As important industries in our country, the textile and clothing and footwear industries have suffered varying degrees of losses under the impact of the 2020 COVID-19 epidemic. So, what was the export situation of these two industries last year? Is there good development momentum this year?
1. Analysis of the export situation of the two major industries in 2020
Textile Industry export situation
In 2020, the country’s exports of goods trade increased by 1.9% year-on-year, and textile and clothing exports were US$291.22 billion, a year-on-year increase of 9.5%, of which clothing exports The export of textiles was US$137.38 billion, a decrease of 6.4%, and the export of textiles was US$153.83 billion, an increase of 29.2%; the export of anti-epidemic materials such as masks and protective clothing was approximately US$67.8 billion. Overall, the export situation of the textile and apparel industry in 2020 shows the following four characteristics:
The overall export volume first declined and then rose, with large fluctuations. In the first half of the year, the epidemic had a huge impact on the economic and trade activities of various countries around the world, and orders dropped sharply in the first and second quarters. In the second half of the year, the epidemic was controlled to a certain extent, the economies of major overseas markets restarted, and demand rebounded. In addition, some Southeast Asian orders were transferred domestically, and exports recovered quickly.
Industry sales plummeted, and the metabolism of terminal retailers accelerated. A McKinsey survey shows that the epidemic has caused textile and apparel companies worldwide to lose 30% of sales and 90% of profits. Stagnant sales have become the last straw for high-risk retailers. Textile and apparel-related retailers that have filed for bankruptcy include JC.PENNY, NEIMAN MARCUS, CENTRIC BRANDS, BROOKS BROTHER, etc.
Competition for overseas market share has intensified. The epidemic has made international relations more complicated, and my country’s textiles have suffered serious losses in market share in the United States. In 2020, China’s clothing accounted for 23.7% of the U.S. import market share, a year-on-year decrease of 6.1 percentage points, while Vietnam increased by 3.4 percentage points year-on-year.
Epidemic prevention materials have driven a rebound in exports. In 2020, the export of masks was approximately US$52.6 billion, accounting for 34% of textile exports; the export of protective clothing was US$12.7 billion, and the export of epidemic prevention materials provided a positive boost to the annual export growth.
Export situation of footwear industry
In 2020, the new crown epidemic spreads Dragging down global economic growth, the overall revenue of the global footwear and boot manufacturing industry has shown a decline. The overall industry revenue fell by 3.7% from the same period last year to about US$187.7 billion. Last year, my country’s footwear exports fell 20% from the same period last year to only 38.1 billion US dollars.
Still maintains its status as the world’s largest shoe and boot manufacturing country. From the perspective of the regional structure of the global footwear market, Northeast Asian countries are currently the largest participating regions in the world, with production scale accounting for 64.6% of global output. China is still the world’s largest shoe manufacturer. Export trade accounted for 82.5% of the entire market sales, an increase of 3.4 percentage points from the same period last year. The main exporting countries include China, Vietnam, Italy and Germany, of which China, as the largest exporting country, accounted for 31.2%.
Shows cyclical fluctuations. It is not difficult to see from the export data of the past five years that the overall export of my country’s footwear industry shows cyclical fluctuations. In 2016, my country’s footwear exports began to decline, and developed countries, which are the traditional main markets, also experienced a significant decline. This trend lasted for three years, and it was not until 2019 that there was a slight recovery.
Overall exports declined in 2020. From the perspective of export countries (regions), the United States, Japan, and Vietnam are the three major countries for my country’s footwear exports. In 2020, my country’s footwear exports to the United States were US$7.75 billion, a year-on-year decrease of 33%. Among the other 19 major exporting countries (regions), with the exception of Vietnam, South Korea and Nigeria, the export volume of the footwear industry to other countries (regions) has declined to varying degrees compared with 2019.
As the most important export market for my country’s footwear products, the United States has an important impact on my country’s footwear manufacturing and exports. According to IBIS World statistics, the revenue of the U.S. footwear industry rose to US$24.8 billion in 2020, and the profit margin dropped to 2.9%. The profit decline was mainly caused by rising costs. According to IBIS World analysis, the annual revenue growth rate of the U.S. footwear industry from 2015 to 2020 was -7.9%, and the annual revenue growth rate of the industry from 2020 to 2025 will increase to 7.6%.
