The textile and apparel industry is a key part of China's economy, playing a big role in economic growth and employment. The industry has a long supply chain, starting with raw materials, moving through textile processing and clothing manufacturing, and ending with wholesale and retail of clothes.
The clothing sector in China has been expanding, with market transactions for textiles and apparel showing an upward trend from 2012 to 2022. Specifically, trade in professional markets for textiles, clothing, and accessories like shoes saw an increase from 1,189.9 billion yuan in 2016 to 1,557 trillion yuan in 2022, growing at a CAGR of 3%.
In terms of clothing exports, data from China Customs reveals some fluctuation. After peaking at $186.285 billion in 2014, exports dipped, hitting a low in 2020 due to the pandemic, then rebounded to $159.145 billion in 2023.
Though this was a decrease of 7.8% from 2022's high figures, it was an 8.5% increase compared to pre-pandemic 2019. The recovery in 2023 with revived consumer demand ensured export stability overall, with growth in cross-border e-commerce and emerging markets offsetting declines in traditional markets.
The push towards digital transformation is reshaping every corner of the textile and apparel industry, from production and marketing to consumer interaction.
Key technologies like the internet, cloud computing, IoT, and smart robotics are being integrated, leading to smart upgrades in automatic sewing equipment, better consumer demand forecasting, and innovations in design and product development.
Wholesale markets, as a central part of the downstream supply chain, are eagerly adopting these changes. The Guangzhou Liu Hua Clothing Wholesale Market, for instance, has been planning
its digital transition strategy since 2020, pioneering new channels for small and medium clothing businesses. By the end of 2021, it launched its own cross-border e-commerce platform, LIUHUAMALL.COM, to provide comprehensive services including showcasing, marketing, transactions, payments, logistics, media, data analysis, and digital solutions for various stakeholders in the apparel trade chain.
This market is embracing new technologies and innovative models to constantly refine platform functions, build a global promotion network, and help medium and small businesses dive into digital international trade.
The "three-in-one" model of cross-border e-commerce, market procurement, and integrated trade services makes the process of exporting clothing smoother than ever. With LIUHUAMALL, they've optimized the digital market procurement chain and established a digital trade ecosystem, drawing in visitors from over 210 countries and regions.
In 2023 alone, transaction volumes exceeded 100 million yuan, earning the title of "Exemplar of Digital Innovation in Foreign Trade", with their innovative practices highlighted in the 2022 Corporate Innovation Development White Paper.
Looking ahead, China's textile and apparel industry will keep pushing digital transformation and smart development, aiming to boost global market share and increase brand recognition and competitiveness. This will help ensure the industry maintains a leading position despite the fierce market competition.
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