Since the beginning of 2025, amid weak domestic demand and a volatile external environment marked by U.S. tariff policies, China’s apparel industry has continued to deepen its transformation and upgrading. Supported by a generally stable macroeconomic environment and the coordinated implementation of both existing and newly introduced policies, the sector has maintained a fundamentally stable yet pressure-laden trajectory of development. In November, industrial output and exports remained in contraction, while domestic sales and investment growth slowed markedly. Profitability continued to weaken, with year-on-year declines accelerating.

Looking ahead to 2026, both domestic and global demand are expected to remain subdued. Geopolitical tensions and trade policy uncertainties will persist, creating a challenging operating environment. To navigate this landscape, enterprises must double down on innovation-driven strategies and accelerate digitalization and intelligent manufacturing upgrades. By continuously optimizing supply chain management and strengthening operational resilience, they can better mitigate external trade risks and contribute to a steady, sustainable recovery of the sector.

A. Production

According to data from China’s National Bureau of Statistics (NBS), the industrial value added of apparel enterprises above designated size (defined as those with annual operating revenue of RMB 20 million or more) declined by 3.0% year-on-year during January–November 2025, with the rate of decline accelerating by 0.1 percentage point compared to the January–October period. In November alone, industrial value added fell by 4.4% year-on-year. The total apparel output from these enterprises witnessed a 3.30% year-on-year decrease over the same eleven-month period, marking a 0.1-percentage-point acceleration in the pace of decline from the first ten months of the year.

B. Domestic Sales

According to data from China’s National Bureau of Statistics (NBS), total retail sales of consumer goods reached 45.6 trillion in January–November 2025, up 4.0% year-on-year, though the growth rate moderated by 0.3 percentage points compared to the first ten months of the year. Thereinto, sales of apparel by enterprises above designated size totaled 980.95 billion yuan during the same period, rising 3.1% year-on-year, an acceleration of 0.2 percentage points from January–October. In November alone, apparel sales by these enterprises amounted to 115.76 billion yuan, up 4.5% year-on-year, though the pace of growth slowed by 2.3 percentage points from October.

Online retail activity also reflected a slight cooldown. Sales of physical goods via e-commerce platforms reached 11.82 trillion in the first eleven months of 2025, growing 5.7% year-on-year. Within this segment, online apparel sales increased by 3.5%, with the growth rate easing by 0.1 percentage point compared to the January–October period.

C. Exports

According to China Customs data, China’s exports of apparel (including accessories) totaled US$137.79 billion in January–November 2025, down 4.4% year-on-year, marking a 0.6-percentage-point acceleration in the pace of decline compared to the January–October period. In November alone, apparel exports amounted to US$11.59 billion, a 10.9% year-on-year decrease, though the rate of decline decelerated by 5.0 percentage points from October.

According to China Customs data, from January to November, shipments to the United States reached US$ 29.14 billion, down 11.4% year-on-year, with the decline accelerating by 1.1 percentage points versus the first ten months of 2025. In November, exports to the U.S. stood at US$ 2.25 billion, falling 23.0% year-on-year, as the pace of decline accelerated by 8.4 percentage points from October.

D. Investment

According to China’s National Bureau of Statistics (NBS), capital investment in the apparel sector grew by 7.7% year-on-year during January–November 2025, though the pace of growth slowed by 2.3 percentage points compared to the first ten months of the year.

E. Profitability

As of November 2025, there were 13,745 large-scale apparel enterprises in operation. Their combined operating revenue totaled 1.01 trillion, down 11.32% year-on-year, with the rate of decline accelerating by 3.99 percentage points from the January–October period. Their total profits amounted to 39.79 billion, plummeting by 27.06% year-on-year, and the pace of contraction accelerated by 3.65 percentage points compared to the first ten months. And the profit margin stood at 3.93%, 0.85 percentage points lower than in the same period of 2024, though it rose marginally by 0.21 percentage points from the January–October period of 2025.

Source: CHINA TEXTILE LEADER Express