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Textile And Clothing: Demand Differentiation &Nbsp; Preferred Ends

2011/7/4 9:22:00 77

Demand Differentiation Of Textile And Clothing

Demand differentiation: upward luxury, downside benefits

The consumer market is polarizing, showing two trends: low consumption and high consumption.

In terms of the current A share listed textile and apparel companies, they can't get enough luxury brands.

Clothing brand

They are located in the middle end market, and the sales area is basically concentrated on the two or three lines of those well-known international brands that have not yet been penetrated into the market.

On the other hand, we should also note that when the attention of the enterprises is concentrated on the top of Pyramid, this group has become the competition Red Sea, while the bottom of the Pyramid market is composed of weak consumer groups, with large base, less competition and more opportunities to bury.

So on the other hand, we should move our eyes downward to see the wealth at the bottom of China's Pyramid.

The growth of retail sales of consumer goods is slowing down in the context of inflation

Whether the slowdown in the growth of total consumption and retail sales in May meant a decline in overall consumption, which we believe needs further verification.

However, consumption will be suppressed if residents' disposable income increases slowly and the inflation rate falls.

Garment production growth decline

According to the latest garment production data, 2-4 months in 2011,

Clothing output

The year-on-year growth rate is near 9%, and the rate of decline is very obvious compared with the growth rate of 15%-20% before.

On the one hand, the reason for the economic recovery and replenishment demand in 2010 led to a relatively high growth rate in the low base in 2010. But from another perspective, we can see that the export delivery value of textile, clothing, footwear and hat manufacturing industry has declined in 2011, which has partly slowed down the overall year-on-year growth rate.

If the growth of domestic demand data in May is a sharp turning point, then the rapid development of the textile and garment industry will come to an end.

The industry is at the bottom of the valuation, but the valuation premium is not obvious.

From the valuation point of view, the valuation level of textile and clothing has reached the bottom level in the past 5 years.

However, judging from the whole market, the valuation premium rate of textile and clothing remains at a high level.

Half year investment proposal

Our investment advice is: because the export situation is not optimistic.

Domestic market demand

The start-up time is still needed, so the textile industry is given a neutral rating.

The investment strategy for the clothing industry is to seize the brand and not to relax, giving attractive ratings.