Chen Dapeng: Embrace the spring and move forward bravely in persistence and change

Say goodbye to the ups and downs of 2022, and the hopeful 2023 has arrived.

Looking back on 2022, major changes unseen in a century combined with the epidemic of the century have caused the development of China’s apparel industry to experience unprecedented pressure. 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 highquality development of the industry?

A few days ago, media reporters conducted a special interview with Chen Dapeng, vice president of the China Textile Industry Federation and president of the China Garment Association, to analyze the development of China’s garment industry in 2022. Review and look forward to industry development trends and opportunities in 2023.

Looking at the data, the slowdown shows resilience

Question: 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 the perspective of production, 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, continuing the growth trend of exports since 2021, 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 declined 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 industry’s economic operation is seriously under pressure, but my country’s garment industry A large number of enterprises have risen to the challenge, grasped the basics, strengthened innovation and development, and pushed the industry towards high-quality development.

Judging from the current situation, 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.

Question: 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 to achieve results, and the results have gradually emerged. According to data from the National Bureau of Statistics, the actual fixed asset investment in the garment industry in 2022At 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 accelerating and the global economic development is in the transition period between old and new driving forces. This is a critical period for 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!

AAA

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