Domestic Sales Growth Exceeds Export Sales

According to the data released by the National Bureau of Statistics recently, the total retail sales of consumer goods in China this year amounted to 2 trillion and 555 billion 520 million yuan, an increase of 20.6% over the same period last year, of which 28.59% of clothing, shoes and hats and needle textiles increased by 28.59%.

First textile net released yesterday's "domestic textile terminal consumer market report" in the first quarter of 2008 showed that the demand for clothing for urban and rural residents in the first quarter of 2008 amounted to 158 billion 383 million yuan, up by 29.36% over the same period last year, the highest point in recent years, extending the trend of growth since 2006.

China's textile and garment industry has been relying on more than 40% of its export sales, but since 2008, it has been affected by unfavorable factors such as rising raw material prices, lowering export tax rebates and increasing labor costs. China's textile and garment industry has increased its total production cost by more than 10%.

The domestic market has a huge space to rise.

More and more export-oriented enterprises are turning to domestic sales because of increased export risks and lower profit margins.

Wang Yongli, deputy general manager of Guangdong Silk Textile Co., Ltd., said that over the past two years, the company has paid more and more attention to the domestic market, but whether domestic sales growth can resist export slowdown or extend the industry boom will largely be influenced by many factors such as the 2008 national macroeconomic regulation and control policy orientation.

Ma Xinzheng also suggested that the government should introduce more measures to encourage domestic demand and reduce savings so that Chinese factories could sell more products in the domestic market.