2016 What are the opportunities for the apparel industry? Sports, children's clothing is very popular
① sports industry will be one of the main directions of industry transformation. With the sports industry to introduce more market-oriented means, 2025, the total size of the sports industry over five trillion yuan, the sports industry will usher in the golden years. Currently sporting goods, clothing and footwear production and sales slowdown, high value-added, high-margin sports service industry (upstream and midstream media event resources spread) have long been in the doldrums. Traditional sports apparel companies need to find a breakthrough to the industry chain resource integration, will be the future trend of development. Elegant birds listed companies and other companies have been multi-dimensional layout of the sports industry. Faced with considerable market potential, apparel brands are accelerating the layout of the children's clothing industry, the existing industry leading brands mostly in the extension and expansion + endogenous growth driven by the benign stage of development. With the purchase of children's increasing emphasis on safety, comfort, and some fashion with nature, the industry share is gradually leading company focused on brand
② Shenwan Hong source research report that, from a fundamental point of view of sector rotation, adjust the order of sub-sectors are generally sports shoes, casual wear, home textiles, men's shoes, men's, high-end men's and women's. Currently sub-sector has been wheeled into the men's industry, is expected to bottom out in 2016 menswear industry greater flexibility in performance, lingerie and baby industry is still in rapid growth phase, high-end men and women in the doldrums, pending recovery.Dehydration/defoaming Masterbatch
③ industry company presents two major trends. First, channel integration, channel more flat, supply chain efficiencies. Anta, Semir and other companies, for example, take the initiative to reduce dealer level, master data terminals and channels functioning, reduced fare rate, improve product cost, and ultimately expand terminal sales. Followed by the platform, the transition from heavy to light assets asset, a resource integrator rather than producers, suppliers and distributors to become connected to the big platform to fully improve resource utilization, such as Sea Orchid House, Xinmin technology..Dehydration/defoaming Masterbatch
Despite the lackluster growth of primary industry, but in 2015 the textile and garment sector is no lack of spectacle. Among them, the transition merger Niugu camp in large numbers. Looking to 2016, at the end demand is difficult to have explosive growth in the context of the transformation of the industry is still hot..Dehydration/defoaming Masterbatch
In 2016 the industry is expected to improve external factors, continued low cotton prices and international crude oil and help maintain a stable business costs; devaluation of the renminbi would be expected to benefit from the export-oriented enterprises, industry leading overseas production layout enables the industry to upgrade from low-cost advantage to the industrial chain advantage . In addition, the industry "Thirteen Five" plan will encourage intelligent manufacturing industry with fiber usage continues to grow, sub-industry leaders expected to usher in improved performance.
Destocking coming to an end
2015 January-September year on year growth of total retail sales of social consumer goods was 10.4%, compared with last year fell 1.5 percent. End consumer hovering at the bottom, no significant warming trend..Dehydration/defoaming Masterbatch
Since 2015, although the basic continuation of apparel consumption in 2014 of weakness, but the growth rate has stabilized, and in individual months steadily. January to September year on year growth of 10.2% last year quite, clothing consumption, although not pick up, but there have been signs of improvement segments.
Shenwan Hong source research report that, from a fundamental point of view of sector rotation, adjust the order of sub-sectors are generally sports shoes, casual wear, home textiles, men's shoes, men's, high-end men's and women's. Currently sub-sector has been wheeled into the men's industry, is expected to bottom out in 2016 menswear industry greater flexibility in performance, lingerie and baby industry is still in rapid growth phase, high-end men and women in the doldrums, pending recovery..Dehydration/defoaming Masterbatch
Industry company presents two major trends. First, channel integration, channel more flat, supply chain efficiencies. Anta, Semir and other companies, for example, take the initiative to reduce dealer level, master data terminals and channels functioning, reduced fare rate, improve product cost, and ultimately expand terminal sales. Followed by the platform, the transition from heavy to light assets asset, a resource integrator rather than producers, suppliers and distributors to become connected to the big platform to fully improve resource utilization, such as Sea Orchid House, Xinmin technology..Dehydration/defoaming Masterbatch
Mergers and acquisitions will continue to transition
Although the textile and apparel industry has a certain anti-cycle ability, but with the growth of the new normal, around the transformation and upgrading, the industry has been a high incidence of heart of the capital, is expected in 2016 is still the industry mergers and acquisitions restructuring bumper.
