Textile And Garment Industry: "Cold Winter" Clothing Home Textile Boom Continues

Abstract of the report:

Since the third quarter, clothing consumption has accelerated to pick up under the catalysis of longer double 11 activity time and "cold winter" effect. This year, the consumption enthusiasm of the offline epidemic is high, and new forms such as live delivery and delivery also play an important role online. The prolonged pre-sale time of double 11 and the deep participation of the head anchor have a positive driving effect on the sales of consumer goods including clothing and home textiles. This year's nationwide cooling time is earlier than that of previous years, the Spring Festival is later than previous years, and the sales cycle of winter clothes and winter bedding products is longer, which also drives the enthusiasm of sales and channel replenishment.

October includes the National Day holiday and the first wave of pre-sale of double-11. Online sales data are bright. Specifically:

By industry: online sales of various industries in October continued the boom in September, with sportswear playing the most prominent role, and other categories also maintained a growth rate of more than 30%. In this year's epidemic situation, clothing enterprises have taken the initiative to add weight online, the company's digital process has been accelerated, and the long-term strategies such as quick return of small orders and online and offline linkage have been accelerated. In terms of industry structure, the concentration of sportswear and children's wear is significantly higher than that of other categories due to category characteristics: 1) CR10 of sportswear continues to improve; in terms of international double leader, Nike has been strong in recent years, and Adidas is stable; domestic brands Anta and Li Ning rank top and relatively stable. 2) In terms of children's wear, balabalabala has a stable leading position, and its market share is ahead of other brands; Anta kids maintains a high growth rate and currently ranks in the top 10.

In October 2020, with the strategic emphasis on online sales and online and offline linkage strategy, the online sales of most listed companies' brands have achieved positive growth, and the sports outdoor brand is bright. Compared with other categories, sports outdoor brands are more resilient in the epidemic situation, and sportswear continues to be better than sports shoes. The growth rate of the whole platform of Li Ning brand is 28%. The Decente of Anta is the fastest growing brand among sports brands. Bosden flagship store has a growth rate of more than 200% in September and October.

Investment suggestions: brand side, sports clothing long-term prosperity trend does not change, it is recommended to continue to pay attention to Li Ning, Anta sports; strong brand focus on endogenous growth of the company, outstanding performance toughness advantage, it is recommended to pay attention to local fashion. At the manufacturing end, textile manufacturing enterprises with high-quality customers are expected to continue to improve. Shenzhou International's customers are mostly foreign sports outdoor brands, and high-quality production capacity guarantees sufficient orders.