In the first two months, the synergistic effect of China’s macro policies was bolstered, combined with the strong influence of the Spring Festival holiday on consumption, leading to a gradual recovery in market demand and supply. Simultaneously, global economic recovery remains slow; the United States has imposed tariffs that increase trade costs, resulting in insufficient international market demand. In this context, apparel exports exhibited a downward trend, while domestic sales and investment rose steadily, and production remained largely stable. However, corporate profitability has narrowed. Currently, the external environment has grown more complex and severe, with intensifying geopolitical conflicts and increasing trade restrictions, contributing to instability and uncertainty. The industry’s economic stabilization and recovery continue to face significant pressure and challenges.

01 Production

According to data from the National Bureau of Statistics, the industrial added value of apparel enterprises above a designated size increased by 1.5% year-on-year in the first two months of 2025, which is 0.7 percentage points faster than last year. Meanwhile, the garment output of enterprises above the designated size decreased by 1.5% year-on-year, which is 5.72 percentage points slower than in 2024.

02 Domestic Sales

According to the National Bureau of Statistics, China’s total retail sales of consumer goods reached 8.37 trillion yuan from January to February, marking a 4.0% increase year over year and 0.5 percentage points higher than in 2024. Among these, the cumulative retail sales of apparel goods above designated size amounted to 194.71 billion yuan, with a growth rate rising by 2.6 percentage points year-on-year, which is 2.5 percentage points faster than last year. Additionally, the online retail sales of wearable items fell by 0.6% year-on-year, 2.1 percentage points lower than last year.

03 Export

According to the Customs Newsletters, China’s apparel and accessories exports totaled US$21.66 billion from January to February this year, decreasing by 6.9% year over year and narrowing by 7.2 percentage points compared with last year.

04 Investment

According to the National Bureau of Statistics, fixed-asset investment in China’s garment industry surged 18.5% year-on-year from January to February this year, 0.5 percentage points higher than last year.

05 Benefit

According to the National Bureau of Statistics, from January to February, the total main business income of apparel enterprises above the designated size reached approximately 182.90 billion yuan, reflecting a year-on-year growth of 3.39%, which is 0.63 percentage points higher than last year. The total profit amounted to 7.38 billion yuan, declining by 5.75% year-on-year and 7.29 percentage points lower than in 2024. The operating margin was 4.04%, which is 0.87 percentage points lower than last year.

Source: CHINA TEXTILE LEADER Express