2018 China Garment Industry Transformation And Upgrading Results Show

China is the largest textile and garment producer, consumer and exporter in the world. In recent years, the downward pressure on China's macro economy has increased. Under the supervision of green environmental protection, the apparel industry has maintained a relatively stable development trend. Although production and sales have been declining simultaneously, the production and marketing rate has been improved as a whole, the quality and efficiency of the industry has been steadily improved, and the transformation and upgrading effect has gradually emerged.

Production and sales of Enterprises above Designated Size declined synchronously

For China's apparel industry, 2018 is a year full of challenges and challenges and rapid changes. Facing the complex and changing international situation and the pressure of structural adjustment in China, the garment industry in China is facing many risks and uncertainties under the background of its development environment, and has maintained steady development of the industry as a whole.

According to the statistics of National Bureau of statistics, in 2017, the clothing output of garment enterprises above Designated Size in China was 28 billion 780 million, down 2.6% compared with the same period last year. In 2018, the apparel enterprises above Designated Size completed 22 billion 270 million garment production, down 3.37% from the same period last year. (Note: the year-on-year growth rate is different from the number of Enterprises above designated size. The annual statistics are different from the previous year's data. According to the China Apparel Association estimates, in 2018, the total garment output of the whole society in China was about 45 billion 600 million, which was basically the same as in 2017.

From the sales data, in 2018, China's garment industry faced severe and complicated domestic and international situation, and more stringent environmental protection measures. Sales volume declined with the decrease in garment production of Enterprises above designated size. According to the National Bureau of statistics, in 2016, the sales volume of garment enterprises in China reached 30 billion 690 million in the four quarter, and dropped to 28 billion 330 million in 2017. In the first quarter of 2019, the clothing sales volume of Enterprises above Designated Size in China's apparel industry was 4 billion 920 million.

Production and marketing rates increase, quality and efficiency of the industry increase.

Affected by the domestic macroeconomic environment and the adjustment of industrial structure, the production and sales volume of garment enterprises above Designated Size in China has declined slightly, but from the perspective of production and marketing rates, the industry is running relatively well. According to the data of the National Bureau of statistics, the production and sales rate of garment industry in China was 97.6% in 2016, and increased to 98.4% in 2017, reaching 98.7% in 2018. This shows that in the process of inefficient production and structural adjustment, China's apparel industry has gradually reduced the proportion of its industry stocks and improved the operation of the industry.

According to the latest data, in the first quarter of 2019, China's clothing industry regulated 4 billion 920 million enterprises, while the same time, 4 billion 888 million enterprises' clothing output was regulated, and the production and marketing rate exceeded 100%, reaching 100.7%.

In 2018, the operation quality of China's garment industry was basically stable, and the growth rate of benefits was obviously improved. According to the statistics of National Bureau of statistics, in 2018 1-12, 14827 enterprises in the garment industry (above 20 million yuan and above) accounted for 1 trillion and 710 billion 657 million yuan, an increase of 4.07% compared with the same period last year. The total profit was 100 billion 675 million yuan, up 10.84% over the same period last year. Industry profitability and capital turnover efficiency increased over the same period last year.

In the first quarter of 2019, the number of Enterprises above designated size decreased to 13624, and realized operating income of 376 billion 212 million yuan, up 6.82% over the same period last year. The total profit was 18 billion 62 million yuan, an increase of 8.29% over the same period last year, and the operating profit margin was 4.80%, up 0.07 percentage points over the same period last year.

The high quality development pattern is forming.

In 2018, facing the complex internal and external environment and pressure, China's garment industry maintained steady development, firmly seized the opportunities of new technology, new models and new formats, focused on technological progress and cultural innovation, accelerated the pace of transformation and upgrading, and accelerated the transformation of new and old energy, and the garment industry was changing from scale development to quality development.

The demand for differentiation will be more intense, and younger and high-end will become the mainstream trend of industry transformation and upgrading. Under the new round of technological revolution, the development of big data, cloud computing and artificial intelligence has brought profound changes, and the intelligent network has become an important direction of technology and industrial upgrading. The apparel industry will deepen the application of new and high technologies in key links such as production and marketing, enhance the ability of production and consumption services. Under the stimulation of e-commerce, mobile social interaction can not only stimulate users' consumption needs, but also help the products to form brand communication through the information sharing of social platforms and meet the individual needs of consumers. At the same time, consumers are more focused on the cultural and creative ideas embodied in clothing when the requirements of product quality and brand are raised, and cultural creativity will also give fashion new fashion connotation. With the upgrading of consumption, the 90 and 00 consumer groups in China are rising. Author: Li Yifan