Operation Analysis Of Textile And Garment Market In 2019

In 2019, in the face of severe foreign trade environment and fierce competition in the industry, China's textile and garment market has been actively implementing new market positioning, developing the platform economy as the banner, deepening online and offline integration, market cluster integration and domestic trade and foreign trade integration, promoting upgrading through transformation, and basically achieving stable operation with innovation and development. In 2019, there were 922 textile and garment specialized markets in China, with a total turnover of 2 trillion and 330 billion yuan, down 1.08% from the same period last year. Among them, the total turnover of 45 business circles in the circulation branch was 1 trillion and 283 billion 354 million yuan, an increase of 6.12% over the same period last year, indicating that the polarization of textile and clothing market is more obvious.

I. overall situation

According to statistics of Circulation Association of China Federation of textile industry, in 2019, 922 textile and garment specialized markets in China were increased by 0.77% over the same period of last year, and the market operation area reached 76 million 62 thousand and 100 square meters, an increase of 0.76% compared with the same period last year. The number of market shops was 1 million 420 thousand and 800, an increase of 0.82% over the same period last year, and the number of merchants in the market increased by 1 million 153 thousand and 900, up 0.85% over the same period last year. The total market turnover reached 2 trillion and 330 billion yuan, down 1.08% compared to the same period last year.

In terms of total scale, in the past 2015-2019 years, the number of textile and garment specialized markets, the total business area, the total number of shops, the total number of merchants and the total turnover have increased steadily over the past several years, and the overall operation is good. On the one hand, the industry has ended the expansion period of overheated investment, entered the adjustment period of differential competition and regulation market, and the investment in new market has become increasingly rational. On the other hand, the adjustment of the professional market in the core city of the central city has been quickened, which has brought a certain impact on the overall market volume. Generally speaking, the total market volume of more than 10000 square meters is still increasing year by year, but the growth rate has slowed down, and structural optimization has achieved initial results. From the perspective of turnover growth, the growth rate of the total market turnover in the professional market was 2.11%, 2.81%, 5.12%, 3.85% and -1.08% in the 2015-2019 years, and the growth rate slowed down gradually, especially in 2019.

Chart 12013-2019 year scale comparison of textile and apparel professional market scale

Data source: Statistics of China Textile Federation circulation branch

In the new market, in 2019, there were 7 new textile and garment professional markets with more than 10000 square meters, and the total investment in the newly opened professional market was 6 billion 20 million yuan. The total business area of the newly opened professional market was 571 thousand square meters. From the new market situation, on the one hand, the continuous outbreak of new mode and new format has led to the investment and construction of industrial service platform based professional market; on the other hand, the producer market cluster has become a single investment market for extending and enriching the industrial chain supporting construction.

In terms of operational efficiency, the efficiency of the textile and clothing market in 2019 was 1 million 641 thousand and 300 yuan / shop, down 1.89% compared to the same period last year. The efficiency of the merchants was 2 million 21 thousand yuan / household, a decrease of 1.92% compared to the same period last year, and the market efficiency was 30659 yuan / square meter, down 1.82% compared with the same period last year. The market area, the number of shops, the number of merchants increased slightly, the turnover slightly declined, and the operation efficiency of the market declined.

In the 1-12 months of 2019, the total turnover of 45 key monitoring market business circles was 1 trillion and 283 billion 354 million yuan, an increase of 6.12% over the same period. Among them, the turnover of 25 markets increased year by year, the average increase was 7.88%; the turnover of 18 markets decreased year-on-year, the average decline was 5.59%; the 2 market turnover was flat compared with the same period last year. From the perspective of market operation efficiency, in 1-12 months, the average operation efficiency of 45 key monitoring markets was 57693.61 yuan / square meter, an increase of 5.28% over the same period last year; the average business efficiency was 4 million 410 thousand and 600 yuan / shop, an increase of 5.63% over the same period last year; the average merchant efficiency was 4 million 907 thousand and 300 yuan / household, an increase of 5.77% over the same period. The market efficiency, the efficiency of the shops and the efficiency of the merchants in the key monitoring market are higher than the average level of the national textile and garment professional market. We can see that the key market transformation and upgrading of our leading products have achieved remarkable results. At the same time, we can see that the polarization trend of China's textile and garment market is becoming increasingly obvious.

In terms of prosperity, in 2019, the management of textile and apparel professional market was basically consistent with the trend of business boom. After the Spring Festival holiday, it ushered in the peak sales season in the first half of March, and the prosperity index declined in 6 and July. After the adjustment in August, the 9 year and October October ushered in the golden year of sales, and fell in 11 and December. The annual average of professional market managers' prosperity index was 50.22, down 1.83 percentage points year-on-year, and the annual average of business climate index was 50.52, down 0.30 percentage points compared with the same period last year, while two average surpassed 50 of the ups and downs, but it declined compared with that of 2018.

