In December, China's apparel industry continued its recovery and development, with production steadily rising, domestic sales gradually improving, exports maintaining rapid growth, corporate profits gradually improving, profitability slightly increasing, and the overall economic operation of the industry achieving a stable end. Looking ahead to 2022, the external development environment remains complex and volatile, with intertwined uncertainties, but the basic fundamentals of warming international market demand and positive domestic economic recovery will not change. The apparel industry will be based on the new development pattern of dual circulation, implement the overall work guideline of "stability first, seeking progress while maintaining stability", actively implement the development strategies of digital innovation and green and low-carbon, and strive to promote the steady and healthy operation of the industry's economy.
Production continued to rise
Driven by positive factors such as the recovery of domestic and international market demand and the return of overseas orders, the growth rate of production in China's apparel industry has gradually stabilized, and output has basically recovered to pre-epidemic levels. According to data from the National Bureau of Statistics, from January to December, the industrial added value of large-scale enterprises in China's apparel industry increased by 8.5% year-on-year, an increase of 17.5 percentage points compared to the same period last year, and a two-year average decrease of 0.6% (based on the corresponding figures for the same period in 2019, calculated using the geometric average method, the same below); large-scale enterprises completed 23.541 billion pieces of clothing production, a year-on-year increase of 8.38%, an increase of 16.03 percentage points compared to the same period last year, and a slight increase of 0.04% on average over two years. In terms of the output of major clothing categories, benefiting from export-driven growth, the production of knitted garments maintained rapid growth, with an increase of 10.86% and an average growth of 1.75% over two years; while the output of woven garments increased by 4.85% year-on-year, but decreased by 2.34% on average over two years.
Domestic sales steadily improved
In December, driven by the gradual effectiveness of consumer stimulation policies and factors such as holiday consumption, the sales of China's clothing market improved significantly, the decline in retail sales of clothing products in units above designated size continued to narrow, and the driving effect of online consumption on the domestic market continued to be prominent. According to data from the National Bureau of Statistics, from January to December, the cumulative retail sales of clothing products in units above designated size in China reached 997.46 billion yuan, a year-on-year increase of 14.2%, a two-year average growth of 2.4%, still 0.2 percentage points lower than the growth rate in the same period of 2019; in December, the retail sales of clothing products in units above designated size decreased by 1.1% year-on-year, a decrease of 6.5 percentage points compared to August. During the same period, online clothing retail maintained rapid growth, with online retail sales of clothing products increasing by 8.3% year-on-year, an increase of 2.5 percentage points compared to the same period last year, a two-year average growth of 7.0%, still 8.4 percentage points lower than the growth rate in the same period of 2019.
Exports maintained rapid growth
Since 2021, China's apparel export enterprises have overcome many difficulties, such as poor logistics, soaring freight costs, and rising raw material prices, demonstrating strong development resilience, and apparel exports have maintained rapid growth, setting a record high for apparel exports in the same period since 2016. According to data from the General Administration of Customs of China, from January to December, China's cumulative exports of apparel and clothing accessories reached US$170.263 billion, a year-on-year increase of 24%, and a two-year average growth of 7.7%; driven by increased international market demand and holiday promotions, the growth rate of apparel exports in December slowed down, but still maintained a double-digit growth of 14.5%. Among them, exports of knitted garments and clothing accessories were strong, with exports reaching US$86.472 billion, a year-on-year increase of 38.96%, and a two-year average growth of 10.09%; exports of woven garments and clothing accessories maintained steady growth, with exports reaching US$70.115 billion, a year-on-year increase of 12.59%, and a two-year average growth of 2.56%.
China's exports of apparel to traditional markets played a major driving role, and exports to countries along the Belt and Road continued to grow rapidly. According to data from the General Administration of Customs of China, from January to December, China's apparel exports to the United States reached US$39.555 billion, a year-on-year increase of 36.22%, driving China's apparel export growth by 7.66 percentage points; China's apparel exports to the European Union, Japan, and ASEAN increased by 21.32%, 6.31%, and 27.29% respectively year-on-year, with the four countries/regions accounting for 58.89% of China's total apparel exports and driving apparel export growth by 14.57 percentage points. During the same period, China's apparel exports to countries and regions along the Belt and Road increased by 28.46% year-on-year, driving apparel export growth by 6.68 percentage points, with exports to Kyrgyzstan, Saudi Arabia, and the UAE increasing by 252.33%, 44.68%, and 67.27% respectively year-on-year. In addition, China's apparel exports to South Korea and Australia increased by 22.81% and 29.35% year-on-year respectively, and exports to Africa and Latin America increased by 26.91% and 49.26% year-on-year respectively.
