The Overall Operation Of The Textile Industry Has Improved.

According to the statistics of the National Bureau of statistics, in March 2020, the industrial added value of above scale decreased by 1.1% in real terms compared with the same period in March, a drop of 12.4 percentage points from 1 to February. In March, the added value of textile industry increased by 5.5% over the same period last year, narrowing significantly compared with the 27.2% decline in February.

Offline retail sales decline, online consumption is better than the whole. According to the statistics of the National Bureau of statistics, in March 2020, the retail sales of clothing shoes and hats and needle textiles decreased by 34.8% compared with the same period last year, a drop of 3.9 percentage points higher than that in February. In 1-3 months, the online retail sales of apparel products decreased by 15.1% in the whole country, and the decline was narrowed by 3 percentage points compared with that in 1-2 months. In March, sales of textile and clothing were still falling, but the decline of online consumption was narrowed, and the advantages of new consumption formats appeared. As the domestic epidemic situation is stable, the consumption of physical department stores is expected to gradually recover. According to a survey conducted by the Chinese general merchandise business association on 30-4 March, 6 of the department stores said that their shopping malls had recovered more than half. After April, the domestic textile and clothing consumption will be improved.

Textile exports narrowed and clothing declined. Affected by the spread of the international epidemic, the US and European market customers cancelled or postponed import orders for textiles and clothing, which led to the decline of China's textile and clothing exports in March, and the impact on clothing was greater. According to the latest data from the General Administration of Customs of China, in March 2020, the export volume of textiles and clothing decreased by 15.13% compared with the same period last year. The decline was narrowed by 4.7 percentage points compared with that in 1-2 months, of which, textile exports decreased by 6.32% compared with the same period last year. The decline was narrowed by 13.58 percentage points compared with that in 1-2 months, and the export volume of clothing decreased by 24.83% over the same period last year, a decline of 4.83 percentage points over that of 1-2 months. Due to the insufficiency of external demand, many textile and garment enterprises have adopted various self rescue measures to reduce risks through online and domestic sales.

Policies support export to domestic sales. Under the current shortage of external demand, a series of policies supporting foreign trade capacity turning to the domestic market have been released. In April 17th, the meeting of the Political Bureau of the CPC Central Committee made clear that support for export of enterprises to domestic sales. Since the outbreak of the epidemic, this expression is the first time in such a conference. The Ministry of Commerce has also proposed a number of measures to help foreign trade enterprises expand the domestic market. Recently, local governments, home textiles and clothing associations have stepped up policy publicity and production and marketing docking, set up communication platforms, broadened online cooperation channels, and other ways to relieve enterprises. At present, enterprises such as Jiangsu, Zhejiang and other textile and garment production concentrated areas have already started multi-channel marketing, especially through many online sales platforms, such as live guided shopping, etc.

There are positive factors in the foreign trade environment. At present, there are signs of decline in European cases. Many European countries are brewing early May to lift some restrictions on epidemic prevention and control. Germany will gradually "unseal" this week. Spain, Austria, Denmark, Czech and other countries have indicated that they will relax the closed measures to facilitate the recovery of textile and garment exports. The International Monetary Fund (IMF) released the new world economic outlook report in April 14th. It is estimated that if the epidemic subsided in the second half of this year, the global economy will grow by 5.8% in 2021. Multilateral cooperation will also play an important role in containing the spread of the epidemic and supporting the healthy recovery of the global economy. According to the optimistic expectation of the economic situation in 2021, consumption is expected to gradually recover after the worst phase of the epidemic.

Influenced by many factors such as the outbreak of new crown pneumonia, trade friction and economic downward pressure, the situation of textile and garment industry is extremely grim, but China still occupies the core position in the global supply chain and industrial chain. With the continuous improvement of the domestic epidemic situation, the superposition of China's huge domestic demand market and the opportunities for the development of 5G applications, we have reason to look at China's domestic demand market and the further optimization of China's textile manufacturing.