From Yahoo Finance: 2025-04-28 10:01:00

China’s fashion industry faces challenges as growth slows and tariffs impact the entire supply chain. Real estate struggles have led to asset losses for households, affecting consumption. Despite a 5.4% GDP growth in Q1, retail sales reflect lingering consumer doubts. Trade tensions and domestic uncertainties are reshaping the industry’s future path.

Textile sector hit hard by U.S. tariffs, impacting companies like Shenzhou International. Stock plunged over 17%, erasing billions from market valuation. Analysts predict earnings cut of 20%. Despite challenges, China’s domestic market remains strong. Brands like Anta and Shein are redefining Chinese fashion globally with agile supply chains and digital models.

Fashion industry diversifying to offset real estate reliance amid market cooling. Companies like Youngor are exploring industrial park partnerships for growth. Collaboration with Suijin in Jinjiang attracts textile-related enterprises, promoting innovation. Economist Chang Xiuze sees potential for growth via industrial clusters, addressing inventory issues and driving efficiency.

China’s fashion industry is adapting to trade tensions, real estate challenges, and shifting global markets. Companies are innovating supply chains, exploring new business models, and fostering industrial clusters for growth. The sector aims to balance pressure and potential, positioning itself for the next wave of global fashion innovation.



Read more at Yahoo Finance: Under Dual Pressures of Tariffs and Inventory, China’s Fashion Industry Seeks a New Breakthrough