Peak season approaching, textile and clothing industry accelerating recovery
2023-10-14127
According to the statistics of the General Administration of Customs, China's textile and clothing exports in September were 26.2 billion US dollars, a year-on-year decrease of 4.8% (a year-on-year increase of 0.8% in RMB), and the decline further narrowed by 3.6 percentage points. The market has significantly rebounded compared to previous months. The institution stated that with the end of overseas destocking and the peak sales season in the fourth quarter, the performance of textile and clothing enterprises is expected to improve.
Rising prosperity index
On October 16th, Tebu International announced that its retail sales (including online and offline channels) recorded double-digit year-on-year growth in the third quarter, with channel inventory turnover ranging from four and a half months to five months.
On October 12th, Anta Sports announced that in the third quarter, the retail sales of its Anta brand products showed a positive growth compared to the same period in 2022; The retail value of FILA brand products recorded a positive growth of 10% -20% compared to the same period in 2022, while the retail value of other brand products recorded a positive growth of 45% -50% compared to the same period in 2022.
The prosperity monitoring results of the Circulation Branch of the China Textile Industry Federation show that in September, the prosperity index of the textile and clothing professional market increased. The national textile and clothing professional market manager prosperity index is 53.87, an increase of 2.31 percentage points from August; The prosperity index of professional market merchants was 52.67, an increase of 2.37 percentage points from August.
From the perspective of exports, in the first three quarters of this year, China's textile and clothing exports reached 223.15 billion US dollars, a year-on-year decrease of 9.5% (a year-on-year decrease of 3.5% in RMB). Among them, textile exports amounted to $101.92 billion, a year-on-year decrease of 10.3% (a year-on-year decrease of 4.2% in RMB); Clothing exports reached $121.23 billion, a year-on-year decrease of 8.8% (a year-on-year decrease of 2.8% in RMB).
Overseas destocking is coming to an end
Industry insiders have stated that the progress of overseas destocking is currently good, and the fourth quarter is the peak season for industry sales, and the performance of textile and clothing enterprises is expected to improve.
Huali Group is engaged in the development, design, production, and sales of sports shoes products, and is a leading professional manufacturer of sports shoes worldwide. Its cooperative sports and leisure brands include Nike, Converse, Vans, Puma, Under Armour, and others. The company stated that based on its current order situation, many sports brands are nearing the end of inventory reduction, and some brand orders have improved.
According to the research report of Guangfa Securities, China's textile manufacturing enterprises mainly focus on export business. In the first three quarters of 2023, except for a few sub industries such as wool spinning with high popularity, other sub industries are mostly affected by downstream overseas brand customers reducing orders or delaying orders, and it is expected that performance will be under pressure. With the smooth destocking of overseas brand inventory, the performance of related listed companies is expected to improve.
According to China Merchants Securities Research Report, the demand in the European and American clothing market in the third quarter of 2023 was significantly better than in the first half of the year. The sales performance and inventory removal progress of clothing brand leaders were good, and it is expected that the pace and scale of subsequent order placement will gradually recover. Everbright Securities believes that entering the peak sales season of the fourth quarter, combined with a low base in the fourth quarter of last year, the sales growth rate of textile and clothing enterprises in the fourth quarter of this year is worth looking forward to.