Market Dynamics: Negative Growth In Retail Sales Of Chinese Textile Clothing For Food And Clothing

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Recently, the external environment of cotton is empty, and the external support is weakened. In the domestic cotton market where supply and demand are weak, cotton prices have been sharply reduced again, and market pessimism spreads. According to the latest data released by the National Bureau of statistics, terminal clothing consumption is still weak, and the domestic cotton market will still be under pressure in the short term.

Since the end of March, the outbreak of the domestic epidemic, many places strict prevention and control, people's purchasing power has also shown a downward trend, social consumer goods sales are facing a dilemma, its total retail sales growth year-on-year, the cumulative growth is negative. According to the data of the National Bureau of statistics, in May 2022, the total retail sales of consumer goods increased by - 6.7% year-on-year, and contracted by 4.4% month on month; Total retail consumption increased by - 1.5% from the previous month to 2021.5%. From the latest data, although the monthly data of social consumer goods has been repaired, the overall situation is still weak.

In the background of the poor performance of total retail sales of consumer goods, textiles and clothing as non necessities, the overall retail data are also greatly reduced. According to the latest data of the National Bureau of statistics, in May 2022, the retail value of clothing, shoes, hats, needles and textiles increased by - 8.1%, and the cumulative growth rate was negative for three consecutive months. With the success of epidemic prevention and control, all walks of life gradually returned to normal, but the marginal improvement of textile and clothing consumption was limited. From January to may, the retail value of clothing, shoes and hats, needles and textile products decreased more than that of last month.

At the same time, the online retail sales data of wearing goods also showed a weak trend. In May 2022, the online retail sales of physical goods increased by 5.6%, up 0.4% from 5.2% in April; Among them, online retail sales of clothing goods increased by - 1.6%, up 0.1% from - 1.7% in April, but still in a negative growth state.

From the three categories of physical goods, compared with food and use goods, the cumulative growth of online retail sales of wearing goods was negative. In May 2022, the cumulative growth of online retail sales of food, clothing and consumer goods is 16%, - 1.6% and 6.3% respectively. It can be seen from the data that wearing goods as non necessities, when the overall economic situation is grim, people's purchasing power declines more than other categories.

In conclusion, from the various retail data in May, we can see that in the context of weak social consumption, the overall consumption of online and offline textile and clothing is weak, and the retail data are in negative growth. Although the prevention and control of the epidemic situation has been gradually lifted, people's consumption mentality has gradually changed, and they are more inclined to the consumption of practical goods. On the contrary, the consumption of non necessities for textile and clothing has decreased.

In particular, the Federal Reserve recently raised interest rates by 75 basis points to 1.50-1.75%, the largest since 1994. In addition to the United States, Britain, Canada and other countries have also started the pace of interest rate increase. I, the future global economic situation may be more severe, textile and clothing consumption is still not optimistic, in the medium and long term, the cotton market is difficult to be optimistic.