13Th Five-Year Plan: Garment Enterprises Face Three Big Market Problems

What is the relevance of the 13th Five-Year planning announcement, the goal of striding across the "middle income trap", the global free trade agreement, the sudden restart of IPO, and the reform of the capital market? What is the relevance of these recent macro events? What does it mean for the clothing enterprises? By interpreting these macro events, this article reveals the opportunities and challenges facing the garment enterprises behind the plan.

Big domestic market: focus on the large middle income class

After the promulgation of the "13th Five-Year plan", the leap from the "middle-income trap" has clearly become the official economic development goal. In November 9th, Premier Li Keqiang chaired a symposium on heads of experts in the economic situation. Participants included experts and scholars from the macroeconomic, financial and foreign trade fields, and the heads of enterprises in machinery, clothing, electronics, steel and circulation industries. At the meeting, the prime minister said that the core goal of the 13th Five-Year plan was to build a well-off society in an all-round way by 2020.

According to the current exchange rate level and the standards set by the world bank, if China grows by more than 6.5% per year on average, our per capita GDP will reach US $12 thousand in 2020 and achieve the goal of a well-off society as scheduled. This also means that a country with a population of 1 billion 300 million basically crossed the "middle income trap". This is a very great goal. But we must establish a concept: crossing the "middle income trap" is not only a huge challenge, but also a great opportunity. If we continue to maintain high and medium speed growth in accordance with our objectives, we will succeed in leaping over the "middle income trap".

This is also a huge challenge and opportunity for the development of the garment industry. Hua Shang Hui's earlier period of China's observation articles ("new direction of clothing industry capital investment: international brand introduction", "international clothing brand" contrarian "layout of the Chinese market", "new public mode: the secret behind the growth of garment enterprises") mentioned that the middle income class in China will become a "political" task, and if it fails, China will largely fall into the so-called "middle income trap".

The expansion of the middle income class means the improvement of consumption power, the enhancement of consumption quality and the diversification of consumption demand. Today, with the transition from the "middle income trap" to the official hot words, this view is further confirmed. China has an increasingly large mass consumer group represented by the middle class, which represents a further escalation of consumer demand and a richer consumption level. This seems platitude, but it is one of the most important market trends. During the year, the hot rise of cross-border e-commerce in garment industry, the further layout of international clothing brands in China, and the recovery and growth of garment enterprises positioned in the mass consumer market are all reflecting this trend.

The mass consumer group, with the middle income class as the main force, is also an important driving force to promote the vicissitude and vicissitude of the garment segmentation industry. To figure out what is hot in this year's industry, fashion, mother and baby markets and underwear are perhaps the most attractive ones. The "running economy" has led to the recovery and growth of sports brand performance; adult clothing has arranged children's clothing market; the landing of the "comprehensive second child" policy has played a further role; while the performance of the close fitting clothing stocks such as kin Sheng group, Hui Jie group and urban beauty has a relatively good growth, indicating that the market of the body clothing is in the stage of rapid growth, which is behind the upgrading of consumption, and the public pays more attention to the embodiment of the internal quality of life. At the same time, consumers also pay more attention to brand choice, and promote the hot industry to produce competitive brand enterprise groups. The merger and acquisition integration among enterprises will inevitably start.

International big market: participation in building global industrial chain

In November 5th, the fifth "China Japan Korea Japan fiber industry cooperation conference" was held in Shenzhen. According to media reports, the conference serves as a bridge link between China, South Korea and Japan to strengthen dialogue and cooperation between the three party textile industry. It has extended the themes previously identified by the three parties, and has informed each other about the status and prospects of the textile industry. It has launched an interactive exchange on three important topics, including free trade agreement, environment and product safety, and fashion industry cooperation projects.

Since the beginning of this year, countries around the world have been pushing forward regional economic cooperation. In October 5th, the 12 negotiating countries of the TPP (trans Pacific Partnership Agreement) reached a basic agreement at the ministerial meeting held in Atlanta, Georgia, and agreed to free trade, and unified norms in areas such as investment and intellectual property rights. According to the Ministry of Finance website November 4th, RCEP is expected to conclude negotiations in real terms by the end of 2015. In November 2012, the 10 ASEAN countries, Japan, South Korea, Australia, New Zealand, India and China announced the launching of the regional comprehensive economic partnership agreement (RCEP) negotiations. RCEP member countries account for 30% of the world's gross domestic product and trade volume. It is the largest trade agreement negotiation in Asia.

The goal of RCEP negotiations is to reach a modern, comprehensive, high-quality and mutually beneficial regional free trade agreement by the end of 2015. On November 12th, Japanese Prime Minister Abe Shinzo expressed his intention to accelerate the negotiation process of the China Japan Korea Free Trade Agreement (FTA) and the East Asian Regional Comprehensive Economic Partnership (RCEP), and stressed the hope that China and Japan would play a leading role in concluding a comprehensive and high-level FTA.

In addition, the country is vigorously implementing the "one belt and one way" strategy. With the further acceleration of regional economic cooperation, the textile and garment industry will face greater development space and challenges. The textile and garment enterprises have made some moves. In October 15th, jn group announced two announcements to increase investment in Vietnam under the "TPP agreement". Kin Sheng group said that in line with the recent development of international economic and trade situation, it decided to increase investment in Vietnam and speed up investment progress. Apart from kin Sheng group, Hua Fu color spinning, Lu Tai A, Bailong East, etc. Spinning and weaving enterprise It is also increasing investment in Southeast Asia.

In June, YOUNGOR signed a strategic cooperation agreement with CITIC, one of which is that the two sides will participate in the international market development and development in accordance with the national "one belt and one way" strategy. As China's economy has further strengthened its global influence, Chinese garment enterprises are facing unprecedented opportunities for global mergers and acquisitions. Against this background, the international cooperation and integration of textile and garment enterprises will become the norm, China. Clothing market It will become a globalized market and participate more closely in the formation of the global industrial chain.

Capital market: seize the bonus of financial reform

In November 6th, the CSRC held a news conference to announce the 4 month's IPO restart. The 28 companies that have been postponed will be released according to the existing system. The SFC will also issue policies and measures to further reform and improve the IPO system. In response to the huge impact of the huge amount of new funds on the money market, the SFC will cancel the current pre payment system for the subscription of new shares, and make the payment after the fixed quantity is allocated. After the new IPO system is issued, the public offering of 20 million shares of the small cap stocks will be cancelled, and the issuers and underwriters will negotiate the pricing and issue them directly to the online investors.

The capital market in 2015 changed rapidly. Despite the ups and downs, the reopening of IPO and the new system of IPO issuance indicate that the pace of reform of China's capital market has never stopped. " The 13th Five-year "The plan proposes that we should actively foster a transparent and healthy capital market, push forward the reform of the stock and bond issuance and trading system, raise the proportion of direct financing and reduce the leverage ratio. This is the general direction of capital market reform. From this point of view, it is logical for IPO to restart, and the registration system will not be far away.