In April, periodic downward pressures such as the domestic epidemic spreading from multiple points, industrial and supply chains encountering congestion, and weakening domestic and foreign market expectations continued to intensify. my country’s garment industry production experienced slight fluctuations, the decline in domestic sales deepened, and export growth slowed down. , the economic operation is seriously under pressure. However, with the strict implementation of the epidemic situation clearing policy and the intensive introduction of policies and measures by national and local governments, the industrial and supply chains are gradually unblocked, and market vitality is gradually restored. Enterprises must speed up their own adjustments and seize the current policy opportunity period, market recovery period, overseas During the layout period, we actively respond to and resolve various risks and challenges, resume normal production and operations as soon as possible, and strive to ensure that the overall economic operation of the industry maintains a stable recovery trend.
1 Economic operation of the garment industry
Production growth fluctuates slightly
Affected by the shutdown of enterprises in some regions due to the epidemic and the weakening of market demand, although my country’s garment output has maintained growth, the production growth rate has dropped significantly. In April, the industrial added value of enterprises above designated size in the garment industry fell by 0.3% year-on-year, which was the first time since 2021 that it has turned around. is negative growth. According to data from the National Bureau of Statistics, from January to April, the industrial added value of enterprises above designated size in my country’s garment industry increased by 6.2% year-on-year, and the growth rate was 7.9 percentage points slower than the same period in 2021; enterprises above designated size completed clothing output of 7.752 billion pieces, a year-on-year increase of 5.64% %, the growth rate is 18.23 percentage points slower than the same period in 2021. In terms of categories, the growth rate of knitted clothing production has declined more significantly. Among them, the output of woven clothing was 3.156 billion pieces, a year-on-year increase of 14.18%, and the growth rate was 3.05 percentage points slower than the same period in 2021; the output of knitted clothing was 4.596 billion pieces, The year-on-year growth rate was 0.48%, and the growth rate was 28.06 percentage points slower than the same period in 2021.
Figure 1 Production growth rate of the garment industry from January to April 2022
Data source: National Bureau of Statistics
Domestic sales decline deepens
In April, affected by the domestic epidemic, many provinces adopted intensified lockdown measures. Residents’ travel and shopping activities decreased. Domestic consumption was severely affected. The decline in the domestic clothing market deepened, and both physical and online retail sales showed negative growth. According to data from the National Bureau of Statistics, from January to April, the retail sales of clothing products by units above designated size in my country totaled 292.11 billion yuan, a year-on-year decrease of 7.5%. The growth rate was 60.1 percentage points lower than the same period in 2021, and the market size was lower than the pre-epidemic level. Among them, the retail sales of clothing products in units above designated size fell by 25.6% year-on-year in April, a decline that was 10.5 percentage points larger than in March. It was the lowest monthly growth rate since April 2020. According to data from the China National Commercial Information Center, clothing retail sales of key large-scale retail enterprises in the country fell by 10.19% year-on-year from January to April, and dropped by 39.86% year-on-year in April. At the same time, the epidemic has caused logistics disruptions and significantly suppressed online consumption. From January to April, online retail sales of wearable goods fell by 1.7% year-on-year, with the growth rate falling 2.6 percentage points from January to March and 35.5 percentage points from the same period in 2021. , which is the first time since August 2020 that growth has turned negative.
Figure 2 Clothing sales growth in the domestic market from January to April 2022
Data source: National Bureau of Statistics
Export growth slowed sharply
Supported by positive factors such as the steady recovery of international market demand, the lower exchange rate of the RMB against the U.S. dollar, and the entry into force of regional trade agreements, my country’s apparel exports have maintained steady growth. However, China’s apparel exports have been affected by factors such as the rebound of the domestic epidemic, the rapid repair of overseas supply chains, and high raw material prices and freight costs. Affected, the growth rate of clothing exports dropped significantly in April. According to China Customs data, from January to April, my country’s total exports of clothing and clothing accessories were US$47.017 billion, a year-on-year increase of 6.2%. The growth rate was 1.2 percentage points slower than that from January to March, and 45.5 percentage points slower than the same period in 2021. Among them, exports of clothing and clothing accessories in April were US$11.332 billion, a year-on-year increase of 2.4%, and the growth rate was 8.5 percentage points slower than in March.
