Textile Industry Climbs Over The Hurdle And Relies On Domestic Demand

Driven by the domestic demand market and the backflow of overseas orders, the operation of China's textile industry gradually improved in the first half of the year, with steady growth of revenue and profit from negative to positive. According to the data, in the first half of 2021, the operating revenue of textile industry was 1170.75 billion yuan, with a year-on-year growth of 18.9%; The total profit was 44.6 billion yuan, up 2.3% year on year.

"The growth rate has not yet fully recovered, and the industry still needs continuous efforts." Sun Ruizhe, President of China Textile Industry Federation, summarized the situation of textile industry in the first half of 2021 at the video conference on economic operation analysis held by China Textile Federation recently.

Outstanding performance of leading enterprises

Xiao Xiao, a Beijing citizen who originally loved to buy foreign brands for children, told reporters: "now the design of domestic children's wear is more and more beautiful, and there are actually many joint brands."

Thanks to the success of the transformation, the fashion degree of domestic brand taipingniao has been more and more recognized among consumers, and its performance has continued to grow. On August 31, taipingniao (603877) released the semi annual report of 2021. During the reporting period, the company realized a year-on-year increase of 55.88%; The net profit attributable to shareholders of listed companies increased by 240.52% year on year.

In the background of the rise of domestic products, leading enterprises perform well. As of September 1, the semi annual reports of 43 domestic listed textile and garment enterprises have been published, of which 37 shares are in the profit state in the first half of this year. Specifically, among the 37 stocks with profits, 28 stocks showed performance growth, 22 shares had a year-on-year increase in net profit over 50% in the first half of this year, and 17 shares had a year-on-year increase of more than 100%.

The scale of revenue of domestic sports brands rose in an all-round way. Anta Sports achieved a sales revenue of 22.812 billion yuan in the first half of the year, which not only continued to rank first in the domestic echelon scale, but also exceeded the income of Adidas in Greater China during the same period. In addition, Li Ning's revenue in the first half of the year reached 10.197 billion yuan, with 4.135 billion yuan and 3.107 billion yuan for Tebu international and 361 degree, respectively.

"In the first half of the year, the production of clothing industry recovered steadily, and the output of clothing continued to rise." Liu Jing, senior project director of the industry department of China Garment Association, said that online sales in the domestic clothing market maintained growth, and physical sales improved significantly.

Chen Xiaoqian, an analyst at China Textile Industry Economic Research Institute, analyzed that from the perspective of the whole industry, the growth rate of the added value of the textile industry in the first half of the year was 9.6%, but the average growth rate in two years was 1.1%, lower than that in the same period in 2019. Therefore, it is judged that the industry production is still in the recovery stage. From the consumer side, from January to July, the sales volume of clothing, footwear, knitwear and textiles reached 767.3 billion yuan, up 29.8% year on year, higher than the growth rate of total retail sales of consumer goods by 9.2 percentage points. The average growth rate of the two years is 3.5%, higher than that of the same period in 2019. Based on this, the domestic consumer market has recovered and maintained good growth in the first half of the year.

It is worth noting that the consumer market presents the characteristics of active online sales, frequent occurrence of occasional and strategic explosive products, significant consumer demand and better consumption experience brought by live e-commerce.

In this regard, sun Ruizhe said that China's textile industry has shown a steady and positive development trend, the quality and efficiency of development has been steadily improved, the role of internal circulation has been continuously strengthened, the export has maintained a good growth trend, and the investment confidence has been enhanced. At the same time, affected by the new crown pneumonia epidemic situation, the textile industry value reengineering and responsibility is constantly being re examined by all levels of society.

Export reached the highest level in the same period

With the slow down of the epidemic situation and normalization of prevention and control, as well as the continuous release of dividends from the stable foreign trade policy, China's textile export growth has been strongly supported. In the first half of 2021, China's textile and clothing export reached the highest level in the same period.

According to the data of the General Administration of customs, from January to June 2021, the cumulative export of textile and clothing reached 140.86 billion US dollars, a year-on-year increase of 11.90% and an increase of 12.76% over that of 2019. Among them, the textile export was 68.558 billion US dollars, down 7.48% year-on-year and 16.95% higher than that in 2019; Clothing exports reached 71.528 billion US dollars, up 40.02% year-on-year and 9.02% higher than that in 2019.

