Textile Industry Seeks Technology Market Increment

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

"At present, the global economic situation and the domestic market downturn are difficult to reverse quickly in the short term, so it is unrealistic to wait for the market recovery to improve the situation of the industry."

On July 24, Yang Shibin, assistant to the president of the China Textile Industry Federation, said that China's textile industry is substantively entering a deep adjustment cycle. Enterprises should speed up the search for technology to drive the market, adjust the product structure, give up low spending, low-end and low value-added products, and turn to high spending, high-end and high value-added products.

Industry seeks technology market increment

Yang Shibin revealed that the China Textile Industry Federation is currently guiding the industry to research technological breakthroughs, with a view to bringing market growth and driving the overall market.

According to the latest statistics of the General Administration of Customs, China's textiles in June clothing Exports reached US $24.09 billion, up 5.3% year on year. The growth rate was the same as that of last month, 8.5 percentage points lower than that of January May. From January to June this year, textile and clothing exports totaled US $127.21 billion, up 12.1% year on year.

In 2012, the maturity of aramid technology was expected by the textile industry, but Yang Shibin said that except for some military supplies markets, aramid demand is limited and it is difficult to drive the industry as a whole. The industry is investigating the existing technology and studying the scheme for integration, but it is still in the exploration stage.

Shi Meiwu, a professor level senior engineer of the Military Equipment Research Institute of the General Logistics Department, said that the textile industry currently needs a long period to achieve original technological breakthroughs, but it can achieve some breakthroughs based on the integration of existing technologies. For example, clothing with physiological and sensory equipment is launched.

In fact, some leading textile enterprises in China have taken the lead in accelerating the leap from the low end of the value chain to the middle and high end in the face of the fact that high raw material costs and labor costs continue to eat up industry profits.

"The traditional profit model is losing its advantages. The textile industry can no longer repeat the old way, and must seek new profit points under the dual wheel drive of technology and fashion." Sun Weiting, chairman of Huafu Color Textile Co., Ltd., said in an interview with the China Business Daily recently that as a leading enterprise in color spinning, Huafu began to start from "textile weaving" The value transformation to "fashion industry" follows the mainstream of green environmental protection, low-carbon economy, energy saving and emission reduction, explores new spinning technology, improves spinning process, and develops new environmental protection and energy saving products with special appearance using recycled cotton, recycled polyester, recycled spun silk, combed flax and other raw materials. Next, Sun Weiting revealed that Huafu will rapidly expand its territory through the five stages of establishing production bases, subverting the competitive pattern, attracting entrepreneurial talents, leaping onto the capital operation platform, industrial transfer, and developing Xinjiang. At present, it has formed the strategic pattern of Zhejiang, Xinjiang, the Yangtze River, and the Yellow River and Huaihe River.

Coincidentally, Jiangsu Sunshine Group, the largest worsted textile manufacturer in China, recently joined forces with The Woolmark Company, an international fiber innovation and promotion organization, to release its self-developed brand "SUNDIVO", a new wool professional clothing fabric brand, in Beijing, announcing that "China's textile manufacturing" is on its way to the internationalization of "China's creation". Chen Lifen, chairman of Jiangsu Sunshine Group, said in an exclusive interview with a reporter from China Business Daily that relying on the international platform to achieve technical breakthrough is to seize the international high-end professional clothing fabric market, improve the international industry status and innovation advantages of Sunshine Group in the field of fabrics and professional clothing, and steadily move towards internationalization.

At present, Sunshine Group not only further strengthens its production capacity advantage of 35 million meters of high-quality wool fabrics every year, making SUNDIVO professional clothing fabrics have the largest and most diversified product line in China, so that it can provide customers with personalized customized solutions, including sending expert consultants to solve problems for customers and providing a full range of after-sales services.

Chen Lifen believes that only by constantly evolving business model innovation and constructing fashion discourse power, textile and clothing enterprises can get rid of the "extensive but not refined" image of Chinese textile and clothing in the past and win respect and premium in the market.

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

The industry policy of trapped cotton price difference is still uncertain

It is worth mentioning that, in the deep adjustment cycle of the whole industry, in addition to the positive technological breakthroughs of the industry enterprises themselves, the industry associations are also trying their best to improve the external environment.

The increasingly anxious cotton price mechanism of the current game is an example.

As for the current policy of temporary collection and storage of cotton, which has led to the expansion of the price difference between domestic and foreign cotton, the decline of the competitiveness of the textile industry, the decline of the quality of domestic cotton, and the worsening of the corresponding cost rise of the downstream textile industry, Yang Shibin revealed that the National Development and Reform Commission has entrusted different stakeholders in the cotton industry chain to investigate cotton policies and provide operational policy recommendations.

It is reported that the China Textile Industry Federation, which represents the profit demand of the textile industry, is also entrusted with the upcoming research on the direct subsidy policy for cotton farmers. The research results will be provided to the NDRC for decision-making reference at the end of the year. Yang Shibin said that the China Textile Industry Federation led the implementation of complete direct subsidy for cotton farmers, and would recommend that the policy pilot be carried out in Xinjiang cotton producing areas first.

"At the end of this year, the country will focus on discussing the future policy of cotton." Yang Shibin said, "In March next year, it is expected to issue an official document."

However, the reporter of the China Business Daily learned that the relevant subordinate organizations of the Ministry of Agriculture and the China Cotton Association, which represent the cotton planting industry and the interests of cotton farmers, tend to adopt the policy direction of direct subsidy for cotton farmers and temporary collection and storage. Relevant institutions will also conduct large-scale research in the near future and give policy recommendations for implementation.

The hope of the textile industry is that no matter what plan the policy ultimately adopts, the temporary cotton purchase and storage policy has been implemented for the third year. Due to financial, inventory pressure, market weakening and other problems, policy adjustment is inevitable. The general direction of policy adjustment of direct subsidy for cotton farmers means that the difference between domestic and foreign cotton prices will gradually narrow, which will benefit the textile industry.

However, there are different voices. Some textile industry people believe that the cotton price difference in the past two years has also forced some low-level expansion textile enterprises to speed up the pace of technological transformation in a positive sense, which has accelerated the overall transformation and upgrading of Chinese textile enterprises in a sense.

Previously, the domestic textile industry has maintained rapid expansion of production capacity, which requires a large amount of cotton raw materials. That is, the proportion of cotton used has declined year after year, from about 60% in 2000 to about 40% at present, but the annual cotton consumption has remained at about 10 million tons for many years.