Industry Data: Analysis Of China'S Knitting Industry In The First Nine Months Of Economic Operation

Since this year, the global epidemic situation is still repeated, the conflict between Russia and Ukraine is becoming more and more intense, and the adverse impact of the Federal Reserve's continuous interest rate hike on the global economy is growing. In this context, China's knitting industry steadily promote the resumption of production, industry stability and sustainable development.

Scale growth continued to slow down, and the proportion of knitted clothing increased

From January to September, the operating income of Enterprises above Designated Size in the knitting industry increased by 2.76% year-on-year, and the growth rate decreased by 3.59 percentage points compared with the first two quarters of this year; Among them, the operating income of Enterprises above the designated size of knitted fabrics increased by 3.40%, and that of Enterprises above the designated size of knitted garments increased by 2.39%, which decreased by 5.83% and 2.27% respectively compared with the first two quarters of this year.

Affected by the decrease of orders, the growth rate of garment output has been negative since June this year. From January to September, the total output of national clothing decreased by 1.66% year-on-year, among which the output of knitted clothing decreased by 1.15% year-on-year, and the decline rate was 1.34 percentage points lower than that of woven clothing. The proportion of knitted clothing in the total clothing output continued to increase. From January to September, the proportion of knitted clothing accounted for 62.34%, which was 2.29 percentage points higher than that of last year.

The gap between the growth rate of cost and income has narrowed, and the operating conditions have improved

Although the growth rate of operating cost is still higher than that of operating income, the gap between them is gradually narrowing. According to the data of the National Bureau of statistics, from January to September, the operating costs of Enterprises above Designated Size in the knitting industry increased by 3.51% year-on-year, and the growth rate was 0.75% higher than the operating income, and the difference between the two growth rates decreased by 0.46% compared with the previous two quarters. Among them, the operating cost of Enterprises above the designated size of knitted fabrics increased by 3.97% year-on-year, 0.57% higher than the operating income; 85%, higher than that of knitting enterprises. At the same time, the operating cost of knitting industry per 100 yuan business income continued to decline, and the business situation of enterprises was relieved.

From January to September, the total profit of Enterprises above Designated Size in the knitting industry increased by 7.09% year on year, which continued to grow. In the knitting industry, the number of deficit households of Enterprises above Designated Size continued to decrease, and the situation of loss areas improved. From January to September, the loss area was 22.03%, which was 4.77 percentage points lower than that of the first two quarters, and the operating conditions of enterprises continued to improve. From January to September, the proportion of three items of expenses of Enterprises above Designated Size in the knitting industry accounted for 6.92%, down 0.56 percentage points compared with the same period last year.

Export growth momentum is good, looking forward to continued growth in the shopping season

According to the statistics monthly report of China Customs, from January to September of 2022, China's total export of knitted products reached 88.580 billion US dollars, a year-on-year increase of 13.55%, higher than that of the national textile and clothing exports by 4.45 percentage points. Among them, from January to September, China exported 18.834 billion US dollars of knitted fabrics, an increase of 12.1% year-on-year; The export of knitted apparel reached 69.746 billion US dollars, up 13.9% year on year.

However, due to the high inflation in many countries and the adjustment of monetary and fiscal policies in various countries, consumption degradation tends to be obvious under high inflation in overseas countries, and the knitting industry is facing greater pressure to maintain export growth. In September, China's export of knitted products reached US $10.141 billion, down 9.81% year-on-year and 13.68% month on month. Among them, the export of knitted fabrics was 1.925 billion US dollars, a year-on-year decrease of 8.63%; The export of knitwear was 8.216 billion US dollars, down 10.08% year on year.

From the perspective of major export markets, China's exports to the traditional main market, the United States, have maintained a good growth since this year. The export value of China's knitting products increased by 11.74 billion U.S. dollars, representing a year-on-year increase of 11.79 billion US dollars.

From January to September this year, China's export volume of knitted products to ten ASEAN countries totaled US $15.191 billion, a year-on-year increase of 25.12% and a growth contribution rate of 28.86%. China's export of knitted fabrics and knitted garments to ASEAN region has achieved a good growth. The ratio of the export value of fabrics and clothing is about 56:44, and the export volume of its clothing is on the rise. The market trend is worthy of attention.

