In the first quarter of 2026, China's clothing industry actively responded to difficulties and problems such as weak international market demand and geopolitical tensions in the Middle East. Supported by the steady recovery of the domestic economy and the implementation of various policies to expand domestic demand, the industry's economic operation was basically stable overall. Production and domestic sales maintained recovery-type growth, and exports demonstrated strong resilience. However, enterprise profits were severely under pressure, and investment declined rapidly.
Looking ahead to the whole year, in the face of complex and severe external development situations, China's clothing industry still needs to effectively prevent and defuse various risks and challenges such as intensified geopolitical conflicts, rising trade protectionism, and restricted international shipping. It should accelerate the cultivation of new quality productive forces, steadily promote the construction of modern industrial systems, continuously consolidate and enhance the industrial foundation advantages and development resilience, and fully promote the industry's economy to achieve stable recovery and new and better development.
I. Economic Performance of the Clothing Industry
(1) Clothing production has steadily recovered.
In the first quarter, the clothing industry chain in our country operated in an orderly and stable manner. The industrial added value and clothing production of the large-scale enterprises maintained a slight growth, and the growth rate gradually rebounded compared with 2025. According to the data from the National Bureau of Statistics, from January to March, the industrial added value of large-scale enterprises in the clothing industry increased by 3.1% year-on-year, with the growth rate rebounding by 6.1 percentage points compared with the whole year of 2025; the production of large-scale enterprises' clothing increased by 1.36% year-on-year, with the growth rate rebounding by 4.80 percentage points compared with the whole year of 2025. From the perspective of sub-sectors, the production of woven clothing increased by 0.70%, among which the production of down clothing, suit sets and shirts decreased by 0.99%, 1.33% and 9.84% respectively; the production of knitted clothing increased by 1.66%.
(2) Domestic sales achieved a significant increase.
In the first quarter, supported by the favorable start of the domestic macroeconomy, the synergy effect of various policies implemented by the country to boost consumption, and the concentrated release of consumption demand during the Spring Festival holiday, the domestic sales market of clothing in China achieved rapid growth. According to data from the National Bureau of Statistics, from January to March, the cumulative retail sales of clothing products by units above the designated size in China reached 303.26 billion yuan, increasing by 9.4% year-on-year. The growth rate was 6.6 percentage points higher than that of the whole of 2025. Among them, the retail sales of clothing products by units above the designated size in January and February increased by 10.7% and 6.6% respectively year-on-year. During the same period, online clothing sales significantly accelerated. The online retail sales of clothing items increased by 11.6% year-on-year, with the growth rate accelerating by 9.7 percentage points compared to the whole of 2025.
(3) Resilience in coping with export pressure
In the first quarter, under the backdrop of weak international market demand, intensified geopolitical conflicts, and rising uncertainty in trade policies, export enterprises actively responded to difficulties and risks such as rising international shipping costs and disrupted order deliveries. China's clothing exports remained largely stable overall, demonstrating strong resilience. According to China's customs data, from January to March, China's cumulative export of clothing and clothing accessories reached 32.89 billion US dollars, a year-on-year decrease of 0.4%, with the decline narrowing by 1.5 percentage points compared to the same period in 2025 and by 4.6 percentage points compared to the whole year of 2025. From the perspective of quantity and price relationship, clothing exports continued the trend of increasing quantity and decreasing price. The export quantity was 8.38 billion pieces, a year-on-year increase of 6.6%, and the average export unit price was 3.2 US dollars per piece, a year-on-year decrease of 6.2%. From the monthly export perspective, the export growth rate showed significant fluctuations. From January to February, driven by the concentrated delivery of orders before the festivals, clothing exports increased by 14.8% year-on-year; in March, affected by the base effect of the "rush export" to the United States in the previous year, clothing exports decreased by 29.4% year-on-year.
From the perspective of specific product categories, the export value of casual suits and shirts increased by 22.6% and 6.2% respectively, while the export values of suit jackets, T-shirts and sweaters increased slightly by 0.3% each year. The export values of the remaining major categories of clothing decreased. The export values of trousers, dresses and shirts decreased by 0.6%, 5.3% and 0.5% respectively. The export volume of down jackets increased while the export price dropped. The export quantity increased by 1.4% year-on-year, while the export price decreased by 10.5% year-on-year.
