In July, the economic operation of China’s apparel industry continued its recovery growth. And the main operating indicators such as production, sales, investment and efficiency maintained rapid growth. However, affected by the uncertain pandemic, floods in China, as well as the disappearing low base effects, the growth rate of various indicators has slowed down significantly. Meanwhile, corporate profitability is also influenced by intensified market competition, high factor prices, rising logistics freight, and fluctuations in the RMB exchange rate. The external situation facing China’s apparel industry is still not optimistic.

The economic operation of garment industry in January-July is as follows:

Production

According to the National Bureau of Statistics, from January to July, the industrial added value of garment enterprises above designated size grew by 10.4%. The growth rate increased by 22.3 percentage points compared with the same period of last year. The garment production of enterprises above designated size totaled about 13.21 billion pieces, up by 15.78% year-on-year.

Domestic Sales

According to the National Bureau of Statistics, from January to July, the total retail sales of consumer goods amounted to CNY 24.68 trillion, up by 20.7% year-on-year. Thereinto, the retail sales of clothing, foot & head wear and knitted goods by major retailers above designated size was CNY 553 billion, increased by 33.2% year-on-year. According to the National Bureau of Statistics, from January to July, China’s online retail sales was more than CNY 5.81 trillion, growing by 17.6% year-on-year. In the online retail sales of physical commodities, wearing goods increased by 21.6% year-on-year.

Export

According to the Customs Newsletters, from January to July, China’s garment and accessories exports totaled over US$ 88.09 billion, up 32.9% year-on-year.

Investment

According to the National Bureau of Statistics, from January to July, the actual investment of China’s garment industry increased by 5.2% compared with the same period of 2020.

Benefit

According to the National Bureau of Statistics, from January to July, the main business income of garment enterprises above designated size totaled over CNY 779.94 billion, with year-on-year growth of 11.04%. The growth rate rebounded by 26.05 percentage points from the same period last year. The total profits totaled over CNY 33.22 billion, up by 9.81% year-on-year. And the growth rate picked up by 36.09 percentage points from the same period last year. While the operating income margin was 4.26%, 0.05 percentage points lower than the same period in 2020.

Source: CHINA TEXTILE LEADER Express