Since the beginning of this year, due to the continued spread of the global epidemic, the rising risk of economic stagflation, the frequent spread of domestic epidemics, high temperatures and extreme weather and other unexpected factors, the situation of my country’s garment industry has become more complex and severe. It is faced with insufficient market demand and insufficient industrial and supply chains. Chang and other production and operation difficulties.
In August, with the support of a series of national “stable growth” policies and measures, my country’s domestic clothing market gradually recovered, and investment maintained good growth. However, shrinking external demand, epidemic disturbances, high costs and geopolitical risks Affected by unfavorable factors such as the intensification of the epidemic, production declined slightly, export growth fell sharply, and efficiency growth continued to be under pressure.
Looking forward to the whole year, the China National Garment Association predicts that the current unstable and uncertain factors have increased significantly, and there are still many difficulties and challenges in enterprise production and operation. The garment industry still faces huge challenges in maintaining stable economic operation and recovering.
Clothing production decreased slightly
Clothing output decreased slightly. Data show that from January to August, the industrial added value of enterprises above designated size in the garment industry increased by 2.9% year-on-year, with the growth rate slowing down 0.7 percentage points from January to July and 7.0 percentage points slower than the same period in 2021. During the same period, enterprises above designated size completed 15.259 billion pieces of clothing, a year-on-year decrease of 1.42%. The decline was narrowed by 0.12 percentage points from January to July and 14.27 percentage points lower than the same period in 2021. Among them, the output of woven clothing was 5.736 billion pieces, a year-on-year decrease of 1.42%. A decrease of 2.07%; the output of knitted garments was 9.523 billion pieces, a decrease of 1.03% year-on-year.
The domestic sales market has recovered steadily. Benefiting from the efficient coordination of epidemic prevention and control and economic and social development by governments at all levels, as well as the effective implementation of consumption-promoting policies, the domestic clothing sales market has maintained a good recovery trend, with online retail growth picking up steadily and physical store operations improving. At the same time, as the frequent spread of domestic epidemics still imposes great restrictions on residents’ social travel and commercial operations, residents’ willingness to consume optional clothing products still needs to be further improved. According to data from the National Bureau of Statistics, from January to August, the retail sales of clothing products by units above designated size in my country totaled 581.4 billion yuan, a year-on-year decrease of 5.5%, and the decline was 1.4 percentage points narrower than that from January to July. Online clothing retail sales maintained steady growth. From January to August, online retail sales of clothing products increased by 4.0% year-on-year, and the growth rate was 0.6 percentage points faster than that from January to July. Benefiting from summer vacation travel and the increased willingness to socialize and consume, physical store operations continued to improve. According to statistics from the China National Commercial Information Center, in August, the retail sales of clothing products by 100 major large-scale retail companies in the country increased by 2.1% year-on-year, which was higher than that in July. 3.6 percentage points.
Export growth fell sharply
The downward pressure on exports increased. From January to August, my country’s clothing exports continued to maintain rapid growth on the basis of a high base in 2021, showing strong development resilience. However, affected by the official entry into force of the U.S. “Xinjiang-related Act”, the growth rate of clothing exports slowed down significantly in August, especially the export of cotton clothing to the United States showed a sharp double-digit decline. According to China Customs data, from January to August, my country’s total exports of clothing and clothing accessories were US$118.034 billion, a year-on-year increase of 11.6%, and the growth rate was 1.3 percentage points slower than that from January to July; in August, exports of clothing and clothing accessories were US$18.486 billion. US dollar, a year-on-year growth of 5.1%, 13.4 percentage points slower than the growth in July.
The export volume of woven garments fell and prices rose, and the driving effect of price growth continued to strengthen. According to China Customs data, from January to August, the number of clothing exports was 23.45 billion pieces, a year-on-year increase of 3.8%, and the average export unit price was US$4.32, a year-on-year increase of 13.4%. Among them, the export volume and price of knitted clothing increased, with the export quantity and export unit price increasing by 7.2% and 9.9% respectively year-on-year; the export quantity of woven clothing decreased by 1.4% year-on-year, and the export unit price increased by 19.4% year-on-year.
