China's home textile exports dropped significantly in the first half of 2020, and uncertainties remain for the second half.
Since 2020, with the gradual and effective control of the COVID-19 epidemic domestically, and driven by relevant national policies, the domestic market has gradually warmed up. At the same time, the international epidemic continues to spread, the world economy has suffered a severe recession, and the industry's foreign trade still faces a complex and severe situation. China's continued expansion of opening up has strengthened the international community's confidence in the Chinese market, the Chinese business environment, and China's economic development, creating a favorable macroeconomic international environment. In the first half of the year, the home textile industry's economic operation generally showed a trend of gradually narrowing declines.
Narrowing Decline in Industry Operation
In the first half of this year, affected by the epidemic, the overall operation of the home textile industry showed a significant decline compared to the same period last year. However, with the gradual and effective control of the domestic epidemic, the industry's operation has gradually recovered, and various indicators have gradually improved. According to data from the National Bureau of Statistics, in the first half of 2020, 1761 large-scale home textile enterprises nationwide achieved a total main business income of 75.843 billion yuan, a year-on-year decrease of 14.18%. The 246 sample enterprises tracked by the association achieved a total main business income of 21.925 billion yuan in the first half of the year, a year-on-year decrease of 17.23%; the 14 home textile industrial clusters tracked achieved a total main business income of 73.368 billion yuan, a year-on-year decrease of 9.49%. The decline has narrowed significantly compared to previous months.
Recovery and Growth in Industry Quality and Efficiency
Since the resumption of work after the epidemic this year, the home textile industry has actively adjusted its output and product mix, reduced inventory, and controlled costs to cope with the impact of the epidemic. Overall, the capital operation of home textile enterprises is basically sound.
According to data from the National Bureau of Statistics, since this year, the main business cost of 1761 large-scale home textile enterprises nationwide has decreased more than the decrease in revenue; the cumulative inventory ratio has decreased month by month; and the cumulative three-expense ratio in the first six months has also decreased compared to the first quarter. The decline in the total amount of industry profits has narrowed month by month, and by June, it has returned to positive growth, with a year-on-year increase of 4.13%; the profit margin is 4.47%, slightly higher than the same period last year by 0.79 percentage points. The profit margin of the 246 sample enterprises tracked by the association is 5.46%, slightly higher than the same period last year by 0.85 percentage points. The 14 industrial clusters achieved a year-on-year decrease of 17.34% in total profits, which narrowed compared to the previous month.
Severe Impact on Exports
The continued spread of the overseas epidemic has severely impacted China's home textile export trade. According to data from China Customs, from January to June this year, China exported a total of US$13.62 billion worth of home textile products, a year-on-year decrease of 21.14%, with a slight turnaround in the downward trend. The quantity of exported products decreased by 19.41% year-on-year, with the decline narrowing compared to the previous month. However, the decline in the unit price of exported products has increased compared to the previous month.
From the perspective of the industry's export structure, affected by the epidemic, the export market structure of China's home textile products has changed, and the market share of traditional markets in the US, Europe, and Japan is less than half. From January to June this year, China's exports of home textile products to traditional markets in the US, Europe, and Japan totaled US$6.48 billion, a year-on-year decrease of 18.83%, accounting for 47.16% of the total.
The United States is the largest market for China's home textile exports, and it is also one of the hardest-hit areas of the epidemic. In the first half of this year, exports decreased by 21.17% year-on-year; exports to the European Union from January to June totaled US$1.739 billion, a year-on-year decrease of 21.46%. From the distribution by continent, the Asian market is China's largest export market for home textile products. From January to June, exports to Asia totaled US$5.545 billion, a year-on-year decrease of 18.97%, with a relatively small decline; among them, exports to ASEAN totaled US$1.852 billion, a year-on-year decrease of 13.38%. Exports to Japan totaled US$1.314 billion, a year-on-year decrease of 7.59%. The main reason for the decline in the Japanese market is the decline in export unit price, which decreased by 5.41% year-on-year.
In terms of export product categories, the decline in fabric products, towels, and blankets was higher than the overall level, with decreases of 25.06%, 32.01%, and 29.77%, respectively.
Domestic Sales Trend Gradually Recovering
China has effectively overcome the adverse effects of the epidemic, and the macroeconomic economy has achieved steady recovery. Since the second quarter, with the relaxation of residents' travel and consumption activities, the domestic home textile market has gradually warmed up. According to the National Bureau of Statistics, from January to June this year, 1761 large-scale home textile enterprises nationwide achieved domestic sales of 53.385 billion yuan, a year-on-year decrease of 14.09%, with the decline gradually narrowing compared to previous months this year.