Chart 2 annual index of prosperity

Data source: Statistics of China Textile Federation circulation branch

Two. Structural analysis

From the regional perspective, 922 professional markets, 561 in the eastern region, the turnover of 1 trillion and 855 billion 567 million yuan, accounting for 79.57% of the total turnover, an increase of 0.02% over the same period. The eastern region is still the backbone of China's textile and garment market. With the support of many professional market groups, the volume of transactions in 2019 remained basically the same. However, compared with the growth of 5 percentage points in recent years, the eastern region dropped considerably in 2019. The central region benefited from industrial transfer and the rise of the two or three tier cities, showing a substantial increase in 2017 and 2018 consecutive years. In 2019, the volume of sales in the central land sales market was more obvious; the turnover in 200 central regions was 328 billion 563 million yuan, accounting for 14.09% of the total turnover and 3.94% in the same ratio. In 2019, the turnover of 161 markets in the western region was 147 billion 858 million yuan, accounting for 6.34% of the total turnover, down 7.76% from the same period last year.

Chart 3: market share in eastern, central and Western Regions

Data source: Statistics of China Textile Federation circulation branch

Chart 4: volume and volume of transactions in eastern, central and Western Regions

Data source: Statistics of China Textile Federation circulation branch

Judging from the category, clothing and raw and auxiliary materials are the main products of China's textile and garment market. The main market of clothing and raw materials and accessories is 653, accounting for 70.82% of the total market volume, and the turnover accounts for 71.53% of the total turnover. Among them, 491 main markets of clothing products, the highest turnover in various categories, accounting for 1 trillion and 11 billion 96 million yuan, accounting for 43.36% of the total turnover, down 1.55% compared with the same period last year. 162 of the main markets of the original raw materials and auxiliary materials were second, reaching 656 billion 897 million yuan, accounting for 28.17%, down 0.71% from the same period last year. Only the main market of small commodities and home textiles realized the growth of turnover. Among them, the turnover rate of main commodity market was the highest, which increased by 5.56% compared to the same period last year, and the home textile professional market was basically stable, with an increase of 0.80%.

Chart 6: turnover and growth rate of each category

Data source: Statistics of China Textile Federation circulation branch

Three and three dimensions to explain the operation of textile and apparel market in 2019

(1) integration of online and offline development

The online live mode has innate fit with the textile and garment professional market merchants. Market traders and salesmen have the advantages of price advantage of origin, quick delivery and after-sales service, the understanding of goods and their affinity, and become the main force of online live broadcast in the clothing area. In 2019, the leading professional markets around the country sharply explored the huge potential of online live sales, promoted a series of online public service activities related to live broadcasting, and actively assisted merchants in launching online live sales activities by building platforms, facilitating activities, and encouraging development. Professional market traders give full play to their market acumen, flexibility and creativity, and actively broadcast live sales through fast hand, jitter, Taobao live broadcast and other video platforms, and have achieved good results.

(two) integration of market and cluster

In 2019, China's textile and garment market further deepened its integration with industrial clusters, and the relationship between them was more closely related to each other. With the increasing competition in the international and domestic markets and the pressure of flat channel, the specialized market of producing areas has shown strong competitiveness in terms of delivery time, logistics speed and fast reaction speed with the strong industrial chain of local and peripheral industries. The operation mode can better adapt to the new demands of small batch, multi variety and fast delivery of buyers, showing a stronger overall situation. The innovation vitality and reaction speed achieved a good growth. In recent years, the market of distribution and distribution has been faced with flat channels and increasing competitive pressure. The turnover and growth rate have not performed well, leading to the obvious polarization trend of China's textile and garment market. Therefore, for the market of distribution and land sale, on the one hand, we need to further strengthen the close ties with the origin cluster, the producer market and the producers in the place of origin, and establish a stable and perfect supply chain. On the other hand, it will enrich its functions through restructuring, fashion, cross boundary and supporting facilities, and reshape market positioning. It will focus on creating new bases for new formats and new modes of exploration, introducing cross-border elements, upgrading matching grades, creating fashion space, and promoting the competitiveness of the complex with zero and part-time cities as the direction of transformation.

(three) integration of domestic trade and foreign trade development

In 2019, the world economic growth slowed down, unstable and uncertain factors were more, the Sino US trade frictions initiated by the US continued, and the external environment of China's economic development was complex. China's textile and garment industry has been gradually exposed by the impact of Sino US trade friction, declining trade with the United States, increasing trade difficulties in other regions, facing loss of orders and decreasing profits. It should also be noted that along with the "one belt and one way" initiative and the market purchasing trade mode pilot policy in the textile and garment market, the professional market in all parts of China will actively open up new international channels, through overseas capital markets, overseas warehouses, overseas distributors, overseas trade fairs, overseas exhibitions and so on, through capital cooperation, mode export and trade docking. The form has increased foreign trade orders and achieved good results.

At the beginning of this year, the new crown pneumonia spread throughout the country, which had a great impact on the production and people's life in all parts of China. The specialized market of textile and clothing was facing unprecedented challenges. In the future, China's textile and garment market should accelerate the transformation and upgrading of the radius, deepen the connotation of innovation and development, further develop the platform economy as the banner, constantly optimize the resource allocation of procurement, production, sales and logistics, actively expand functions, accelerate technological application and management innovation, develop "market + platform + service" mode, and enhance customized production and integrated service. We can create an open, efficient and green supply chain platform, and actively build a sustainable circular system for online and offline integration, upstream and downstream collaboration, and actively promote the high quality development of the textile and garment industry.