The growth rate of major garment export provinces and cities slowed down slightly, and the decline in Guangdong’s garment exports deepened. From January to August, my country’s top five garment export provinces, Zhejiang, Guangdong, Jiangsu, Shandong and Fujian, completed garment exports of US$84.32 billion, a year-on-year increase of 9.6%, accounting for 71.4% of my country’s total garment exports, a decrease of 1.3 percentage points from the same period in 2021. . Among them, Zhejiang’s clothing exports amounted to US$24.37 billion, a year-on-year increase of 25.4%, and the growth rate was 4.8 percentage points slower than that from January to July, still higher than the national average growth rate of clothing exports; Guangdong’s clothing exports decreased by 6.6% year-on-year, and the decline rate was 4.8 percentage points lower than that from January to July. It deepened by 1.6 percentage points in July.
Corporate performance continues to be under pressure
Since the beginning of this year, it has been affected by multiple factors such as the disruption of the epidemic, insufficient orders, and high costs. , the growth rate of the main efficiency indicators of my country’s garment industry continues to slow down, and the economic operation is seriously under pressure. According to data from the National Bureau of Statistics, from January to August, there were 13,117 enterprises above designated size in my country’s garment industry, achieving operating income of 950.401 billion yuan, a year-on-year increase of 3.71%. The growth rate was 0.2 percentage points slower than that from January to July, and was higher than the same period in 2021. A slowdown of 5.87 percentage points; total profit was 43.57 billion yuan, a year-on-year increase of 3.37%. The growth rate slowed down by 0.59 percentage points from January to July and was 6.16 percentage points slower than the same period in 2021.
The operating efficiency of the industry has declined and costs remain high, making it difficult to improve corporate profits. From January to August, the turnover rate of finished products of enterprises above designated size in the garment industry was 11.91 times/year, a year-on-year decrease of 3.34%; operating costs increased by 4.43% year-on-year, 0.72 percentage points higher than the operating income growth rate, and operating income per 100 yuan included costs of 86.08 yuan, an increase of 0.59 yuan compared with the same period in 2021; the operating income profit margin was 4.58%, a decrease of 0.02 percentage points compared with the same period in 2021.
The reverse of listed companiesThe potential for change
Under the influence of factors such as the new crown epidemic, on the one hand, the garment industry, which is in an industry adjustment period, is “moving forward with a heavy load”; on the other hand, the industry is accelerating in concentration, Key enterprises take the initiative to “seek change” and create new opportunities. Statistics from the China National Garment Association on the first half of 2022 annual reports of 71 listed clothing and apparel companies show that 36 companies achieved year-on-year operating income growth, and 28 companies achieved year-on-year growth in net profits.
Brands with certain category advantages have “looked back” on their brand growth genes, discovered or created their own traditional advantageous single products, and focused on product innovation and upgrading of single products and brand promotion. Shape the brand image, strengthen exclusive category features, strive to achieve the customer impression of “brand = category”, and deepen customers’ “category” awareness of the brand.
Take Jiumuwang, which specializes in men’s trousers, as an example. The company continues to strengthen the research and development of products and fabrics, promotes younger product styles, optimizes and integrates trousers styles, and conducts research on some processes. Improvement further enhances the comfort of pants. At the same time, Jiumuwang has also continued to improve its brand professionalism and popularity. In January and June this year, it launched a new series of pants shows at Paris Fashion Week and Milan Fashion Week, showing the results of the brand’s transformation into internationalization and fashion.
Being customer-oriented, in order to achieve rapid and accurate market response, brand companies are increasingly emphasizing the application of digital and intelligent technologies, through smart factories, smart stores, RFID technology, 5G, cloud New technologies such as warehouses and intelligent middle and back-end systems can effectively help improve the quality and efficiency of corporate operations. In addition, the epidemic has also changed consumer consumption habits. Brand clothing companies have stepped up their private sector operations and used new digital tools and new ways to strengthen communication with customers.
Brand enterprises are accelerating the improvement of consumer-centered, large-scale omni-channel marketing networks, fully covering online and offline channels. For example, Aimer’s brands continue to improve their new store images. The Aimer brand will adopt the new image in 2021. So far, a total of 80 terminal stores have appeared with the new image. The upgraded and renovated stores have received good market feedback.
Keywords:
Epidemic Domestic Market
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