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Year 2020: China’s garment industry reports big fall in first two months

The first two months Jan and Feb 2020 witnessed garment production drop by 36.61 percent, paid-in investment reduced by 50.2 percent. The domestic retail sales had fallout by 20.5 percent while the retails of garment had a sharp down by 33.2 percent. The online retail too, for the wearable commodities decreased by 18.1 percent. The export of apparel had a 20 percent loss as against the corresponding months last year.

According to the news briefing, today on April 22, 2020 by China National Garment Association (CNGA), about release of ‘Development Report of China Garment Industry 2019-2020’, the first two months, Jan –Feb 2020 in general saw significant fall on front of all the accounts of economic performance, except e-commerce. 

However, the economic performance in the first two months of 2020 shows obviously a better picture than March, as after the first two months of the new year that saw an impact on the industry on account of traffic restrictions and “stay-at-home” policies to curb the virus spread.

The year 2020 starts low

The year 2020 starts lowThe first two months of 2020 witnessed garment production of 2512 million pieces, a two-digit drop of garment production by 36.61 percent, and the paid-in investment reduced by 50.2 percent. The domestic sales for all the retails in the country, known as “social consumption commodity retail income” in the official terms for statistics, amounted to 5.213 trillion Yuan, a fallout by 20.5 percent while the retails of garment and its attributes registered 110.3 billion Yuan, a sharp down by 33.2 percent. That was the retails for both bricks-and-mortar and websites, real and virtual combination. If we look at the online in particular, we see that the e-commerce retail for the tangible goods has a slight growth by 3 percent to reach 1.1233 trillion Yuan in the whole society, among which the wearable commodities decreased by 18.1 percent. Aside from the domestic gloom, the export of apparel is not promising at all for $16.062 billion, 20 percent loss as against the corresponding months last year.

Five important Indicators of Economic Performance

According to the report summary, the five important indicators, on the basis of National Bureau of Statistics, given to represent a picture of the economic performance are; production, domestic consumption, export, investment and profitability of the garment sector in China.

Based on the above-stated performance of the economic mainstays, the industrial profitability of the garment manufacturing sector is affected, to the extent that profits dropped by 42.14 percent to arrive at 5.496 billion Yuan out of the total business sales income for 148.791 billion Yuan which also decreased by 28.14 percent. As a result, the profit/sale rate is leveled at 3.69 percent, 0.89 percentage point down as opposed to January and February in 2019. Five important Indicators of Economic Performance

Speaking of the year of 2019, here is the brief annual report of garment industry with these important indicators given below:

1. Production:The total production of apparel was done with 24.472 billion pieces, down by 3.28 percent.

2. Domestic market: The wearable goods on retail sales amounted 977.81 billion Yuan, up by 2.6 percent, out of total retails for all the consumption commodities in the country, which added up to 41.1649 trillion Yuan, up by 8 percent from January to December last year.

According the national stats reported by National Bureau of Statistics, the total online retails for tangible goods reached 8.52395 trillion Yuan, up by 19.5 percent, wherein, the apparel and its attributes online sales increased by 15.4 percent.

3. Export: According to General Administration of Customs, China exported 151.37 billion dollars worth of apparels in 2019, down by 4 percent as compared with the year before.

4. Investment: The actually-paid investment increased by 1.8 percent.

5. Profitability: The profit rate was 5.45 percent for total profit of 87.283 billion Yuan against total sales income of 1601.033 billion Yuan, 0.38 percent down to compare with that in 2018, which is not a surprise if we see its sales income and profit totals both down in growth, 3.45 percent and 9.75 percent respectively.

 

Contributed by Mr. ZHAO Hong 

He is working for CHINA TEXTILE magazine as Editor-in-Chief in addition to being involved in a plethora of activities for the textile industry. He has worked for the Engineering Institute of Ministry of Textile Industry, and for China National Textile Council and continues to serve the industry in the capacity of Deputy Director of China Textile International Exchange Centre, V. President  of China Knitting Industry Association, V. President of China Textile Magazine and its Editor-in-Chief for the English Version, Deputy Director of News Centre of China National Textile and Apparel Council (CNTAC), Deputy Director of International Trade Office, CNTAC, Deputy Director of China Textile Economic Research Centre. He was also elected once ACT Chair of Private Sector Consulting Committee of International Textile and Clothing Bureau (ITCB)

 
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