Operation analysis of specialized textile and apparel market in 2017

In 2017， Chinas specialized textile and apparel market enjoyed progress in stability with accelerated transformation and upgrading， which deeply boosted structural reform at supply side. All kinds of risks and contradictions positively resolved， the industry presented obvious tendency of getting warm again after drop. According to statistics of China Commercial Circulation Association of Textile and Apparel （CATA） of China National Textile And Apparel Council， there were 903 specialized textile and apparel markets of above ten thousand square meters in China in 2017， and gross market turnover reached RMB 2，210 billion with 5.12% year on year.

General situation

According to CATA， there were 903 specialized textile and apparel markets of above ten thousand square meters in China in 2017 with 1.01% year-onyear growth rate； operating area in market reached 73，151，300 square meters with 3.73% year-on-year growth rate； quantity of shops in the market reached 1，362，900 with 0.37% year-on-year growth rate； quantity of commercial tenants in the market was 1，124，300 with 0.82% year-on-year growth rate；； gross market turnover was RMB 2，210 billion with 5.12% year-on-year growth rate.

During 2013 - 2017， quantities of specialized textile and apparel markets in China were 802， 833， 862， 894 and 903 respectively， total operating area of the markets increased from 63，647，500 square meters to 73，151，300 square meters， total quantity of shops from 1，218，700 to 1，362，900， total quantity of commercial tenants from 1，038，500 to 1，124，300， and gross market turnover from RMB 1，920 billion to RMB 2，210 billion.

In aspect of new markets， there were 34 newly added specialized textile and apparel markets in 2017 with 6.25% year-on-year growth rate； total investment amount in newly added specialized markets was RMB 60.838 billion with 5.77% year-on-year growth rate； total operating area of newly added specialized markets was 5.4391 million square meters with 6.68% year-on-year growth rate. 9 markets had just start working in which investment amount reached RMB 22.028 billion and operating area was 2.1353 million square meters； 25 markets had newly started business in which investment amount was RMB 38.810 billion and operating area was 3.3038 million square meters. However in 2017， total quantity of specialized textile and clothing markets of above ten thousand square meters in China only increased by 9 compared with 2016， because quantity of specialized textile and clothing markets in Beijing decreased dramatically in 2017.

In 2017， non-capital functional dispersal work achieved great progress in 2017. Business districts like clothing wholesale market in zoological park， Dahongmen and Yabao Road basically completed shut-down， vacation， relocation and transformation work. Main statistical indexes in specialized textile and apparel markets in Beijing changed greatly. According to monitoring by CATA， turnover， operating area， quantity of shops and quantity of commercial tenants in specialized textile and apparel markets of above ten thousand square meters in Beijing de- creased respectively by 53.12%， 34.24%， 34.89% and 33.23% in 2017 on year-on-year basis. On the other hand， a batch of new markets centering on carrying commercial tenants dispersed from Beijing have been newly built in Hebei， Tianjin， etc. in recent years， and original commercial tenants in Beijing occupy a certain proportion in the new markets. Therefore， overall nationwide increase of quantity of textile and clothing markets， quantity of shops and quantity of commercial tenants rose by 1.01%， 0.37% and 0.82% respectively.

Its noteworthy that annual turnover increase in specialized textile and clothing markets was further expanded in 2017. During 2013 - 2017， growth rates of gross turnovers in specialized markets were 8.06%， 4.38%， 2.11%， 2.81% and 5.12% on year-on-year basis respectively. Through two-year low-tide period， operation of specialized markets started getting warm. Many transformation and upgrading measures of specialized markets like adapting to new era， exploring into new pattern and continuously optimizing and completing hardware and management service had obtained significant achievements. Intensified and professional market operation achieved initial success and elevation of operating efficiency was realized.

Each market averagely owned 1，509 shops in specialized textile and clothing markets in 2017， and annual average turnover of each shop （shop efficiency） was RMB 1，623，800/each shop with 4.73% year-on-year growth rate； each market averagely owned 1，245 shops， and annual average turnover（shop efficiency） of each commercial tenant was RMB 1，968，400/each commercial tenant with 4.27% year-on-year growth rate； average operating area of each market was 81，000 square meters， and annual average turnover per square meter （market efficiency） was 30，253.47/square meter with 1.34% year-on-year growth rate.

In addition， newly added markets within the cluster occupied 17.65% of quantity of newly added markets across the country in 2017. In recent years， market clusters like Changshu Garments Town of China， Puyuan Sweater Market and Chongqing Chaotianmen Market have newly built monomer markets so as to reinforce resource integration， expand advantages， strengthen characteristics and complete industrial distribution with obvious Matthew Effect. This is also a beneficial trial for fusion of commercial activities and multi-channel operation in market clusters.

In aspect of key monitored markets， gross turnover in 45 markets mainly monitored by CATA was RMB 1134.263 billion with 7.26% year-onyear growth rate. Among 45 markets， turnovers of 32 markets rose on year-on-year basis with 8.25% average increase； turnovers of 10 markets decreased on year-on-year basis with 7.12% average decrease amplitude； average operating efficiency of 45 key monitored markets was RMB 51，395.50 with 7.26% year-on-year growth rate； efficiency of shops was RMB 3，916，400/each shop with 7.46% year-on-year growth rate； efficiency of commercial tenants was RMB 4，351，500/each commercial tenant with 7.46% year-on-year growth rate.

In aspect of business climate， average value of climatic indexes of specialized market managers was 51.35 and average climatic index value of commercial tenants was 50.85. Both average values exceeded threshold 50， and thus it could be seen that operation status of specialized textile and apparel markets in China seemed sound in 2017 with obvious warming tendency.

