2019-2020 China Apparel Consumption Market Development Report
From 2019-2020, consumption upgrades and structural adjustments remained the main theme in the apparel consumption market. Apparel functionality and fashion became increasingly integrated, online channels became a key driver of growth in sinking markets, and the popularity of sportswear, children's wear, and down jackets continued to rise. Apparel consumption is expected to return to green fashion.
In 2019, consumption upgrades and structural adjustments remained the main theme in the apparel consumption market. Consumption upgrades were reflected in: the continuous improvement of the consumption quality of clothing, the increasing integration of clothing functionality and fashion, the increasingly distinct cultural characteristics of clothing, and the market recognition of the emotional value of clothing. Structural adjustments were reflected in: online channels becoming a key driver of growth in sinking markets, high-value-for-money and high-brand-power apparel flourishing in first-tier cities, and the sustained popularity of sportswear, children's wear, and down jackets.
Operating Conditions of China's Apparel Consumption Market in 2019
I. Apparel consumption continues to upgrade towards refinement and quality improvement
In 2019, apparel consumption in above-scale units achieved positive growth, but the growth rate slowed compared to 2018. In 2019, the retail sales of apparel goods in above-scale units reached 977.81 billion yuan, with a cumulative growth of 2.6%, a slowdown of 5.9 percentage points compared to 2018, and 1.1 percentage points lower than the average growth rate of retail sales of goods in above-scale units in the same period.
The price increase of apparel consumption continued to rise. Although the growth rate of apparel consumption in above-scale units slowed down, the consumption quality of the entire apparel market continued to upgrade, and apparel consumption prices continued to rise moderately, with the growth rate increasing slightly for two consecutive years. In 2019, apparel consumption prices increased by 1.8% cumulatively, an increase of 0.4 percentage points compared to 2018, and 0.5 percentage points compared to 2017.
II. Decline in apparel retail sales of key large retail enterprises, mainly department store channels
The growth rate of apparel retail sales turned negative, while the retail situation of children's wear was relatively good. In 2019, under the combined influence of the overall slowdown in the growth rate of the apparel market, increasing pressure from channel diversion, and internal structural adjustments within the department store industry, the apparel retail sales of key large retail enterprises nationwide were lower than in the same period of the previous year, with a cumulative decrease of 3.3%, a slowdown of 4.2 percentage points compared to 2018. After 2016, negative growth in apparel consumption among key large retail enterprises nationwide reappeared.
Apparel unit price decreased year-on-year, while the decline in sales narrowed. In 2019, the average transaction price of apparel in key large retail enterprises nationwide fell compared to the previous year, with a cumulative decrease of 1.6%. The higher price base in the same period and increased promotional efforts by merchants this year were the main reasons for the decline in apparel prices in large retail enterprises.
The sales unit price of men's and women's wear was lower than in the same period, and the sales unit price growth rate of children's wear slowed down. The price of men's wear fell sharply, and the sales growth rate turned from negative to positive. Both the sales volume and price of women's wear fell compared to 2018. The decline in sales volume of children's wear narrowed by 2.6 percentage points compared to 2018.
The sales growth rate of sportswear continued to accelerate. On the one hand, under the general environment of increasing public health awareness, sportswear has entered an upward cycle in the industry; on the other hand, after years of market competition, sports brands have significantly improved in professionalism and fashion, the market structure is relatively stable, and leading brands have entered a period of reaping benefits. The "double period superposition" has driven faster growth in sportswear consumption.
III. The influence of online shopping channels on the apparel market is increasing year by year
The contribution rate of online shopping channels to the growth of the consumer goods market exceeds 40%. In 2019, the proportion of online physical goods retail sales in the consumer goods market reached 20.7%, an increase of 2.3 percentage points compared to 2018, and its contribution rate to the growth of the consumer goods market reached 45.6%, exceeding 40% for two consecutive years.
The siphon effect of Double Eleven is obvious. The siphon effect of Double Eleven on commodity retail is becoming increasingly obvious. On Double Eleven in 2019, the total online sales reached 410.1 billion yuan, a year-on-year increase of 30.5%, an increase of 6.7 percentage points compared to the previous year.
Main Factors Affecting China's Apparel Consumption in 2019
I. Steady shift in macroeconomic growth rate, gradual slowdown in clothing consumption growth rate
In 2019, China's fixed asset investment grew by 5.1%, a significant decline of 14 percentage points compared to 2013; M2 (broad money supply) grew by 8.7%, a decline of 4.9 percentage points compared to 2013; total retail sales of consumer goods grew by 8%, a decline of 5.2 percentage points compared to 2013. GDP (Gross Domestic Product) grew by 6.1%, only a slowdown of 1.7 percentage points compared to 2013, indicating that the quality of China's economic growth is continuously improving.
