In August, driven by multiple factors including increased uncertainty over tariff policies, ongoing tightening of re-export trade regulations, the gradual implementation of domestic promotional policies, and the boost from the summer vacation travel peak season, China’s apparel industry experienced a deepening decline in production, exports, and profitability indicators. Investment growth slowed, while domestic sales maintained modest growth, putting the sector under severe operational pressure. Currently, increased risks from international trade friction and persistent weakness in domestic market momentum have made operational challenges particularly severe for small and medium-sized enterprises. The foundation supporting stable economic performance in the industry needs further strengthening.

01 Production

According to data from the National Bureau of Statistics, the industrial added value of apparel enterprises above designated size decreased by 2.0% year-on-year in the first eight months of 2025, 0.8 percentage points higher than that of the January-July period. Meanwhile, the garment output of enterprises above the designated size declined by 1.38% year-on-year, with the decline widening by 1.09 percentage points compared to the January-July period.

02 Domestic Sales

According to the National Bureau of Statistics, China’s total retail sales of consumer goods reached 32.39 trillion yuan from January to August, marking a 4.6% increase year over year and 0.2 percentage points slower than that of the first seven months of 2025. Among these, the cumulative retail sales of apparel goods above the designated size amounted to 670.83 billion yuan, up by 2.2% year-on-year. Additionally, the online retail sales of wearable items reached 72.71 billion yuan in August, growing by 1.9% year-on-year, 1.7 percentage points faster than that of the first half of 2025.

03 Export

According to the Customs Newsletters, China’s apparel and accessories exports totaled US$102.76 billion from January to August this year, decreasing by 1.7% year over year. In August alone, China’s apparel and accessories exports reached US$14.15 billion, down by 10.0% year-on-year, with the decline deepening by 9.5 percentage points compared to July.

04 Investment

According to the National Bureau of Statistics, actual investment in China’s apparel industry grew by 20.1% year-on-year, with the growth rate slowing by 5.1 percentage points compared to the January-July period.

05 Benefit

According to the National Bureau of Statistics, from January to August, the total main business income of apparel enterprises above the designated size reached approximately 762.05 billion yuan, reflecting a year-on-year decline of 3.61%, which is 1.35 percentage points higher than the first seven months of 2025. The total profit amounted to 28.03 billion yuan, declining by 17.9% year-on-year. The operating income profit margin stood at just 3.68%, down 1.23 percentage points from the full year of 2024 and 0.08 percentage points lower than the January-July period of 2025.

Source: CHINA TEXTILE LEADER Express