Figure 3 my country’s exports of clothing and clothing accessories from January to April 2022
Data source: China Customs
From the perspective of product categories, there is a clear trend of export orders for knitted clothing moving overseas, and exports of epidemic prevention materials continue to decline significantly. According to China Customs data, from January to April, the export value of knitted clothing and clothing accessories was 24.328 billion U.S. dollars, a year-on-year increase of 18.82%, and the growth rate dropped significantly by 20.14 percentage points from the full year of 2021; the export value of woven clothing and clothing accessories was 205.49 billion, a year-on-year increase of 14.12%, and the growth rate is 1.53 percentage points higher than that of 2021; from January to April, the export value of plastic and vulcanized rubber glove products was US$1.29 billion, a year-on-year decrease of 72.2%, and the export value of chemical fiber protective clothing was 3.6 billion, a year-on-year decrease of 70.1%.
From the perspective of major export markets, my country’s clothing exports to the United States and the European Union have maintained steady growth, the decline in clothing exports to Japan has significantly expanded, and clothing exports to ASEAN and Latin America have grown strongly. According to Chinese customs data, from January to April, my country’s apparel exports to the United States and the European Union were 2.6% year-on-year.�Strength of support for garment enterprises, especially small, medium and micro enterprises.
market recovery period
Seize the current consumption hot spots
With the effective implementation of various policies to promote consumption and smooth logistics, driven by the increase in people’s social scenes and the continuous increase of marketing investment and intensity by enterprises, commercial consumption in department stores, supermarkets and other places will usher in a phased recovery, starting in June or Will become an important node in clothing consumption. Especially after the gradual restoration of production and living order in June, the annual “618 E-commerce Shopping Festival” is regarded by many clothing companies as an important node to stimulate consumption and regain confidence. On the one hand, enterprises can quickly digest inventory and withdraw funds; on the other hand, they can use the “618” consumption trend to grasp the rhythm and characteristics of demand changes, adjust products in a timely manner, and optimize market supply. In addition, a series of consumer season activities jointly sponsored by the Ministry of Industry and Information Technology and the Ministry of Commerce and participated by major e-commerce platforms will be held from July to September. The activities not only guide enterprises to benefit the people, but also help brand merchants understand the changing consumer trends. Advocate and discover new possibilities for brand growth. In the context of the orderly recovery of consumption, companies should pay more attention to the market’s demand for consumption improvement and upgrading, seize consumption hot spots such as “light travel” and “niche sports” that cater to outdoor life, and sort out the functions under the “stay-at-home economy” We will focus on blank spots in the market such as the sexual homewear category, and study and think about how to provide the public with more and better consumer products, enrich consumer formats, improve consumer quality, and create truly influential consumer brands.
Overseas deployment period
Explore opportunities within challenges
There are still uncertainties in international economic and trade, and overseas market opportunities and challenges coexist. On the one hand, the U.S. has tightened its enforcement of the import ban on Xinjiang cotton products. The U.S. “Xinjiang-related Act” will be implemented on June 21. This move will seriously affect my country’s cotton textile and apparel exports to the U.S. market. But on the other hand, in May, the United States announced the resumption of the review of the additional tariffs on China. If the additional tariffs on Chinese goods can be canceled or reduced, it will undoubtedly bring greater benefits to the domestic apparel foreign trade market, and apparel exports to the United States will A turning point comes. In addition, enterprises must seize the opportunities brought by the Regional Comprehensive Economic Partnership Agreement (RCEP). RCEP covers 15 countries in the Asia-Pacific region. Its effective implementation is conducive to hedging the economic and trade risks currently faced by garment enterprises, and for The diversified and global layout of the industrial chain and supply chain has strategic value. Under its framework, other member states’ liberalization commitments to China’s textiles exceed 94%, and China’s liberalization commitments to textiles exceed 95%, including tariff reduction commitments, accumulation rules of origin, trade liberalization and facilitation measures, It will be conducive to establishing closer cooperation between China and Japan and other countries in the field of textile and apparel, and will be conducive to the expansion of international competition space for China’s apparel industry.
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