China is a large country of global garment production and consumption. As one of China's traditional pillar industries, the garment industry plays an important role in the development of the national economy. In recent years, affected by economic deleveraging, the overall domestic consumption is under pressure. At the same time, the Sino US trade friction intensifies, and the garment export is affected to a certain extent. In 2020, COVID-19 made a great impact on China's garment industry. Domestic consumption demand declined, exports dropped sharply, and the overall development of the industry was relatively low.
For some time to come, affected by the spread of overseas epidemic and the regional and phased rebound of domestic epidemic, the global economy is still under the impact of epidemic, and the development of China's garment industry is still facing many unstable and uncertain factors.
Industry output accelerated decline
According to the data released by the National Bureau of statistics, from January to November 2020, there were 13317 Enterprises above Designated Size (annual main business income of 20 million yuan or more) in China's garment industry, with a cumulative garment output of 19.976 billion pieces, a cumulative decrease of 8.75%.
Note: the statistical range of data is from January to November 2020
Retail sales fell
In 2020, under the influence of COVID-19, sales under the clothing industry were greatly affected. The overall demand of the apparel industry declined. In 2020, the retail sales of clothing products above the quota amounted to 882 billion 390 million yuan, a total decrease of 8.1%.
It is worth noting that the rapid development of e-commerce industry in recent years has promoted the growth of online sales in the garment industry. Although the overall retail sales of China's garment industry declined in 2020, the online channel retail sales of wearing goods are still growing. In the first half of 2020, China's online retail sales of wearing goods also declined rapidly due to the impact of the epidemic. However, since the second half of the year, with the stability of the epidemic and the promotion of e-commerce promotion activities such as "double 11" and "double 12" in the second half of the year, China's online retail sales of wearing goods have rebounded rapidly. By the end of December 2020, China's online retail sales of wearing goods have increased by 5.8%.
Export decline expanded
As a global garment exporter, in recent years, with the gradual weakening of the costumes of China's apparel industry and the escalation of Sino US trade frictions, the export scale of China's garment industry has declined. In 2020, the outbreak of COVID-19 in the global market also led to the sluggish consumption demand of terminal clothing in the international market, resulting in obvious pressure on the garment industry. From January to December 2020, China's garment export reached 137.4 billion US dollars, a cumulative decrease of 6.4% (a year-on-year decrease of 6.0% in RMB), an increase of 3.8 percentage points over 2019.
Industry benefits continued to decline
According to the data released by the National Bureau of statistics, from January to November 2020, enterprises above Designated Size (annual main business income of 20 million yuan and above) in China's garment industry achieved a cumulative operating income of 1212.683 billion yuan, a cumulative decrease of 12.35%, a decrease of 0.50 percentage points narrower than that from January to October; The total profit was 56.583 billion yuan, a year-on-year decrease of 20.79%, 0.54 percentage points narrower than that from January to October.
Although the decline in industry benefits has narrowed, overall, the operating benefits of China's garment industry will continue to decline under multiple pressures such as the decline in domestic and foreign market demand and the continuous improvement of comprehensive costs.
Note: the statistical range of data is from January to November 2020
Note: the statistical range of data is from January to November 2020
The above data and analysis are from the forecast and analysis report on production and marketing demand and development prospect of China's garment industry issued by the prospective industry research institute. At the same time, the prospective industry research institute provides solutions such as industrial big data, industrial planning, industrial application, industrial park planning, industrial investment attraction, IPO fund-raising feasibility study, etc.
