According to the report on the China Economic Clothing Industry Prosperity Index, in the first quarter of 2011, the China Economic Clothing Industry Prosperity Index was 99.4 points, a decrease of 0.3 points compared to the previous quarter; The warning index of the clothing industry in the China Economic and Trade Corporation (CEC) is 120 points, a decrease of 6.7 points compared to the previous quarter, and it is operating in the "yellow light zone" cold area.

In the first quarter of 2011, China faced a labor shortage, rising labor costs, and a steady and accelerated appreciation of the RMB. Internationally, developed countries and regions experienced sluggish economic growth, and the European debt crisis spread. Multiple issues and pressures have had a significant impact on the operation of the clothing industry, resulting in a recent decline in the overall outlook of the clothing manufacturing industry and failing to continue the upward trend of the fourth quarter of 2010. Among them, the year-on-year growth rate of production and employment accelerated, and the year-on-year growth rate of fixed assets investment reached a historical high; Although the growth rate of indicators such as exports, sales revenue, and total profit has slowed down, the industry's sales profit margin has reached a historical high, and the loss area has further narrowed.

It is expected that various impacts will continue to deepen in the future. The combination of multiple unfavorable factors will make structural adjustment of the clothing industry inevitable. In the second quarter of 2011, China's clothing industry faced both opportunities and risks. Advantages: 2011 is the beginning year of the 12th Five Year Plan, and the upgrading of industrial structure, improvement of process technology and equipment level, elimination of outdated production capacity, and industrial transfer will become the dominant trend in the development of the clothing industry, which will promote the development of the clothing industry at a new level. Disadvantages: The unpredictable trend of international demand, increasing pressure on the appreciation of the RMB, tightening liquidity caused by managing inflation expectations, and increasing pressure on capital costs will pose significant uncertainties for the operation of the clothing industry.