From the direction of the transformation point of view, the main industry formed around the extension of industrial chain ecosystem, straddling the double main industry operators is still the main idea of transformation. In the first two capital operation, placed Growth is expected to remain the subject of a more determined way are common.
Sports industry will be one of the main directions of industry transformation. With the sports industry to introduce more market-oriented means, 2025, the total size of the sports industry over five trillion yuan, the sports industry will usher in the golden years. Currently sporting goods, clothing and footwear production and sales slowdown, high value-added, high-margin sports service industry (upstream and midstream media event resources spread) have long been in the doldrums. Traditional sports apparel companies need to find a breakthrough to the industry chain resource integration, will be the future trend of development. Elegant birds listed companies and other companies have been multi-dimensional layout of the sports industry..Dehydration/defoaming Masterbatch
Fundamentals of children's clothing industry to be significantly better than the other sub-sectors. With the baby boom, two-child policy of full liberalization as well as the overall population growth in disposable income, consumption will gradually rise to children's clothing. According to the National Bureau of Statistics released the "Kids Industry Report 2012-2015", children's clothing industry output annual growth rate of 25-30%; this year, China is expected to infant clothing cotton goods and commodities market capacity will reach 227.98 billion yuan, 2017 children's clothing industry will exceed 300 billion yuan. And with the industry concentration to further enhance SMEs phased out, gather resources to leading enterprises, the core competitiveness..Dehydration/defoaming Masterbatch
Faced with considerable market potential, apparel brands are accelerating the layout of the children's clothing industry, the existing industry leading brands mostly in the extension and expansion + endogenous growth driven by the benign stage of development. With the purchase of children's increasing emphasis on safety, comfort, and some fashion with nature, the industry share is gradually concentrated to the brand of the leading companies.
Women around the huge consumer market, "she economy" is another hot spot in transition. According to statistics, the current domestic female consumer groups have reached 480 million people, which some consumer groups have more income and more opportunities. "She economy" related to consumer industry covers a wide range, the market capacity of at least 5 trillion yuan more than expected to become the future sustainable growth of consumer industries outlet.
As the consumer marketplace, the female population in disposable income and social status rise, consumer spending showed higher elasticity and buying. Sub-industry perspective, women in discretionary apparel, underwear, cosmetics, medical beauty, travel, jewelry and other growth and investment opportunities in the market is higher than essential consumer goods, will become one of the main growth drivers consumer discretionary sector. In addition, the rapid development of the Internet has also spawned "She economy" business model innovation. For example, based on women as the main types of vertical electric providers and social electricity suppliers, there are many doctors in the booming US O2O companies. The subject of the textile and apparel stocks have some potential relevance. Listed companies, Lancy Shares fashion ecosystem around for a number of overseas mergers and acquisitions, mainly related to the subject of cosmetics and other industries, to enhance the positive performance of the market value..Dehydration/defoaming Masterbatch
Cross-border electricity firms, online shopping category focuses on clothing and shoes. China Electronic Commerce Research Center data show that the first half of 2015 China's Trade-scale cross-border electricity is 2 trillion yuan, an increase of 42.8%, 17.3% penetration rate. In the import and export trade in the doldrums of the status quo of cross-border electricity trade show exhibits booming trend. Cross-border electricity supplier deal size expanded rapidly in the past five years from 0.84 trillion yuan to 3.75 trillion yuan, a CAGR of 34.88%; penetration rate also increased from 4.0% to 14.2%, is expected to continue to improve in the future. Analysts pointed out that the industry is still in the early stages of development, it is also expected to be one of the important directions of the company's transformation.
