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Clothing Brand Consumption Brings Valuation Upwards

2011/8/27 15:08:00 30

Textile in the past two months

clothing

Plate trend obviously outperform the market.

Judging from the historical trend, textile and clothing as a necessary consumer goods, showing a more obvious defensive trend: bull market performance is weaker than the market, bear market performance is stronger than the market.

Industry pformation is going on, and growth is more long-term.

Taking into account the government's determination to expand domestic demand and promote consumption, the weaker comparative advantage of domestic labor prices, and the uncertain economic climate abroad, we can predict that the pformation trend of textile and clothing export oriented mode to domestic demand will continue.

In the long run of economic growth and revenue growth, the market demand potential of China's brand clothing market will gradually be released.

domestic

consumption

Strong demand and branding enhance long-term bargaining power.

We believe that with the improvement of income level and the trend of consumption diversification, the trend of branding of clothing and home textiles will become more obvious in the future.

The added value of brand will occupy a larger proportion in clothing and home textile retail.

For some clothing and home textile retail products, there is a tendency to exceed the necessities to become an optional consumer product, and therefore, we can get stronger bargaining power.

Cotton prices continue to callback to ease short-term

cost

Pressure.

We believe that the lower prices of cotton and the resulting sales incentives will play a complementary role in the second half of this year, and sales will play a leading role in stimulating sales growth.

Optimistic about clothing brand consumption.

The experience of upvaluation has proved that branding has been proved to be a "moat" for the consumption of food, drink and food.

We judge that the "moat" property of garment industry brand is also forming, so the overall valuation change of the garment industry will also copy the upward trajectory of beverage tourism and food and beverage.

In terms of investment, we are optimistic that enterprises can effectively pass on the cost to consumers through superior brand and terminal management capabilities and maintain high profitability.

Specifically, it includes: first, the company with the first choice of growth and good fundamentals; at the same time, it has the advantage of valuation, recommends the U. S. state clothing and search for special; two, it recommends enterprises with growth certainty but not obvious valuation advantages.

The growth of such enterprises has continuity, is a long-term quality of the allocation of varieties, short-term valuation level is not a factor of concern, recommended Luo Lai home textiles, fuanna, Meng Jie home textiles, Pathfinder, Jialin Jie.

Three, we should pay attention to the company that has no worries at all and has the advantage of valuation in the short term.