Can't It Keep Up? Another Clothing Group Is Leaving China. This Is The Turn To Korea Companies.

Following the withdrawal of ASOS, Marsha, New Look, TopshopTopman, Forever 21, American Eagle and many other brands, this trend continues.


TBH Global Co. Ltd. (KR:084870), a clothing retailer in South Korea, plans to sell its Chinese business to ease its debt.


Bloomberg quoted news that its TBH Global Co. Ltd., which owns Basic House 100 good, Mind Bridge and Jucy Judy, hopes to raise $200 million through the transaction, but informed sources said that their negotiations with potential buyers such as clothing industry and private Holdings Company are still at an early stage. The group's speakers are looking for ways to finance debt repayment, including the sale of business.


TBH Global Co. Ltd. (KR:084870) surged up to 29.9% to 3410 won on Friday, the biggest increase since December 2005. The stock market has recorded a 52.5% decline in the past 12 months.


TBH Global Co. Ltd. was founded in 1964 by the Il Heung chamber of Commerce, an underwear wholesale and retail store. The group launched its first independent brand Basic House in 2000, and opened its first brand store in Shanghai in 2004. In 2005, TBH Global Co. Ltd. landed on the ROK exchange. Its revenue exceeded 160 billion won (about 950 million yuan). A year later, the group introduced Goldman Sachs Group Inc. Goldman Sachs.


According to the 2018 financial report, TBH Global Co. Ltd. achieved an annual revenue of 208 billion 800 million won (about 1 billion 240 million yuan), an increase of 20% over the same period last year, and a net loss of 57 billion 700 million won (about 340 million yuan).


After the bonus period, the industry shuffle to a critical point: either out or out.


Since the entry into 2019 in June, the second half of the year has not yet started. Many textile enterprises have suffered sharp decline in orders. In the past, when the doors were crowded, the doors were so big that the textile industry was confused and frightened.


Then, where should the textile enterprises of the market downturn and industry downturn go?


Small and traditional textile enterprises are being or will be completely exterminated. Large scale textile enterprises are or will be integrated into bigger textile enterprises.


In fact, this process has been going on since the beginning of the environmental protection storm. Analysis is as follows:


First, from the macro policy trend.


First, we will observe the trend of the national industrial policy. In the past two years, the state has been promoting the traditional industries and enterprises with heavy assets, heavy pollution and heavy labor by speeding up the elimination, simplification, integration and upgrading of all heavy assets, heavy pollution and heavy labor force, boosting these enterprises from more to less, from decentralization to concentration, from small scale to large-scale or even over large scale, forming small and sophisticated enterprise giants or industrial oligarchs. Under this background, many textile enterprises have been eliminated, sooner or later.


Two, from the problem of employment in textile enterprises


The problem of labor difficulty in textile enterprises will become more prominent. Textile enterprises belong to labor-intensive industries, and cheap labor cost is one of the main aspects of profitability.


The Chinese textile industry in the golden age mainly relies on the 60 generation and 70 generation of migrant workers who are able to endure hardships. Now, the older generation of migrant workers has been old, and the latest batch after 80 is nearly thirty. Coupled with the high temperature and high humidity working environment of traditional textile printing and dyeing enterprises, textile enterprises will not only be more difficult to recruit workers, the cost of labor will not only become increasingly high, but the welfare benefits for grass-roots workers will also be higher. Moreover, with the value and enjoyment concept totally different from that of the second generation and third generation of the new generation of parents, the internal management of the spinning enterprises will also face new difficulties and challenges. All these will increase the running cost of enterprises.


Three, environmental storms and other textile enterprises increased operating costs.


Environmental pressures and industrial upgrading will greatly increase the operating costs of traditional textile enterprises, and greatly reduce profits and even close to zero.


In recent years, the storm of environmental protection has forced many textile enterprises to take up and operate the environmental protection facilities and facilities. Stealing and stealing is becoming more and more impossible. Therefore, the cost of environmental protection will increase greatly. Some textile printing and dyeing enterprises have to carry out the so-called industrial upgrading in order to solve the outstanding problems such as labor difficulties and other industries, and introduce new manufacturing equipment and operation modes such as artificial intelligence, anhydrous textile dyeing and finishing, all of which require a large amount of capital raising and investment in a short period of time. All these have further aggravated the risk and burden of enterprise operation.


Four, related enterprises because of the impact of market shocks.


The industry shock caused by the streamlining, integration, transformation and upgrading of industries has seriously affected the normal operation of textile enterprises, increased the manufacturing cost of textile enterprises, and increased too many uncertain factors for the legitimate profits of textile enterprises. The most typical example is the recent panic and burden caused by the soaring price of dyes to the textile industry. And this situation will continue, at least for a long time.


Five, the global industrial chain will be reshuffled under the Sino US trade war, which will further increase the impact on the domestic textile industry.


Third the vigorous rise of textile industry in the belt of the world countries is striking and eliminating the dominant position and competitiveness of domestic textile enterprises in the global industrial chain division.


With the deepening of Sino US trade war and the coming of all directional confrontation, this influence will become more intense, which will make the domestic textile industry even worse.


Six, textile enterprises financing and industrial transfer difficulties will be more prominent.


Textile enterprises are facing difficulties in financing and industrial transfer, which will further intensify. In recent years, because of the great leap forward of environmental protection, textile enterprises have become the pronoun of high pollution, high energy consumption, high risk and excess capacity, and become an unwelcome backward production capacity to be thoroughly eliminated.


Under such circumstances, textile enterprises that need a lot of money for upgrading will not only be more difficult to finance, but also will be more difficult to transfer industries.


Many areas, from the government to the public, reject the textile project. Some textile enterprises move from east to west, from south to north, and move from home to Southeast Asia. They seem to have found new development space, but in fact they are not.


Seven, the lack of technological research and development and the backward production mode result in the weak competitiveness of domestic textile enterprises and the aggravation of internal friction.


Generally speaking, although China's textile and dyeing industry is large in scale and wide in market, the technological research and development of the entire textile and dyeing industry is weak and limited. Some enterprises are still lagging behind in their production methods. Most of the products are mainly processed, less innovative and original, and the products are homogenized.


The overcapacity of textile industry has become a common understanding. Going out of stock is also the top priority for deepening the reform in the textile and garment industry in the next few years. With the end of the prosperity cycle, the small and medium sized enterprises of mass production of low-end products will be difficult to continue, and the market will eventually have four seasons, spring, summer, autumn and winter.


Faced with the cruelty of survival rule, and only catering to the market demand, textile enterprises that can timely adjust their product structure and grasp the direction and trend of the market can survive in this new round of competition.