An evident decrease of garments output; polarization; a rapid drop of foreign investment; a relatively reasonable balance between demand and supply; a continuous rise in export to USA.
On 26th, April, the third session of 5th council of China National Garment Association was held in Zhengzhou, Henan Province. Jiang Hengjie, the vice president of China Garment Association delivered a speech at the meeting. In his speech, he concluded and analyzed key changes in garment industry under the background of world economic crises in 2009.
Garment output drops by 13.4%
In 2009, the garment output of large scale companies is 23.75 billion pieces, increasing by 6.94% compared to the same time in 2008; the output of all garment companies is 40 billion pieces, decreasing by 13.04% compared to the same time in 2008. Some small or middle-sized companies which are inferior in capital, management or technology are shut down due to the drop of international demand.
The number of large-sized companies rises by 16.98%; A deteriorating polarization in the industry
According to statistics from the National Bureau of Statistics, the number of large-sized companies increases by 6.94% from Jan. to Nov. 2009, compared to the same time in 2008. Companies' average profit experiences a 26.77% growth and profit per capita mounts by 19.7%. One spotlight in garment industry in 2009 is that companies improve their efficiencies through cutting down unnecessary employees.
The polarization in garment industry worsens. On one hand, small and middle-sized companies are shut down due to lack of orders. Limited orders all go to privileged large-sized companies. On the other hand, famous brands develop well even in second or third-tier cities leaving no room for the development of new brands.
A rapid decline of foreign investment; A quick growth of investment in the middle of China
Foreign investment especially investment from Hong Kong, Macao and Taiwan dwindles. In a long time, private companies will still be main investors.
The investment in middle regions rises by 35.03%. Middle regions have become hot places for investment. What's more, investments here are mainly used to construct infrastructures, build and rebuild factories.
Domestic demand increases stably; A rational balance between supply and demand
The total volume of retail sales of consumption goods in 2009 is 12.53427 trillion Yuan, increasing by 15.5% compared to the same time last year. The volume of retail sales of garments is over 1.2 trillion Yuan, increasing by 18.8% compared to the same time last year.
There is a rational balance between supply and demand. Suppliers are prudent about the market. In the first half year, the number of new products launched decreases. In the second half year, they adopt tight supply policies. Garment enterprises make efforts to improve management and franchisers to increase their profits.
Export decreases on the whole; Export to USA increases
Statistics from Customs show that the export volume of garments and accessories is 107.051 billion US dollars, decreasing by 10.63% compared to the same time last year.
Export to USA increases by 7.39% compared to the same time last year. This growth is attributed to the abolishment of quota.
