As textile consumption growth in first- and second-tier cities slows, county-level markets are emerging as a key driver of domestic demand. In August 2026, nine government departments, including the Ministry of Commerce, jointly issued the "Opinions on Stimulating the Vitality of Lower-Tier Markets and Activating County-Level Consumption." The policy focuses on upgrading consumption channels, enriching brand supply, and improving service capabilities. For the textile industry, this is not just a policy dividend but a directional signal for industrial restructuring.
The policy prioritizes upgrading commercial facilities in counties. It calls for accelerating the renovation of traditional department stores and old shopping malls, and supporting the expansion of branded chain stores and discount retailers in county areas. This means that apparel brands that previously relied on first-tier city malls can now enter county markets at lower costs. Meanwhile, the standardization of township commercial centers and farmers' markets will provide new display and sales scenarios for home textiles and fabrics.
Brand penetration is another highlight. The policy encourages chain enterprises to accelerate expansion into lower-tier markets, simplifies approval processes, and supports the entry of domestic trendy products into counties. For textile companies, county consumers increasingly value cost-effectiveness and local cultural identity. Brands that can develop products with local characteristics and establish flexible supply chains will find it easier to establish a foothold. Conversely, cross-industry collaborations between local county brands and chain brands may spawn new product lines.
Modernized logistics is a core pillar of the policy. It emphasizes improving the efficiency of urban-rural distribution networks, promoting cooperation between postal services and express delivery, and supporting the construction of origin warehouses and cold-chain facilities. What does this mean for the textile industry? Improved logistics efficiency will directly reduce distribution costs in county markets, making small-batch, high-frequency replenishment feasible. For fabric and home textile companies, this means more precise responses to county orders and reduced inventory backlogs.
Notably, the policy also encourages online-offline integration, deepens rural e-commerce initiatives, and guides platforms to reduce commissions for county merchants. Textile companies that open county-specific stores on e-commerce platforms or collaborate with local livestreamers will reach consumers more efficiently. The policy's emphasis on "private label plus build-to-order" flexible supply chains aligns with the current transformation direction of the textile industry, and county markets will become a testing ground for this model.
From an industrial cluster perspective, the activation of county consumption will directly benefit textile clusters. For example, home textiles in Nantong, Jiangsu, fabrics in Keqiao, Zhejiang, and apparel in Dongguan, Guangdong—these clusters originally focused on exports or supply to major cities—can now leverage the policy to penetrate county markets. Nantong's home textiles, in particular, with their high cost-performance, align well with county demand, and the policy-driven channel expansion may lead to order growth.
For procurement professionals, the rise of county markets necessitates strategy adjustments. In the past, they may have focused on large wholesale markets or online platforms; now they can consider cooperating with local county suppliers, leveraging their market proximity to respond quickly to consumer needs. Additionally, the policy supports "one license for multiple locations" and simplifies approvals, reducing institutional costs for cross-regional operations, allowing more flexible county-level layouts.
Foreign trade enterprises face both opportunities and challenges. On one hand, county consumption upgrades may generate growth in domestic orders, helping these companies balance export volatility. On the other hand, long-standing reliance on standardized large-batch production requires stronger customization capabilities and channel management skills when pivoting to county markets. The policy's encouragement of "same quality for same products" and "high quality at reasonable prices" demands a balance between quality and cost, raising the bar for supply chain management.
Industry Impact
The county consumption policy's impact on the textile industry is structural. In the short term, commercial facility renovations and brand penetration will directly boost sales of home textiles and apparel. In the medium term, modernized logistics and e-commerce deepening will reshape county distribution systems. In the long term, flexible supply chains and localized production may alter the layout of industrial clusters. Companies need to choose their entry paths based on their positioning.