Chinese Mills Experience Strong Growth in Domestic Sales
Source: Globecotnews Date: 2008-07-21
The National Cotton Market Monitoring Service completed a survey of major textile and apparel industries to monitor sales growth to the domestic market. The study revealed strong sales growth; however, there was a slight slowdown from last year's very robust levels. This survey was conducted in segments; state-owned enterprises, private companies, collective enterprises, Hong Kong and Macau-owned, foreign-owned and other scaled enterprises.
Percentage of Sales Going to Domestic Market
The first survey question: What percentage of sales is moving to the domestic consumer? The survey revealed that the percentage of sales moving to the domestic retailer has increased. During January through May 2008, 84.75 percent of sales by state-owned enterprises moved to domestic retailers, 83.45 percent by private companies went to the domestic market and 83.58 percent by collective-owned enterprises went to the domestic market. The export business is dominated by foreign-owned enterprises. 55.31 percent of Hong Kong and Macao-owned company sales went to the domestic market, while 56.28 percent of foreign-owned company sales went to the domestic market.
All market segments showed an increase in the percentage of sales moving to the domestic market over year-ago levels.
Year-on-Year Percent Growth in Domestic Sales
The second survey question: What is the year-on-year sales growth to the domestic market? (Period covered is January through May 2008). All segments revealed strong year-on-year sales growth; however, gains were below year-ago growth levels, which were very robust. The greatest sales growth was led by privately-owned companies at 22.21 percent year-on-year gains. Hong Kong and Macau-owned companies experienced 19.06 percent sales growth, while foreign-owned company sales grew 16.84 percent. The slowest sales growth occurred from state-owned mills with sales gains of only 6.45 percent.
