In 2019, China's textile industry is facing a complex and changeable economic and trade situation, with mixed uncertainties, which brings multiple tests for the high-quality development of the industry. From January to October, the production of the textile industry grew at a low speed, the benefits declined, the investment tended to be cautious, the growth of domestic demand market slowed down, and the export of foreign trade faced certain pressure. The pressure of economic and trade situation has accelerated the transformation and upgrading of industries, and the awareness of enterprise crisis and innovation has been further enhanced.
1. Low speed growth of production and decline of profitability
In 2019, affected by the uncertainty of Sino US trade relations, the production of textile industry chain slowed down and the industry profits fell. According to the data of the National Bureau of statistics, from January to October 2019, the industrial added value of textile enterprises above designated size increased by 1.2% year on year, 0.3% higher than the same period of last year. Among them, the added value of textile and clothing industry increased by 1.0% year-on-year, 3.8% lower than the same period of last year. From January to October, China's textile enterprises above Designated Size achieved a total profit of 73.08 billion yuan, down 6.4% year-on-year, with a year-on-year growth rate of 3.7%. Among them, the total profit of textile and clothing industry was 68.53 billion yuan, down 3.4% year on year, and the growth rate in the same period of last year was 8.9%. With the adjustment of the industrial structure of the textile industry, the backward production capacity will be eliminated gradually, the market will speed up the shuffle, and the growth trend of the production and profit of the textile industry will slow down at this stage.
2. Investment growth tends to slow down
Affected by the market environment, the investment confidence of textile enterprises has declined and the investment growth rate has slowed down. According to the data from the National Bureau of statistics, the fixed asset investment in China's textile industry fell 8.5% year-on-year from January to October 2019, which is the first negative growth in May in a row since 2009. Among them, the fixed asset investment in the clothing industry fell 0.5% year-on-year from January to October, which began to show negative growth since February 2018. The chemical fiber manufacturing industry fell 18.6% year-on-year, which continued to decline for nine consecutive months. With the further enhancement of investment awareness such as intelligent innovation and green environmental protection, the low-level scale investment in the textile industry will be significantly reduced in the future, the industry investment is expected to be more rational, and the investment in technological transformation and intelligent investment in the manufacturing industry will become a trend.
3. The growth rate of domestic consumption slows down, and the potential of new formats needs to be released.
In 2019, the international economic and trade situation is grim, and the domestic and foreign economic growth slows down, resulting in the slowdown of domestic demand growth. According to the data of the National Bureau of statistics, from January to October 2019, the retail sales of clothing, shoes and hats, and knitwear products above designated size were 1,062.4 billion yuan, up 2.8% year-on-year, and 8.4% year-on-year. Among them, clothing sales increased by 2.6% year-on-year, with the growth rate slowing down by 6.5% compared with the same period of last year; national online clothing retail sales increased by 7.1% year-on-year, with the growth rate slowing down by 15.4% compared with the same period of last year. With the continuous upgrading of China's consumer demand, there is still a huge development space for the new industry line of online and offline integration.
4. The export pressure of foreign trade remains unchanged, and textiles are better than clothing
In 2018, China's textile and clothing exports appeared ‘export grabbing’ phenomenon, which gradually subsided after 2019. According to customs data, from January to October 2019, China's textile and clothing exports totaled 224,815 million US dollars, down 2.64% year on year. Among them, the cumulative export volume of textiles was US 99.3103 billion, up 0.33% year on year; the cumulative export volume of clothing was US 125.5047 billion, down 4.86% year on year. The export of foreign trade shows the trend of ‘stable textiles, weak clothing’.
5. Tap the potential of the domestic market and seek the road of high-quality development
With the rise of international trade protectionism, under the pressure of the external market, a strong domestic market is the foundation to stabilize the development of textile economy, and also the foundation to expand the opening up. In the first half of 2019, China's consumption contributed more than 60% to the economy. At this stage, China's textile industry should make use of the rapid development stage of industrialization and urbanization, seek breakthroughs in high quality, improve core technology and innovation ability, strengthen innovation drive to effectively meet the upgrading requirements of domestic demand, stimulate market potential with innovation, actively create new market space, so as to improve the adaptability of the industry to the new market situation, break the international environmental constraints, and improve the international level Market competitiveness and influence.
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