County-level markets are becoming a key battleground for domestic demand growth, and textiles and apparel, as high-frequency consumer goods, will inevitably be at the forefront. In August 2026, nine ministries jointly issued the "Opinions on Further Stimulating the Vitality of Downstream Markets and Activating County-Level Consumption," which explicitly proposes optimizing consumption channels, enriching brand supply, and improving circulation modernization. For the textile industry, this is not only a policy boon but also implies deep adjustments in supply chain logic: shifting from "big city radiation" to "county-level direct connection."
Background
The policy document was jointly issued by nine ministries including the Ministry of Commerce, dated August 13, 2026, with document number Shang Liu Tong Han 2026 No. 371. It systematically deploys six major tasks, including supporting county-level consumption channel upgrades, promoting commercial business innovation, optimizing product supply, enhancing circulation modernization, and strengthening consumption guarantee capabilities. Several measures directly relate to the textile and apparel industry, such as supporting the downward expansion of branded chain stores, encouraging "private label + production on demand" flexible supply chains, and deepening rural e-commerce projects.
The policy particularly emphasizes learning from the "Ten Million Project" experience, meaning county-level commercial construction will focus more on local conditions and categorized implementation. For textile industrial belts, traditional clusters like Keqiao and Shengze may see new order sources, while categories like Nantong home textiles could achieve broader coverage through county-level channels. Notably, the document proposes "same quality and enjoyment for the same product in urban and rural areas," which imposes higher quality control and supply chain responsiveness requirements on brands and manufacturers.
Industry Impact
From the channel perspective, the policy encourages chain enterprises to accelerate downward expansion, simplifies approval processes, and promotes "one license for multiple addresses," which will reduce the institutional costs for brands to open stores in counties. For textile and apparel brands, this means faster store expansion in county markets, but also requires product structure adjustments—county consumers are more sensitive to cost-effectiveness and practicality, so brands need to develop targeted styles rather than simply replicating urban inventory.
From the supply chain perspective, the flexible supply chain model of "private label + production on demand" is explicitly written into the policy, providing a transformation direction for small and medium-sized textile factories. Traditional mass production with large batches will struggle to meet the fragmented demand of county markets. Factories need to enhance small-order, quick-response capabilities and build data-driven replenishment mechanisms with brands. Meanwhile, the policy supports supply chain enterprises in providing demand forecasting, inventory management, and other services to county-level retail entities, implying opportunities for third-party supply chain service providers.
Circulation is a pain point for county consumption. The policy proposes accelerating the integration of county commercial logistics and express logistics, promoting standardized pallets and turnover boxes, and strengthening cold chain service connections. For textiles and apparel, although not as cold-chain-dependent as fresh produce, logistics efficiency and costs still affect competitiveness in county markets. Enterprises need to reassess county-level warehousing layouts, consider cooperating with local logistics companies, or utilize policy-supported origin warehouses and centralized distribution centers to reduce delivery costs.
Additionally, the policy encourages "AI + consumption" and virtual reality emerging formats, providing imagination space for experiential consumption of textiles and apparel in counties. For example, virtual fitting rooms and immersive brand experience stores may become new means to attract young county consumers. However, these formats require high initial investment, and enterprises must assess county consumption capacity and investment payback periods to avoid blindly following trends.