Farewell to the ups and downs of 2022, and the hopeful 2023 has arrived.
Looking back at 2022, major changes unseen in a century coupled with the epidemic of the century have caused unprecedented pressure on the development of China’s apparel industry. Under the numerous tests of “high winds and waves”, the entire industry worked together to overcome difficulties and achieved stable overall development of the garment economy, demonstrating strong industrial resilience.
Starting in 2023, a new chapter of “Chinese-style modernization” in China’s garment industry is slowly opening. In the first year of fully implementing the spirit of the 20th National Congress of the Communist Party of China, it is also the year of progress after the optimization and adjustment of epidemic prevention and control policies. How should Chinese garment people seize the opportunity and go all out to “fight for the economy and stabilize growth” with their original intention and mission? Inject new momentum into the high-quality development of the industry?
A few days ago, media reporters had a special interview with Chen Dapeng, vice president of the China Textile Industry Federation and president of the China National Garment Association, to analyze and review the development of China’s garment industry in 2022 and look forward to the development of the industry in 2023. Trends and Opportunities.
Looking at the data, the slowdown shows resilience
Q: Could you please review the overall development of China’s apparel industry in 2022?
Chen Dapeng: 2022 is a very unusual and extraordinary year. During this year, under the continued influence of the COVID-19 epidemic, faced with the severe and complex international environment, as well as the triple pressure of shrinking domestic market demand, supply shocks, and weakening expectations, China’s garment industry moved forward with a heavy load, bravely faced challenges, and continued to Optimizing the industrial structure, accelerating the pace of innovation and adjustment, and increasing the transformation of development momentum have demonstrated strong development resilience and ability to resist risks.
From a production perspective, production growth continues to slow down. According to data from the National Bureau of Statistics, from January to November 2022, the clothing output of enterprises above designated size in my country’s clothing industry reached 21.16 billion pieces, a year-on-year decrease of 3.42%, and the decline was 11.95 percentage points lower than the same period in 2021. At the same time, we must also see that although the growth rate of my country’s clothing production is slowing down due to the impact of the external environment, my country’s status as a major clothing country remains firm and it is still the world’s largest clothing producer.
From the market perspective, demand is generally sluggish. In terms of the domestic market, from January to November 2022, the retail sales of clothing products by units above designated size in my country was 829.46 billion yuan, a year-on-year decrease of 6.9%, and the decline was 23.3 percentage points lower than the same period in 2021; the online retail sales of clothing products increased by 3.4% year-on-year. , the growth rate is 7.7 percentage points slower than the same period in 2021. In the international market, the export growth trend since 2021 has continued. From January to November 2022, my country’s cumulative exports of clothing and clothing accessories reached US$160.527 billion, a year-on-year increase of 4.2%. However, a significant slowdown in the growth rate of clothing exports has emerged: starting from September 2022, monthly clothing exports have turned to negative growth, with exports falling by 16.8% and 14.4% in October and November 2022. The downward pressure on exports is continuing to intensify.
In terms of efficiency, operational quality and efficiency have dropped significantly. According to data from the National Bureau of Statistics, from January to November 2022, enterprises above designated size in my country’s garment industry achieved revenue of 1.30769 billion yuan, a year-on-year decrease of 3.3%; total profits were 65.76 billion yuan, a year-on-year decrease of 7.4%; the operating income profit margin was 5.03%. This is a decrease of 0.23 percentage points from the same period in 2021. The operating income of enterprises above designated size in the clothing industry includes costs of 85.7 yuan per 100 yuan, an increase of 0.5 yuan compared with the same period in 2021; the turnover rate of finished products, accounts receivable turnover rate and total asset turnover rate are 12.1 times/year and 7.5 times/year respectively. and 1.3 times/year, down 5.8%, 3.7% and 2.1% respectively year-on-year; the asset-liability ratio was 52.1%, 0.15 percentage points higher than the same period in 2021.
We have seen that although the growth rate of the main operating indicators of my country’s garment industry continues to slow down, the operating pressure of enterprises continues to rise, and the economic operation of the industry is seriously under pressure, a large number of enterprises in my country’s garment industry have risen to the difficulties and seized the opportunity. Practicing basic internal skills, strengthening innovation and development, and promoting the industry towards high-quality development.
From the current perspective, global economic growth is weak, inflationary pressure is high, and the shrinking trend of domestic and foreign market demand is more obvious. In 2023, facing the severe and complex external environment and the arduous and arduous tasks of reform, development and stability, the industry will still be under great pressure to maintain restorative growth. However, with the implementation of national economic stabilization policies and measures, the industry’s operating environment has become more stable, the production and sales cycle has become smoother, and the domestic demand market has accelerated its recovery. Main indicators such as production, domestic sales and profitability of the garment industry are expected to achieve a steady recovery, and the industry’s recovery trend will be further improved. Consolidate.
Q: In your opinion, what are the highlights of the development of China’s apparel industry in 2022?
Chen Dapeng: In the past 2022, despite increasing market pressure and difficult business operations, we still see that the industry has many bright spots in fixed investment, industrial advantages, channel innovation, and development concepts.
Highlight 1: Clothing investment continues to run at a high level
Since 2022, under the guidance of the national “stabilizing growth” policy, various localities have actively promoted the implementation of the “stabilizing investment” policy and the results have gradually emerged. . According to data from the National Bureau of Statistics, fixed asset investment in the garment industry will achieve rapid and stable growth in 2022, with an average growth rate of around 30% during the year, with the growth rate from January to February being as high as 46.2%. By November 2022, although the growth rate of fixed asset investment in my country’s garment industry has slowed down slightly, with a year-on-year increase of 28.1%, it is still 26.6 percentage points higher than the same period in 2021, which is 22.7 and 18.8 percentage points higher than the overall level of the textile industry and manufacturing industry. .
