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China’s men’s wear industry is riddled with weak demand, falling sales

"The domestic textile and garment industry in China is facing a major downturn in traditional retail along in online retail sales and exports. With the domestic demand witnessing a decline, the performance of major players has also fallen sharply. Especially menswear business has suffered most. In fact, Busen shares and Hasson shares revealed in first half 2016 net profit 2308.44 Wan yuan and 53.6832 million yuan, respectively, down 298.21 percent and 37.44 percent."

 

Chinas mens wear industry is riddled with weak demand

The domestic textile and garment industry in China is facing a major downturn in traditional retail along in online retail sales and exports. With the domestic demand witnessing a decline, the performance of major players has also fallen sharply. Especially menswear business has suffered most. In fact, Busen shares and Hasson shares revealed in first half 2016 net profit 2308.44 Wan yuan and 53.6832 million yuan, respectively, down 298.21 percent and 37.44 percent. The performance of BAOXINIAO also suffered during the first half of the 2016 as quarterly show in the first quarter showed net profit 9,492,700 yuan, down 86.16 %.

Men’s wear brands see lower profits

Chinas mens wear industry is riddled with weak demand falling sales

Various key players in men wear business have witnessed a revenue loss. Brands like Angelo, Hazzys have registered decline in revenue. According to the company the decrease was mainly caused by low retail earnings and retail sales which suffered due to the increase discounts. The company’s net income declined due to reduction in sales, inventory, returns along with increased operating expenses. The growing trend of online shopping also poses a major threat. Recently, Carbene Clothing stores closed its underperforming entities after their newly opened retail outlets slowed pace. As of June 30, 2016, Carbene has 1,012 apparel shops after closing its 47 non performing stores.

The economic downturn and weak demand, continue to hover over China’s domestic textile and garment industry. Over the past two years, the domestic industry for menswear has been in decline. According to the industry analysts, the decline has been primarily in traditional retail due to changing consumer behavior and buying patterns. Quite a few retail store had to opt for consolidation. However it seems not just the menswear business but the overall e domestic retail industry may take a long time to complete re-balance supply and demand.

And the crisis is not only in men's wear business, the textile and garment industry as a whole is facing tough times, say experts. The overall downturn in the Chinese retail industry may take a long time to re-balance supply and demand, the overall domestic consumption of upgrade, segmentation and personalization needs of the market. Therefore, on the supply-side brands that fail to meet consumer demand, will exit the market, while other brands and channels will get an opportunity to adjust and reposition, products and services, marketing and channels to adapt to consumers and improve market share.

 
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