New Economy: Internet economy blowing, to create the highest level of network retail market. Expected in 2013 will exceed the total nationwide network of retail 1.8 trillion yuan, online shopping penetration rate reached 7.8 percent, China became the world's highest level of network retail market, and the accompanying rise of mobile online shopping, online shopping future domestic market will usher in a new Wheel-speed development stage.

    New modes: online shopping ecosystem is improving, gradually display mode superiority. E-commerce is light compared to traditional retail assets, comparative advantage spread fast, low-cost, precision marketing business model on; addition, the domestic retail business entities currently still in its infancy compared to developed countries and inefficient development period, which would give online shopping Market set aside more space for development, and eventually may make Western-style retail development cycle skipping, into a new retail e-commerce more developed form.

    New thinking: clothing business electronically become the trend, multi-mode convergence is the future direction of development. Textile clothing as the largest category of online shopping, online sales are expected to achieve 40% the proportion of five years after the reconstruction and the future of the industry is the trend-line sales. Whether B2C, C2C, O2O, based on the brand's own natural resources and creating value for consumers core business model will eventually win.

    New Opportunities: chain investment opportunities at both ends, midstream traditional clothing brand is still facing a temporary transition difficulties. Taking into account the profound impact of e-commerce, we believe that the overall textile and garment industry chain to enter the stage of great change, the future most clearly from the two types of investment opportunities in the textile manufacturing industry chain leading (left for the king) and the middle and lower reaches of both the Internet and retail Gene brand channel (insurgents), and adjustment and transformation of traditional midstream brands big trend cycle will continue.

    Recommended Portfolio: an echelon, Lutai A, Carolina textile, Huafu color spinning; two echelon: Mendale, Anna Rich, Weixing. Further recommendations concern only product listed stocks, Orchid Pavilion potential, a typical representative of a new online shopping mode.

    Risk Warning: cotton subsidies next year to replace the risk of fluctuations in cotton purchasing and storage brings; uncertainty in the global economic recovery; risk consumer environment and fluctuations in the domestic real estate boom.