Review and Updates of the Garment Industry
Apr 22, 2020 ｜ by zhaoh
On the morning of April 22, 2020, China National Garment Association （CNGA）posted a news briefing for issuing an incoming publication of [[Development Report of China Garment Industry 2019-2020]], from which, the economic performance since March shows obvious recovery of production at a fast rate 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.
According to the concise prevue posted on the website, the five important indicators, as is the systematic source of data accessible to the National Bureau of Statistics, are given to mirror a picture of the economic performance of production, domestic consumption, export, investment and profitability of the garment sector in China.
The first two months witnessed garment production of 2512 million pieces, a two-digit drop of garment production by 36.61%, and the paid-in investment reduced by 50.2%. 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% while the retails of garment and its attributes registered 110.3 billion Yuan, a sharp down by 33.2%. 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% to reach 1.1233 trillion Yuan in the whole society, among which the wearable commodities decreased by 18.1%. Aside from the domestic gloom, the export of apparel is not promising at all for $16.062 billion, 20% loss as against the corresponding months last year.
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% 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%. As a result, the profit/sale rate is levelled at 3.69%, 0.89 percentage point down as opposed to January and February in 2019.
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%.
2.Domestic market
2.Domestic market
The wearable goods on retail sales amounted 977.81 billion Yuan, up by 2.6%, out of total retails for all the consumption commodities in the country, which added up to 41.1649 trillion Yuan, up by 8% 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%, wherein, the apparel and its attributes online sales increased by 15.4%.
3. Export
According to General Administration of Customs, China exported 151.37 billion dollars worth of apparels in 2019, down by 4% as compared with the year before.
4.Investment
The actually-paid investment increased by 1.8%.
5.Profitability
The profit rate was 5.45% for total profit of 87.283 billion Yuan against total sales income of 1601.033 billion Yuan, 0.38 percentage point 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% and 9.75% respectively.
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