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Textile and apparel industry in distress to survive expert pulse to deal with downward pressure

  • Categories:Industry News
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  • Time of issue:2024-08-22
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(Summary description)A few days ago, in Jining Jiaxiang County, Shandong Province, held the fourth annual meeting of China's knitting industry clusters, Alibaba and Wal-Mart's two market executives are overtime speeches, expressed its or from the industry clusters to select some of the best enterprise products, into the company's sales channel willingness.

Textile and apparel industry in distress to survive expert pulse to deal with downward pressure

(Summary description)A few days ago, in Jining Jiaxiang County, Shandong Province, held the fourth annual meeting of China's knitting industry clusters, Alibaba and Wal-Mart's two market executives are overtime speeches, expressed its or from the industry clusters to select some of the best enterprise products, into the company's sales channel willingness.

  • Categories:Industry News
  • Author:
  • Origin:
  • Time of issue:2024-08-22
  • Views:0

Textile and apparel industry in distress to survive expert pulse to deal with downward pressure

A few days ago, in Jining Jiaxiang County, Shandong Province, held the fourth annual meeting of China's knitting industry clusters, Alibaba and Wal-Mart's two market executives are overtime speeches, expressed its or from the industry clusters to select some of the best enterprise products, into the company's sales channel willingness. Industry sources revealed that the above two organizations executives to participate in the knitting industry cluster annual meeting, by the China Textile Industry Federation and the China Knitting Industry Association and other organizers of the special invitation, aimed at helping China's knitting enterprises to expand the market docking channels. At the same time, through their mature sales channels and management platform model, boost China's textile industry in research and development, production, quality control, market channel development and brand promotion, etc. to obtain the level of enhancement.

Economic downward pressure to increase the textile enterprise operations generally difficult

At present, the macroeconomic downward pressure to increase, the textile industry is facing a more complex and changing market environment. In the current annual meeting, China Textile Industry Federation, President Wang Tiankai with a number of industry data to explain the current textile industry encountered development challenges. He said, by the macro-economic impact of the textile industry this year, the pressure is still very large, enterprise production and operation of the difficult problem prevails, the tightening of sales channels, the market size continues to decline, especially in the export side of the problem is more prominent. Statistics show that from January to June this year, China's textile and apparel exports amounted to 128.38 billion U.S. dollars, a year-on-year decline of 3.08%; from January to July, textile and apparel exports amounted to 155.62 billion U.S. dollars, a year-on-year decrease of 7.195 billion U.S. dollars, a year-on-year decline of 4.42%. If calculated in accordance with the full year of 2014 textile and clothing exports of 306.96 billion U.S. dollars to the same level, means that the average monthly exports in the latter five months need to be completed more than 30 billion U.S. dollars, obviously there is a certain degree of pressure. In addition to this, from the production of raw material prices and other aspects of the factors are also affecting the development of the industry.

Chen Kaijie, director of the policy department of the political research office of the ministry of commerce, even more unapologetically revealed at the annual meeting, since 2010, China's foreign trade has been in a state of deceleration. in July 2015, China's textile and clothing exports amounted to 27.254 billion U.S. dollars, an increase of 7.52%, a year-on-year decline of 10.19%. Among them, textile (including textile yarn, fabrics and products) exports amounted to 9.515 billion U.S. dollars, a year-on-year decline of 5.86%; apparel (including clothing and clothing accessories) exports amounted to 17.739 billion U.S. dollars, a year-on-year decline of 12.36%. Foreign trade market share topped out, investment orders double transfer, the continued downturn in foreign demand, labor and other factors such as rising costs are further increasing the pressure on the operation of textile enterprises.

In the field of knitting, a speech material of Yang Shibin, assistant president of China Textile Industry Federation and president of China Knitting Industry Association, mentioned that during the “12th Five-Year Plan” period, although China's knitted fabric exports grew from 90.9 billion U.S. dollars in 2011 to 106.1 billion U.S. dollars in 2014, due to the fact that the export of knitted fabrics to the EU and Japan markets from January to May this year showed a year-on-year decline of 10.6%. EU and Japan market exports year-on-year negative growth of 10% and 17%, bringing more uncertainty to the market. The material also shows that from January to May this year, the cumulative amount of exports of knitted fabrics amounted to 23.73 billion U.S. dollars, of which exports of knitted garments showed a negative growth of 12.19% year-on-year.

Build quality control management system to revitalize the reputation of Chinese brands

Based on the analysis and judgment of the above grim situation, industry organizations and business representatives from a number of regions are looking forward to the meeting to find a better mode of development and breakthrough direction. Yang Shibin's core view that, whether it is the entire textile industry or the knitting field, in the long run, it is necessary for enterprise decision-makers to change the values of low-cost R & D and production operations, further improve the threshold of competition in the industry, strictly control the reputation of the market and the quality of the product, reconstructing the image of China's brand, and improve the cost of the market in exchange for space. At the same time, but also good use of the Internet, expand market channels, build a new marketing model.

