In the first half of this year, as the domestic economy stabilized and continued to improve, the home textile industry generally maintained a good growth situation. With the continuous recovery of domestic and foreign demand and the active response of industry enterprises to risks, the industry’s exports have achieved substantial growth and domestic sales have maintained orderly development. However, at the same time, affected by the global COVID-19 epidemic, the international economic and trade environment is complex and changeable, and market demand uncertainty has increased, so predictions for the development of the home textile industry remain cautious.
The industry is generally stable and improving
In the first half of this year, the main business income of the home textile industry remained stable increase. The main business income of the 13 industrial clusters tracked by the association increased by 10.99% year-on-year from January to June. The main business income of the 240 sample companies tracked and counted from January to June increased by 22.86% year-on-year, an increase of 8.5 percentage points from the first quarter growth rate. Judging from the cumulative growth of each month, the main business income growth of home textile sample companies gradually increased in the first half of the year, and the industry as a whole showed a stable and positive trend.
The export market continues to grow
With the continuous growth of international demand, the ability of my country’s home textile enterprises to cope with the external environment continues to increase. The export of home textile products has shown strong vitality. The quantity and price of exported home textile products have increased. The export volume has been higher than normal before the epidemic. The level is still achieving good growth momentum. According to China Customs statistics, the export of home textile products in the first half of this year totaled US$21.912 billion, a year-on-year increase of 53.89%, and an increase of 19.99% compared with the same period in 2019 before the epidemic.
Both traditional markets and emerging markets have shown strong growth, and export volumes have still increased significantly compared with normal levels before the epidemic. Demand in the U.S. market, which accounts for the largest share, has skyrocketed. In the first half of this year, my country’s exports of U.S. home textile products totaled US$5.483 billion, a year-on-year increase of 53.92%, and an increase of 28.18% from the same period in 2019, the largest increase. In addition, among the traditional markets, exports to the EU were US$2.868 billion, a year-on-year increase of 45.84%; exports to Japan totaled US$1.463 billion, a year-on-year increase of 14.39%, and a year-on-year increase of 5.18%. Among emerging markets, ASEAN and Russian markets performed outstandingly: in the first half of this year, my country’s exports of home textile products to ASEAN increased by 61.24% year-on-year; exports to Russia increased by 58.96% year-on-year.
From the perspective of export products, the export performance of carpets, bedding, blankets and fabric products was relatively outstanding in the first half of this year, and the export volume achieved an increase of more than 20% compared with the same period in 2019.
Domestic sales continue to develop healthily
In the first half of this year, as the macroeconomic environment continued to improve, the two-year average growth rate of household consumption accelerated. Sales in the domestic online and offline consumer markets were good, and domestic sales in the home textile industry maintained steady growth. The domestic sales output value of the 240 sample companies tracked by the association increased by 12.56% year-on-year, an increase of 4.28 percentage points from the first quarter. In the second quarter, the production situation of home textile enterprises continued to improve, the number of orders continued to increase, and the inventory of finished products increased compared with before. According to the results of the China Textile Federation’s “Corporate Management Questionnaire Survey”, the average selling prices of home textile sample companies’ products remained basically the same in the second quarter, and half of the home textile sample companies’ ordering demand in the second quarter increased compared with the previous quarter.
The industry’s efficiency growth is stable
In the first half of this year, with the The results of my country’s overall epidemic prevention and control continue to be consolidated, the domestic economy is stable and improving, the economic operation quality of the home textile industry is good, and the industry’s efficiency growth is stable. The total profits of the 240 sample companies tracked by the association in the first half of the year increased by 22.46% year-on-year, and the profit margin was 5.59%, which was the same as the same period last year.
Looking at the main sub-industries, the fabric industry and bedding industry have relatively good returns. Among the sample companies tracked by the association, total profits of fabric companies from January to June increased by 31.75% year-on-year, higher than the average level of statistical sample companies; the profit margin was 5.33%. The total profits of the statistical bedding sample companies increased by 23.89% year-on-year; the profit margin was higher than the average level of the statistical sample companies, reaching 5.99%.
The industry forecast is cautiously optimistic
Home textile companies are generally cautiously optimistic about the overall operating conditions of the home textile industry. Affected by the global COVID-19 epidemic, the international economic and trade environment has become complex and changeable, and market demand uncertainty has increased. Enterprises are paying more attention to changes in the international market. “Insufficient demand in the international market” and “rising costs” are the current issues that home textile companies are most concerned about.
Since the beginning of this year, due to the chain reaction of overseas shipping accidents, warehouses have been tight and container prices have increased sharply, which has brought huge challenges to export companies. The continued recurrence of global epidemics and the appreciation of the RMB have continued to put pressure on export companies, which to a certain extent has increased the external risks of export companies. At the same time, enterprises are under pressure from the current rising raw material prices, and home textile enterprises are paying more attention to raw material costs. </p
