(Yicai Global) July 10 -- China’s fabric and clothing exports slumped last month from the same period last year, affected by weak demand and fluctuating exchange rates, but the market still has a lot of promise, industry insiders told Yicai Global.

China’s exports of textiles and garments tumbled 13.1 percent in May year on year and dipped 1.3 percent from April, according to the latest data. Exports in the first five months also sank year on year.

China’s apparel industry is showing great resilience, a lot of potential and strong competitiveness despite sluggish demand worldwide, the person in charge of the clothing branch at the China Chamber of Commerce for Import and Export of Textiles told Yicai Global.

The market expanded in the first half from a year ago although growth slowed a bit in the second quarter, said Yao Dong, general manager of a garment company in Huzhou, eastern Zhejiang province. Although the overall market has shrunk, there is fair demand. There is no reason for pessimism, he added.

Demand in Europe appears to be better than expected, said Jin Feiyan, chief executive officer of Lameda Sports. Clothing companies are now able to meet their clients at exhibitions, after the difficulties during the pandemic, and are getting good feedback.

The Hangzhou-based sportswear firm’s exports in the first half surged 22 percent from a year earlier, almost the same as in the first quarter, said Jin.

Another garment company in Huzhou, which is a major textile production base in China, started to branch into cross-border e-commerce last year. As a result, it did extremely well in May and June, shifting around 2,000 pieces a day, the general manager said. The firm expects exports to continue to grow in the second half and to account for 30 percent of its sales this year.

Different Markets

China’s exports to the Association of Southeast Asian Nations, South Korea, Australia, Russia and Central Asia soared in the first five months, but exports to the US, the EU, Japan, and other major markets slowed down, taking up a smaller market share.

Just over 48 percent of China’s garment exports in the five months ended May 31 were destined for the five main international markets, namely the US, the EU, Japan, the UK and Canada. This was a drop of 8.7 percentage points from a year earlier.

From January to May, China’s clothing exports to emerging markets including the countries along the Belt and Road and members of the Regional Comprehensive Economic Partnership all climbed from the same period last year.

But the global market still needs some time to pick up, the person in charge of an apparel branch said. Uncertainty regarding trade rules with the US and Europe will impact Chinese clothing exports. In addition, exchange rate fluctuations may also affect overseas sales.

Editor: Kim Taylor