Chen Kaijie pointed out that the current foreign trade development needs from “big into big out” to “excellent into excellent out” scale and quality control changes, which is China's manufacturing from the low end of the global value chain to the high-end extension of an important stage. Under this premise, China's industrial development and foreign trade will appear a series of changes: the main body level, from foreign-funded enterprises to private enterprises; advantages, from a single factor cost to technology, brand, quality, service and other competitive advantages; market power, from the introduction of processing trade to foreign investment in trade; policy incentives, from tax incentives to the decentralization of power, improve the supervision of the matter after the event. External cooperation, from the multilateral trading system to the multilateral and FTA dual-wheel drive and other development path.

In addition, Chen Kaijie also proposed that in the process of transformation and upgrading, on the one hand, it is necessary to seize the strategic development opportunity of “One Belt, One Road”, to explore new consumer markets, to seek for new cooperation platforms, and to seize new investment opportunities. On the other hand, it is necessary for the government to strengthen the market and policy guidance, play a good government in the export tax rebates, short-term export credit insurance, special funds for the development of foreign trade and economic cooperation, the implementation of import subsidies, reduce tariffs on imported consumer goods, and the issuance of preferential interest rates on import credit to stabilize foreign trade in a series of combination of punches. He specifically pointed out that the government should actively rectify the import and export linkage charges, deal with trade friction, and build a new trade platform; to decentralize and cancel administrative approval matters, guide the Chamber of Commerce to release information, promote industry self-regulation, and further improve the business environment for foreign trade; to promote the equipment manufacturing “going out”, and carry out production capacity tripartite cooperation; to promote the development of service trade, and expand the production service industry; to promote the development of the service sector, and promote the development of the service sector, and expand the production service sector. To promote the development of service trade, expanding the steady opening of productive services; to rely on overseas economic and trade cooperation zones, to support the labor-intensive industry clusters of enterprises “going out”; to support the development of cross-border e-commerce, market purchasing, foreign trade integrated service enterprises and other new trade modes; to formulate policy measures for the innovative development of processing trade.

Innovative sales and management model to boost the textile industry against the market soaring

Wu Yiguo, deputy director of the Small and Medium-sized Enterprises Bureau of the Ministry of Industry and Information Technology, said at the annual meeting: “It is urgent to concentrate the most advantageous resources to promote the upgrading of industrial clusters.” To this end, the Ministry of Industry and Information Technology has issued the Guiding Opinions on Further Promoting the Development of Industrial Clusters. The opinion puts forward twenty opinions in seven aspects to promote the transformation and upgrading of industrial clusters and further promote the development of industrial clusters. This is the first time since the establishment of the Ministry of Industry and Information Technology to promote the development of industrial clusters issued guidance. The reporter noticed that when interpreting the opinion of “highlighting the strengthening of industrial cluster informatization, and clearly constructing intelligent clusters”, Wu Yiguo highlighted the development of intelligent clusters under the development trend of “Internet+Manufacturing”, and the importance of promoting intelligent manufacturing and industrial Internet. Exploration and practice, emphasizing the construction of intelligent and interconnected industrial ecosystem.

The reporter found that, whether it is Yang Shibin's use of high cost to raise the threshold of competition in the industry, or Chen Kaijie's theory of transformation of the scale and quality control of foreign trade development, as well as Wu Yiguo's interpretation of the “Guiding Opinions on Further Promoting the Development of Industrial Clusters”, the two market executives of Alibaba and Walmart have given a positive response in terms of product quality and market reputation. Chen Jianhua, director of Alibaba Group's Taobao Industry Marketing Department, used the concept of “Made in China” to introduce the story of Alibaba's 170,000 pairs of shoes sold in three days. Through the analysis of big data, Chen Jianhua believes that China does not lack a market, the most scarce is high-quality products and reliable market reputation, as well as good sales channels.

Compared with Alibaba, Walmart adopts a contractual approach to quality control, and carries out all-round production process and quality control, which includes supply chain links such as R&D, production, transportation, environmental protection, employee welfare and treatment, and safe operation of equipment. Walmart Group Asia Director Fan Sijiang said that as a global branding agency, Walmart hopes to promote the supply chain security audit program to all markets around the world, requiring that all factories exported to Walmart's global retail market must pass the supply chain security audit, and all qualified business partners should participate in the supply chain security program for risk control. A set of data from Walmart shows that within the online shopping market, apparel is still the category with a high penetration rate of online shoppers (81.8%), with a market share of 26.5%. Some industry insiders point out that if China's textile enterprises can manage their enterprises with the quality control requirements of the above two organizations, they will usher in a new opportunity for the development of market scale.

Reprinted from “China Textile Network”.

Yulun (Vietnam) Spinning Weaving Dyeing Co., Ltd. is a large-scale textile enterprise and a multinational company, which has been established for more than 70 years. The main products of the group are cotton, pure chemical fiber, blended, bamboo four series of more than 60 varieties of yarn, as well as a variety of fine-count high-density fabrics, high-grade blended interwoven fabrics and other blank fabrics.