China’s knitting industry operation trend in the first three quarters of 2024 presents two characteristics: one is the industry’s operational scale and quality achieved stability and rebound, and the development confidence of enterprises firmly enhanced. The other is that the growth of main operating indicators tended to slow down in the second half, indicating that the industry still faced difficulties and needed to adhere to innovation so as to achieve high-quality industry development.

A. Production Revenue

According to the National Bureau of Statistics, the main business income of enterprises above designated size in the knitting industry rose 2.12% year-on-year in the first three quarters of this year, achieving a rebound based on the previous year. Still, the growth rate declined by 1.08 percentage points compared with the first half of 2024. The total assets achieved sustained growth, witnessing an increase of 4.11% year-on-year, 0.51 percentage points higher than the growth rate of the first half of 2024.

From the perspective of two major sub-industries, the operating income of knitted fabrics enterprises above designated size rose 3.17% year-on-year in the first three quarters, 1.34 percentage points lower than the first half of 2024. Their total assets rose by 5.05% year-on-year, 1.06 percentage points faster than the first half of 2024. While the operating income of knitted apparel enterprises rose by 1.51% year-on-year in the first three quarters, 0.93 percentage points lower than the first half of 2024. Their total assets grew by 3.57% year-on-year, 0.19 percentage points higher than the first half of 2024.

Figure 1: Growth Rate of Revenue and Assets of Enterprises Above Designated Size in the Knitting Industry, Q1-Q3, 2024 

Source: National Bureau of Statistics

In terms of output, from January to September 2024, China’s apparel production increased by 4.41% year-on-year. Among them, the output of knitted garments surged by 7.45% year-on-year. The knitted clothes proportioned 68.82% of the total garment production, maintaining a stable growth trend.

Figure 2: China’s Knitwear Output and Share from 2019 to Q1-Q3, 2024

Source: National Bureau of Statistics

B. Profitability

In the first three quarters of 2024, the total profits of knitting enterprises above designated size grew by 3.14% year-on-year, 1.78 percentage points lower than the first half of 2024. The profit margin reached 3.95%, which was slightly higher than the level in the same period of the previous year. 22.40% of knitting enterprises operated in deficit, which narrowed by 3.68 percentage points than the first half of 2024. Other main economic indicators are as follows.

Table 1: The Main Economic Indicators of Knitted Enterprises Above Designated Size in Q1-Q3, 2024 

Source: National Bureau of Statistics

C. Foreign Trade

The General Administration of Customs Express reports that China’s knitted product exports totaled US$81.03 billion from January to September 2024, seeing a 3.15% increase compared to the previous year. Among them, knitted fabric exports reached US$17.73 billion, up by 8.4% year-on-year. The knitted garments and accessories exports totaled US$63.3 billion, up by 1.8% year-on-year.

Figure 3: Export Value and Y-o-Y Growth Rate of China’s Knitted Products in Q1-Q3, 2024

Source: China Customs

From the perspective of the main export markets, the export growth rate of China’s knitted products’ top three destinations, namely ASEAN, the United States, and the European Union, all performed higher than the average growth level. At the same time, the share of China’s products in the United States and the European Union knitted products imports has also risen.

Figure 4: Export Value and Y-o-Y Growth Rate of China’s Knitted Products to Major Markets, in Jan. -Sept. 2024

Source: China Customs

Table 2: Exports of Knitted Products by Category in Q1-Q3, 2024

Source: China Customs

From the point of view of local customs data, Zhejiang, Jiangsu and other key areas of the eastern seaboard grew well. With the continued release of the “Belt and Road” policy effect, the results are remarkable on the first anniversary of the construction of the Xinjiang Free Trade Zone. While benefiting from the positive impact of re-export trade, the export volume of Xinjiang was further boosted, and year-on-year growth was seen.

Table 3: Knitted Products Exports of China’s Major Exporters in Q1-Q3, 2024

Source: China Customs

D. Domestic sales

Data released by the National Bureau of Statistics show that from January to October 2024, the retail sales of apparel, head& foot wear and knitted products above designated size totaled 1.15 trillion yuan, up 1.1% year-on-year. During the same period, in the online retail sales of physical commodities, wearing goods increased by 4.7% year-on-year, 2.3 percentage points lower than the first half of 2024. The balloon of e-commerce is gradually returning to normalization. Enterprises need to focus on integrating online and offline development in the future, focusing on end-use trends and the accumulation of information resources so as to improve customer conversion rate.

In summary, in the first three quarters of 2024, China’s knitting industry has realized a year-on-year rebound. However, the decline in growth rate should also be noted. Meanwhile, due to the adjustment and upgrading of industrial structure and the fluctuation of the market environment, China’s knitting industry still faces many challenges and difficulties.

In the face of the complex and changing external environment, China’s knitting industry will forge ahead to create a new quality productive force and strive to meet the growing consumer demand through a more sustainable development path. Taking personalization, high quality, green, experience, and functionality as important directions, the knitting industry will explore ways to avoid homogeneous competition, meet the domestic and international market demand for high-quality supply, and achieve healthy and sustainable industry development.

Source: CHINA TEXTILE LEADER Express