Men's wear industry: market capacity continues to grow

Judging from the performance forecast of the recent annual report, the performance of listed companies in the menswear industry, such as the Annals of Good News, Seven Plush Wolf, and Jiumu Wang, have both increased substantially and are expected to become active varieties in the secondary market.

Market capacity continues to grow According to data, in 2009, the total retail sales of the senior men's clothing market was approximately 58.91 billion yuan, and the average annual compound growth rate in the period from 2003 to 2009 reached 26.1%, indicating that the domestic senior men's clothing market has grown rapidly.

Moreover, the domestic high-end men's market capacity is still in a period of rapid expansion. This is due to the rapid expansion of the number of middle class in China. In 2008, the number of middle class has reached 85.5 million, mainly in economically developed areas such as Beijing, Shanghai, Guangzhou and Shenzhen. The number of middle class in second and third tier cities is also increasing rapidly. Growth is expected to increase to 104 million by 2011, with a compound annual growth rate of approximately 7%. On the other hand, as the per capita income level continues to increase, consumers’ sensitivity to clothing prices continues to decline, and brand recognition continues to increase. Choosing clothing becomes a life in which people pursue higher quality of life and highlight personal tastes. the way.

Brand advantage speed up high-quality stock From the current China's men's clothing market has formed a strong brand consumption characteristics, high-quality listed companies with brand advantages are expected to obtain faster growth.

This is also supported by two pieces of information.

First, the increase in industry concentration is beneficial to listed companies with brand advantages. In 2010, the market share of the top ten Chinese men's brands was 8%. In the same period, the US and Japan reached 14% and 24% respectively. According to the statistics of the China Business Information Center in September 2011, among the domestic male apparel industry, the concentration of the top ten brands of male trousers is 33%, the concentration of the top ten brands of male business suits is 37%, and the top ten male shirts The concentration of the brand exceeds 40%; the sportswear market is only one-third of the men's wear, but the market concentration of the top ten brands is as high as 70%. Thus, compared with the sporting goods market, the menswear industry is not yet saturated, and the market share of major brands is still expected to increase, which is conducive to the rapid growth of high-quality listed companies.

Second, listed companies with brand advantages are expected to benefit from the improvement of second- and third-tier cities' spending power. According to Nelson Consulting, there are 54 million households in China's first and second-tier cities, with total revenue estimated at 2 trillion yuan. In contrast, the number of households in the third and fourth tier cities is as high as 160 million and the income is 1 trillion yuan. Men's clothing industry listed companies are mostly positioned in the mid-to-high end, and are located in second and third tier cities. They will obviously benefit from the future consumption escalation in these cities.

The performance data of related listed companies should also confirm this trend. The Annunciation expects 2011 net profit to increase by 35% to 55% year-on-year, net profit for 2010 is 242.867 million yuan; seven wolves expect 2011 net profit of 410 million yuan, up 44.87% year-on-year; Hinnor expects 2011 net profit to increase year-on-year 20% to 50%, the net profit of the previous year was 143.6441 million yuan.

The high-growth and attracting funds to join the financial game model shows that the stocks of such stocks have a strong lock-in. Obviously there are medium and long-term funds stationed there. With good annual report results and high-powered expectations, the stock price may oscillate upwards. During the operation, it is recommended to actively pay attention to the stocks such as Hinnor, Septwolves, Jiumuwang and Annunciation Bird.