Investment is confidence. Especially in the current market environment full of challenges and uncertainties, investment growth that continues to run at a high level is sufficient.It can push the entire industry to take another big step forward.
Look at the general trend and promote new development on a new journey
Q: Based on the direction proposed by the 20th National Congress of the Communist Party of China and the macroeconomic situation, what opportunities do you think the garment industry will usher in next? How should companies seize these opportunities?
Chen Dapeng: The report of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference clearly stated that China-style modernization should be promoted with high-quality development, which also points the way for the future development of the garment industry.
First of all, the 20th National Congress of the Communist Party of China proposed to comprehensively embark on a new journey of Chinese-style modernization, pointing out the direction for the future development of China’s garment industry. Chinese-style modernization is about more than 1.4 billion people across the country moving into a modern society as a whole. For the basic consumer industry and livelihood manufacturing industry that creates a better life for the people, the clothing industry, the clothing needs of more than 1.4 billion people will bring huge market consumption. Space is the biggest foothold for future industrial development. Especially in the process of promoting the great rejuvenation of the Chinese nation, the improvement of industrial cultural creativity brought about by the confidence of popular culture will bring broader room for growth in industrial value creation.
Secondly, the 20th National Congress of the Communist Party of China placed an important emphasis on high-quality development. The orientation of modernizing the industrial chain and upgrading the industrial base provides an important basis for the transformation and upgrading of the entire garment industry. At present, my country’s garment industry has formed an industrial system with the largest scale and the most complete industrial chain in the world. However, compared with the world’s fashion powers, we still have gaps in cultural creativity, product development, process technology, high-quality manufacturing, and lean management. , there are still many shortcomings that need to be made up for.
In 2023, with the country vigorously promoting the strategy of expanding domestic demand and deepening the supply-side structural reform, the high-quality development of the apparel industry will continue to promote the upgrading of the industrial base and the modernization of the industrial chain. On the one hand, this creates huge room for improvement in the transformation and upgrading of the industry; on the other hand, the rapid development of the digital economy will promote changes in the modern fashion industry in production paradigms, organizational methods, business models and other aspects, creating a deep integration of digital fashion new opportunities for development.
Once again, the collision and integration of digital economy and better life will bring huge room for imagination to industrial development. When people’s expectations for a better life meet the digital economy unexpectedly, there are too many life scenarios waiting for companies to explore, and endless user experiences that companies need to iterate on. The key to leveraging this historic opportunity and multiple value increments is It depends on whether the enterprise has digital and informatization capabilities.
Looking forward to the market economic situation in 2023, I think it is generally optimistic. From the spirit of the 20th National Congress of the Communist Party of China to the spirit of the Central Economic Work Conference, they have clearly sorted out the current problems and difficulties encountered in economic development, and provided a package of policy support for expanding domestic demand, promoting the development of manufacturing and the real economy, etc. All of them have released relatively strong positive signals for the development of the clothing industry.
For apparel companies, the fundamentals of China’s long-term economic development have not changed. In the context of national prosperity and national rejuvenation, an era belonging to China is coming.
Walking with the opportunities of the times, we have reason to firmly believe that the general trend of China’s clothing industry transforming and upgrading and achieving high-quality development in the era of digital economy will not change. China will transform from a world clothing manufacturing power to a fashion power. The general trend will not change, and the general trend of China’s birth of world-class brand groups that embody the vitality of industrial innovation, humanistic spirit and Chinese cultural values will not change.
If the country is strong, the industry will be strong. As the 20th National Congress of the Communist Party of China embarks on a new journey to comprehensively build a powerful socialist country, the construction of a fashionable power in the clothing industry must also be an important part of it. By the middle of the 21st century, when my country has built a prosperous, democratic, civilized, harmonious and beautiful modern socialist country, China’s clothing industry will also achieve a new leap in building a powerful country and become the main driver of the world’s clothing technology progress and an important leader in global fashion innovation. promoters and powerful promoters of sustainable development.
For enterprises, in the face of changes, we should be more determined to follow the path of high-quality development, especially changing development ideas, focusing on efficiency and effectiveness, while constantly broadening our horizons, adapting to changes in the situation, and comprehensively strengthening ourselves. Improve comprehensive capabilities and win the market with differentiated advantages.
Q: Looking forward to 2023, what messages do you have for your colleagues in the apparel industry?
Chen Dapeng: In the new year, we stand at the starting point of a new cycle of resilient economic growth in China. Although the development of the garment industry still faces various uncertainties and challenges in the external environment, we must also see that A new round of technological and industrial revolution is brewing at an accelerated pace, and global economic development is in a critical period of transition between old and new driving forces and structural adjustment, which contains unprecedented opportunities.
This has been a disappointing winter, but we are also ushering in a spring full of hope. Going through the darkest moments, in 2023, when we are striding towards Chinese-style modernization, with the gradual release of the effects of the country’s “economic stabilization” policy, I believe that China’s economy will be revitalized again, and China’s garment industry will also follow the trend, work hard, and Move forward with courage.
Let us believe in the power of the times and the power of faith! Chinese clothing people are always a group of people full of passion and courage, always optimistic and young! Always in tears! Always passionate!
</p
