In August, supported by the gradual implementation of macro-policy measures, the promotion of summer consumption, and the gradual recovery of the international consumer market and other positive factors, China’s apparel industry operated generally stable; production, investment and revenue and other major economic indicators maintained the restorative growth; domestic sales and exports declined compared with the previous month.

01 Production

According to the National Bureau of Statistics data, from January to August, the industrial added value of apparel enterprises above the designated size increased by 0.3% year-on-year, 0.3 percentage points higher than the performance of the first seven months. The garment production of enterprises above the designated size totaled 13.40 billion pieces, up 1.2 percentage points year-on-year.

02 Domestic Sales
According to the National Bureau of Statistics, from January to August, the total retail sales of consumer goods amounted to 31.24 trillion yuan, up by 3.4% year-on-year, 0.1 percentage points slower than that of the first seven months. Thereinto, the retail sales of apparel by major retailers above the designated size totaled 654.46 billion yuan, down by 0.2% year-on-year, 0.3 percentage points slower than that of the first seven months.
In the first eight months, total online sales of wearable items increased by 5.0% year-on-year, 1.3 percentage points slower than in the January-July period.

03 Export
According to the Customs Newsletters, China’s garment and accessories exports totaled US$ 104.71 billion in the first eight months, decreasing 1.0% year-on-year.

In August alone, apparel exports reached US$ 15.73 billion, seeing a decline of 2% year-on-year, 1.6 percentage points narrower than in July.

04 Investment

According to the National Bureau of Statistics, from January to August, the fixed-asset investment in China’s garment industry increased by 15.5% year-on-year, 1 percentage point higher than in January to July.

05 Benefit

According to the National Bureau of Statistics, from January to August, the main business income of apparel enterprises above the designated size totaled about 781.97 billion yuan, with a year-on-year growth of 1.14%, 0.15 percentage points slower than the January to July period. The total profit was 33.9 billion yuan, down by 1.75% year-on-year. The operating margin was 4.34%, 0.03 percentage points higher than the first seven months.

Looking ahead to the whole year, the external environment faced by the industry has become more complex and severe; the risk of international trade friction increases, industrial policy competition among countries intensifies, and domestic consumer demand is weak. The production and operation of enterprises are still faced with many difficulties and challenges.

Source: CHINA TEXTILE LEADER Express