Briefing on the economic operation of China’s garment industry from January to August 2023

Overview

Since the beginning of this year, China’s clothing industry has still faced a complex and severe external environment, the recovery of world economy and trade is weak, the consumption ability and willingness of domestic residents still need to be improved, the industry production, export, efficiency, investment and other major economic indicators continue to grow negatively, insufficient market demand, intensified industry competition and enterprise capital shortage have become the main problems restricting the stabilization and recovery of the industry. The difficulties of small and medium-sized enterprises are particularly prominent. In August, the decline in garment export was narrowed due to the lower base of the same period last year, inventory digestion of overseas enterprises, RMB depreciation and other factors, and the domestic sales market continued to pick up under the support of the effect of a new round of stable growth policies and measures and the peak summer vacation tourism season. In the next stage, with the gradual economic recovery in Europe and the United States, the continuous promotion of destocking by enterprises, and the accumulation of positive factors to expand domestic consumption, the foundation for the good economic recovery of the apparel industry will be further consolidated.

Production

According to the National Bureau of Statistics, from January to August 2023, the industrial added value of enterprises above designated size in China’s apparel industry will decrease by 8.9% year on year, 0.2 percentage points deeper than that in January to July. In August, the industrial added value of enterprises above designated size will decrease by 10.3% year on year, 0.8 percentage points narrower than that in July. Enterprises above designated size completed 12.645 billion pieces of clothing output, down 10.27% year on year, 0.52 percentage points deeper than the decline from January to July.

Domestic sales

According to the National Bureau of Statistics, China’s total retail sales of consumer goods from January to August 2023 reached 3,0228.1 billion yuan, up 7.0% year on year, 0.3 percentage points slower than the growth rate from January to July. Among them, the retail sales of clothing goods in units above designated size totaled 639.5 billion yuan, up 12.9 percent year on year, 0.9 percentage points slower than that in the January-July period. In August, retail sales of clothing goods above designated size increased by 5.7% year on year, 3.1 percentage points faster than in July.

According to the National Bureau of Statistics, the online retail sales of physical goods from January to August 2023 reached 7.982.06 billion yuan, up 9.5% year on year. Online retail sales of clothing goods rose 10.9 percent year on year, 1.1 percentage points slower than the January-July period.

exit

According to China Customs data, China’s export of clothing and clothing accessories from January to August 2023 was 106.89 billion US dollars, down 8.9% year on year, 0.6 percentage points deeper than that from January to July. Exports of clothing and clothing accessories were $16.17 billion in August, down 11.9 percent year on year, 6.1 percentage points narrower than in July.

Investment in

According to the National Bureau of Statistics, the actual completed investment in China’s apparel industry from January to August 2023 decreased by 4.3% year on year, 1.2 percentage points narrower than that from January to July.

Benefits

According to the National Bureau of Statistics, from January to August 2023, there are 13,609 enterprises above designated size (annual main business income of 20 million yuan or more) in China’s apparel industry, achieving operating revenue of 764.754 billion yuan, down 8.89% year on year, 0.4 percentage points deeper than that from January to July, and 4.33 percentage points deeper than that of the whole year of 2022. The total profit was 33.9 billion yuan, down 6.83% year on year, 0.71 percentage points deeper than that of January-July and 0.49 percentage points deeper than that of the whole of 2022. The operating margin was just 4.43%, 0.1 percentage points higher than a year earlier and still 0.82 percentage points lower than for the whole of 2022.