Internet impact normalization, explore supply chain and retail model transformation: logical "extension and expansion + endogenous price" is the economic downturn, the Internet impact damage, in the outside world under the influence of normal background, the traditional garment industry has entered a deep transition. Electricity providers, the majority of enterprises to develop the online business, the rapid development of mobile manufacturers are increasing the business of winning the next line of chips; the business model, the garment enterprises reform through dual-channel supply chain and enhance downstream reaction speed, reducing intermediate links in order to provide a more cost-effective products and brand influence.

Restructuring of the industry surging, mergers and acquisitions endless: This year cross / number of mergers and acquisitions in the industry were up 17/11 onwards, the number of mergers and acquisitions cases gradually rising. This report reviews the cross-industry mergers and acquisitions, cross-industry restructuring, transformation logic with the acquisition of four industry horizontal and vertical directions, and industry restructuring is expected to save the company quantified finishing. Over the past year focused on the textile industry mergers and acquisitions transition class "dilemma of survival" Enterprise and clothing "industry consolidation" companies, relatively speaking we are more optimistic about industry consolidation have synergies of the company. Looking to 2015, we believe that the current leader in the apparel industry has accumulated rich experience in the existing business, the timing of acquisitions by expanding market space already have, at the same time since 2005 PE major development, private equity funds for the acquisition of a listed company reserves a lot project, industry consolidation gaining momentum.

Retail is still in the doldrums, sports, home textiles, leisure first out of adjustment: 1-10 months, total retail sales of social consumer goods 21.31 trillion yuan, an increase of 12.0%, lower than the same period of 0.96 percentage points from last year, retail sales growth is still bottom. From ordering data trends, inventory cycle and performance perspective, sports, home textiles, leisure industry recovery is more clear, children's clothing, outdoor industry to maintain a high degree of prosperity, and high-end men's casual men and women in the short term is still in an adjustment period.

2015 Investment Strategy: We believe that after nearly three years of adjustment, brand clothing sector has already priced in most of the downside risks, the sub-industry has moved into the performance of the recovery and valuation of fixed cycle. 2015 more to be concerned about promoting corporate restructuring strategy and project execution schedule, leading companies will be expected to develop a clearer path out after this round of adjustment. Stock selection, we tend to choose the transformation targeted leading companies, combined with the valuation of fixed and performance expectations rise, the key recommendation of the 2015 Pathfinder (create "outdoor industry ecosystem," sports industry policy stimulus), Legg Mason culture (the layout of the cultural industry chain, is expected to benefit from the Shanghai Disneyland park opened), Lancy shares (performance bottomed out, is expected to transition to the fashion industry group), O'Connell international (channel adjustment to an end, performance inflection point near), Semir clothing (channel adjustment is completed, the full children layout chain), Carolina textile (turn to join enhanced channels Direct control of a large stake in the Park network is expected to expand the online business), Linda silk (diversified industrial layout, the silk market is expected to integrate the industry chain, access to global silk industry pricing).