In 2022, the world situation accelerated and the international economic and trade environment was turbulent, while domestic sales were affected by the repeated outbreaks of the epidemic and lacked vitality. Faced with the complex and severe domestic and international situation, China's textile industry has withstood the impact of multiple unexpected factors and demonstrated strong development resilience. In 2022, 36000 enterprises above designated size in China's textile industry achieved a main business income of over 5200 billion yuan, a profit of over 200 billion yuan, and a profit margin of 3.9%. In 2022, China's textile and clothing exports reached a new high, reaching $340.95 billion, a year-on-year increase of 2.5%.
In this overall situation, China's knitting industry is operating under pressure, with a slight slowdown in production and sales growth rate, a decrease in profitability compared to the same period last year, and a new historical high in export scale. Overall, in 2022, China's knitting industry withstood pressure and actively responded, maintaining stability and development. Looking ahead to 2023, although the international environment is still complex, with the active domestic market and the improvement of the industrial chain, the future development of the industry faces both challenges and opportunities.
01
The growth rate of production and sales has slowed down, and the proportion of knitted clothing has slightly increased
According to statistics from the National Bureau of Statistics, in 2022, the main business income of enterprises above designated size in the knitting industry decreased by 2.58% year-on-year, significantly slowing down from the growth rate of over 5% in the first half of the year (Figure 1). Among them, enterprises above the designated size of knitted fabrics achieved a year-on-year increase of 1.16% in their main business revenue, a decrease of 2.24 percentage points compared to the first three quarters; Enterprises above the designated size in knitted clothing achieved a year-on-year decrease of 4.76% in their main business income, with a growth rate of 7.15 percentage points lower than the previous three quarters.
Although the year-on-year growth rate of industry revenue in 2022 has slowed down, the data from the past five years shows that it still maintains a relatively stable development level, with an average annual growth rate of 1.34% in industry revenue in the past five years. At the same time, the growth rate of operating costs for enterprises above the designated size in the knitting industry is basically synchronized with the changes in operating income, and the fluctuations are smaller than the changes in operating income, indicating that the industry's ability to absorb cost fluctuations is constantly increasing, and it is committed to maintaining the stable operation of the industry in the development process. (Figure 2)
According to statistics from the National Bureau of Statistics, the cumulative production of knitted clothing by enterprises above designated size decreased by 2.24% year-on-year in 2022; The proportion of total clothing production reached 62.13%, an increase of 2.08 percentage points compared to the same period in 2021. With the continuous improvement and development of the functionality of knitted fabrics, knitted clothing has become increasingly popular among consumers in recent years, constantly expanding the field of clothing. Even under the epidemic, there are also highlights in the consumption of knitted clothing, such as sports and fitness, as well as the rise of niche outdoor sports lifestyles such as urban camping, frisbee, and ice and snow with their own social attributes, which effectively stimulate the demand for outdoor knitted sportswear.
02
Profit has decreased year-on-year, and the industry's development resilience has shown signs
Affected by multiple unexpected factors, combined with a higher base in the same period of 2021, the profits of enterprises above the industry scale decreased year-on-year in 2022. In 2022, the total profit of enterprises above designated size in the knitting industry decreased by 10.82% year-on-year; It accounts for 15.59% of the total profits of textile enterprises above designated size nationwide, with an increase of 3.06 percentage points compared to 2021. Among them, in 2022, the total profit of enterprises above the designated size of knitted fabrics decreased by 9.76% year-on-year; The total profit of enterprises above the designated size in knitted clothing decreased by 11.45% year-on-year.
