In May, the holiday economy, the “618” e-commerce promotions, and other positive factors boosted consumption. Along with the recovery of international market demand, tariff reductions, China’s domestic apparel sales, and exports experienced growth. The industry’s resilience and development potential continue to strengthen. However, rising costs, increased internal competition, falling export prices, and other challenges have put significant pressure on companies, leading to further profit declines. Currently, the global apparel trade landscape is shifting, with supply chain risks increasing amid geopolitical tensions and extended tariffs, which raise export uncertainties. At the same time, domestic market momentum remains weak, and ongoing issues such as production and operational difficulties persist. The industry still needs to build a stronger foundation to stabilize and resume growth.

01 Production

According to data from the National Bureau of Statistics, the industrial added value of apparel enterprises above a designated size decreased by 0.2% year-on-year in the first five months of 2025, which is 0.8 percentage points lower than that of the first four months. Meanwhile, the garment output of enterprises above the designated size grew by 0.33% year-on-year, which is 0.77 percentage points higher than the January-April period.

02 Domestic Sales

According to the National Bureau of Statistics, China’s total retail sales of consumer goods reached 20.32 trillion yuan from January to May, marking a 5.0% increase year over year and 0.3 percentage points higher than that of the first four months. Among these, the cumulative retail sales of apparel goods above the designated size amounted to 443.54 billion yuan, with a growth rate rising by 2.6 percentage points year-on-year, which is 0.1 percentage points faster than the January-April period. Additionally, the online retail sales of wearable items grew by 1.2% year-on-year, 0.7 percentage points faster than that of the first four months.

03 Export

According to the Customs Newsletters, China’s apparel and accessories exports totaled US$58.2 billion from January to May this year, decreasing by 0.5% year over year and narrowing by 1.0 percentage points compared with the first four months. In May alone, China’s apparel and accessories exports reached US$13.58 billion, up by 3.0%, 3.5 percentage points higher than the previous month.

04 Investment

According to the National Bureau of Statistics, fixed-asset investment in China’s garment industry surged 27.6% year-on-year from January to May this year, 0.5 percentage points higher than the first four months.

05 Benefit

According to the National Bureau of Statistics, from January to May, the total main business income of apparel enterprises above the designated size reached approximately 469.35 billion yuan, reflecting a year-on-year growth of 0.64%, which is 0.92 percentage points higher than the first four months. The total profit amounted to 15.18 billion yuan, declining by 13.95% year-on-year. The operating margin was 3.24%, which is 1.67 percentage points lower than that of 2024, but remained unchanged compared to the first four months of this year.

Source: CHINA TEXTILE LEADER Express