days to 15 days." Many cotton yarn companies therefore have difficulties in capital withdrawal.

Xia Ting, president of the Business Textiles Branch, analyzed that due to the weak consumption of terminal textile and garment companies, raw material purchases were reduced, and products like polyester were also facing huge inventories.

On July 13, the interim results of Hengyi Petrochemical and Rongsheng Petrochemical, the two leading companies of domestic polyester filaments, fell by 70%-80% year-on-year.

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