Over The First Half Of The Year, The Volume Of Production And Sales Continued To Decline, And Retail Sales Increased Year By Year.

1, supply: the output of Enterprises above Designated Size continued to decline.

For China's apparel industry, 2019 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 8.5% compared with the same period last year. In 2018, the apparel enterprises above Designated Size completed 22 billion 270 million garment production, down 22.6% from the same period last year. In 2019 1-6, clothing production of garment enterprises was 10 billion 410 million, down 1.1% from the same period last year.

2014-2019 years H1 garment production statistics and growth situation of garment enterprises above Designated Size in China

Source: Prospect Industry Research Institute

Judging from the output of sub category garments, knitted apparel production is obviously better than that of woven garments, knitted garments 5 billion 539 million, an increase of 1.02% over the same period, and 4 billion 865 million pieces of woven garments, down 3.38% from the same period last year. The down garments, suits and shirts decreased by 0.40%, 3.57% and 6.01%, respectively.

2015-2019 years H1 garment production statistics and growth situation in China's garment enterprises above Designated Size

Source: Prospect Industry Research Institute

2, demand: per capita clothing consumption expenditure growth rate down

In the first half of 2019, the disposable income and per capita consumption expenditure of our residents basically kept pace with economic growth, and the growth rate of per capita clothing consumption expenditure dropped significantly, which was far lower than that of personal development and enjoyment related consumption. The proportion of clothing consumption expenditure in per capita consumption expenditure also declined.

According to the National Bureau of statistics, in the first half of 2019, the per capita clothing consumption expenditure of the whole country was 731 yuan, an increase of 3% over the same period last year, and the growth rate dropped 3.3 percentage points over the same period last year. Clothing consumption expenditure accounted for 7.1% of the per capita consumption expenditure, which was 0.32 percentage points lower than that of the same period last year. Over the same period, the per capita consumption of residential, educational, cultural and entertainment, medical and health care, and other consumer goods and services increased by 10.8%, 10.9%, 9.5% and 9.8% respectively, and the growth rates were higher than those of clothing consumption.

Statistics on the growth of per capita clothing consumption expenditure and the percentage of per capita consumption expenditure of H1 residents nationwide in 2014-2019 years

Source: Prospect Industry Research Institute

3, domestic sales: clothing sales are decreasing year by year.

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 half of 2019, the sales volume of garment enterprises above Designated Size in China was 10 billion 270 million.

2016-2019 years H1 clothing sales statistics and growth situation in China's apparel industry above Designated Size

Source: Prospect Industry Research Institute

According to the data of the National Bureau of statistics, the retail sales of clothing commodities above the quota have increased year by year over the past 2011-2017 years, but the growth rate has slowed down year by year. In 2017, the total retail sales of clothing products reached 1 trillion and 36 billion 540 million yuan, up 1.4% over the same period last year. In 2018, the total retail sales of clothing products in China were 987 billion 40 million yuan, down 4.8% compared with the same period last year, and the retail sales volume of clothing products for the first time showed negative growth. As of the first half of 2019, China's clothing retail sales amounted to 474 billion 970 million yuan.

Statistics and growth of clothing retail sales volume above 2014-2019 units in H1

Source: Prospect Industry Research Institute

(Note: retail sales grew by 6.6% in 2016).

4, export: clothing export market volume and price down.

Since 2019, the pressure of international market demand is insufficient, trade protectionism has intensified, global market competition has become increasingly fierce, and the traditional advantages of China's garment industry have been weakened, and new competitive advantages have not been established. According to customs statistics, in 2019 1-6, China's total export volume and price of garments and accessories were reduced, and the export volume was $66 billion 574 million, down 4.7% from the same period last year. The number of garment exports was 14 billion 132 million, down 1% from the same period last year, and the average price of clothing exports was 3.64 US dollars / piece, down 4.7% compared to the same period last year.

Statistics and growth of export amount of Chinese clothing and accessories in 2015-2019 years

Source: Prospect Industry Research Institute

5, net sales: the scale of online retailing is increasing year by year.

With the improvement of the network channels of garment retailers, and the rapid development of Tmall, Jingdong and other e-commerce platforms, the effective development of China's apparel online retail market has been promoted. In 2011, China's apparel network retail sales amounted to about 193 billion 400 million yuan, up to 444 billion 700 million yuan in 2017, with an average annual growth rate of 14.9%, far exceeding the growth rate of clothing retail sales. It is estimated that the retail sales of clothing will reach 511 billion 400 million yuan in 2018.

Statistics and growth of China's apparel network retail sales in 2014-2018 years

Source: Prospect Industry Research Institute

6, benefit: the operation efficiency of the industry has declined.

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, in 2016, the production and sales rate of China's clothing industry was 97.6%, increased to 98.4% in 2017, reached 98.7% in 2018, and maintained at 98.7% in the first half of 2019.

2016-2019 years H1 China clothing industry above designated size enterprise production and marketing rate changes

Source: Prospect Industry Research Institute

Since 2019, under the continuous optimization of the garment industry in China, although the industry efficiency has declined, the quality of operation is basically stable. In the 1-6 month of 2019, the growth rate of the garment industry's performance indicators showed a significant slowdown, operating income maintained a small increase, and total profit growth was negative. According to the statistics of National Bureau of statistics, in 2019 1-6, 13636 enterprises in the garment industry (above 20 million yuan and above) accounted for 761 billion 583 million yuan, an increase of 2.15% yuan and a total profit of 38 billion 245 million yuan, a decrease of 0.78% over the same period last year.

2015-2019 years ago, statistics on operating income and total profits of Enterprises above Designated Size in China's apparel industry in May

Source: Prospect Industry Research Institute

7, cost: the overall cost of the enterprise remains high.

Due to the continuous growth of cost, such as employment, financing, taxation, raw materials, energy and so on, the comprehensive operation cost of enterprises has been increasing. According to the statistics of the National Bureau of statistics, in 2019 1-6, the cumulative cost of garment enterprises above designated size increased by 2.04% over the same period last year, and the growth rate was only slightly 0.11 percentage points lower than the increase in operating income. From the change of the proportion of cost to main business income, the average level of Industrial Enterprises above designated size has been decreasing year by year, while the proportion of garment industry has been increasing. The rapid rise of cost has further squeezed the profit margins of garment enterprises.

2014-2019 years H1 China scale clothing enterprises cost changes

Source: Prospect Industry Research Institute

For more information, please refer to the forecast analysis report of China's apparel industry's production and marketing needs and development prospects released by the prospective industry research institute.