Industry Data: Analysis On The Economic Operation Of China'S Clothing Industry In The First Quarter Of 2025

In the first quarter of 2025, in the face of the complex and volatile international environment and the lingering pain of domestic structural adjustment, China's clothing industry will strive to overcome the difficulties and challenges of insufficient demand, intensified competition, tariff rise and other difficulties and challenges, and the industry's economic operation will basically achieve a stable start. The main indicators of production, domestic sales, investment and other indicators will maintain a recovery growth, but exports will decline slightly, Enterprise profits are under serious pressure. Looking forward to the whole year, the situation faced by China's clothing industry is becoming more complex and severe. Industry enterprises need to be confident, take the lead, actively respond to multiple challenges such as weak domestic and international market demand, rising trade environment risks, and intensifying geopolitical conflicts, continue to deepen transformation and upgrading, accelerate the cultivation of new quality productivity, and solidly promote the construction of a modern industrial system, We will make every effort to keep the industry economy running smoothly.

　　 Economic operation of clothing industry

　　 01 Clothing production is generally stable

In the first quarter, the supply chain of China's clothing industry chain operated in an orderly and healthy way, and the overall production was stable. The industrial added value and clothing output of enterprises above designated size both maintained a steady growth, and the growth rate increased month on month. According to the data of the National Bureau of Statistics, from January to March, the industrial added value of enterprises above designated size in the clothing industry increased by 1.9% year on year, 0.4 percentage points faster than that from January to February; Clothing production of enterprises above designated size increased by 1.77% year on year, 3.27 percentage points higher than that in January and February. From the perspective of category breakdown, the output of woven clothing increased by 3.90% year on year, of which the output of down clothing increased by 10.36% year on year, while the output of suits and shirts decreased by 9.17% and 0.83% year on year respectively; The output of knitted clothing increased 0.83% year on year.

Figure 1 Production Growth of Clothing Industry from January to March 2025

Data source: National Bureau of Statistics

　　 02 Moderate growth in domestic sales

In the first quarter, supported by factors such as the steady improvement of domestic macro-economy, the remarkable effect of consumption promotion policies and the Spring Festival holiday effect, the domestic clothing market in China achieved moderate growth. According to the data of the National Bureau of Statistics, from January to March, the retail sales of clothing commodities above the designated size in China totaled 283.51 billion yuan, up 2.7% year on year, 2.6 percentage points faster than that in 2024. Among them, the retail sales of clothing commodities of units above the designated size in March increased by 3.0% year on year, 0.4 percentage points faster than that in January and February. Over the same period, online clothing sales fluctuated slightly, with online retail sales of clothing products falling 0.1% year on year, 0.5 percentage points less than that in January and February.

Figure 2 Data of clothing sales in the domestic market from January to March 2025

Source: National Bureau of Statistics

　　 03 Clothing exports declined slightly

In the first quarter, affected by weak demand in the international market, variable tariff policies and other factors, China's clothing export scale declined slightly, and monthly exports fluctuated significantly. According to Chinese customs data, from January to March, China's clothing and clothing accessories exports totaled US $33.01 billion, down 1.9% year on year and 2.1 percentage points from 2024. Among them, clothing exports in January and February reached 21.66 billion US dollars, down 6.9% year on year; In March, clothing exports grew 9.3% year on year, driven by factors such as enterprises' efforts to avoid higher tariffs, focus on "striving for exports" and a low base in the same period last year. From the perspective of volume price relationship, clothing exports continued the trend of volume increase and price decrease, with the export volume of 7.86 billion pieces, up 9.9% year on year, and the average export unit price was 3.5 dollars/piece, down 11.0% year on year. From the perspective of export category, the export value of knitted garments was 14.21 billion US dollars, down 2.9% year on year, the export volume increased 9.5% year on year, and the export unit price decreased 11.3% year on year; The export value of woven clothing was US $12.99 billion, down 1.4% year on year, the export volume increased 10.9% year on year, and the export unit price decreased 11.1% year on year.

Figure 3 China's clothing and clothing accessories exports from January to March 2025

Data source: China Customs

From the perspective of category breakdown, China's export growth of cotton garments to the United States and Japan has increased. According to Chinese customs data, from January to March, China's export of cotton clothing reached US $11.16 billion, down 6.9% year on year; Among them, China's export of cotton clothing to the United States reached 2.27 billion US dollars, up 16.8% year on year, 1.7 percentage points faster than that of 2024; The export of cotton clothing to Japan was 850 million US dollars, up 4.3% year on year, 8.1 percentage points higher than that of 2024; The export of cotton garments to the EU was US $1.49 billion, down 0.6% year on year, 6.6 percentage points lower than that of the whole year of 2024. The export of commuting and social clothing and sweaters with high added value, such as casual clothes and shirts, kept growing, of which the export value of casual clothes and shirts increased by 11.9% and 2.1% respectively year on year, and the export value of sweaters increased by 6.1% year on year. In addition, the export value of down jacket, T-shirt and jacket decreased by 14.6%, 13.0% and 9.9% respectively year on year.

