Recently, the General Administration of Customs released data showing that from January to July this year, the cumulative exports of domestic textiles and garments have been on a solid trend, achieving growth compared to the same period in 2020 and 2019. Due to the obvious rebound in the external demand market, some garment processing factories even have orders lined up for next year. Influenced by the surge in demand, the boom in the textile and apparel industry has recovered and upstream raw material prices have risen as a result.

1. The external demand market rebounded significantly and domestic garment exports continued to grow

It is understood that against the backdrop of the recurring global epidemic, domestic producers have demonstrated good risk resistance and textile and garment exports have maintained good growth. Data from the General Administration of Customs of China showed that from January to July 2021, China’s textile and garment exports accumulated US$168.351 billion, an increase of 10.95% over 2019, of which US$80.252 billion was exported in textiles, an increase of 15.67% over the same period in 2019, and US$88.098 billion was exported in garments, an increase of 6.97% over the same period in 2019. At the same time, a number of domestic inland ports, one after another opened a China-Europe shuttle train, iron and sea intermodal transport trains, to achieve the interconnection of import and export goods with more than 50 countries and regions.

(On the production workshops of the clothes, European and American retailers move large orders to this area for production to ensure continuous supply.)

2.Traditional peak season for the textile and garment industry is approaching and the domestic demand market is gradually improving

Every year, starting in mid to late August is the traditional peak season of the textile and garment industry, and now many garment enterprises are preparing their goods in advance to meet the upcoming Double Eleven e-commerce festival. The rebound in the Chinese market has also led some apparel companies to grasp the domestic demand market.

（As a result of the epidemic, foreign trade orders came to a halt, so they began to transform their products from export to domestic sales.）

Driven by the domestic demand market, overlaid with the return of overseas orders, the operation of China’s textile industry has improved with steady growth in revenue. Data from the National Bureau of Statistics showed that from January to June 2021, there were 12,467 enterprises above the scale of China’s garment industry, with a cumulative operating revenue of RMB 653.4 billion, up 12.99% year-on-year; total profit of RMB 27.4 billion, up 13.87% year-on-year; and garment output of 11.323 billion pieces, up 19.98% year-on-year.

3. Continued increase in raw material prices eroding the profits of garment processing enterprises

The rising costs of raw materials, coupled with ongoing supply-chain strains mean Chinese manufacturers are raising the prices of export goods, including apparel and footwear, according to a report in The Wall Street Journal.
Cotton prices alone have jumped to around $2,600 a tonne in early March, compared with around $1,990 a tonne in mid-February.

（Read more on：https://www.businessoffashion.com/news/china/chinese-factories-raising-prices-on-apparel-and-footwear ）
Since this year, textile and clothing raw materials are almost the whole line to open the rising mode. Cotton yarn, staple fiber and other textile raw materials prices all the way up, spandex prices are more than the beginning of the year doubled several times, the current high price shock, the product is still in short supply.
Since late June this year, cotton opened a new round of trend up, so far the cumulative increase of more than 15%. The rise in the price of raw materials, gradually eroding the profits of garments, which makes many garment processing enterprises operating pressure multiplied. Industry insiders said that although the domestic apparel industry domestic demand market rebounded significantly, clothing exports have improved, but raw material prices rose significantly, beyond the degree of recovery of the terminal market, the textile industry chain in the downstream industry enterprises caused some production and operation pressure. In addition, structural labor shortage, comprehensive cost increases and other normalized risk pressure is still to be resolved.

Not only are ceramics and textiles facing rising raw material prices, but large manufacturing companies are facing regular risk pressure from rising raw materials, structural labour shortages and rising overall costs. 2022 is an irreversible price increase, with exports expected to rise by more than 15%.

Have the prices of clothing gone up in your country? Feel free to share what’s going on in your region.