From January to September, China's export volume of knitted products to the EU was 14.102 billion US dollars, up 22.45% year on year, and the growth contribution rate was 24.46%.

Compared with the first two quarters of this year, the market in Japan was slightly warmer. From January to September, China's export volume of knitted products to Japan reached 5.890 billion US dollars, an increase of 4.18% year-on-year, and the growth contribution rate was 2.24%.

From the perspective of sub categories, from January to September, China's export of knitted pullovers reached US $17.235 billion, up 17.73% year-on-year; The export of knitwear accessories (including socks, gloves, scarves and other accessories) reached US $9.443 billion, up 18.83% year-on-year; The export of underwear and household clothing was 8.290 billion US dollars, with a year-on-year increase of 7.84%; the export of warp knitted fabrics was 1.040 billion US dollars, with a year-on-year increase of 11.95%.

According to the statistics of China's major provincial customs, Zhejiang, Guangdong and Jiangsu are still the top three in terms of export volume of knitted products. The export volume from January to September was US $25.124 billion, US $13.345 billion and US $12.754 billion respectively, with year-on-year growth rates of 17.24%, - 3.63% and 9.46% respectively. In the first three quarters, among the top ten export destinations of knitted products, Jiangxi, Xinjiang and Hunan had a larger growth rate, and their year-on-year growth rates all exceeded 50%. Among them, the export volume of Jiangxi Province was 2.715 billion US dollars, with a year-on-year increase of 50.43%; The export volume of Xinjiang Uygur Autonomous Region was 2.412 billion US dollars, up 95.62% year on year; The export volume of Hunan Province was 1.916 billion US dollars, with a year-on-year increase of 79.52%.

Usually, the fourth quarter of every year is the shopping season in western countries, and traditional western festivals such as Halloween, Thanksgiving and Christmas are coming one after another. It is expected that the shopping season can continue to make efforts to drive clothing, beauty, gifts and other related foreign trade enterprises to usher in the upsurge of orders.

The popularity of domestic sales needs to be improved, and online consumption has rebounded

From January to September, the output value of domestic sales of Enterprises above Designated Size in knitting industry increased by 2.04% year-on-year, and the growth rate decreased by 3.83% compared with the previous two quarters, accounting for 74.87% of domestic sales, with a year-on-year decrease of 0.53%. Among them, the domestic sales output value of Enterprises above the designated size of knitted fabrics increased by 3.42% year-on-year, and the proportion of domestic sales increased by 0.01 percentage points; The proportion of domestic sales of knitting enterprises increased by 91.0% year on year.

According to the data of the National Bureau of statistics, the total retail sales of consumer goods from January to September totaled 32030.5 billion yuan, an increase of 0.7% year on year. Among them, the total retail sales of clothing, shoes and hats, needles and textiles was 927.3 billion yuan, down 4.0% year-on-year. At the same time, the national online retail sales from January to September reached 9588.4 billion yuan, up 4.0% year-on-year, of which clothing goods increased by 4.7%, 2.3 percentage points higher than that in the second quarter of this year. It is expected that the "double 11" shopping activities will usher in a new upsurge in domestic consumption.

To sum up, China's knitting industry has achieved stability and development under the complex external environment. At present, China's knitting industry is in the stage of transformation and upgrading, and has changed from scale expansion to high-quality development. On the road of development with science and technology, fashion and green as the goal, China's knitting industry has continuously strengthened its industrial innovation ability and market competitiveness. "The party has created a century of great cause with great struggle, and it will certainly create new great cause with new great struggle". The development of the industry is inseparable from the great struggle and forge ahead of every industry person. In the next step, we should adhere to the theme of promoting high-quality development, organically combine the implementation of the strategy of expanding domestic demand with deepening the structural reform of the supply side, enhance the adaptability and flexibility of the supply structure to changes in demand, overcome difficulties, make up for the deficiencies in the development of key equipment, core technology and high-end products, and enhance the vitality of enterprises, To achieve effective improvement of industry quality and reasonable growth of quantity. China Knitting Industry Association