Significant recovery in the textile and apparel industry

After experiencing the "cold stream" last year, China's textile exports have shown signs of significant recovery this year, and the growth rate of export of textile raw materials, products and textile machinery has shown a recovery. According to the latest statistics released by the General Administration of Customs, from January to October, the value of textile yarns, fabrics and articles exported from China totaled US$87.759 billion, an increase of 11.0% over the same period of last year, and the value of exported clothing and clothing accessories was 1,458.01. Billion US dollars, a year-on-year increase of 11.5%.

Equipment manufacturers are most directly aware of the warming up of the textile and apparel industry. Zhongjie Sewing Machine Co., Ltd., the world's largest manufacturer of industrial sewing machines, announced its exclusive title sponsorship for the 10th to 15th "China Fashion Brands Annual Award" in Beijing yesterday. Zhongkai Holding Group's Board of Directors, ** Cai Kaijian, told the Beijing Morning Post that as the textile and clothing industry began to pick up, Zhongjie’s equipment sales this year were very stable and there was no inventory until the third quarter. “Apparel companies are a barometer of China’s economy. In 2007 and 2011, when Sino-Czech’s sales fell, the sales of Zhongjie’s shares had fallen by 20% during the worst period. However, this year’s products sold particularly well.” The three quarterly reports announced by Zhongjie Sewing Machine Co., Ltd. show that in the first three quarters of this year, the company achieved operating revenue of 899 million yuan, an increase of 27% year-on-year; net profit attributable to shareholders of the parent company was 26.03 million yuan, an increase of 108% year-on-year.

Feng Dehu, a full-time vice president of the China Garment Association, told the Beijing Morning Post that this year's garment industry’s high inventory situation has improved. “As far as I know, most companies have better inventory than last year.” Industry analysts pointed out that textile and apparel are A very important cyclical industry, with the global economic environment gradually recovering from the bottom, the overall textile and apparel market will gradually warm up.

Although the export of textile industry has shown signs of obvious recovery this year, it still faces the pressure of rising raw material and labor costs and rapid appreciation of the textile industry's export profits. Feng Dehu told reporters that textile and garment companies are all stepping up their transformation. In addition to increasing the added value of their products, they have also shifted factories to midwestern cities and Southeast Asia where labor costs are relatively low. “So far, there have been a thousand Chinese companies setting up factories in Southeast Asia. Because these countries not only have low labor costs, but also export to European and American countries exempt from export tariffs."