In recent years, affected by factors such as economic slowdown, supply-side reform, Sino-US trade friction and production capacity transfer, the overall development of my country’s garment industry has been relatively sluggish. , this epidemic has made it even worse for the development of the industry. Under the influence of the epidemic, the production, domestic sales, exports and other aspects of the textile and apparel industry have been severely affected.
The analysis is divided into three parts. The first part introduces the overall operation of my country’s textile and apparel industry, including production, sales and exports. The second part introduces the impact of the epidemic on industry production, domestic sales, and exports. The third part puts forward relevant suggestions for my country’s textile and garment enterprises based on the previous analysis.
(Photo: China Service Network)
1. The overall operation of China’s textile and apparel industry Situation
(1) Overall production and sales situation of China’s textile and apparel industry
China’s textile and apparel output continues to maintain a downward trend. In recent years, affected by factors such as economic slowdown, supply-side reform, Sino-US trade friction and production capacity transfer, the overall development of my country’s garment industry has been relatively sluggish. According to data from the National Bureau of Statistics, my country’s yarn and cloth production has maintained a downward trend for three consecutive years. According to data from the National Bureau of Statistics, yarn and cloth production fell by 14.5% and 23.8% respectively in 2017. The decline narrowed in 2018. By 2019, my country’s yarn production reached 28.921 million tons, a year-on-year decrease of 2.3%; cloth production was 57.56 billion meters. , a year-on-year decrease of 12.4%; at the same time, the cumulative clothing output of enterprises above designated size in China’s clothing industry has also maintained negative growth for four consecutive years, but the decline is smaller and has basically remained stable. By 2019, the cumulative clothing output of enterprises above designated size in my country’s clothing industry will reach 24.472 billion pieces, a year-on-year decrease of 3.28%.
Note: Due to changes in the number of enterprises above designated size, the year-on-year growth rate data has different statistical calibers every year. The year-on-year data are all production data of enterprises above designated size in that year compared with the previous year.
In terms of domestic sales, upstream textile sales showed a downward trend, but sales of end-product clothing stopped falling and rebounded. Since 2016, domestic sales of textiles in my country have continued to show a downward trend, but the capacity utilization rate is higher than the national industrial level. According to data from the National Bureau of Statistics, in 2019, national yarn product sales were 28.084 million tons, a year-on-year decrease of 3.78%; cloth product sales were 44.8 billion meters, a year-on-year decrease of 7.84%; clothing sales reached 23.8 billion pieces, a year-on-year increase of 8.33%. At the same time, the capacity utilization rates of the textile industry (excluding chemical fiber and clothing) and the chemical fiber industry in 2019 were 78.4% and 83.2% respectively, both higher than the 76.6% capacity utilization level of the national industry in the same period.
In terms of profitability, the textile and apparel industry as a whole will be under pressure in 2019, especially the upstream textile industry. According to data from the National Bureau of Statistics, in 2019, 35,000 textile enterprises above designated size achieved operating income of 4.94364 billion yuan, a year-on-year decrease of 1.5%, and the growth rate was 4.4 percentage points lower than 2018; total profits were 225.14 billion yuan, a year-on-year decrease of 11.6%. The growth rate was 19.6 percentage points lower than the previous year, and corporate profitability dropped significantly compared with the same period last year. However, the profit margin level of the terminal industry is relatively stable. From January to December 2019, enterprises above designated size in the clothing industry achieved a cumulative operating income of 1.601033 billion yuan, a year-on-year decrease of 3.45%; the total profit was 87.283 billion yuan, a year-on-year decrease of 9.75%; but operating income profit The rate was 5.45%, a decrease of 0.38 percentage points from the same period in 2018.
(2) Export situation of China’s textile and apparel industry
Affected by weakening external demand, Sino-US trade friction and production capacity transfer, the export growth rate of the textile industry Slow down. According to China Customs data, my country’s cumulative export volume of textiles and clothing in 2019 was US$280.7 billion, a year-on-year decrease of 1.5%, and the growth rate was 5.3 percentage points lower than the previous year. From the perspective of product structure, the export value of textiles was US$127.25 billion, a year-on-year increase of 1.4%; the export value of clothing was 153.45 billion yuan, a decrease of 3.7% year-on-year. Textile exports are better than clothing, mainly due to the transfer of my country’s clothing manufacturing production capacity to low-cost countries such as Southeast Asia. These countries, such as Vietnam and Bangladesh, mainly rely on imports of raw materials such as yarn and fabrics, resulting in increased demand for upstream textiles. big. Due to price and transportation cost reasons, the textiles imported by these countries mainly come from China.
2. The impact of the epidemic on China’s textile and apparel industry
(1) The impact of the epidemic on the production of China’s textile and apparel industry
The delay in resumption of work affects the resumption of production of textile and garment enterprises. Affected by the epidemic, most companies across the country, especially in areas with severe epidemics, delayed their resumption of work in the first quarter of 2020, which affected corporate production plans and had a greater impact on small and medium-sized enterprises. According to the China Textile and Apparel Federation (hereinafter referred to as the China Textile and Apparel Federation)’s survey of the China Textile Federation’s textile industry cluster pilot areas (parks), as of February 28, the operating rates of enterprises above designated size in clusters (parks) in various provinces and cities across the country have averaged reached 85%; the average operating rate of enterprises below designated size reached 31%, and the production capacity of clusters (parks) has generally returned to about 40% of pre-epidemic levels. After enterprises resume work, textile and garment enterprises, especially small and medium-sized enterprises, still face many difficulties and problems such as shortage of workers, unsynchronized resumption of work by upstream and downstream enterprises in the industrial chain, insufficient orders, insufficient supply of raw materials, and lack of protective resources.
The areas where the textile and clothing industry is concentrated overlap with areas where the epidemic is severe. Regional development of my country’s textile and apparel industry�Online transaction capabilities and expanded sales channels.
During the duration of the epidemic, the significant reduction in offline passenger flow will continue to exist. As one of the important sales channels in the textile and apparel industry, e-commerce accounts for an increasing proportion of the revenue of various enterprises. Although logistics restrictions during the epidemic may reduce consumers’ desire to shop for apparel online, with restrictions on offline consumption, online business is expected to grow significantly, which can offset part of the negative impact of the epidemic to a certain extent.
(4) Pay attention to changes in overseas markets and respond to export risks
At present, the epidemic has spread across the world. As the main destination for textile and apparel exports, The situation in Europe and the United States is not optimistic, and the epidemic situation in Southeast Asia is severe. Overseas markets may introduce or change control measures at any time in response to the development of the epidemic, which brings greater risks and uncertainties to the exports of the textile and apparel industry. It is recommended that enterprises pay close attention to changes in overseas markets and actively utilize the relevant businesses of insurance, guarantee, banking and other insurance financial institutions and other professional risk management institutions to protect their own interests. If a risk loss occurs without effective risk avoidance, the company must recover the loss as soon as possible through itself or relevant means according to the loss situation.
(5) Continue to promote industrial reform and focus on long-term development
Although the epidemic has had a serious impact on textiles and clothing, the impact of the epidemic is In the short term, while companies are focusing on immediate difficulties, they should also focus on long-term development. Strengthen the company’s own construction, further build its own brand, improve its research and development capabilities, develop new technologies and functional new products with core competitiveness, build market brands, and develop into the high-end market.
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