From the perspective of major markets, the structure of China's clothing export market has been accelerating its adjustment. The trends in the markets of the United States, Europe and Japan have diverged. Emerging markets such as Latin America and Africa have maintained a relatively rapid growth. According to China's customs data, from January to March, China's clothing exports to the United States amounted to 7.25 billion US dollars, a year-on-year decrease of 2.5%, with the decline narrowing by 9.5 percentage points compared to the full year of 2025; clothing exports to the European Union reached 5.24 billion US dollars, a year-on-year increase of 4.9%, with the growth rate accelerating by 1.9 percentage points compared to the full year of 2025; clothing exports to Japan were 2.80 billion US dollars, a year-on-year decrease of 4.3%, with the growth rate dropping by 5.2 percentage points compared to the full year of 2025; during the same period, the decline in clothing exports to ASEAN, "Belt and Road" countries and regions was somewhat narrowed. Among them, clothing exports to ASEAN amounted to 2.72 billion US dollars, a year-on-year decrease of 8.4%, with the decline narrowing by 11.2 percentage points compared to the full year of 2025; clothing exports to "Belt and Road" countries and regions reached 8.14 billion US dollars, a year-on-year decrease of 5.6%, with the decline narrowing by 4.4 percentage points compared to the full year of 2025. Additionally, clothing exports to Latin America and Africa increased by 8.7% and 29.7% respectively compared to the previous year, clothing exports to Russia increased by 56.5% year-on-year, and clothing exports to Australia increased by 11.8% compared to the previous year.
From the perspective of export provinces, the eastern region remains the main concentration area for China's clothing exports. Some provinces in the central and western regions also achieved remarkable export performance. According to China's customs data, from January to March, the export value of clothing in the eastern region was 27.10 billion US dollars, increasing by 3.4% year-on-year, accounting for 82.4% of the national total clothing exports. Among the top five provinces in clothing exports, the clothing export of Zhejiang increased by 6.4%, while that of Guangdong turned from negative to positive and grew by 19.9% year-on-year; the clothing exports of Jiangsu, Shandong and Fujian decreased by 5.4%, 10.6% and 3.0% respectively. Some provinces in the central and western regions as well as border areas achieved rapid growth through market expansion and policy empowerment. Among them, driven by the accelerated release of the policy benefits of the free trade port closure, the clothing export of Hainan increased by 799.8%; Yunnan, relying on its geographical advantages and the preferential tariff policies of RCEP, achieved remarkable clothing export performance, growing by 294.7% year-on-year. At the same time, the clothing exports of Xinjiang, Guangxi and Hubei decreased by 21.4%, 28.8% and 27.2% respectively.
(4) The enterprises are facing severe pressure on their profits.
In the first quarter, affected by multiple factors such as weak international market demand, rising comprehensive costs, and falling export prices, the profitability of China's clothing industry recovered slowly. Although the decline in operating income and total profit was somewhat narrowed, the overall trend still continued the contraction in 2025, and enterprises faced severe pressure on their profits. According to data from the National Bureau of Statistics, from January to March, there were 12,541 enterprises in the clothing industry that reached the scale (with annual main business revenue of 20 million yuan or more), achieving an operating income of 242.568 billion yuan, a year-on-year decrease of 1.71%, with the decline narrowing by 11.50 percentage points compared to the full year of 2025; the total profit was 5.415 billion yuan, a year-on-year decrease of 17.76%, with the decline narrowing by 9.58 percentage points compared to the full year of 2025; the operating income profit margin was only 2.23%, a year-on-year decrease of 0.44 percentage points, lower than 1.
(5) Investment growth rate has sharply declined.
Under the influence of increased business operating pressure and the high base figure from the previous year, the fixed asset investment in China's clothing industry has experienced a rapid decline. According to data from the National Bureau of Statistics, from January to March, the fixed asset investment in the clothing industry decreased by 4.1% year-on-year. The growth rate dropped by 27.0 percentage points compared to the same period in 2025 and by 9.3 percentage points compared to the whole year of 2025.
II. Characteristics of the Clothing Industry in the First Quarter
(1) Multiple factors have intensified the operational pressure on enterprises.
Currently, due to the combined effects of unstable international market demand, intensified domestic market competition, high operating costs, and rising various expenses, the overall operating pressure of clothing industry enterprises has further increased. Against the backdrop of insufficient international market momentum and geopolitical disturbances in the Middle East, international orders have shrunk. Coupled with the increase in international shipping costs, the delivery of clothing export orders has been hindered, resulting in an increase in enterprise fulfillment costs and a decline in the stability of overseas cooperation. The business pressure and risks have significantly intensified. At the same time, "internal competition" has led to disorderly competition and price wars among enterprises. Especially, the price competition in online channels such as live-streaming e-commerce is prominent, and the return rate remains high. This not only squeezes the profit margins of enterprises but also hinders the healthy and orderly development of the industry. Additionally, the cost pressures of raw materials, logistics, and labor continue to be high. Coupled with increased investment in marketing, channel construction, and digital transformation, enterprise operating costs have risen, and profit levels have been under pressure.
