Reviewing The Economic Operation Analysis Of China'S Knitting Industry In 2024

In 2024, facing the complex and changeable external environment and the overall lack of market expectations, the industry realized the double growth of revenue and efficiency through scientific and technological innovation, digital empowerment, and optimization of operation and management, and the export of knitted products increased steadily on a high base, exceeding 100 billion US dollars for four consecutive years. The overall operation of the industry is good. From a year-round perspective, the industry's operation showed a trend of low at the beginning and high at the end. Especially since the fourth quarter, with the implementation of the national "two new" policy, the stock and incremental policies have worked together, market confidence and development expectations have improved, the economy has rebounded, and the growth rate of the industry's main operating indicators has significantly improved, showing the industry's development resilience and innovation vitality.

　　 01 The revenue rose steadily and the industrial scale expanded

According to the statistics of the National Bureau of Statistics, in 2024, the operating income of knitting enterprises above designated size increased by 2.98% year on year, realizing a positive growth, and the growth rate increased by 7.15 percentage points compared with 2023. From the trend of the whole year, with the implementation of a series of national policies to boost the economy and promote consumption, domestic sales rebounded, exports rebounded strongly, enterprises' production and operation activities accelerated, and the manufacturing industry returned to the expansion range. The operating revenue grew the most in the fourth quarter, reaching 5.37%. With the resumption of growth in operating income, the scale of the knitting industry is also expanding. In 2024, the total assets of knitting enterprises above designated size increased by 5.28% compared with 2023.

From the perspective of industries of the two categories of products, in 2024, the operating income of enterprises above designated size of knitted fabrics increased by 2.24% year on year, 4.02 percentage points higher than that in 2023; The operating income of enterprises above designated size of knitted apparel rose 3.41% year on year, 8.94 percentage points higher than that of 2023.

In terms of output, China's clothing output will increase by 4.22% year on year in 2024; Among them, the production of knitted garments increased by 7.38% year on year. The proportion of the output of knitted clothing in the total output of clothing reached 68.35%, 13.91 percentage points higher than that in 2019. With the change of consumption habits, the continuous innovation of consumption scenarios, and the continuous development of materials and production processes, the application boundary of knitted products has been widened, which further promotes the development and application level of knitted apparel products.

　　 02 Profit growth accelerated and operating efficiency improved

In 2024, the total profit of enterprises in the knitting industry will increase significantly. On the basis that the turnover rate of total assets and the turnover rate of finished products are basically the same as that of the same period last year, the profit rate will increase year on year, the operating cost will decrease, the proportion of three expenses will decrease, and the loss area will shrink, showing a trend of continuous improvement and improvement in operating efficiency.

According to the data of the National Bureau of Statistics, the total profits of enterprises above designated size in the knitting industry will increase by 8.94% year on year in 2024, of which the total profits of knitting fabric enterprises and knitting clothing enterprises will increase by 8.25% and 9.33% year on year respectively. In 2024, the industry profit rate will be 4.61%, 0.25 percentage points higher than that in 2023. Among them, the profit margin of enterprises above designated size of knitted fabrics is 4.51%, and that of knitted clothing is 4.66%, which is higher than that of 2023.

With the improvement of industry operation efficiency, the loss area of enterprises has been narrowing. In 2024, the loss of enterprises above knitting scale will decrease from 32.68% of the high at the beginning of the year to 18.24% at the end of the year, 14.44 percentage points narrower, and the loss of loss making enterprises will decrease by 2.28% year on year. Among them, the loss of knitting fabric enterprises was 15.24%, and the loss of loss making enterprises decreased by 7.18% year on year; The loss of knitting apparel enterprises was 19.96%, and the loss of loss making enterprises decreased by 0.3% year on year.

In 2024, the operating cost of enterprises above designated size in the knitting industry will decrease by 0.15 yuan for every 100 yuan of operating income. Among them, knitted fabric enterprises decreased by 0.51 yuan and knitted apparel enterprises increased by 0.07 yuan year on year.

In 2024, the three expenses of enterprises above designated size in the knitting industry will account for 7.12%, down 0.25 percentage points from 2023. Among them, knitted fabric enterprises increased by 0.09 percentage points year on year, and knitted apparel enterprises decreased by 0.46 percentage points year on year.

