Ni Guomiao, CCFGroup, Lead Analyst of CCFGroup, delivers his report In the post-epidemic period, what is the recovery potential of China's textile and clothing demand?

His report can be divided into two parts:

1. Summary of demand in 2022. Seven months of negative growth compared with the same period of last year, the total retail of textile and clothing was 6.5% lower on the year in 2022; textile and clothing (optional consumption) was significantly worse than food consumption (compulsory consumption); textile and clothing exports were high at first but reduced later, with growth rate at 2.6% for the whole year. China's market share in the United States has been gradually squeezed out; the internal and external demand for textile and clothing has declined, and fiber consumption has also dropped, especially cotton.

2. The current situation and expectation of demand in 2023. The repair of domestic demand is a gradual process. From January to February, domestic demand repaired quickly, but it included he factors of releasing the backlog of domestic demand. The core of domestic demand consumption is related to residents' income and income expectations. In the long run, it will take time to restore consumer confidence. The overall export demand is grim and may recover in the second half of the year. The export growth rate of textile and clothing is expected to be low at first and then high in 2023, and the textile industry may face pressure from May to July.