(2) Diverse demands have enabled the enrichment and improvement of consumption patterns.
As residents' consumption concepts become increasingly mature, the market segmentation characteristics of the clothing industry have become more pronounced. Consumer demands have shifted from basic wear to quality experience, functional attributes, and identity expression. At the same time, consumption decisions have become more rational, with factors such as cost performance, quality-price ratio, and emotional-price ratio becoming important considerations. Industry enterprises have adopted a gradient brand layout to precisely cover diverse customer groups and consumption scenarios, further unlocking the consumption potential of niche market segments. Yinhe Lin focuses on high-end business casual and golf sports scenarios, relying on high-quality functional fabrics, refined tailoring, and brand positioning. In the first quarter, store foot traffic and average transaction value maintained steady growth. Zhihuo has深耕 the mid-to-high-end women's clothing sector that emphasizes natural comfort and simplicity. Through natural fabrics and minimalist designs， it conveys the concept of quality life， precisely meeting consumers' demands for wearing quality， comfort experience， and identity expression. Balabala has launched differentiated products such as safety-keeping， sports functions， and Chinese cultural IPs around different growth stages of infants， children， and teenagers， covering diverse family consumption demands and continuously activating revenue growth momentum.
(3) The brand's multi-channel layout has been continuously optimized.
Under the circumstances of the deep penetration of the digital economy and the diversified expansion of consumption scenarios, the integration of channels in the clothing industry has accelerated. Clothing brands have deepened the integration application of new technologies such as artificial intelligence and cloud computing throughout the entire chain, actively building an online all-round matrix and optimizing the offline terminal layout. Through complementary channels and scenario linkage, they continuously consolidate the market operation foundation and enhance the comprehensive competitiveness of all channels. Li Ning has continuously expanded its presence across all platforms on Douyin, Video号， and Tmall flagship stores. By leveraging AI big data to optimize the precise distribution of traffic and efficient user reach， through professional sports bloggers' live streaming， new product launch events， and private domain operations for members， online sales have steadily increased. At the same time， clothing brands have actively adjusted their offline terminal layouts， optimized the channel structure, focused on discount stores in core business districts, high-end shopping centers, and brand experience stores, and fully exerted their differentiated operational advantages to effectively improve store operation efficiency. Bosideng focuses on building benchmark experience stores in core business districts， strengthening scene experience， and consolidating the advantages of its core customer base.
III. Outlook for the Clothing Industry in 2026
Looking ahead for the entire year, the development environment of China's clothing industry has become more complex and challenging. Multiple pressures such as weak external demand, intensified competition, and increased supply chain risks are intertwined and overlapping. The transformation pressure for internal structural adjustment and quality improvement and efficiency enhancement persists. The industry still faces significant tests in maintaining stable recovery and moving towards new heights and better development.
From the perspective of the international market, there is considerable uncertainty in clothing exports. Due to the intensification of geopolitical conflicts, the passage risks of the Strait of Hormuz and the Red Sea shipping routes have increased, and international logistics transportation has been restricted. Enterprises are facing the dual pressures of rising freight costs and delayed deliveries. At the same time, in the short term, it helps to stabilize the scale of China's clothing export orders to the United States, but the Sino-US trade friction is still in a stage of negotiation, and there is a potential risk of tariff hikes. From the domestic market perspective, with the in-depth implementation of the "Action Plan to Boost Consumption" and the advancement of relevant deployments in the "15th Five-Year Plan" outline, residents' consumption confidence has gradually recovered. The diversified, multi-scenario, and integrated consumption models online and offline are constantly updated, which will accelerate the release of demand potential in sub-sectors such as national trend clothing, sports and outdoor wear, and the silver economy, and accumulate more positive factors to support the stable development of the domestic clothing market.
Facing the complex and severe domestic and international development situation, enterprises in the clothing industry need to take cultivating new quality productive forces as the core approach, promote the deep integration of digitalization and intelligence throughout the entire chain, steadily advance the construction of a modern industrial system, continuously consolidate the foundation for stable recovery of the industry and its development resilience, and drive the industry economy to achieve high-quality development.
(Source: China Garment Association)
