Benefiting from the continuous improvement of the living standard of urban and rural residents and the promotion of consumption upgrading, the consumption of medium and top grade brand clothing will maintain a high growth in China. The Brand Company focusing on domestic market brand and marketing construction is expected to achieve rapid development.

The 2007-2008 China garment industry development report, which was jointly completed by the China Apparel Association, the China Federation of Commerce and the China Textile Import and export chamber, was recently released, making an optimistic forecast for the prospects of China's brand clothing enterprises and listed companies in 2008.

The brand clothing industry and the companies that focus on the domestic market brand and marketing will gain rapid development.

At present, there are a large number of small and medium-sized garment related companies in China, but most of them are engaged in simple processing trade and have little room for development.

The report points out that the future development of garment companies which rely mainly on exports will be greatly restricted. The external environment such as the continued appreciation and anti-dumping of the RMB, as well as the changes in the export policies of the state, such as the reduction of the export tax rebate rate, will have a greater squeeze on the profit margins of these companies.

Quality listed companies will be increasing, and the value of plate investment will be further enhanced.

Since 2007, BELLE, China trends, Anta, Bosideng and other companies have been listed in Hongkong, causing widespread concern in the capital market for the brand clothing sector, and also have a strong demonstration effect on other related companies.

It can be expected that due to the demonstration effect of listed companies and the support and encouragement policies of the state to high-quality listed companies, the number of high-quality listed companies will increase in the future, which will effectively enhance the investment attraction of the whole sector.

Mergers and acquisitions are becoming more frequent and industry concentration will be further strengthened.

The capital market provides a good brand image display platform for listed companies, and also provides more opportunities for them to achieve rapid expansion and industry integration through merger and acquisition activities.

It is understood that since its listing in 2007, BELLE has acquired FLIA China, Mie Li, and so on, and has achieved all-round penetration into China's high-end women's shoes, men's shoes and sports market. Li Ning Co acquired 57.5% stake in red double happiness last year, effectively enhancing its competitive strength in table tennis and badminton.

Therefore, it can be seen that the integration of clothing and related industries will accelerate in the future, and acquisition and merger activities will become more frequent. Leading enterprises are expected to play a major role in this process and continue to expand their market share.