Market status and prospects of China's apparel industry in 2019
2019-10-26 16:49:00
For the Chinese apparel industry, 2019 is a year full of challenges, trials and rapid changes. Faced with the complex and changeable international situation and the pressure of reforms from domestic structural adjustments, my country's apparel industry has maintained a stable development of the industry as a whole under the background of many risks and uncertainties in the development environment.
According to data from the National Bureau of Statistics, in 2017, the garment output of my country's garment enterprises above designated size was 28.78 billion pieces, a year-on-year decrease of 8.5%; in 2018, the garment industry above designated size enterprises completed a total of 22.27 billion garments, a year-on-year decrease of 22.6%. From January to June 2019, the garment output of regulated garment enterprises was 10.41 billion pieces, a year-on-year decrease of 1.1%.
2014-2019 H1 China's garment production statistics and growth of garment enterprises above designated size
From the perspective of clothing output by category, the production of knitted clothing is significantly better than that of woven clothing. Knitted clothing is 5.539 billion pieces, a year-on-year increase of 1.02%; woven clothing is 4.865 billion pieces, a year-on-year decrease of 3.38%. Among them, down clothing, suits and shirts Output fell by 0.40%, 3.57% and 6.01% year-on-year respectively.
2015-2019 H1 China's above-scale apparel enterprises segmented field clothing production statistics and growth
Demand: The growth rate of per capita clothing consumption expenditure has fallen
In the first half of 2019, the disposable income and per capita consumption expenditure of Chinese residents have basically kept pace with economic growth. The growth rate of per capita clothing consumption expenditure has dropped significantly, which is far lower than the growth rate of expenditures related to personal development and enjoyment. The proportion of consumer spending has also declined.
According to data from the National Bureau of Statistics, in the first half of 2019, the national per capita clothing consumption expenditure of residents was 731 yuan, a year-on-year increase of 3.0%, and the growth rate was 3.3 percentage points lower than the same period last year; clothing consumption expenditure accounted for 7.1% of per capita consumption expenditure, a higher A year-on-year decrease of 0.32 percentage points. In the same period, the per capita consumption expenditure on housing, education, culture and entertainment, medical care and other supplies and services increased by 10.8%, 10.9%, 9.5% and 9.8% respectively, and the growth rate was higher than the expenditure on clothing consumption.
2014-2019 H1 national per capita clothing consumption expenditure growth and statistics on the proportion of per capita consumption expenditure
Domestic sales: clothing sales are declining year by year
From the perspective of sales data, in 2018, my country's apparel industry faced severe and complex domestic and foreign situations and stricter environmental protection measures. The sales volume of the industry declined with the decrease in apparel output of enterprises above the designated size. According to data from the National Bureau of Statistics, in 2016, the cumulative clothing sales of Chinese enterprises above designated size reached 30.69 billion in the four quarters, and in 2017 it dropped to 28.33 billion. In the first half of 2019, the clothing sales of enterprises above designated size in my country's apparel industry were 10.27 billion pieces.
2016-2019 H1 China's apparel industry above-scale clothing sales statistics and growth
According to data from the National Bureau of Statistics, the retail sales of apparel products above designated size nationwide increased year by year from 2011 to 2017, but the growth rate has slowed year by year. In 2017, the national retail sales of clothing products reached 1036.54 billion yuan, a year-on-year increase of 1.4%; in 2018, the national retail sales of clothing products were 987.04 billion yuan, a year-on-year decrease of 4.8%, and the retail sales of clothing products showed a negative growth for the first time. As of the first half of 2019, the retail sales of clothing products in China reached 474.97 billion yuan.
2014-2019 H1 national retail sales of clothing commodities above designated size and growth statistics
(Note: 2016 retail sales growth rate was 6.6%)
Export: the volume and price of apparel export market have all fallen
Since 2019, the lack of demand in the international market, the intensification of trade protectionism, the increasingly fierce competition in the global market, the weakening of the traditional advantages of my country's clothing industry and the lack of new competitive advantages have led to significant increase in export pressure. According to customs statistics, from January to June 2019, my country’s cumulative exports of clothing and clothing accessories fell in volume and prices. The export value was US$66.574 billion, down 4.7% year-on-year. The number of clothing exports was 14.132 billion pieces, down 1.0% year-on-year. The average export unit price was US$3.64/piece, down 4.7% year-on-year.
2015-2019 China's export value statistics and growth of apparel and clothing accessories
Online sales: the scale of online retail is increasing year by year
With the improvement of the network channels of apparel retail enterprises and the rapid development of e-commerce platforms such as Tmall and JD.com, the effective development of my country's apparel online retail market has been promoted. In 2011, my country's clothing online retail sales were approximately 193.4 billion yuan, and in 2017 it increased to 444.7 billion yuan, with an average annual growth rate of 14.9%, far exceeding the growth rate of clothing retail sales. It is expected that my country's clothing online retail sales will reach 511.4 billion in 2018 yuan.
2014-2018 China clothing online retail sales statistics and growth
Benefits: the industry's operating efficiency has declined
Affected by the domestic macroeconomic environment and industry structure adjustments, the production and sales of enterprises above designated size in the apparel industry in my country have all declined slightly, but from the perspective of production and sales rates, the industry is operating relatively well. According to calculations from the National Bureau of Statistics, the production and sales rate of my country's apparel industry was 97.6% in 2016; it increased to 98.4% in 2017; it reached 98.7% in 2018 and remained at 98.7% in the first half of 2019, indicating that my country's apparel industry is reducing inefficient production capacity In the process of structural adjustment, the proportion of industry inventory has gradually decreased, and the quality of operation has improved.
H1 2016-2019 Changes in the production and sales rate of enterprises above designated size in China's apparel industry
Since 2019, under the continuous optimization of the adjustment of my country's apparel industry, although the industry's efficiency has declined, the quality of operation has been basically stable. From January to June 2019, the growth rate of performance indicators in the apparel industry has shown a significant slowdown, with operating income maintaining a small increase, while total profit growth has been negative. According to data from the National Bureau of Statistics, from January to June 2019, there were 13,636 enterprises above the designated size (annual main business income of 20 million yuan and above) in the apparel industry, with a cumulative operating income of 761.583 billion yuan, a year-on-year increase of 2.15%, and a total profit of 38.245 billion Yuan, a year-on-year decrease of 0.78%.
The statistics of operating income and total profit of enterprises above designated size in China's apparel industry from 2015 to May 2019
Cost: The overall cost of the enterprise remains high
Due to the continuous increase in labor, financing, taxation, raw materials, energy and other costs and expenses, the overall operating costs of the company continue to increase. According to data from the National Bureau of Statistics, from January to June 2019, the cumulative cost of clothing companies above designated size in my country increased by 2.04% year-on-year, and the increase was only 0.11 percentage points lower than the increase in operating income. From the perspective of the change in the proportion of cost to main business income, the average level of industrial enterprises above designated size in the country has been declining year by year, while the proportion of the clothing industry has shown a rising trend. The rapid increase in costs has further squeezed clothing companies Profit margins.
2014-2019 H1 China's above-scale apparel companies' cost changes
