1, domestic clothing consumption is still in the boom channel.

The huge consumption demand stimulates the fast growth of clothing consumption, and the average annual growth rate of clothing retail sales is 19%.

The boom has recovered to a normal level from the bottom of 09.

The consumption structure of urban residents has also undergone profound changes. The Engel coefficient of urban residents has dropped from 50.1 in 1995 to 37.9 in 2008.

We predict that the proportion of consumer goods in China's consumption structure, especially brand consumption, will continue to improve.

2, the sale of large department stores and clothing chains has improved rapidly.

As the main channel for sales of medium and high grade brands, large department stores have maintained a sales growth rate of about 20% in the past 6 years, especially in the second tier cities, where sales growth of department stores is much faster than that of wholesale markets.

In recent years, through the chain retail sales increased significantly, in 2008 has reached 26 billion 730 million yuan, the business area of 1 million 23 thousand square meters, reflecting the residents' demand for brand clothing continues to improve.

3, to meet the high cost era, clothing prices are facing rising.

In 2015, when the labor force reached its peak in China, the supply of new labor force began to decline, and the shortage of labor began to emerge, which would lead to the increase of labourers' income.

Since the price of raw materials has risen sharply this year, the upstream cost pressure will gradually be pmitted to the terminal products. The clothing CPI index and the PPI index have undergone 08 years of adjustment stage, and now they have bottomed out.

We believe that with the increase of the price of production factors, the clothing price index will rise in the future. 3, the definite growth of domestic demand is the long-term good support for clothing consumption.

The acceleration of urbanization will gradually reduce the gap of clothing consumption between urban and rural residents. The rural population will directly increase the growth of domestic clothing sales in towns and towns, and clothing sales will gain more room for growth.

Local governments have raised the minimum wage standard, which has greatly increased the income of labourers, especially the increase of wage earners' income, and the rapid increase of residents' income level is an important foundation for consumption upgrading.

4, invest in brand clothing companies to share the prosperity of the industry.

Clothing consumption is becoming more and more branding, so it is difficult for new industry entrants to establish a solid brand image in a short time.

Therefore, the brand clothing that has experienced time precipitation shows its brand superiority and status.

Channel management has mastered the source of profits of brand clothing enterprises, and channel resources are still the main driving force for the growth of enterprises. After 10 years of cultivation, the sales network has begun to take shape.

5, we believe that enterprises with brand and channel advantages have long-term investment value.

Production capacity is no longer a factor restricting the sales scale of enterprises. Instead, it is the competition of soft power such as brand management, channel management and supply chain management. It can create excellent and lasting brands and will have the opportunity to go to the new market space of "blue ocean".

Based on the comprehensive consideration of management capability, brand operation and growth potential, the investment targets we choose are "Mei Bang dress" and "seven wolves", giving the investment rating recommended by _A.