　　 03 Exports have exceeded 100 billion US dollars for four consecutive years, and major markets are booming

In 2024, global inflation will ease, the foreign destocking cycle will basically end, and the stage of actively replenishing inventory will begin. The market demand will pick up, especially in the United States, where the market will grow significantly. With the impact of multiple factors, such as the devaluation of the RMB and the expectation of tariffs to seize exports, exports will perform better than expected. From the perspective of cumulative growth rate, the export of knitted fabrics and knitted garments grew throughout the year, better than that of the whole industry.

According to customs data, in 2024, China's export of knitted products will again exceed 100 billion dollars, with the annual export amount reaching 109.044 billion dollars, a year-on-year increase of 5.04%, 2.54 percentage points higher than the export of textiles and clothing in the same period. Driven by the increasing demand for knitted fabrics from Southeast Asia and other countries, the growth rate of knitted fabric exports is significantly higher than that of knitted clothing. In 2024, the export of knitted fabrics will reach 23.773 billion US dollars, up 10.5% year on year; Exports of knitted clothing and accessories reached US $85.271 billion, up 3.6% year on year.

From the perspective of single month exports, except that in March, affected by the Spring Festival, exports of knitted fabrics increased year on year in other months, and exports of knitted garments and accessories decreased slightly in April and September, exports of other months increased year on year, and the export performance was better than that of woven garments. Especially since October, the depreciation of the RMB has accelerated, the tariff is expected to compete with the export, and the industry's export has grown rapidly. From the perspective of enterprise performance, industry leading enterprises benefited from systematic advantages in management, technology, quality and scale. The export growth rate was significantly higher than the industry average, showing a trend of resource concentration towards leading enterprises.

At the same time, however, it should be noted that the inner volume spreads to exports, and the export of knitted products "increases in quantity and decreases in price". In 2024, the unit price of knitted fabric will decline by 5.65% compared with the same period of last year, and the unit price of knitted clothing and accessories will decline by 6.7% compared with the same period of last year. In the context of the global economic slowdown and uncertainty, the demand structure of textiles has changed, and consumers are more inclined to buy products with lower prices. At the same time, affected by the export growth of emerging market countries, the international market competition will become increasingly fierce. Specifically, the export volume of knitted shirts increased by 12.85% year on year, and the unit price was 4.79 dollars/piece, down 5.8% year on year; The export volume of knitted sweaters increased by 3.48% year on year, and the unit price was 6.35 dollars/piece, down 5.2%; The export volume of socks increased by 1.85% year on year, and the unit price was 0.35 dollars per pair, down 7.2%.

　　 （1） The three major markets of the United States, Europe and ASEAN led the growth

From the perspective of main export markets, the export growth of China's knitting products to the top three markets of the United States, ASEAN and the European Union is higher than the average growth level, continuing a good growth trend. At the same time, the share of Chinese products in the import trade of knitted products from the United States and the European Union has also rebounded.

In 2024, China's knitting products will be exported to the United States for 21.568 billion dollars, up 12.25% year on year, contributing 44.96% to the growth of China's knitting products exports. In addition, according to the statistics of the U.S. Department of Commerce, from January to October, China's knitting products accounted for 22.22% of the U.S. import trade, an increase of 0.29 percentage points over the same period last year.

In 2024, China's knitting products will be exported to the EU for US $15.384 billion, with a year-on-year growth of 6.82% and a growth contribution rate of 18.75%. In addition, according to the statistics of Eurostat, from January to October, China's knitting products accounted for 28.43% of the EU's import trade volume, up 0.68 percentage points over the same period of the previous year.

In 2024, China's knitting products will be exported to ASEAN for US $18.716 billion, with a year-on-year growth of 6.02% and a contribution rate of 20.3%. Among them, exports to Thailand increased by 32.03% year on year, mainly due to the strong growth of knitted suits, underwear, home clothes, T-shirts and sweaters and other products. Exports to Japan reached US $6.514 billion, down 4.28% year on year. Affected by the continued downturn of Japan's economy and the active transfer of orders to Southeast Asian countries, China's exports of knitwear to Japan continued to decline.

In addition, the export growth of China's knitting products to Bangladesh and the five Central Asian countries will remain high in 2024, with year-on-year growth rates of 30.48% and 12.98% respectively. Bangladesh's growth is mainly driven by knitted fabrics, while that of the five Central Asian countries is mainly driven by the export of T-shirts to Kazakhstan.

