Main points
The strength of sports shoes and clothing brand products has been upgraded, and the awareness of domestic products and health has been enhanced, opening up space for long-term growth.
The Xinjiang cotton incident catalyzed domestic substitution, and the continuous improvement of national self-confidence and national identity is a solid guarantee for domestic substitution. We believe that the selective differentiation between domestic brands and foreign brands is an inevitable phenomenon, and the Xinjiang cotton incident, as an emergency, accelerated this process. In this process, enterprises with excellent management ability and brand cultural identity have the potential to go out of the circle and are expected to enjoy the development opportunity period under the rise of dividends in the new era; On the other hand, compared with developed countries, China’s sports participation rate and fitness crowd penetration rate are still low, and the development space of sports industry is large, laying the foundation for the growth of sports shoes and clothing products.
Comprehensive clothing enterprises: brand promotion is on the way, and they are optimistic about the flowers and fruits of “internal and external training”
With the efforts of increasing management, improving quality and efficiency, the comprehensive garment company has generally strengthened its operation and management ability, and the fast reaction mode and flexible supply chain have increased the overall operation efficiency of the company and strengthened the driving role of terminal retail; Brand clothing enterprises continue to build brand culture and strengthen consumers’ brand cognition and identity through multi-dimensional marketing model, so as to strengthen brand image. On the other hand, the market scale of China’s brand clothing industry is huge, and medium and high-end domestic brands have great development space. It is optimistic that comprehensive clothing enterprises will improve their brand strength in a long dimension with the help of acquisition / cooperation of overseas brands.
The rise of personalized clothing, based on better commodity attributes, has expanded the growth channels
The integration of new consumption and new categories brings new clothing consumption trends. For example, generation Z’s recognition of animation game content consumption and the rise of national cultural identity have brought about the exploration of Chinese traditional costumes, Personalized clothing represented by “Sankeng” clothing (Hanfu, JK uniform and Lolita) has attracted great attention because of its strong social attributes and cultural added value. Personalized goods emphasize wearing experience and have high premium ability. There is great potential for offline channel development. We are optimistic about the first mover advantage of brands with strong e-commerce operation ability and good Omni channel laying.
The post epidemic era of textile manufacturing and processing is rising again
The epidemic situation has been repeated, and the price of raw materials such as cotton and staple fiber in the upstream has remained unchanged. The industry has returned to normal development. Under the background of the new normal division of labor in the global manufacturing industry, the large-scale layout and supply chain advantages of the textile manufacturing industry, combined with the first mover advantage formed by the concentration trend of downstream high-quality customers, are expected to achieve a steady recovery in performance.
Focus on the subject
It is suggested to pay attention to the multi matrix layout, sports shoes and clothing brands Anta sports and Li Ning; China’s old brand comprehensive clothing enterprise Zhejiang Semir Garment Co.Ltd(002563) with dual track drive of adult clothing and children’s clothing; China’s female underwear industry leader, force new products and new channels Aimer Co.Ltd(603511) ; Global textile manufacturer Huali Industrial Group Company Limited(300979) and Shenzhou International with large-scale layout at home and abroad and significant supply chain advantages.
Risk statement
Market share competition exceeds expectations, and new brands cause to seize the market; Terminal consumption is weak, and retail recovery is less than expected; The global epidemic has repeatedly affected the supply side of raw materials, and the price fluctuation is higher than expected; Overstock of commodity inventory, and the turnover speed of accounts is lower than expected; The cost of live broadcast e-commerce platform increased faster than expected, and the profit space of brands decreased.
