China's domestic apparel market is poised for recover in 2024. With Government policies supporting consumption, stable employment, and income growth are expected to boost consumer confidence. Furthermore, expansion into second-tier markets and the emergence of new consumer groups and trends are likely to drive market vitality.
In 2024, China’s apparel market is expected to remain stable, with increased inventory driving demand in developed countries and emerging markets, alongside the growth of cross-border e-commerce. However, challenges will continue to persist, including trade tensions, geopolitical risks, and the potential impact of currency fluctuations.
In 2023, China's clothing industry faced a complex and challenging external environment marked by global economic slowdown and reduced international market demand. The industrial added value of apparel enterprises declined by 7.6 per cent, with garment production falling by 8.69 per cent. However, the retail sales of apparel showed resilience, growing by 15.4 per cent driven by events like the Singles Day shopping carnival.
Despite this, apparel exports decreased by 7.8 per cent, with declines in major markets like the United States and the European Union, though some growth was observed in regions along the Belt and Road.
Investment in fixed assets decreased by 2.2 per cent, but digital transformation accelerated, focusing on intelligent equipment, factory construction, and supply chain optimisation. Despite a 5.4 per cent decline in main business income, the operating margin improved slightly to 5.07 per cent, though 20.8 percent of enterprises operated at a deficit.
Internationally, apparel exports faced challenges due to trade protectionism and geopolitical risks, alongside increased competition from Southeast and South Asian countries. Domestically, however, China's economic stabilisation and policies promoting consumption fueled optimism. With stable employment and income growth, consumer confidence remained robust.
