In January-February 2025, the total retail sales of consumer goods nationwide reached 8373.1 billion yuan, a year-on-year increase of 4.0%.

Among them, the total retail sales of Apparel Retail was 262.4 billion yuan, growing by 3.3% year-on-year, achieving steady growth against the background of warmer weather since the beginning of the year and the earlier timing of the Spring Festival, combined with a high base of clothing consumption.

According to the Research Reports released by China Galaxy Securities, it is believed that the domestic demand for clothing consumption will show a quarter-on-quarter improvement trend throughout 2025. The policy direction of the government to strongly boost domestic demand is expected to benefit from this.

The penetration of outdoor scenes, with domestic Sports leaders having competitive advantages in diversifying categories and refined management.

The recovery of home textile consumption scenes, with the support of consumption subsidies boosting demand. Focus on high-quality textile leading enterprises with excellent customers and international production capacity layouts.

Galaxy Securities' Research Reports suggest that AI is expected to be applied in more industries in the future. The textile and clothing sector, being an area where data interaction between the consumer end and production end is active, has already begun its digital and intelligent layout in recent years.

The upstream manufacturing sector reduces costs and increases efficiency through intelligent production, achieving data-driven management of the entire production process, building an intelligent device and data platform, and quickly responding to small batch, personalized Orders.

Digital intelligence drives the Industry from extensive growth to refined Operation, with the entire Industry Chain collaborating to promote high-quality and sustainable development.

As the application of industry + AI becomes increasingly widespread and mature, enterprise efficiency continues to improve. Leading enterprises leverage financial and scale advantages to achieve quality digitalization + AI construction and application. Since AI empowerment is more reflected in the internal Operation level of enterprises, larger leading enterprises experience greater marginal improvements in operational efficiency.

Listed companies related to the Apparel sector in the Hong Kong stock market:

Brand enterprises: TOPSPORTS (06110), SAMSONITE (01910), ANTA SPORTS (02020), LI NING (02331), XTEP INT'L (01368), BOSIDENG (03998)

Contract manufacturers: STELLA HOLDINGS (01836), Shenzhou International Group Holdings Limited Unsponsored ADR (02313), YUE YUEN IND (00551)