Multiple positive performance improvement
The second half of 2015, subject to the Fed rate hike expectations and other factors, the RMB against the US dollar style mutation, 2016 opening of the first day below the 6.5 mark integer. The industry believes that the devaluation of the renminbi continue the trend in 2016 is a high probability event..Dehydration/defoaming Masterbatch
High-end textile manufacturing business after years of development and accumulated production scale, industrial chain system, research and development capabilities and a large number of customers and other advantages, in the background of a strong dollar, the export industry will significantly benefit from the devaluation, devaluation of short-term competitiveness enhancement ( Price advantage) helps export orders improved. On the other hand, under the background of the currency devaluation, foreign exchange gains and losses in US dollars in order to bring the company's performance thickening. A larger proportion of the industry in the export business, order and stability as well as higher gross margin company's main business will be the first to benefit, such as Lutai A, Dayang creation, Vosges shares, Blum East and so on. In addition, rising domestic labor costs and other textile manufacturing industry is also accelerating the pace of going out, expected 2016 industry leading some low-end transfer of production to Southeast Asia as well as to seek tariffs and low-cost advantages of overseas mergers and acquisitions will continue..Dehydration/defoaming Masterbatch
2015 textile and chemical fiber industry, the industry leader is expected to make low-cost benefit in 2016. 2015 With the temporary storage of cotton policies from the historical stage, about the average price of cotton purchasing and storage times from about 19,000 yuan / ton dropped to 14,000 yuan / ton, while international oil prices also appear cliff formula down, which makes some preliminary Purchasing a large number of high-priced raw materials business is selling at a loss situation, the 2014 fourth quarter and 2015 first quarter results at a low point. After digestion is completed with high-priced inventory, industry costs are expected to improve in 2016.
Textile and garment industry in a competitive industry, industry policy limited impact on performance. However, there has been basically completed the preparation of the textile industry, "Thirteen Five" plan, intelligent manufacturing and industrial fiber is expected to become the focus of development. Among them, the industry is expected to maintain double-digit fiber growth, industry growth space OK..Dehydration/defoaming Masterbatch
Investment Opportunity Analysis attached:
Guotai Junan attention to small-cap companies within the industry. Poor performance of small-cap stocks whose valuations equally high, high valuation reflects investor recognition of the value of the transition options. Most of the textile and garment industry segments market space, but the lower threshold, the number of SMEs more competitive, the industry boom of the change will significantly affect the level of profits. The limited size of revenues and profits in the industry led to the high proportion of small-cap companies. As of 6 January, 2016, textile and apparel companies have market capitalization of less than 5 billion yuan 22, 31 between 5 billion -100 billion, the rich and the potential transformation of the underlying shell resources. Guotai Junan that, given the increasing industrial investment fund, divestitures small capitalization companies as the main means of capital operation, may be appropriate to focus on the past year may have a capital operation (including the implementation of a given increase in the transfer of assets and the establishment of industry funds, etc.) of company transformation sex..Dehydration/defoaming Masterbatch
Golden State Securities research reports that in 2016 the transition is still a hot market, in addition to small-cap, but also focus on project-driven, focus on the main industry in the development of the second process, the project ground to a relatively fast company. In apparel-related fields, may be concerned about supply chain integration platform.
Shenwan Hong source believes that at this stage may be concerned about the industry leading consolidator; asset-light service providers, future expansion drive that category or epitaxial acquisitions; cotton industry chain leading companies.
Soochow Securities believes that attention in the formative years of the sub-sectors and their leader, focused on children's clothing, sporting goods manufacturing industry; Focus transformation or layout of high-growth industry enterprises, such as culture media, finance and other industries..Dehydration/defoaming Masterbatch
Orient Securities on the sector performance in 2016 is more optimistic. First, the possibility of a more fundamental difference is small, the rapid development of the Internet, the consumer continues to escalate, the global flat development background, textile and apparel industry in the development of industry has emerged a lot of new trends and new topics, traditional product Consumption of thinking has been fully expanded upgrade to "Product + Services" new consumer thinking, industry and the company's development also further open space. Optimistic about investment opportunities in 2016 textile and apparel industry in the new way to bring consumption forward, "New Trends + new normal" resonance will bring a lot of investment opportunities..Dehydration/defoaming Masterbatch
