Under the new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other, my country’s industry is gradually upgrading and moving towards a broad road of high added value, high technology content, high quality and strong brands. At the same time, with the transformation of people’s living needs from “have something” to “is it good or not”, my country’s multi-level and diverse consumer demand space has further opened up, and consumers of different ages and preferences have become increasingly diverse and in-depth. consumption demands.
Create quality consumption and lead a better life. At present, a new consumer market focusing on “clothing, food, housing, and transportation” is emerging. Domestic products are outstanding, and there are many A-share listed companies that have “the light of domestic products.” In order to more comprehensively evaluate the quality of A-share domestic brands, and at the same time, on the occasion of “315 International Consumer Rights Day”, and to protect the legitimate rights and interests of consumers, Times Business School dug deep into the “golden brands” that are highly recognized by consumers. Find high-quality companies with high recognition, good profit quality, and sustainable operations.
Times Business School ranks A-share listed companies in the textile and apparel industry based on multiple indicators such as the company’s market value, operating income, operating income growth rate, gross sales profit margin, inventory turnover rate, net cash flow per dollar of sales, etc., and conducts multi-dimensional analysis of A-share listed companies. The market recognition of domestic textile and apparel brands.
According to data from the National Bureau of Statistics, in 2021, the total retail sales of consumer goods will be 44,082.3 billion yuan, an increase of 12.5% over the previous year, and the two-year average growth rate is 3.9%. Among them, the retail sales of consumer goods other than automobiles was 39,703.7 billion yuan, an increase of 12.9%. Excluding price factors, the total retail sales of consumer goods in 2021 will actually increase by 10.7% compared with the previous year. The online retail sales of physical goods reached 10,804.2 billion yuan, of which food, clothing and home appliances increased by 17.8%, 8.3% and 10% respectively.
The above data shows that my country’s consumer market is still on the rise, and residents’ consumption demand and purchasing power are still rising. The long-term improvement of China’s economy is the biggest positive factor. The country will take multiple measures to maintain stable economic development, encourage consumption, and residents’ income will steadily increase. my country’s consumer industry is far from reaching the upper limit of development, which has created commercial soil for companies to strive for a “market value of 100 billion”.
High-end manufacturing is China’s main goal in reshaping the global value chain. The overall industry standards, product qualifications, R&D and innovation capabilities of the consumer industry still need to be further developed.
According to the Shenwan secondary industry classification, there are 65 companies in the A-share clothing and home textile industry.
The ranking shows that Huali Group ranks first, with Heilan House and Peacebird ranking second and third respectively. Semir Apparel and Luolai Lifestyle, which are well-known among consumers, also performed well, ranking fourth and fifth respectively.
Judging from specific indicators, Huali Group ranks first in total market value, Heilan House ranks first in operating income, Anzheng Fashion ranks first in year-on-year revenue growth, and Disu Fashion ranks first in gross profit margin. Zhongyin Fashion ranked first in inventory turnover rate, and Henghui Security ranked first in net cash flow per dollar of sales. It is worth noting that there is no company that repeatedly ranks first in each indicator.
Information shows that Huali Group is a professional manufacturer of sports shoes engaged in the development, design, production and sales of sports shoes. It mainly provides development for world-renowned sports brands such as Nike, Converse, Vans, Puma, UGG, Columbia, Under Armor, HOKAONEONE and so on. Design and manufacturing services. The company has established long-term and stable cooperative relationships with five of the top ten companies in the global sports shoes and apparel market share. It has opened a total of 20 shoemaking factories in China, Vietnam, Dominica, Myanmar and other places. In 2019, its shoe output exceeded 1.8 Billion pairs, is one of the few professional manufacturers of sports shoes in the world with a production volume of more than 100 million pairs.