In terms of industry profit margin, the profit margin of enterprises above the knitting scale in 2022 was 4.78%, a decrease of 0.44 percentage points compared to 2021. The profit margin of enterprises above the designated size for knitted fabrics is 4.76%, a decrease of 0.58 percentage points compared to 2021; The profit margin of enterprises above the designated size in knitted clothing is 4.78%, a decrease of 0.36 percentage points compared to 2021. Overall, after experiencing a double squeeze of rising costs and weak demand, the industry's profit margin in 2022 has decreased from a relatively high level in 2021, but overall it remains at the level of 2019, reflecting the strong industrial development resilience of the knitting industry. (Figure 3)
From other main business indicators, the asset liability ratio of enterprises above the designated size for knitting in 2022 was 56.12%, a decrease of 0.46 percentage points compared to 2021. The proportion of three fees was 6.84%, a year-on-year decrease of 0.67 percentage points; Among them, financial expenses have decreased significantly, with a decrease of 60.86% compared to 2021, further promoting cost reduction and efficiency increase (Table 1). The total asset turnover rate is 1.48 times per year, slightly lower than the same period in 2021. The operating costs of enterprises above designated size per 100 yuan of operating revenue have slightly increased compared to the same period (Table 2).
03
Export scale has reached a new high, and future growth pressure is high
According to data from China Customs, in 2022, China's knitting industry's exports reached 114.841 billion US dollars, accounting for 33.68% of the country's total textile and clothing exports, and the export volume increased by 4.8% year-on-year. Among them, the export value of knitted fabrics was 23.898 billion US dollars, a year-on-year increase of 3.5%; The export of knitted clothing and accessories reached 90.942 billion US dollars, a year-on-year increase of 5.3%. Since 2013, the export value of the knitting industry has exceeded the 100 billion dollar mark for the fourth time, and the export scale has reached a new historical high. The industry's export volume in 2022 increased by 27.58% compared to 2019 before the epidemic. (Figure 4)
Behind the high growth rate of industry exports, the number of exports has declined, but price factors have played a strong supporting role. In 2022, the export price of knitted fabrics increased by 5.05% year-on-year, and the export quantity decreased by 1.53% year-on-year; The export prices of knitted clothing and accessories increased by 6.06% year-on-year, while the export quantity decreased by 0.70% year-on-year. (Figure 5)
From the perspective of annual trend, influenced by multiple factors such as the Russia-Ukraine conflict, the European energy crisis, and the tightening monetary policy of the Federal Reserve, global consumption demand has weakened, and textile and clothing consumption demand in developed countries such as Europe, the United States and Japan has begun to weaken. Since August 2022, the growth rate of China's textile and clothing exports has significantly slowed down, and the knitting industry is also facing significant pressure to maintain export growth. In December, China's exports of knitted products reached 8.907 billion US dollars, a year-on-year decrease of 15.44% and a month on month increase of 5.12%. Among them, the export of knitted fabrics reached 1.631 billion US dollars, a year-on-year decrease of 28.09%; The export of knitted clothing and accessories reached 7.276 billion US dollars, a year-on-year decrease of 11.97%. Industry exports are facing significant pressure.
From the perspective of major export markets, in 2022, the export value of China's knitted products to the United States was 22.07 billion US dollars, a year-on-year decrease of 0.45%, accounting for 19.22% of China's total exports of such products during the same period, with a growth contribution rate of -1.89%; The total export value to the ten ASEAN countries was 20.417 billion US dollars, a year-on-year increase of 15.08%, accounting for 17.78%, and a growth contribution rate of 50.88%; Exports to the EU region reached 17.54 billion US dollars, a year-on-year increase of 7.48%, accounting for 15.27%, and contributing 23.21% to the growth; Exports to Japan reached 7.838 billion US dollars, a year-on-year increase of 0.76%, accounting for 6.82%, and contributing 1.12% to the growth. The total export of knitted products to the United States, ASEAN, the European Union, and Japan is 67.864 billion US dollars, accounting for 59.09% of the total, with a total growth contribution rate of 73.32%. (Figure 7)
After the RCEP agreement came into effect, dividends began to show. According to Chinese customs statistics, in 2022, China's exports of knitted products to the RCEP region totaled 34.945 billion US dollars, a year-on-year increase of 10.16%. Among them, the export amount to Australia increased significantly, with a growth rate of 12.39%.
