The Market Is Still In The Doldrums And The Textile Industry Has Entered A Period Of Deep Adjustment.

China Spin The industry is undergoing tremendous changes and challenges: soaring raw material prices, rising labor costs, shrinking foreign trade processing industry and global business transformation.

"At present, the global economic situation and the domestic market downturn are hard to reverse in the short term. It is not realistic to wait for market recovery to improve the industry."

Yang Shibin, assistant to the president of the China Textile Industry Federation, said that the Chinese textile industry is entering a deep adjustment cycle. Enterprises should speed up their efforts to seek technology to boost the market, adjust their product mix, abandon low, low end, low value-added products and turn to high-end, high-end and Gao Fu value-added products.

Industry seeks technology market increments

Yang Shibin disclosed that the China Textile Industry Federation is currently guiding the industry to study technological breakthroughs in order to bring about market increments and pull the whole market.

The latest statistics of the General Administration of Customs show that China's textiles in June clothing Exports of US $24 billion 90 million, an increase of 5.3% over the same period last year, was the same as last month, 8.5 percentage points slower than the 1-5 month growth rate. In the 1-6 months of this year, textile and apparel exports totaled 127 billion 210 million US dollars, up 12.1% over the same period last year.

In 2012, the maturity of aramid technology was highly expected by the textile industry. However, Yang Shibin said that the demand for aramid is limited, and it is difficult to pull the whole industry. The industry is investigating existing technologies and studying integrated solutions, but it is still in the exploratory stage.

Shi Meiwu, a senior engineer at the Quartermaster Equipment Research Institute of the General Logistics Department, said that the textile industry has to achieve breakthroughs in the source technology at present, but it can achieve certain breakthroughs based on the integration of existing technologies. For example, the introduction of clothing equipped with physiological and sensory equipment.

In fact, with the high cost of raw materials and manpower, the number of textile leading enterprises in China has begun to accelerate the pace from the low end of the value chain to the high end.

"The traditional profit model is losing its advantages. The textile industry can no longer repeat the old ways. We must look for new profit points under the two wheel drive of technology and fashion." Sun Weiting, chairman of Huafu color spinning Limited by Share Ltd, said in a recent interview with the China Daily News that as a leader of colored spinning, Huafu began to transform its value from "weaving and weaving" to "fashion industry". It followed the mainstream of green environmental protection, low carbon economy, energy saving and emission reduction, explored new spinning technology, improved spinning technology, and developed special environmental protection and energy saving new products using recycled cotton, regenerated polyester, regenerated silk and combed flax. Next, Sun Weiting revealed that Huafu will rapidly expand its territory through the establishment of production bases, subverting the competition pattern, attracting entrepreneurs, jumping to capital operation platforms, and transferring industries and developing Xinjiang. At present, it has formed the strategic layout of the four major plates of Zhejiang, Xinjiang, Changjiang and Huang Huai.

Coincidentally, Jiangsu sunshine group, the largest domestic fine wool production enterprise, has jointly launched the The Woolmark Company, an international textile Innovation and promotion agency, in Beijing, releasing its own brand new "woolen clothing brand" SUNDIVO "in Beijing", announces the "internationalization of Chinese textile manufacturing" to "create China". Chen Lifen, chairman of Jiangsu sunshine group, said in an interview with the China Daily News reporter that relying on the international platform to achieve technological breakthroughs is to seize the international high-end occupation garment material market, enhance the international industry position and innovation advantage of the sunshine group in the field of fabrics and professional wear, and steadily move towards internationalization.

At present, the sunshine group not only further strengthens its annual production capacity of 35 million meters high quality wool fabric, but also makes SUNDIVO professional wear fabric the largest and most diversified product line in China, so that it can provide personalized customization solutions for customers, including dispatching experts to solve problems for customers and providing a full range of after-sales service.

Chen Lifen believes that textile and garment enterprises can only get rid of the "ubiquitous" image of China's textile and clothing market and win the respect and premium of the market only by constantly evolving business models and constructing the right of fashion discourse.

In Sun Weiting's view, the world has entered the era of aesthetics and vision. Fashion, technology and environmental protection are the main directions of the development of China's textile industry in the future.

The industry policy of poor cotton prices is still uncertain.

It is worth mentioning that in the whole industry in the depth of the adjustment cycle, in addition to the industry's own technical breakthrough, trade associations are also working hard to improve the external environment.

The cotton price mechanism, which is increasingly worrying about the current game, is an illustration.

For the current cotton temporary purchase and storage policy, resulting in the spread of cotton prices at home and abroad, the decline in the competitiveness of the textile industry, the decline in the quality of domestic cotton, and the deterioration of the corresponding costs in the downstream textile industry, Yang Shibin revealed that the national development and Reform Commission has commissioned the cotton industry chain upstream and downstream to investigate cotton policies with different interest parties, providing operational policy recommendations.

It is learnt that the China Textile Industry Federation, which represents the profit demands of the textile industry, is also entrusted with the investigation of cotton farmers' direct subsidy policy. The findings will be referenced by the NDRC at the end of the year. Yang Shibin said that the Federation of Chinese textile industry led the implementation of full cotton subsidy, and suggested that the policy be implemented in the cotton producing areas of Xinjiang first.

"At the end of this year, the state will focus on the future cotton policy." Yang Shibin said, "next March, it is expected to issue official documents."

However, the China Commercial Daily reporter has learned that the relevant departments of the Ministry of agriculture, and the China Cotton Association, which represent the interests of cotton growers and farmers, are inclined to the policy direction of cotton farmers' direct subsidy and temporary purchase and storage. Relevant agencies will also conduct large-scale research in the near future and provide policy recommendations for implementation.

The textile industry can see the hope that no matter what policy will eventually be adopted, the cotton temporary purchase and storage policy that has been implemented for third years will be difficult to continue because of the problems of finance, inventory pressure and market weakening. The general direction of the policy adjustment of cotton farmers' direct subsidy means that the difference between domestic and foreign cotton prices will be narrowed gradually, which will benefit the textile industry.

But there are also different voices. Some textile workers believe that in recent years, the cotton price difference has, in a positive sense, forced a part of the textile enterprises with low expansion to speed up the pace of technological transformation, and in a sense accelerated the transformation and upgrading of China's textile enterprises as a whole.

Before that, the domestic textile industry has been expanding rapidly, and the latter needs a lot of raw materials. That is to say, the proportion of cotton declined year by year, from around 60% in 2000 to about 40%, but the annual cotton consumption remained at around 10 million tons for many years.