The home textile market in China has a large scale, which is expected to exceed 220 billion yuan in 2017, but there is a further improvement in the proportion of domestic textile consumption and the proportion of overall textile consumption. For the brand home textile enterprises, after nearly 5 years of industry low period, the new growth period is under the impetus of the macroeconomic recovery, the terminal consumption and the rise of the middle class. The rise of the young middle class and the three or four line consumption upgrade are expected to bring home textile consumption habits to change, raise the changing frequency and the demand of high quality products. At present, the demand for relocation and wedding is expected to remain stable, while the development of hotels and long rental markets is expected to bring new demand.
The middle and high-end competition pattern has been speeded up, and the leading edge is being highlighted gradually.
Although the overall market concentration of domestic textile industry is less than 10%, the CR5 market rate in the middle and high end market is expected to reach 30-40%. In the supply side change brought by the current consumption concept and channel contraction, the leading advantage of the brand scale barrier is becoming prominent. First of all, under the environmental pressure, the small and medium textile enterprises are further clear. Under the background of the rising raw materials cost, the leading brand size advantage is expected to stabilize the profitability through the price increase. The channel aspect is that the scale advantage of the brand enterprises under the adjustment of the offline channel is more prominent, and the two is to enter the brand consumption stage with the development of the electric business. The perfection of online layout of high-end home textile enterprises is expected to further speed up the concentration ratio.
International Comparison: deep tillage main industry to enhance market share, diversified layout leading the way
From the international comparison, the foreign leading textile enterprises are still relatively small in the YISHION home textile business, often engaged in the diversified business of furniture and clothing. From the development of foreign industry, the home textile company of high market rate is indeed existing, but limited to the ceiling of the country's market, limiting the long-term high growth, and the domestic market itself is extremely large enough to support the emergence of two to three leading industries; secondly, the diversification of the layout is also due to the low purchase rate of home textile products. And in the domestic clothing consumption process relatively back, leading to its limited drainage capacity, so through the transformation of large household layout can meet the consumer's one-stop home shopping needs, and domestic listed domestic textile enterprises with capital and internal advantages, has also started to deploy.
Investment recommendations: industry recovery leader, pay attention to brand home textile company investment opportunities
China's home textile market is expected to usher in a new round of development under the background of macroeconomic recovery, terminal consumption recovery and the rise of middle-class. At the same time, the industry pattern has also improved in the past few years. The brand and the channel size advantage of the leading companies are expected to be further highlighted in the recovery process. Both the upper and lower reaches have a certain bargaining power. In the second half of the 17 year, the level of the gross interest rate is expected to be stable or steadily upward in the process of raising the price. In the future, with the help of capital strength, it is also expected to set the first mover advantage in the layout of large household in the medium and long term. At present, the valuation of several leading spinning companies is at a historic low, and the leading premium is expected to gradually emerge under the background of the industry recovery trend.
Reprinted from the Chinese home network