From the perspective of industrial chain, the export of textile products (including masks) with customs tariff No. 63079000 has declined rapidly, which is an important factor affecting the decline of textile exports in the first half of this year.

In this regard, Chen Xiaoqian analyzed that in 2020, due to the demand for epidemic prevention materials, the textile demand in export products increased significantly, reaching 60.3%; In 2021, with the remarkable achievements in epidemic prevention, textiles and clothing account for 47.7% and 52.3% of the total export products, basically adjusting to the pre epidemic structure. Among them, the import of masks from China by the United States, the European Union and Japan will significantly decrease.

The export situation of clothing, home textile and other industries continued to improve, and the export of chemical fiber, yarn, fabric and textile machinery in the industrial chain also increased. Yang Zhaohua, vice president of China Textile Industry Federation and President of China Household Textile Industry Association, introduced that in the first half of the year, the export of home textile products increased by 19.99% over the same period in 2019, showing a good trend. Among them, the growth rates to the United States, the European Union, Japan, Russia and ASEAN were 53%, 48%, 14%, 58% and 58%, respectively. From the perspective of product categories, exports are mainly the original products. In addition to the attributes and consumer demand of home textile products, it also benefits from China's industrial chain advantages.

From the perspective of export regions, in the first half of the year, textile and clothing exports in Western China grew strongly, while those in eastern China increased. In terms of the top five export provinces, Zhejiang, Jiangsu, Guangdong, Shandong and Fujian respectively exported 36.78 billion US dollars, 22.66 billion US dollars, 21.71 billion US dollars, 13.53 billion US dollars and 12.23 billion US dollars respectively, with a year-on-year increase of 18.6%, 11.3%, 4.5%, 28.0% and 35.8% respectively.

According to the analysis of the China Textile Industry Federation, the current epidemic situation is still spreading around the world, the world economic recovery is unstable and unbalanced, the external environment faced by China's textile export is complex, and the cost pressure of textile foreign trade enterprises is increasing. According to the comprehensive judgment, China's textile and clothing export in 2021 is still facing a test.

Domestic sales in the second half of the year

In the first half of the year, the domestic demand market of textiles and clothing recovered steadily, which enhanced the pulling effect of the steady recovery of the industry economy. In the second half of the year, the textile industry is also looking forward to better performance in the domestic market.

Ding Sijia, deputy director of the industry department of China printing and dyeing industry association, believes that the fourth quarter of each year is the traditional peak season of the printing and dyeing industry, and it is expected that the orders received by enterprises in the second half of the year will remain stable, especially in terms of domestic sales.

According to Liu Jing's analysis, the recovery of domestic macro-economy has promoted the synchronous growth of residents' income and the continuous improvement of consumption confidence. The rapid progress of network technology and the booming of new consumption and new retail formats will inject strong impetus into the sustainable innovation and development of the industry. The overall economic operation of China's clothing industry in 2021 is expected to be significantly better than that in 2020, showing a stable recovery and a steady and positive development trend.

"In the second half of the year, China's macroeconomic recovery foundation continued to consolidate, and domestic demand is expected to stabilize and improve." Niu Shuangxin, an analyst with China Textile Industry Economic Research Institute, said frankly that the risk factors faced by the textile industry still exist. For example, the spread of the epidemic may have an impact on the recovery of the international market; Local rebound of domestic epidemic situation, extreme weather and other factors increase the production and marketing pressure of enterprises; The price of bulk commodities fluctuated greatly, which increased the risk of purchasing textile raw materials.

Niu Shuangxin predicts that in the second half of the year, the macro-economy is expected to continue to recover, the growth rate of demand will gradually return to normal, and the recovery and development trend of the textile industry is expected to continue. With the increase of the base number, the main indicators will show a trend of "high before and low after".

"In the later part of the second quarter of this year, especially after July, the growth of industrial production, consumption and fixed asset investment in China has slowed down, which may continue in the second half of this year." Sun Ruizhe proposed that the next step, the textile industry should strengthen the industrial transformation and upgrading and regional development strategy linkage related work, to promote the upgrading of industrial base and industrial chain modernization, but also to promote carbon peak, carbon neutral work.

In addition, he said that the textile industry should balance safety and development. As the epidemic situation tends to stabilize, the global industrial layout and market layout will become a prominent problem. It is necessary to stabilize the scale and system advantages of textile in China.