What Is The Annual Evaporation Of 400 Billion In The Clothing Industry? Analysis On The Market Prospect Of Clothing Industry In 2020

"2020 is bound to be a turbulent year. It is estimated that at least 400 billion revenue will be evaporated from China's clothing market, and the overall market size will shrink by 15%." Liu Jinyan, vice president of convertlab marketing department, said in a keynote speech at a fashion conference in Shenzhen recently.

It is worth mentioning that under the epidemic situation, the global clothing industry has a hard time. According to public information, Nike has started to lay off employees publicly, and it has a huge loss of 5.6 billion yuan in the fourth quarter of fiscal year 2020. In addition, Levis has a net loss of $364 million in the second quarter of 2020, and a profit of $28.507 million in the same period of last year. The company announced that it would cut about 15% of its global employees. In addition, H & M will close 170 stores and Zara is considering closing thousands. What is the impact of epidemic situation on clothing? Where should the clothing industry go?

According to the data of the Ministry of industry and information technology, in May 2020, the domestic market will gradually recover, online sales will continue to improve, and the domestic sales of clothing will obviously improve; the overseas epidemic situation will be difficult to effectively control in a short time, the world economy and trade will shrink seriously, and the decline trend of clothing export will be further expanded. In this case, the production, investment and efficiency of China's clothing industry have recovered compared with the previous period, but they still show a sharp downward trend. The strength of the recovery of clothing production is weakened, the investment willingness and development confidence are insufficient, and the industry benefits are obviously deteriorated. The overall situation is still grim and complex. Specifically:

In terms of production According to the data of the National Bureau of statistics, from January to may 2020, enterprises above Designated Size in the garment industry have achieved a cumulative output of 7.317 billion pieces, a year-on-year decrease of 17.91%, an increase of 6.55 percentage points compared with January April.

Data sources: Research Report on the market prospect and investment opportunities of China's clothing industry in 2020

In terms of domestic sales According to the National Statistics Bureau, the total consumption of China's retail products is 13.5-30% lower than that in 2020. Among them, the retail sales quota decreased by 288.7-25% over the same period of last year.

In May, the total retail sales of textile and clothing reached 101.8 billion yuan, down 0.6% compared with the same period last year. The total retail sales of textile and clothing decreased from 40.5 billion yuan to 40.5 billion yuan.

Data sources: Research Report on the market prospect and investment opportunities of China's clothing industry in 2020