Professional Review: Analysis Of 2009 Industry Changes

April 26th, China

13.04% decline in garment production and regional role pformation

In 2009, China's Enterprises above Designated Size completed 23 billion 750 million production, an increase of 6.94% over the same period in 2008. The total clothing output of the whole society in China was 40 billion, 13.04% lower than that in 2008, of which 13 billion 800 million were woven garments and 26 billion 200 million were knitted garments, respectively, which were 10.97% and 14.10% lower than that in 2008.

The international market demand declined rapidly and eliminated a number of small and medium-sized enterprises with poor capital, technology, poor management ability and low risk tolerance.

However, the pattern of garment production in China has not changed fundamentally in this year. The top five provinces are still Guangdong, Zhejiang, Jiangsu, Shandong and Fujian. The output of Fujian province increased by 15.17% compared with that of Shandong province. The output of Shandong province increased by 8.62%, and the output of Guangdong, Zhejiang and Jiangsu provinces was basically the same as that of last year.

The production scale of the Yangtze River Delta and the Pearl River Delta region has been nearly stable, and coastal areas have begun to relocate their industries. The determination of new positioning will guide and promote the process of industrial gradient pfer.

In inland provinces, the production of Jiangxi, Hubei, Hebei, Liaoning, Henan and Anhui all showed good growth momentum.

In the next few years, the new foreign trade processing base,

Big enterprises increase 16.98% industries, polarization intensifies

According to the statistics of Enterprises above Designated Size by the National Bureau of statistics, the number of Enterprises above designated size increased by 16.98% in the 1-11 months of 2009 compared with the same period in 2008.

The polarization of the garment industry has intensified.

Small and medium enterprises and two or three hand export orders enterprises are closed down.

The limited export orders are further concentrated on the dominant enterprises.

The degree of brand concentration in the domestic market has also been further improved. The development of the two or three tier city market has provided a good opportunity for the development of the advantageous brands, but further reduced the living space of small brands and new brands.

Statistical data of Enterprises above Designated Size reflect the trend of improvement of large enterprises and dominant enterprises, but they can not reflect the survival predicament of a large number of enterprises below scale.

Fortunately, in 2009, the efficiency of China's garment industry increased.

The total profit of the industry, the total profit of the enterprises and the per capita profit increased by 21.31%, 26.77% and 19.70% respectively, and the profit rate of the industry increased by 5.93% over the same period last year.

The cost control ability of enterprises is obviously enhanced.

Foreign investment has dropped significantly, and central investment has increased rapidly.

In 2009, the investment of Enterprises above Designated Size actually increased substantially compared with the previous year.

The investment in garment industry shows the characteristics of reducing the scale of single project investment.

Investment in channel redevelopment continues to increase; small scale technological pformation to increase labor productivity and energy conservation is increasing; investment in enterprise informatization technology application projects has increased.

Constructive investment has indeed slowed down a lot, but the efficiency investment with small investment and quick results has quickened its pace.

Foreign investment, especially investment from Hong Kong, Macao and Taiwan, has declined.

Foreign investment in garment industry quickly reduces or means that foreign businessmen will gradually withdraw from the field of garment processing, and the role and role of foreign businessmen in China's apparel industry chain is facing pformation.

The proportion of domestic investment increased significantly, accounting for 83.16% of the total investment, and there were signs of a trend of change. Although for a long time, private sector investment will continue to be the main body of investment in the apparel industry. With the increase of Limited by Share Ltd, the proportion of investment in Limited by Share Ltd will further increase, and the proportion of investment in limited liability companies will continue to expand.

The investment growth rate of garment industry in the central region reached 35.30%, accounting for a continuous increase in the proportion of investment across the country.

The central region has gradually become a popular investment area, and the actual amount of investment has gradually approached the eastern region.

There are also great differences in investment direction between the East and the West. The investment in the eastern region is mainly used for channel reengineering, information pformation and technological pformation, while investment in the central and western regions is mainly used for infrastructure construction, modern factory building, renovation and expansion.

Domestic demand rises steadily, supply and demand are rational.

In 2009, the total retail sales of social consumer goods totaled 12 trillion and 534 billion 270 million yuan, an increase of 15.5% over the same period, of which clothing consumption exceeded 12000 billion yuan, an increase of 18.8% over the previous year, down from 2.8 percentage points in 2008.

The growth rate of clothing consumption is obviously faster than that of the total retail sales of consumer goods, which is only next to the growth of furniture, building and decoration materials and automobile products consumption.

It can be seen that in 2009, China's clothing consumption started at the beginning of the year, and after several twists and turns, it finally achieved a year-end increase.

Clothing demand has not yet entered the true recovery state, consumer behavior is still very prudent, and the sensitivity to product prices is correspondingly raised.

The rationality of supply is synchronous with demand rationality.

Brand enterprises also take prudent attitude in terms of supply, reduce new products from the first half of the year to tight supply in the second half of the year, adjust dealer teams from the first half of the year, and enhance the participation of the dealer team in brand operation level in the second half of the year. Brand enterprises strive to reduce the waste of goods distribution and increase the profitability of unit products.

According to customs statistics, in 2009, China completed the clothing and clothing accessories.

clothing