Textile Industry: Stepping at the Crossroads of Adjustment and Transformation

Editor's note: Recruitment difficulties, financing difficulties, the difficulties encountered by the real economy in the textile industry unreservedly embodied; raw material pain, no brand pain, all of this, the textile companies forced to the crossroads of adjustment and transformation. How cold is the textile industry from spring?

Rising raw material prices, rising labor costs, and weak brand innovation capabilities... In the continued weakness of the international market, many drawbacks accumulating in China’s textile industry have become apparent. The next step is where to go –

This is not the first time for the textile industry to meet the challenge. From the decline in exports to the difficulties encountered in recruiting and financing, the difficulties encountered by the real economy are reflected in the textile industry without reservation; the pain of raw materials and the lack of brand pain all push the textile companies to the crossroads of adjustment and transformation. How cold is the textile industry from spring?

Obstacles to exit remain

Part of the transfer of orders is a normal state in the process of global resource allocation. It is arguable that China’s status change in the international textile industry chain is not desirable.

Declining orders for export-oriented textile companies means cutting off the fiscal path. According to customs statistics, in 2011, the total value of textile and apparel exports was 254.12 billion U.S. dollars, an increase of 19.9% ​​year-on-year; of these, export prices rose by 19.3% year-on-year, and the number of exports only increased by 0.5% year-on-year. In particular, in the textile industry, which is dominated by SMEs, the decline in orders means that it is difficult to sustain.

In this year's largely stable textile industry, large enterprises, self-owned brand enterprises, and domestic sales companies have relatively sufficient orders, while the difficulties faced by small and medium-sized micro-enterprises are more obvious, especially for export-processing small and micro enterprises. Sun Huaibin, spokesperson of the China National Textile and Apparel Council, said that in the first half of this year, China’s textile and apparel export demand will not be sufficient and competitive pressures will become more prominent. The number of industry exports will be low or negative.

Orders decreased, demand was suppressed, and the shrinking demand in the international market caused by the continuous escalation of the European debt crisis was the main reason. Another reason that cannot be overlooked is that not only has a considerable proportion of international orders begun to shift to Southeast Asian countries, but many large-scale textile and garment companies in China have also begun to set up factories in Southeast Asia. Many people questioned whether the competitive advantage of China's textile and clothing industry is gradually losing. Have you ever been proud of the advantages of the labor force? Is it necessary to end the "rice bowl" of low- and medium-end textiles?

Industry experts' answers are negative. The reason is that China has the most complete and mature textile industry chain in the world, and it also has a large number of skilled workers. Part of the transfer of orders is a normal state in the process of global resource allocation. Therefore, China's position in the international textile industry chain is changed. Not desirable. However, experts also reminded that they still need to pay attention to the risks and hidden dangers. Pursuing the maximization of interest is a normal market economic behavior. China's cotton circulation system is out of touch with the international market. Cotton prices are much higher than those in India, Pakistan, and Southeast Asian countries. This in itself will have an eviction effect, leading to the abnormal distribution of international resources. Looking back at the 2011 export data, China’s exports of pure cotton textiles have the most obvious decline, which also explains the problem to some extent.

Financing environment needs improvement

Problems such as large fluctuations in cotton prices, difficulties in financing and high financing costs are indeed affected by the relevant institutional mechanisms and constraints.

The state's policy of supporting small and medium-sized enterprises has been introduced one after another. However, the reporter found that most of the textile companies visited had few companies that thought they could enjoy policy support. Do you hope that the policy will be favored, isn't it the opinion of many textile companies? Why did the policy still feel like it passed?

"Policy support is certainly good, but once such a policy basically will not favor our company, and second, relying on the policy to resolve the circumcision is after all only temporary." A person in charge of Zhejiang's nylon company explained. This is not a single case. For most textile companies, many industrial and corporate support policies point to high-tech, new technologies, and new industries that have been flourishing in recent years. Traditional printing and dyeing, cotton spinning, and chemical fiber industries have been Into the setting sun industry, coupled with increasingly stringent energy-saving emission reduction targets, it is not difficult to understand the textile companies "proactively give up" policy favor.

Where does the policy force the most? The textile enterprises in Shaoxing and Xiaoshan are all asking questions. Textile companies in Shandong, Jiangsu, and Guangdong are also frequently asking questions. Compared with direct policy funding support, whether or not measures to open channels and reasonable tax structures will be more effective. Is it conducive to business development? “Industry acceptance policy has made businesses miserable, with interest rates as high as 20% to 40%. Bank interest rates are so high that they greatly exceed the company’s profitability. Companies are completely working for banks.” The state's financial policies for SMEs have not really landed, and they have not been able to enjoy it. Some medium-sized enterprises have become sandwich layers, and the supporting policies of large-scale enterprises and small and micro enterprises have not been covered.

These problems are not only faced by many companies in the textile industry but in the real economy. According to the relevant person in charge of the Federation of Textile Industry, fundamentally speaking, the increase in labor costs is still in line with the law of supply and demand, but the problems of large fluctuations in cotton prices, difficulties in financing, and high financing costs are indeed affected by the relevant institutional mechanisms. Constraints.

Many companies feel that the innovative environment is particularly important. The capital and effort needed to make a brand is too great. Once it starts, it is like two pedals are not in the muddy pool. It is often that “the rice is half-baked and the firewood has been used up.” In the numerous textile industries of SMEs, there are The ability to become a self-owned brand and become bigger and stronger is after all a minority. The birth of the brand is not the individual behavior of the company. It is expected that the brand will give power. It is still necessary to construct a comprehensive guidance strategy and support system.

Consolidate the foundation and speak of transformation

The external causes of the development of the environment and the market order are very important, but the internal causes of strengthening the bones and strengthening the foundation are even more important.

Difficulties in the word, textile companies are deeply chilly. However, in the survey, many textile companies left the reporter with the impression that they were not flustered, worried but confident. They said that the external causes of the development of the environment and the market order are very important, but the internal causes of strengthening and strengthening the foundation are more important.

Therefore, it is not difficult to understand why many companies did not retreat and decline, but chose to go against the trend and continue to break through innovation. For example, Shandong Textile Industry Association promoted the 3D clothing three-dimensional design system for enterprises, and Yaguang Home Textiles established a first-class logistics system. Yangxin Longfu has risen in the field of recycled polyester fibers, and Haisport’s exports have been successfully transformed into domestic sales. Zhejiang Hongfa will be On the basis of the polymerization production line, the technological transformation project for the implementation of nylon spinning has been carried out... In addition, the industrial textiles that have attracted much attention have maintained a rapid development and are becoming new growth points for the industry.

The technical input continues to follow, the industry and product structure are actively adjusted, and the brand is built toward the goal of “squeezing and shining”. In the eyes of today’s textile companies, innovation is no longer a hesitant move in the past. It is an inevitable choice for the life and death of the company.

It is necessary to provide sufficient information to promote the transformation and upgrading of the industry in the process of guiding the industry's transformation and upgrading. To achieve transformation and upgrading and to achieve the transformation of the textile industry from big to strong, it requires the joint efforts of the government, industry, and enterprises.

Regarding the focus of industry development, Wang Tiankai, president of the China National Textile and Apparel Council, believes that in addition to brand contribution and technology contribution, the more important thing is sustainable development, that is, resources, environment, and talent. “These aspects are to be a strategy. The basic point to fully promote, and make concerted efforts can really promote the textile industry from big to strong."