In 2019, the total retail sales of consumer goods totaled 4.1164.9 trillion yuan, a nominal increase of 8.0% over the previous year (a real increase of 6.0% after deducting price factors; nominal growth is all below except for special notes). Of this, the retail sales of consumer goods other than automobiles reached 3.7226 trillion yuan, up 9.0%. In December 2019, the total retail sales of consumer goods totaled 3877.7 billion yuan, up 8.0 percent year-on-year. Of this, the retail sales of consumer goods other than automobiles amounted to 3.344.9 trillion yuan, up 8.9%.

According to the report on Market Competition and Investment Value Assessment of China's Shoes, hats and Apparel Industry 2020-2026 released by Zhiyan Consulting, from January to December 2019, the retail sales of shoes, hats and apparel in China increased by 2.9% year on year, 5.1 percentage points lower than the growth rate of total retail sales of consumer goods in the same period.

In 2019, China's total merchandise consumption reached 3.6498 trillion yuan, up 7.9% year-on-year. According to statistics, footwear, headgear and apparel consumption accounted for 3.7% of retail sales in 2019, the lowest share in nearly five years.

Retail sales of shoes, hats and apparel reached 1,351.7 billion yuan in 2019, down 19 billion yuan from 1,370.7 billion yuan in 2018. It is expected that the consumption of shoes, hats and apparel in China will remain stable and have a long trend in 2020. It is estimated that the retail sales of shoes, hats and apparel in China will reach 1.374.2 trillion yuan in 2020, with a growth rate of about 3.3%.

The shoe and hat industry realized revenue of 9.02 billion yuan in 2019, down 4.9% year-on-year, revenue of 1.54 billion yuan in the first quarter of 2020, down 35.5% year-on-year, net profit of 2.0 million yuan in 2019, down 33.9% year-on-year, net profit of the first quarter of 2020 -0.1 million yuan, down 105.6% year-on-year. In recent years, the shoe and hat industry continues to be weak, mainly because the main industries of relevant listed companies are mainly leather shoes, but the trend in recent years is sports shoes and casual shoes, leather shoes consumption continues to be depressed.

The gross margin of the footwear and headwear industry in the first quarter of 2019 and 2020 was 41.3% and 41.7% respectively, down slightly from 42.0% in 2018. Sales expense ratio and management expense ratio were 22.7% and 9.6% respectively in 2019, up 0.4 percentage points and 0.2 percentage points respectively from 2018. It continued to rise to 26.4% and 10.5% in the first quarter of 2020.

In recent years, the inventory turnover rate of shoes and hats industry has been basically stable. The inventory turnover rate in the first quarter of 2019 and 2020 is 2.1, which is basically the same as that in 2018. In addition, the accounts receivable turnover rate has decreased significantly, dropping to 4.0 and 3.6 in the first quarter of 2019 and 2020, reflecting that the inventory of the direct channel remains benign and the inventory is expected to increase in the context of weak terminal sales due to the weak operating capacity of the franchise channel.