Structural analysis

As for various regions， among 903 specialized markets， 547 ones were located in the east with turnover being RMB 1，755.34 billion， which occupied 79.32% of gross turnover with 3.47% year-on-year growth rate. 195 ones were in the central region with turnover being RMB 284.039 billion， which occupied 12.83% of gross turnover with 7.77% year-on-year growth rate. There were 161 specialized markets in the east with turnover being RMB 173.703 billion， which occupied 7.85% of gross turnover with 2.97% year-on-year growth rate.

Based on large cardinal number， the eastern region still realized 3.47% growth rate with solid and powerful development， and it became the core within Chinas textile and clothing industry. High growth rate in central specialized market was a highlight. Through practical accumulation in transformation and upgrading in recent years， Hanzheng Street Market in Wuhan and Lusong Clothing Market in Zhuzhou obtained obvious achievements in 2017， respectively realizing 25% and 11.11% growth rates. In recent years， with rise of second-tier and third-tier cities， development in central region entered a fast lane， which drove overall improvement of markets in central region.

From categories， clothing， raw materials and fabrics （accessories） were main products in specialized textile and clothing markets in China. There were 638 specialized markets mainly operating clothing， raw materials and fabrics （accessories）， which occupied 70.65% of total available markets， and turnover occupied 74.35% of gross turnover. 471 specialized markets mainly operated clothing products with the highest turnover among all categories， reaching RMB 1，063.16 billion which occupied 48.05% of gross turnover with 3.21 year-onyear growth rate； 167 specialized markets mainly operated raw materials and fabrics （accessories） with turnover taking the second place， reaching RMB 582.126 billion which occupied 26.30% with 2.60% year-on-year growth rate. Growth rate of turnovers in specialized markets mainly operating home textile products was the highest with 6.28% year-on-year growth rate， followed by specialized markets mainly operating small commodities with 4.90% year-on-year growth rate. In addition， bags and suitcases markets， shoes and hats markets and comprehensive specialized markets also presented favorable operating tendency with gradually expanded increase， and they were expected to become a new round of growth highlight.

From circulating levels， 45 key monitored markets including 27 specialized markets of place of origin type and 18 sales place-type specialized markets. During January - December in 2017， turnover of 27 markets of place of origin type was RMB 965.814 billion with 7.58% year-on-year growth rate， and this turnover occupied 85.15% of gross turnover of key monitored markets. Turnover of 18 sales place-type markets was 168.449 billion with 5.45% year-on-year growth rate， and this turnover occupied 14.85% of gross turnover of key monitored markets. Relying on powerful industrial base of industrial clusters， markets of place of origin type took full advantages of primary sources of supply to improve efficiency of industrial chain， reinforce original design intensity and continuously realize middle and high-rate growth. Sales place-type markets actively explored into new trans-boundary fusion pattern which effectively improved consumption experience. On the condition that the overall industry got warm again， the growth tendency“progress in stability” was realized.

Conclusion

According to data from National Bureau of Statistics and the Customs， in aspect of textile industry， main business income of textile enterprises of above designated sizes in China reached RMB 6，890 billion with 4.18% year-on-year growth rate. Total profit was RMB 376.881 billion with 6.92% year-on-year growth rate. Gross export of textile and apparel in 2017 reached USD 274.51 billion with 1.6% yearon-year growth rate which rose back by 8.8 percentage points compared with the same period of the previous year， which turned negative growth for the consecutive two years. Growth rate of added value of textile industry gradually reduced from 6.7% in February， 2016 to 4.9% in December， 2016； since 2017， the growth gradually tended to be stable， and yearly growth rate reached 4.8%.

In aspect of domestic demand market， national retail sales of clothing， shoes， hats， knitwear and textiles above norm reached RMB 1，460 billion in 2017 with 7.8% year-on-year growth rate which increased by 0.8 percentage point compared with the same period of the previous year， and this was the first time that the growth has been accelerated over the 7 years. Retail sales in supermarkets， department stores and exclusive shops in retail units above norm increased by 7.3%， 6.7% and 9.1% respectively compared with the previous year in 2017. In aspect of online retail sales， online retail sale of nationwide physical commodities was RMB 5，480 billion with 28.0% yearon-year growth rate； in online retail sales of physical commodities， retail sales of clothing products realized 20.3% year-on-year growth rate.

To sum up， Chinas textile industry maintained development tendency of “progress and quality improvement in stability” on the whole. Operating quality was steadily improved， and transformation and upgrading was gradually manifested； sales in both domestic and international markets got warm again. Through lowspeed growth for consecutive three years， Chinas specialized textile and apparel markets also realized rising again in 2017 with growth rate increasing by 2.31 percentage points compared with 2016 and by 3.01 percentage points compared with 2015.

In 2018， specialized textile and apparel markets are expected to maintain steady development tendency. Economic growth rate is anticipated to be basically equal to that in 2017. From international scale， global economy presents sustainable recovery； from domestic scale， national economy will continue to keep steady growth tendency， which will provide a healthy and sound economic environment for domestic consumption； sustainable promotion of “Sanpin Strategy”（degrees of variety richness， quality satisfaction and brand recognition） will facilitate textile and clothing enterprises to accelerate transformation and upgrading so as to elevate added values of products； consumption upgrading will be further deepened. Specialized markets will be facilitated to accelerate application of new technologies， exploration of new patterns， creation of new advantages and completion of new round of transformation and upgrading.