From the perspective of sub categories, in 2022, except for a slight decrease in exports of underwear, home wear, and children's clothing, all major categories maintained a high growth rate on the basis of a high base in 2021. Among them, knitwear is the largest export category in the knitting industry, with an export value of 22.497 billion US dollars in 2022, accounting for 19.57% of the export value of knitted clothing and accessories, a year-on-year increase of 7.32%; The export of knitted shirts is showing a rapid growth trend, with the export volume accounting for 29% of shirt exports. The proportion of exports continues to increase, and the knitting industry has made significant progress in the knitting technology of woven fabrics. (Table 3)
From the statistical data of major provincial customs in China, Zhejiang, Guangdong, and Jiangsu still rank among the top three in terms of knitted product export volume. In 2022, the export volume was 31.767 billion US dollars, 17.241 billion US dollars, and 15.987 billion US dollars, with year-on-year growth rates of 7.85%, -7.83%, and -1.59%, respectively. In 2022, among the top ten export regions for knitted products, Xinjiang and Hunan experienced significant growth rates, both exceeding 50% year-on-year. The export value of Xinjiang Uygur Autonomous Region was 3.522 billion US dollars, a year-on-year increase of 89.28%; The export value of Hunan Province was 2.65 billion US dollars, a year-on-year increase of 54.88%. (Table 4)
04
Insufficient demand for domestic sales, and the consumption enthusiasm needs to be improved
Due to multiple factors such as frequent outbreaks of the epidemic, poor logistics, and insufficient consumer confidence, the overall domestic consumer market has shown a weak demand trend since 2022. According to data from the National Bureau of Statistics, in 2022, the total retail sales of consumer goods reached 43973.3 billion yuan, a year-on-year decrease of 0.2%. Among them, the total retail sales of clothing, shoes and hats, and needle textiles amounted to 1300.3 billion yuan, a year-on-year decrease of 6.5%. At the same time, the national online retail sales in 2022 reached 13785.3 billion yuan, an increase of 4.0% compared to 2021, with clothing products increasing by 3.5% (Figure 8). Under the overall contraction and decline of the clothing market, outdoor sports clothing is showing a trend of rising against the trend. According to reports, one hour after the opening of Vipshop's "11.11 Special Sale Carnival" in 2022, sales of sports sweaters increased by 87% year-on-year; The sales of running clothing on the Tmall platform increased by 45.2% compared to the same period in 2021. Meanwhile, with the improvement of women's self-awareness, the category of bras has diversified, and comfort and quality have become the priority factors for female consumers when choosing bras at present. New brands such as Jiaonei, Ubras, and NEIWAI, represented by rimless, size free, and traceless underwear, ranked among the top sellers of Tmall Double 11 underwear stores in 2022.
Information source：
According to data from the National Bureau of Statistics, in 2022, the domestic sales output value of enterprises above designated size in the knitting industry decreased by 3.22% year-on-year, with a domestic sales proportion of 75.53%, slightly narrowing compared to 2021. From customs import data, in 2022, China imported a total of 5.089 billion US dollars in knitted fabrics, knitted clothing, and accessories, a year-on-year decrease of 12.40%. Among them, the import of knitted fabrics reached 908 million US dollars, a year-on-year decrease of 20.8%; The import of knitted clothing and accessories reached 4.181 billion US dollars, a year-on-year decrease of 10.3%.
In summary, in 2022, China's knitting industry maintained stability and development in a complex internal and external environment. Looking ahead to 2023, with the continuous optimization and adjustment of epidemic prevention policies, as well as the implementation of various national stable growth policies, especially the introduction of the "Strategic Plan for Expanding Domestic Demand (2022-2035)", the domestic economy is expected to rebound. In terms of overseas markets, the IMF has lowered its global economic growth forecast for 2023 from 2.9% to 2.7%. It is expected that countries accounting for about one-third of the global economy will experience economic contraction this year, and global consumption capacity and willingness are being impacted. Based on the above factors, the domestic market of the knitting industry is expected to experience rapid growth in 2023, while exports are facing downward pressure due to external demand contraction and high base effects. Enterprises need to focus on their main business, attach importance to technology and innovation, keep up with the times, and actively respond to new situations and changes.
Information source: China Knitting Industry Association
數據來源Information source：中國海關：Chinese Customs 國家統計局：National Bureau of Statistics
Language