From the perspective of major markets, China's clothing exports to the United States and the European Union have maintained growth, the growth rate of clothing exports to Japan has turned from negative to positive, and the decline in exports to emerging markets such as ASEAN, countries and regions along the Belt and Road has deepened. According to Chinese customs data, from January to March, China's clothing exports to the United States amounted to US $7.43 billion, up 9.2% year on year, 0.5 percentage points faster than that of 2024; China's clothing exports to the EU amounted to 4.99 billion US dollars, up 1.9% year on year, 2.8 percentage points slower than that in 2024; China's clothing exports to Japan amounted to US $2.92 billion, up 2.1% year on year, 9.9 percentage points higher than that in 2024; China's clothing exports to the UK amounted to US $1.03 billion, up 7.6% year on year, 0.2 percentage points faster than that of 2024; China's clothing exports to South Korea amounted to US $1.51 billion, up 6.8% year on year, 9.3 percentage points higher than that in 2024. In the same period, due to the limited market space, the tightening of entrepot trade policy, and the high base factor of last year, China's exports to ASEAN, countries and regions along the Belt and Road deepened, but its exports to Latin America were more impressive. Among them, China's clothing exports to ASEAN amounted to US $2.97 billion, down 21.9% year on year, 20.8 percentage points deeper than that of 2024; Clothing exports to countries and regions along the Belt and Road totaled US $8.63 billion, down 15.1% year on year, 11.8 percentage points more than that of 2024. In addition, China's clothing exports to Latin America increased by 13.8% year on year.

From the perspective of export provinces, the eastern region is still the main concentration of China's clothing exports, while the export performance of the provinces in the central and western regions varies greatly. Only Guangxi and Jiangxi have maintained a rapid growth in clothing exports. According to Chinese customs data, from January to March 2025, clothing exports in the eastern region amounted to 26.26 billion US dollars, down 1.5% year on year, accounting for 79.4% of the total national clothing exports. Among the top five garment export provinces, Zhejiang, Jiangsu and Shandong saw year-on-year growth of 7.8%, 3.2% and 8.0% respectively; Guangdong and Fujian clothing exports fell by 12.7% and 25.4% year on year respectively. Over the same period, clothing exports from central and western China reached 6.8 billion US dollars, down 3.6% year on year. Among them, the clothing exports of Guangxi and Jiangxi increased by 76.0% and 15.8% year on year respectively; The clothing exports of Xinjiang, Sichuan and Hubei decreased by 17.8%, 38.4% and 6.2% year on year respectively.

　　 04 Investment continued to grow rapidly

In the first quarter, with the effective support of the national "dual" and "new" policies, clothing enterprises increased their efforts to respond to market changes by upgrading high-end and intelligent transformation, and the industry's fixed asset investment continued the rapid growth trend since 2024. According to the data of the National Bureau of Statistics, from January to March, the actual investment in the clothing industry increased by 22.9% year on year, 4.9 percentage points faster than that in 2024.

Figure 4 Investment in fixed assets of clothing industry from January to March 2025

Data source: National Bureau of Statistics

05 Enterprise profitability is under serious pressure

In the first quarter, affected by multiple factors such as intensified market competition, rising comprehensive costs and falling export prices, the clothing industry's operating revenue increased, but its profitability was under serious pressure and its operating efficiency slowed down. According to the data of the National Bureau of Statistics, from January to March, there were 13656 enterprises above the designated size (annual main business income of 20 million yuan and above) in the clothing industry of China, achieving an operating income of 280678 million yuan, a year-on-year increase of 3.30%, 0.54 percentage points faster than that in 2024; The total profit was 8.48 billion yuan, down 10.07% year on year, 11.61 percentage points lower than that of 2024; The operating income profit margin was 3.02%, down 0.45 percentage points year on year, lower than 1.89 percentage points in 2024.

The scope of industry losses has expanded, and the operating efficiency has declined. From January to March, the losses of enterprises above designated size in the clothing industry reached 34.00%, 0.47 percentage points higher than that of the same period in 2024; Operating costs increased 4.03% year on year, 0.73 percentage points higher than the growth rate of operating revenue; The turnover rate of finished products and the turnover rate of accounts receivable were 10.04 times/year and 6.08 times/year, respectively, down 3.85% and 5.29% year on year; The turnover rate of total assets was 1.10 times/year, with a year-on-year growth of 0.01%.