　　 （2） The growth momentum of T-shirts and other major products is good

From the perspective of major categories, except for the export of sports equipment, other major categories have seen year-on-year growth. Among them, the export of T-shirts, warp knitted fabrics and shirts maintained double-digit growth. In 2024, the export of T-shirts and sweaters exceeded 10 billion US dollars for the first time, reaching 10.916 billion US dollars, an increase of 21.18% year on year, a record high. Among them, the export to Kazakhstan was 1.099 billion US dollars, up 228.11% year on year; Shirt export reached 1.849 billion US dollars, up 12.85% year on year; The export of warp knitted fabrics was 1.416 billion US dollars, up 12.99% year on year.

　　 （3） The eastern coastal areas continue to grow well

From the perspective of local customs data, Zhejiang, Jiangsu and other key coastal areas in the east continue to enjoy good growth momentum. In 2024, Zhejiang, Jiangsu and Guangdong, the top three exporters in terms of export scale, will achieve exports of US $33.695 billion, US $14.818 billion and US $14.468 billion respectively, of which the export growth of Zhejiang and Jiangsu will reach 10.64% and 11.18% respectively. In addition, Xinjiang's export growth rate was 20.26%, ranking first in the country. On the one hand, Xinjiang's textile industry chain has been constantly improved, the scale of knitting industry has gradually expanded, and the foundation for industrial development has been further consolidated; On the other hand, it benefited from the continuous release of the "Belt and Road" policy effect, the construction of Xinjiang Pilot Free Trade Zone, the rapid growth of trade in Central Asia, and the increase of entrepot trade, which further boosted the export volume and year-on-year growth of Xinjiang.

　　 04 The domestic market recovered moderately, and the vitality needs to be stimulated

In 2024, China's domestic demand for textile and clothing goods will achieve a moderate growth, but affected by the macroeconomic slowdown, the growth of all domestic sales indicators will slow down compared with the previous year. According to the National Bureau of Statistics, in 2024, the retail sales of clothing, shoes and hats, and knitwear and textiles above the designated size in China will be 1469.1 billion yuan, up 0.3% year on year, 12.6 percentage points lower than that of the previous year; The year-on-year growth rate of online retail sales of physical goods was 1.5%, 9.3 percentage points lower than that of the previous year.

E-commerce dividends began to fade and gradually returned to normalization. The future development of enterprises needs to focus on online and offline integration, pay attention to product quality, pay attention to the dynamic changes of terminal channels and consumption trends, and accurately grasp the market trend. At present, domestic fashion goods, entertainment tourism, sports events, health care, etc. have become new consumption growth points. It is necessary to actively develop the "first economy", "ice and snow economy", and "silver economy", tap the potential of track segmentation, innovate consumption scenarios, create consumption atmosphere, focus on effective demand, and release consumption potential.

To sum up, the operation quality of China's knitting industry will continue to improve in 2024, showing a steady development trend.

Looking forward to 2025, the foundation for the recovery of the domestic economy still needs to be consolidated, while the international market is faced with intensified geopolitical conflicts, the impact of multiple factors such as the expansion risk of the U.S. tariff policy, the in-depth adjustment of the international supply chain layout, and the wide fluctuation of the exchange rate. The adverse impact of changes in the external environment is deepening, and the industry's exports are under pressure. Despite many challenges, the fundamentals of China's long-term economic growth have not changed. The super large domestic demand market is a solid backing for the development of the industry. Under the general policy of proactive fiscal policy and moderately loose monetary policy, the national macro stock and incremental policies work together to provide strong support for accelerating the transformation and upgrading of the industry. The industry needs to deepen supply side reform and promote high-quality development, seize the development opportunity of a new round of scientific and technological revolution, accelerate the application of AI and other new generation information technologies in design, research and development, production, operation, etc., improve the level of industry intelligence, and shape new drivers and advantages of development. We should lead the development of new quality productivity with scientific and technological innovation, increase investment in research and development of new materials and green recycling technology, strengthen product innovation, improve product added value, and accelerate the construction of a modern knitting industry system around technology, fashion, green and health. At the same time, it is necessary to accelerate the optimization of industrial layout, fully combine the advantageous resources of various regions, and build a spatial pattern with distinctive features, orderly competition, and differentiated development according to the main function orientation. Actively explore emerging markets along the "Belt and Road", integrate international resources at a high level, accelerate the diversification of international markets, effectively prevent, control and resist external risks, and promote the sustainable and healthy development of the industry.

(Source: China Knitting Industry Association)