In the second quarter, the scale of domestic sales in the industry basically returned to the level of the previous year. According to the National Bureau of Statistics, in the second quarter of this year, 1761 large-scale home textile enterprises achieved domestic sales of 30.172 billion yuan, a year-on-year decrease of 0.01%, a significant narrowing of 27 percentage points compared to the decline in domestic sales in the first quarter. This was mainly driven by fabric and towel enterprises. According to the National Bureau of Statistics, in the second quarter of this year, 265 large-scale fabric enterprises nationwide achieved domestic sales of 2.897 billion yuan, a year-on-year increase of 6.37%; 214 large-scale towel enterprises achieved domestic sales of 5.642 billion yuan, a year-on-year increase of 0.43%.
Balanced Recovery of Various Sub-sectors
From the perspective of various sub-sectors of the home textile industry, the bedding, towel, and fabric sub-sectors all showed a moderate upward trend. According to statistics from the National Bureau of Statistics, from January to June this year, 948 large-scale bedding enterprises nationwide achieved operating income of 39.03 billion yuan, a year-on-year decrease of 16.96%; 214 large-scale towel enterprises achieved operating income of 13.169 billion yuan, a year-on-year decrease of 20.21%; 265 large-scale fabric enterprises achieved operating income of 9.008 billion yuan, a year-on-year decrease of 12.41%, with the decline gradually narrowing.
Uncertainty Remains in the Second Half of the Year
In the first half of this year, the home textile industry focused on resolving the adverse effects of the epidemic, continuously improving its resilience and risk resistance, and some economic indicators showed signs of recovery. However, the global epidemic is still spreading, and the uncertainty of the future remains high, and the impact on the global supply chain operation and economic operation will continue to evolve. The external risks and challenges facing the industry in the second half of the year remain numerous.
Despite the difficult situation, there are still positive factors for the industry's steady recovery. The steady recovery of China's macroeconomic economy has demonstrated its strong resilience in coping with the impact of the epidemic, and its advantages in terms of a complete industrial system, well-developed infrastructure, and a strong domestic demand market have become even more prominent. During the epidemic, continuous innovation in manufacturing models, industrial chain operation models, and business formats has promoted the steady recovery of production and the improvement of the consumer market, providing a new foothold for the steady recovery of various industries. On the other hand, the effects of various macroeconomic policies introduced by the state to help enterprises overcome difficulties, protect employment, and protect the basic livelihood of the people will continue to exert their influence, providing important guarantees for gradually smoothing economic circulation and pushing the economy back on track.
Under the new development pattern with domestic circulation as the main body and domestic and international dual circulation promoting each other, the home textile industry should continue to deepen supply-side structural reforms, accelerate the transformation and upgrading of the industry, strive to overcome downward pressure, and maintain basic economic stability.
Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance
On March 3, Wang Yongqing, Vice President of Xiamen CNOOC Group, visited Tongzhou Group for investigation and guidance. Wei Gangmin, Chairman of our company; Huang Hongyu, President; Li Tao, Vice President; and Zhang Zhiyan, Director of the General Office, met with and participated in a symposium.
Tongzhou Cotton Market Brief, Week 1 of March 2025
1) This week's National People's Congress and the Chinese People's Political Consultative Conference (NPC & CPPCC) in China boosted market expectations for steady growth. In February, the Purchasing Managers' Index (PMI) for manufacturing stood at 50.2%, up 1.1 percentage points from the previous month, indicating a significant improvement in the manufacturing sector.
In 2024, China's dyeing industry saw rapid export growth to ASEAN and RCEP member countries, exceeding the overall export growth rate. However, this growth was accompanied by a decline in prices. From January to December, China's exports of eight major dyeing products to ASEAN totaled 7.908 billion meters, a year-on-year increase of 12.14%, 4.61 percentage points higher than the overall export growth rate, accounting for 23.58% of total exports. The average export price was US\$1.19 per meter, a year-on-year decrease of 2.75%, 0.64 percentage points lower than the overall decline. Exports to RCEP member countries totaled 8.431 billion meters, a year-on-year increase of 11.35%, 3.82 percentage points higher than the overall export growth rate. The average export price was US\$1.17 per meter, a year-on-year decrease of 2.79%, 0.60 percentage points lower than the overall decline.
On February 28, Mr. Huang Hongyu, President of our company, was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference and, as a guest speaker at the "Xiangshan Roundtable," shared his views on the cotton market and trading opportunities.
Henan Tongzhou Cotton Industry Co., Ltd.
Contact
Henan Tongzhou Cotton Industry Co., Ltd.
Address: 10th Floor, Henan Nongxin Building, No. 19 Commercial Outer Ring Road, Zhengdong New District,Zhengzhou, China
Tel：86037165836206
Email：tongzhou@tongzhoucotton.com
Mobile
CopyRight © 2025 Henan Tongzhou Cotton Industry Co., Ltd.