Recently, the news that “the national apparel companies have sufficient stocks for three years of wear by the Chinese people” has caused the society’s widespread concern for the domestic apparel industry. In fact, this three-year inventory statement is not true.

At the media briefing held by the China Garment Association on December 7th, the secretary of the China Garment Association, Wang Hao, stated that the China Garment Association believes that inventory is an industry characteristic of clothing as a seasonal end product in the business process. At present, with the sluggish consumption in the domestic market, the increase in the inventory of some clothing brands does not affect the production and operation of these brands, and it cannot be determined as such, which constitutes an “inventory crisis” for the clothing industry.

According to reports, the clothing enterprises' inventory is generally divided into: stock sales and inventory of defective and defective products, stocks of raw materials in the raw material warehouse, and stocks of excess raw and auxiliary materials; stocks in channels, including direct-inventory stocks and dealer stocks; stocks in transit There are 3 kinds of inventory in the logistics chain. Wang Hao said that in response to the recent inventory crisis in China's garment industry, it is actually confusing the concept of inventory and unsalable goods and defective goods inventory.

Clothing is a fast-moving consumer product, with strong seasonality and rapid changes, and the need for inventory is relatively high. Therefore, it is normal for a company to maintain a certain amount of inventory. In inventory, unsatisfactory stocks are the unsold stocks, defective products, and excess raw materials. The "inventory" of clothing listed company financial statements contains a wider range of categories, not just the "backlog of products and slow-moving products" in the general concept of people.

Wang Hao said that the inventory level does affect the ordering and sales of dealers in the next sales cycle. For the garment industry inventory issues that are currently attracting attention of all parties, we believe that overall, the inventory level of apparel listed companies is still within controllable range. Most companies, and even the entire industry, have not reached the "crisis" level.

According to statistics, with the advancement of corporate destocking in 2002, the year-on-year growth of inventory in the first three quarters has declined quarter by quarter, and has now been significantly lower than sales growth. However, although domestic apparel sales showed some positive signs in November of this year, Wang Hao believes that the situation is still grave, mainly in three areas: the low export price increase, the weak domestic sales situation, and the decline in corporate profitability. The China Garment Association analyzed the three quarterly reports of 33 listed companies and found that the total inventory of these companies was 49.473 billion yuan, and the growth rate was basically in sync with sales revenue growth, and it was the lowest level since 2008.

Statistics from the National Bureau of Statistics show that the enterprises in the apparel industry in China's garment industry above the designated size achieved 256.966 billion yuan in finished product inventory in the first three quarters of 2012. According to the calculation of China Garment Association, in 2011, China’s domestic apparel sales amounted to 1.4 trillion yuan, and in 2012 it is expected to reach 1.7 trillion yuan. Wang Hao believes that the current Chinese apparel industry is experiencing a period of slower growth, and both companies and the market should adapt to the transition from high-speed growth to low-speed growth. ”

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