Exports from rival countries declined. Regarding the trade situation of Vietnam and Brazil, the main rivals in the international trade of footwear and boots, Vietnam’s exports have experienced negative growth for the first time in the past decade, and Brazil’s exports fell by nearly 40% year-on-year in the second quarter of 2020. It can be seen that in addition to significantly affecting end market demand and transmitting it to export trade, the epidemic has also affected the production capacity of producing countries. What deserves attention is that Vietnam Customs data shows that exports of shoes and boots to the United States in 2020 were US$6.299 billion, accounting for nearly 30% of the United States’ annual footwear imports. At the same time, following the signing of the “Vietnam-EU Free Trade Agreement” in 2019, Vietnam and the United Kingdom signed the “Vietnam-UK Free Trade Agreement” at the end of 2020, which may mark Vietnam’s increase in my country’s market share in major markets. extrusion.
2. International market trends
The textile and garment industry has suffered a heavy blow , the industrial chain still needs to be optimized and upgraded
<img data-preview-src=""data-preview-group="1"src="http://pic.168tex.com/Upload/News/image/2021/04/23/20210�Costandenhancecompetitiveadvantage,tradeinrelatedindustriesbetweenmycountry,Japan,SouthKoreaandSoutheastAsiaisexpectedtocontinuetoexpand.RCEPprovidesnewopportunitiesforthetextileindustrytodevelopdiversifiedmarkets,buttheoverallrisksinRCEP-relatedmarketsarerelativelyhigh.Itisrecommendedthatexportcompaniesseizetheopportunity,fullyunderstandandutilizeRCEP-relatedrules,anddevelopdiversifiedmarkets.
China-USrelationsremainthebiggestgrayrhinointheindustry
Post-epidemic The persistence of the global economic recession may “cool down” the Sino-US trade friction in the short term. In the nearly one year since the epidemic broke out and had a huge impact, Sino-US trade friction has not intensified. Both China and the United States are focusing on epidemic prevention and control and economic recovery. In this process, China has promoted the formation of a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other. The United States has provided fiscal stimulus by cutting interest rates and expanding loan scales. The shift in the focus of both parties has objectively Promoted the “cooling” of Sino-US trade friction. To sum up, the moderate easing of Sino-US trade friction in the short term will be beneficial to Chinese companies’ exports to the United States.
But in the long run, the structural contradictions between China and the United States are difficult to reconcile. The United States has taken the initiative to launch a trade war against China to pass on its internal crises. Its economic crises include excessive debt, excessive trade deficit, insufficient tax revenue and rising unemployment caused by the relocation of manufacturing industries, as well as “vote politics”, populism and the relationship between rich and poor. Excessive disparity and a series of social problems. Therefore, the quantitative changes in the improvement of China’s strength in the post-epidemic era may eventually induce qualitative changes in Sino-US relations. There are risks and trends of intensified conflicts, which may further increase the operating risks of Chinese export companies.
The spillover effect of the Sino-US trade game will make China face trade protectionism and unilateralism from many parties. For example, Peru recently launched a three-year anti-dumping campaign against Chinese footwear products. With the review and investigation underway, and Argentina also launching an anti-dumping review of my country’s footwear products, it is foreseeable that the risk of my country’s footwear products encountering anti-dumping investigations or re-examinations will increase significantly.
In addition, the United States continues to maintain measures such as imposing additional tariffs on US$370 billion of Chinese products and restricting Xinjiang cotton imports. The prospects for Sino-US relations remain unclear. As China’s largest textile export market, the United States’ various restrictive measures have a significant impact on the textile industry. The U.S. sanctions on Xinjiang cotton-related textile companies in 2020 have brought about a chain reaction of restrictions on financing in the international capital market, seriously affecting the survival and development of companies. It is recommended that export companies continue to pay attention to the US policy towards China and actively explore international markets outside the United States. </p
