In April, the domestic downward pressure intensified due to sporadic outbreaks of the epidemic, blockages in the industrial and supply chains, and weakening domestic and international market expectations. This caused fluctuations in China's apparel industry production, a deepening decline in domestic sales, and a slowdown in export growth, putting considerable strain on economic operations. However, with the strict implementation of the dynamic zero-COVID policy and the frequent release of policies and measures by the national and local governments, industrial and supply chains are gradually becoming unblocked, and market vitality is gradually recovering. Enterprises should accelerate their own adjustments, seizing the current policy opportunities, market recovery period, and overseas layout period. They should actively respond to and resolve various risks and challenges, resume normal production and operation as soon as possible, and strive to ensure that the overall economic operation of the industry maintains a stable recovery trend.
Slight Fluctuation in Production Growth
Affected by the shutdown and production reduction of enterprises in some regions due to the epidemic and weakened market demand, China's apparel output maintained growth, but the production growth rate fell significantly. In April, the year-on-year growth of industrial added value of above-scale enterprises in the apparel industry fell by 0.3%, marking the first negative growth since 2021. According to the National Bureau of Statistics, from January to April, the year-on-year growth of industrial added value of above-scale enterprises in China's apparel industry was 6.2%, slowing down by 7.9 percentage points compared to the same period in 2021. The output of above-scale enterprises reached 7.752 billion pieces, a year-on-year increase of 5.64%, slowing down by 18.23 percentage points compared to the same period in 2021. In terms of categories, the growth rate of knitted garment output fell more significantly. The output of woven garments was 3.156 billion pieces, a year-on-year increase of 14.18%, slowing down by 3.05 percentage points compared to the same period in 2021; the output of knitted garments was 4.596 billion pieces, a year-on-year increase of 0.48%, slowing down by 28.06 percentage points compared to the same period in 2021.
Deepening Decline in Domestic Sales
In April, affected by the domestic epidemic, many provinces implemented enhanced containment measures, reducing residents' travel and shopping activities, and severely impacting domestic consumption. The decline in the domestic apparel market deepened, with both physical and online retail experiencing negative growth. According to the National Bureau of Statistics, from January to April, the cumulative retail sales of apparel goods in above-scale units in China totaled 292.11 billion yuan, a year-on-year decrease of 7.5%, falling by 60.1 percentage points compared to the same period in 2021, and lower than the pre-epidemic level. In April, the year-on-year decrease in retail sales of apparel goods in above-scale units was 25.6%, expanding by 10.5 percentage points compared to March, marking the lowest monthly growth rate since April 2020. According to the data from the China Chain Store & Franchise Association, from January to April, the retail sales of apparel in key large retail enterprises nationwide decreased by 10.19% year-on-year, and the year-on-year decrease in April was 39.86%. At the same time, the epidemic disrupted logistics, significantly suppressing online consumption. From January to April, the year-on-year decrease in online retail sales of apparel goods was 1.7%, falling by 2.6 percentage points compared to January-March, and 35.5 percentage points compared to the same period in 2021, marking the first negative growth since August 2020.
Significant Slowdown in Export Growth
Supported by positive factors such as the stable recovery of international market demand, the decline of the RMB exchange rate against the US dollar, and the implementation of regional trade agreements, China's apparel exports maintained steady growth. However, affected by the rebound of the domestic epidemic, the rapid recovery of overseas supply chains, and high raw material prices and freight costs, apparel export growth slowed down significantly in April. According to China Customs data, from January to April, China's cumulative exports of apparel and clothing accessories reached US\$47.017 billion, a year-on-year increase of 6.2%, slowing down by 1.2 percentage points compared to January-March, and 45.5 percentage points compared to the same period in 2021. In April, the export of apparel and clothing accessories reached US\$11.332 billion, a year-on-year increase of 2.4%, slowing down by 8.5 percentage points compared to March.
In terms of product categories, the trend of outward relocation of orders for knitted garments is obvious, and the export of epidemic prevention materials continues to decline significantly. According to data from China Customs, from January to April, the export value of knitted garments and clothing accessories was US\$24.328 billion, a year-on-year increase of 18.82%, which shows a significant decrease of 20.14 percentage points compared to the full year of 2021; the export value of woven garments and clothing accessories was US\$20.549 billion, a year-on-year increase of 14.12%, which is an increase of 1.53 percentage points compared to the full year of 2021. From January to April, the export value of plastic and vulcanized rubber gloves was US\$1.29 billion, a year-on-year decrease of 72.2%, and the export value of chemical fiber protective clothing was US\$0.36 billion, a year-on-year decrease of 70.1%.
In terms of major export markets, China's apparel exports to the United States and the European Union maintained steady growth, while exports to Japan declined significantly, and exports to ASEAN and Latin America showed strong momentum. According to data from China Customs, from January to April, China's apparel exports to the United States and the European Union increased by 8.3% and 9.3% year-on-year, respectively, accounting for 41.7% of China's total apparel exports, boosting China's apparel export growth by 3.5 percentage points. China's apparel exports to Japan continued to decline, falling by 10.4% year-on-year, expanding by 3.5 percentage points compared to January-March. China's apparel exports to ASEAN increased by 19.7% year-on-year, slowing down by 4.6 percentage points compared to January-March. During the same period, China's apparel exports to countries and regions along the Belt and Road and Latin America maintained rapid growth, with increases of 12.8% and 37.9% respectively, boosting China's apparel exports by 2.8 and 1.8 percentage points, respectively. In addition, China's apparel exports to the United Kingdom, Canada, and Russia decreased by 12.8%, 12.1%, and 35.9% year-on-year, respectively.
In terms of apparel exports from various provinces and cities, Zhejiang and Shandong maintained rapid growth in apparel exports, while Guangdong's export decline deepened, and the growth of apparel exports in Xinjiang, Jiangxi, Hunan and other central and western provinces was rapid. From January to April, the top five apparel exporting provinces in China, Zhejiang, Guangdong, Jiangsu, Shandong, and Fujian, cumulatively completed apparel exports of US\$34.63 billion, a year-on-year increase of 8.0%, accounting for 73.7% of China's total apparel exports, an increase of 1.3 percentage points compared to the same period last year. Among them, Zhejiang's apparel exports reached US\$9.43 billion, a year-on-year increase of 26.3%; Guangdong's apparel exports decreased by 3.2% year-on-year, expanding by 3.0 percentage points compared to January-March; Jiangsu's apparel exports increased by 0.4% year-on-year, slowing down by 3.8 percentage points compared to January-March; Shandong and Fujian's apparel exports increased by 14.3% and 5.1% year-on-year, respectively. Among the central and western provinces, Xinjiang, Jiangxi, Hunan, and Sichuan provinces experienced rapid growth in apparel exports. The export growth in Xinjiang and Sichuan reached as high as 113.2% and 255.8%, respectively, while Anhui, Hebei, and Hubei provinces experienced a continued and significant decline in apparel exports, with decreases of 13.2%, 59.7%, and 39.2%, respectively.
