Development of China's accessories industry in the first half of 2019 and analysis of the application and development trend of artificial intelligence in clothing accessories industry

1、 Analysis on the development of auxiliary material industry

In the garment industry, except for fabrics, all materials used in textile and garment products can be called textile and garment accessories, including various lining materials, padding materials, fillers, sewing threads, fastening materials, decorative materials, marking materials, packaging materials and so on. All these auxiliary materials have a very important impact on both the internal and external quality of the product. There is no doubt that no matter what kind of garment accessories belong to the details of the product. But details can often determine the fate of a textile and garment product. Accessories often play a great role in the design and quality of a set of textile and garment products, sometimes even more than the fabric itself. Although the accessories are small, once the quality is unqualified, the whole product and even the whole textile and garment brand will be involved.

With the rapid development of the garment industry and consumers' continuous pursuit of personality and fashion, garment accessories, including buttons, have long been paid extra for decoration and embellishment. The appropriate matching and use of textile and garment accessories by designers can definitely make the finishing point and get twice the result with half the effort.

With the vigorous development of the domestic textile industry, the domestic auxiliary material industry has formed a certain industrial scale and consumer market in China by virtue of the competitive labor force.

The auxiliary materials industry achieved a revenue of 4.09 billion yuan in 2018, a year-on-year increase of 6.2%. In the first half of 2019, it achieved a revenue of 2.02 billion yuan, a year-on-year decrease of 0.3%, and a net profit of 210 million yuan, a year-on-year decrease of 7.4%. The decline in the growth rate of revenue and net profit of the auxiliary material industry is mainly due to the change in the product structure of the zipper button business due to the impact of the international competitive environment. At the same time, due to the sluggish end consumption environment, brand customers will also choose products with lower prices for cost considerations when choosing accessories, and the order volume of metal zippers with high unit price and gross profit margin has declined. There is also a phenomenon of business differentiation in the auxiliary material industry. As a leader in the industry, Weixing Co., Ltd. is in a leading position in both revenue growth and profitability, slowly widening the gap with other competitors.

    Revenue of China's auxiliary materials industry in the first half of 2016-2019 (100 million yuan)

Data source: public data sorting

    Related report: Research Report on market competition status and investment direction of China's textile industry from 2019 to 2025 issued by Zhiyan consulting

    Net profit of China's auxiliary materials industry in the first half of 2016-2019 (after deduction, it will be returned to the parent company, RMB 100 million)

Data source: public data sorting

    In the first half of 2018 and the first half of 2019, the gross profit margin of the auxiliary material industry was 38.6% and 38.9% respectively. The sales expense ratio of the auxiliary materials industry reached a peak of 14.6% in 2018, decreased to 12.4% in the second half of 2019, and the management expense ratio reached 9.6% in 2018 and decreased to 8.9% in the first half of 2019. The rapid increase of expense rate in 2018 due to the consolidation of cross-border e-commerce business by xunxing shares, the consolidation period is higher than that in 2017, so the expense rate is not significant (due to the limitation of data disclosure, the impact of this business cannot be disassembled).

    Gross profit margin of China's auxiliary materials industry in the first half of 2016-2019

Data source: public data sorting

Data source: public data sorting

    Before 2016, the inventory turnover rate of the auxiliary materials industry remained basically stable. In 2017, the inventory turnover rate began to decline. Affected by the consolidated cross-border e-commerce business of xunxing shares, the annualized inventory turnover rates in the first half of 2018 and 2019 were 3.5 and 3.2 respectively. The inventory turnover rate was 6.4 in 2018 and 4.4 in the first half of 19, which decreased significantly.

    Inventory turnover rate of China's auxiliary material industry in the first half of 2016-2019 (Times)

Data source: public data sorting

    Turnover rate of accounts receivable of China's auxiliary materials industry in the first half of 2016-2019 (Times)

Data source: public data sorting

2、 Application and development trend of artificial intelligence in garment accessories industry

The emergence of the Internet has greatly changed people's production and life style and business model. Today, with the rapid development of the Internet, artificial intelligence is applied in many fields of people's production and life. Artificial intelligence in the auxiliary material industry has emerged and developed rapidly. The integration of traditional manufacturing industry and artificial intelligence provides a strong driving force for industrial transformation and upgrading.

Artificial intelligence is applied in clothing and luggage enterprises. Garment enterprises such as Bosideng and Senma, and luggage enterprises such as Xinxiu luggage group are committed to building information-based, data-based, intelligent and systematic intelligent factories, and realize artificial intelligence step by step from intelligent measurement, intelligent material selection and selection, intelligent typesetting to intelligent production, intelligent logistics and warehouse management.

Garment accessories enterprises have also begun to pay attention to and apply artificial intelligence technology, and use artificial intelligence technology to improve the management and marketing expansion of enterprises. For example, Fujian xunxing zipper Technology Co., Ltd. adopts the intelligent retrieval system of garment accessories organically combined with the online platform of garment accessories to realize the "four modernizations" mode of sampling standardization, physical digitization, information centralization and supply and marketing networking of garment accessories, so that buyers and designers can quickly find the matching accessories they need, realize the accurate connection between sellers and buyers, and change the procurement mode and sales mode of related industries, Promote the inventory and mold fine management of manufacturers and auxiliary material merchants.

In today's society, the application of big data and the deep integration of informatization and industrialization promote the transformation and upgrading of traditional garment accessories manufacturing industry, promote the realization of lean production management and precision marketing, and accelerate the development from traditional manufacturing mode to intelligent manufacturing mode. With the integration of intelligent equipment and Internet, artificial intelligence technology will eventually realize the interconnection of garment accessories production equipment, sharing of production data, unmanned production site, accurate marketing and scientific logistics allocation.