2011 Parity Clothing To Enhance Risk Tolerance

2011

Textile and clothing are divided into two parts: processing and brand retail, and we are optimistic about the growth of the brand retail sector. Compared with the sub sectors such as clothing, home textiles and shoes, we are most optimistic about the "clothing sub industry". The logic is that the growth rate of the clothing sub industry in 2011 should be more optimistic, and the cost pressure faced by the inflation situation is small, especially the price clothing has stronger resistance to inflation.

Because of the obvious advantages in the competitive situation and the more mature business models, the performance of garment companies is more determined.

And the manufacturing sector is high because of the high price of raw materials.

Prices of raw materials are running under pressure.

At present, the price of raw materials based on cotton has reached a new high in recent years due to the factors of capital speculation under loose monetary policy.

Regardless of the trend of the future, it has seriously affected the production planning, inventory management and profitability of enterprises.

We judge that the export growth of industry will maintain about 10% in 2011, but the price of raw materials has already been separated from the fundamentals.

Especially in the first half of 2011, manufacturing enterprises may face another shuffle.

From the perspective of business operation and profitability, the adjustment has already begun.

Production plan: previously, the price of downstream cotton textile products has achieved higher growth, but it has not been able to keep up with cotton price increase.

Most of the small and medium sized cotton spinning enterprises have been afraid to make quotations and dare not receive large single orders. The production plan has been affected.

Inventory management: in 2009, the company maintained high inventory of raw materials and finished goods, but most enterprises do not have high inventory level at present.

It is estimated that the inventory of large cotton enterprises such as Lu Tai will be enough to support the first quarter of 2011.

Nearly 30 thousand yuan / ton cotton price level, it is difficult for enterprises to reduce exposure through inventory management.