China's per capita expenditure on clothing has shown a small increase accordingly. In 2019, China's per capita expenditure on clothing was 1,138 yuan, a year-on-year increase of 3.8%, a decrease of 0.3 percentage points compared to the same period in 2018. This situation is consistent with the phenomenon of slowing growth in the apparel market.
II. Faster growth rate of disposable income for low-income rural and high-income urban populations
In recent years, there have been many discussions in the market about "consumption downgrade", "consumption upgrade", and "consumption stratification", which reflect different income groups' interpretations of their own consumption phenomena. Therefore, in the current consumer goods market, we can see the coexistence of business models based on different logics.
III. Service consumption accounts for "half of the kingdom" of residents' consumption
In 2019, the proportion of per capita service consumption expenditure of residents nationwide in per capita consumption expenditure of residents nationwide was 45.9%, an increase of 1.7 percentage points compared to the previous year. Service consumption accounts for almost "half of the kingdom" of residents' consumption, which means that services have become a key factor in expanding residents' consumption, and the service industry has become a leading force in driving economic growth.
IV. Technological progress drives new experiences and new demands
The rapid iteration of information technologies such as the Internet and big data has not only changed corporate business management models but also has a huge impact on people's consumption behavior. First, it improves consumption efficiency. Second, it enhances the consumption experience. Third, it enriches consumption content. Fourth, it raises consumption expectations.
V. Cultural confidence enhances consumption connotation
Cultural confidence is the essence of China's confidence. From a commercial point of view, for a long time in the past, the market has excessively admired Western commercial culture. However, today, with China's comprehensive national strength and global influence continuing to improve, the quality, creativity, and cost-effectiveness of domestic products are being recognized by more and more young consumers.
Characteristics of China's Clothing Consumption Market in 2019
I. Consumers in Tier-1 Cities Focus on High Cost-Performance and Strong Brands
Compared to other cities, the clothing market in Tier-1 cities is relatively stable. People are more rational in their clothing purchases, with stronger purposefulness.
II. Rapid Growth of Online Clothing Purchases in Tier-3 and Below Cities
The internet can quickly transmit fashion trends and information from Tier-1 cities to Tier-3 and Tier-4 cities. Express delivery allows more products and brands to penetrate the sinking market, meeting the needs of local consumers to purchase well-known clothing brands.
III. Perfect Fusion of Functionality and Fashion
In today's materially abundant society, clothing products need highlights to attract attention. These highlights mainly include ultimate functionality and fashion sense consistent with brand positioning.
IV. Clothing with Distinct Cultural Characteristics is Favored
The new generation of consumers grew up in an era of deepening opening up. The exchange and mutual learning of world civilizations have enriched and diversified people's values and consumption concepts.
V. Consumers Pay More Attention to the Emotional Value of Brands
In addition to the quality, fashion, function, price, and channels of clothing products themselves, emotion is gradually becoming a key factor influencing consumers' clothing purchases.
Outlook for the Development Trend of China's Clothing Consumption Market in 2020
I. The Clothing Consumption Market Will Maintain High-Quality Growth
The COVID-19 epidemic in 2020 inevitably caused a short-term and significant negative impact on the clothing consumption market. However, opportunities often lie within difficulties. On the one hand, this year marks the completion of building a moderately prosperous society in all respects and the closing of the 13th Five-Year Plan. The country will continue to adhere to the general work guideline of pursuing progress while maintaining stability, which will inject a strong stimulant into the recovery of the clothing market to normal growth levels. On the other hand, clothing consumption is an important lever for expanding consumption, a strong guarantee for the sustained prosperity of micro and small retail enterprises, and an important manifestation of China's consumption upgrading towards quality, brands, and taste. Therefore, in the long run, the clothing consumption market will maintain high-quality growth.
II. Domestic Clothing Brands Will Focus on Enhancing Social Attribute Value
Currently, many domestic clothing brands are defining niche consumer groups through personalized and diversified methods. In the future, more brands will dare to explore social attribute values recognized by the public, and the recognition of Chinese clothing brands in the world will be significantly improved.
III. The External Environment Will Become a Major Factor Affecting Clothing Consumption
In the information age, people's consumption concepts are influenced by the external environment. The main purpose of clothing consumption has shifted from simply meeting physiological needs to meeting spiritual needs. The main marketing strategies of clothing brands will shift from in-store to out-of-store, changing consumers' perception of clothing products.
IV. Modern Information Technology Will Promote the Continuous Optimization of Personalized Customization Services
Driven by modern information technologies such as big data and 5G, application technologies such as intelligent manufacturing will become more mature, and personalized customization services will continue to be optimized, meeting the public's inner needs for self-expression and individuality.
V. Clothing Consumption Will Return to Green Fashion
Fashion originates from nature and will eventually return to nature. With the progress of the times, people pay more attention to corporate social responsibility and environmental awareness, and consumers attach greater importance to the environmental benefits of clothing products.
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.