Heilan House is a fashion brand that has spread from Jiangsu to the whole country. Its main business is the operation of brand clothing and the production and sales of high-end suits and professional clothes. It owns clothing brands such as Heilan House, Aijutu, and Sankeno. Among them, the Sancano brand is a professional clothing group purchase business, and the other brands adopt the form of clothing chain operations. The products include men’s clothing, women’s clothing, accessories, etc., with the characteristics of high cost performance, rich categories, and in line with the needs of public consumption.
In terms of market value, as of March 9, Huali Group’s market value reached 87.268 billion yuan, far ahead of the second place Heilan House’s 23.889 billion yuan. According to the 2021 performance report released by Huali Group, the company’s annual operating income was 17.5 billion yuan, a year-on-year increase of 25.4%; the net profit attributable to the parent company was 770 million yuan, a year-on-year increase of 37.4%. The clothing and home textile industry is a traditional industry. As the industry matures, Huali Group’s revenue has increased steadily in the past two years. It can be seen that the market value leader in the industry still maintains a high growth rate. This reflects that the clothing and home textile industry still has a large room for growth.
In terms of operating income, Heilan House is ahead of other companies, ranking first, with its full-year revenue in 2020 reaching 17.959 billion yuan. In terms of gross profit margin, Heilan House is in the middle, ranking 34th. The gross profit margin of the clothing and home textile industry is�� is 37.18%, and Heilan Home’s gross sales profit margin is 37.42%, almost the same as the average.
In the past two years, Semir Clothing has made strategic adjustments to move the brand in a younger and more fashionable direction. It has gained high popularity among young people, and its development progress is also reflected in its operating income. Data shows that Semir Apparel ranks second only to Heilan Home in terms of operating income. It performed well in terms of market capitalization and net cash flow per dollar of sales, with a gross profit margin of 44.57%, slightly higher than the industry average. Overall, Semir Apparel has strong profitability and better ability to obtain cash.
Disu Fashion received the highest ranking in terms of gross profit margin. Its gross profit margin in 2020 was 76.6%, 39.42 percentage points higher than the industry average. In terms of total market value, year-on-year revenue growth rate, and net cash flow per dollar of sales, it ranks around 10th, ahead of most companies in the industry, so it ranks sixth overall.
In addition, as of December 31, 2021, in the past 5 years, Wanlima has the highest increase in the industry, reaching 136.03%, followed by Biyinlefen, Mugaodi and Langzi Shares, all reaching 90 % or more, with increases of 119.54%, 97.84%, and 91.1% respectively. Judging from the increase in stock prices, the above-mentioned companies have received greater recognition from investors.
Judging from the overall ranking, the clothing and home textile industry is relatively dispersed, and the Matthew effect is not obvious. Whether it is market value, operating income or gross profit margin data, they all present a relatively evenly arranged pyramid shape, and there is not much difference between each ladder. Especially in terms of gross profit margin, there are even cases where many small and medium-sized enterprises rank higher than well-known brands in the industry. In the long run, small and medium-sized enterprises still have opportunities to challenge industry leaders.
Since 2020, in accordance with the requirements of the “Textile Industry Development Plan (2016-2020)” to “improve the standardization system of the textile industry and give play to the basic supporting role of standards in industrial development” and the “Industry Standards Formulation and Revision Project Plan” of the Ministry of Industry and Information Technology, A number of industry standards related to the textile and apparel industry have been launched domestically, including newly formulated and revised standards. It can be seen that the standards of the clothing and home textile industry are becoming more and more refined, and the development of the industry will become more and more benign. In a market environment where the Matthew effect is not obvious, small and medium-sized enterprises are still expected to leap forward in the rankings.
In response to the shrinking orders in overseas markets affected by the epidemic, the country has also intensively introduced a series of policies to stabilize foreign trade and employment, which mainly involve increasing support for small and medium-sized foreign trade enterprises, reducing or exempting relevant taxes and fees, increasing export tax rebates, and “export Tax incentives such as “converting to domestic sales” have eased the pressure on production and operation funds in the clothing and home textile industry and safeguarded future sustainable development.
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