Figure 5 Main benefit indicators of the clothing industry from January to March 2025

Data source: National Bureau of Statistics

　　 Development characteristics of apparel industry in the first quarter

　　 01 Actively implement market diversification strategy and strengthen risk management

With regard to the US policy of imposing tariffs on China, garment export enterprises actively optimize the layout of the global supply chain, explore new trade models, actively respond to trade frictions and litigation, and make full use of various policy tools and other multi-dimensional strategic adjustments and responses. On the one hand, it focuses on developing emerging markets, strengthening communication with upstream supply chains and downstream customers, and sharing the impact of tariffs to reduce the impact on enterprise operations. At the same time, we will reduce trade risks and protect our own interests by optimizing contract terms and strengthening risk management. For example, in international trade contracts, in order to deal with the risk of rising costs caused by tariff policy changes, the enterprise clearly agreed on the tariff bearer, agreed on the price adjustment mechanism, optimized the contract breach compensation mechanism, increased the provisions to deal with tariff policy changes, and avoided the cost disputes and settlement risks caused by tariff adjustment.

　　 02 Grasp the current consumption hot spots and enrich the consumption formats

In the context of the orderly recovery of consumption, clothing enterprises pay more attention to the demand of the market for quality improvement and upgrading of consumption, refine and summarize the characteristics of modern lifestyle according to the subdivision principles of age, culture, circle, etc., focus on the life philosophy of green, natural, comfortable, etc., and seize the consumption hotspots such as "light travel", "small crowd movement" and "new Chinese style clothing" that cater to outdoor life, Satisfy the public's double demands for "emotional value" and "circle recognition", enrich consumption formats and improve consumption quality. At the same time, enterprises fully tap brand value, implement differentiated development strategies, strengthen emotional resonance with consumers in brand communication, deepen interaction with consumers with the help of new social platforms, cultivate customer loyalty, and build unique brand stories and cultures.

　　 03 Digital and intelligent transformation promotes industrial transformation and upgrading

In the face of the current complex external situation, garment enterprises take intelligent and digital transformation as an important starting point for transformation and upgrading, increase investment in intelligent manufacturing and digital factories, build automated production lines, improve the intelligent level of production processes and save costs through the Internet of Things and big data analysis. At the same time, we will accelerate the iterative upgrading of technology and products, improve the level of customized and personalized services, and meet the growing diversified needs of consumers. In addition, through the integration of industrialization and industrialization and the transformation of digital systems, enterprises have made efforts to improve the adaptability of brands and products to the market from scientific and technological innovation, product innovation, design innovation, management innovation, service innovation and other aspects, and further accelerated the application of digital technology and artificial intelligence in creative design, product development, production, management, marketing and services, Continuously improve industrial collaborative innovation capability and optimize industrial ecology.

　　 Prospects for the development trend of the clothing industry in 2025

In the first quarter, the economy of China's clothing industry started steadily. Looking forward to the whole year, the external situation facing the clothing industry is becoming more complex and severe. Under the influence of multiple factors such as weak domestic and international market demand, rising trade environment risks, and intensifying geopolitical conflicts, the industry faces greater pressure to maintain stable operation.

From the perspective of the domestic market, on March 16, the General Office of the CPC Central Committee and the General Office of the State Council jointly issued the Special Action Plan for Boosting Consumption, which will further improve the system and mechanism for promoting consumption and open up new space for the consumer market. Driven by a series of consumption boosting policies, market vitality continues to recover, diversified consumption scenarios accelerate innovation, and clothing consumption demand in ice and snow economy, silver hair economy, national fashion clothing and other fields accelerates release. The overall situation of clothing consumption in China will gradually improve. From the perspective of the international market, on May 12, China and the United States jointly issued the Joint Statement of the China US Geneva Economic and Trade Talks, which reduced the tariff imposed by the United States on China to 30%, helping to stabilize the scale of China's clothing export orders to the United States in the short term. At the same time, however, it should be noted that the demand of China's major garment export markets is weak, the Sino US trade friction is still in the game stage, and the rising trade protectionism, geopolitical risks and other factors have led to the rising uncertainty of China's garment export, which has caused adverse effects on the production and operation activities of enterprises.

With the joint efforts of the national stock policy and incremental policy, Chinese garment industry enterprises will focus on deepening transformation and upgrading, and strive to prevent and resolve various risks and challenges. Supported by the strong industrial chain advantages and gradually stabilizing domestic market, they will accelerate the cultivation of new quality productivity, firmly promote the construction of a modern industrial system, and fully promote the stable operation of the industry economy.

(Source: China Garment Association)