The textile industry relies on domestic demand to overcome the hurdles. Domestic sales are stable and improving in the second half of the year.

The textile industry relies on domestic demand to overcome the hurdles, and domestic sales are stable and improving in the second half of the year

Driven by the domestic demand market and the return of overseas orders, the operating conditions of my country’s textile industry gradually improved in the first half of the year, with revenue growing steadily and profits turning from negative to positive. Data show that in the first half of 2021, the operating income of the textile industry was 1.17075 billion yuan, a year-on-year increase of 18.9%; the total profit was 44.6 billion yuan, a year-on-year increase of 2.3%.

“The growth rate has not yet fully recovered, and the industry still needs to continue to work hard.” At the recent Economic Operation Analysis Video Conference in the First Half of 2021 held by the China Textile Federation, China font color=”#FF8040″>Textile Industry Federation President Sun Ruizhe summarized the situation of the textile industry in the first half of the year.

Leading companies have outstanding performance

Xiao Xiao, a Beijing citizen who originally loved buying foreign brands for his children, told reporters: “Now the designs of domestic children’s clothing are getting more and more beautiful, and there are actually many co-branded models.”

Thanks to the successful transformation, the fashionability of the domestic brand PEACEBIRD has become more and more recognized among consumers, and its performance has continued to grow. On August 31, Peacebird (603877) released its 2021 semi-annual report. During the reporting period, the company’s operating income increased by 55.88% year-on-year; net profit attributable to shareholders of listed companies increased by 240.52% year-on-year.

Against the background of the rise of domestic products, leading companies have performed well. As of September 1, the semi-annual reports of 43 domestic listed textile and apparel companies have been released, and 37 of them reported a profit attributable net profit in the first half of this year. Specifically, among the 37 stocks that were profitable, 28 stocks showed growth, 22 stocks had attributable net profits in the first half of this year that increased by more than 50% year-on-year, and 17 stocks had attributable net profits that increased by more than 100% year-on-year.

The revenue scale of domestic sports brands has increased across the board. Anta Sports achieved sales revenue of 22.812 billion yuan in the first half of the year, not only continuing to rank first in the domestic echelon, but also surpassing Adidas’ revenue in Greater China during the same period. In addition, Li Ning’s revenue in the first half of the year reached 10.197 billion yuan, while Xtep International and 361 Degrees’ revenue was 4.135 billion yuan and 3.107 billion yuan respectively.

“In the first half of the year, the production of the garment industry has steadily recovered, and garment output has continued to rebound.” Liu Jing, senior project director of the Industry Department of the China National Garment Association, said that online sales in the domestic clothing market have maintained growth, and physical sales have improved significantly.

Chen Xiaoqian, an analyst at the China Textile Federation Industrial Economics Research Institute, analyzed that from an industry perspective, the growth rate of the added value of the textile industry in the first half of the year was 9.6%, but the two-year average The growth rate was 1.1%, which was lower than the growth rate in the same period in 2019. Therefore, it is judged that industry production is still in the recovery stage. From the consumer side, sales of clothing, shoes, hats, and knitted textiles from January to July were 767.30 billion yuan, a year-on-year increase of 29.8%, which was 9.2 percentage points higher than the growth rate of total retail sales of consumer goods. The two-year average growth rate is 3.5%, which is higher than the growth rate in the same period in 2019. Based on this, it is judged that the domestic consumer market has recovered and maintained good growth in the first half of the year.

It is noteworthy that the consumer market shows active sales through online channels, frequent emergence of occasional hot products and strategic hot products, significant consumer demand for individuality, live broadcaste-commerceBring better consumer experience and other features.

In this regard, Sun Ruizhe said that my country’s textile industry is showing a steady and positive development trend, with the quality and efficiency of development steadily improving, and its role in the internal circulation continuing to strengthen. Exports remain Good growth momentum and investment confidence have been enhanced. At the same time, affected by the COVID-19 epidemic, the value reconstruction and responsibility of the textile industry are continuing to be re-examined by all sectors of society.

Exports hit the highest level in the same period

With the slowdown of the epidemic in my country, the normalization of prevention and control, and the continued release of dividends from stable foreign trade policies, the growth of my country’s textile exports has been strongly supported. In the first half of 2021, my country’s textile and apparel exports reached the highest level in the same period in history.

According to data from the General Administration of Customs, from January to June 2021, the cumulative exports of textiles and clothing were US$140.086 billion, a year-on-year increase of 11.90% and an increase of 12.76% over 2019. Among them, textile exports were US$68.558 billion, down 7.48% year-on-year, and 16.95% higher than 2019; clothing exports were US$71.528 billion, up 40.02% year-on-year, and 9.02% higher than 2019.

From the perspective of the industrial chain, my country’s exports of textile products (including masks) with sea tariff number No. 63079000 have declined rapidly. It is an important factor influencing the decline in textile exports in the first half of this year.

In this regard, Chen Xiaoqian analyzed that in 2020, due to the demand for epidemic prevention materials, the demand for textiles increased, resulting in a significant increase in the proportion of textiles in export products, up to 60.3%; in 2021, with the remarkable results of epidemic prevention, textiles currently account for 47.7% of export products. %, clothing accounted for 52.3%, basically adjusted to the pre-epidemic structure, among which the United States, EU, and Japan imported from China There has been a significant decrease in masks.