Textile And Garment Brand Enterprises Are Optimistic About &Nbsp; &Nbsp; High And Low End Market Potential Is Huge.

As a basic consumer goods, the policy of stimulating domestic demand and the rapid progress of urbanization are right.

Brand businesses benefit from inflation

Benefiting from inflation expectations, the textile and garment industry has performed better recently.

According to Hongyuan securities statistics, as of November 24, 2010, the textile and garment sector rose 19.23%, while the Shanghai Composite Index and Shenzhen composite index fell by 11.3% and 7.06% respectively.

Among them, the clothing sector rose 30.16%, better than textile.

Guotai Junan Securities said that the rapid urbanization process and the rapid development of the central and western regions will become an important driving force for the growth of clothing consumption. In the next ten years, domestic clothing consumption will usher in a golden growth period.

In 2011, industry export growth will drop to around 10%, while domestic consumption can still maintain a rapid growth of over 20%.

Haitong Securities pointed out that China will be in the process of economic growth mode from "investment pull type" to "domestic demand start type" for a long time. The industry prospect of the "big consumption" framework is broad, and the brand clothing sub industry of textile and garment industry has benefited from the concept of consumption.

Haitong Securities believes that it is easy for brand clothing enterprises to pass the price rise by raising the price, and to maintain the product sales and profit margins unchanged. Inflation often leads to a faster growth in sales revenue and profits.

GF believes that the moderate inflation environment in 2011 is conducive to the promotion of the consumption of consumer goods, especially the high-end consumer goods.

Orient Securities said that for the retail enterprises with brand and channel resources and based on domestic sales, they are facing the best times.

There is a great development in the high and low end markets

Orient Securities believes that the advantage of local leisure wear brand enterprises lies in the long-term accumulation of channel resources, brand influence and consumer preferences in the two or three tier cities.

Their future opportunities lie in the rapid expansion of business opportunities and market capacity brought about by the continuous urbanization in China.

Orient Securities also said that the future domestic female leather industry will maintain more than 15% sales growth, sales volume growth will obviously exceed the sales growth, the middle and high-end leather shoes industry market concentration will steadily improve, the leading enterprises have the first mover advantage, will fully share the huge growth of domestic consumption growth and industry constantly accompanied by department store innovation and general merchandise channel sink.

Hongyuan Securities believes that one end is the consumption growth of both ends, one end is the consumption growth of low-end consumer goods, especially the consumption of township and rural residents. It is optimistic about the strong brand appeal, laying a certain scale in the second tier urban channels and sinking in further channels. It suggests paying close attention to the United States shares and the Luo Lai home textiles. The other end is high-end products and luxury goods consumption. The main consumer groups are the middle class and the rich class. It is recommended to pay attention to the products of luxury shares.

Haitong Securities said that compared to the first tier and second tier cities, the three or four line market of urban and rural areas and rural areas will grow faster in the future, while the industry concentration on the three or four line market will be relatively low. This will provide a larger market space for those companies with independent brands and undermining channels.

Hongyuan Securities said that the proportion of clothing expenditure in urban areas accounted for about 10% of consumption expenditure, while rural clothing accounted for 6% of consumption expenditure.

With the urbanization of rural residents, there will be a significant increase in the expenditure on clothing consumption for this group of people.

Hongyuan Securities believes that the competition of domestic brand enterprises has been focused on the first tier cities, second tier cities and economically developed areas, and the market competition is more intense.

With the general increase of residents' income, the great potential for growth in the rural market, especially the rural market, will receive more and more attention in the future.