China's Textile Industry Is Facing A Bottleneck Of Development And Needs To Establish A Transnational Supply Chain.

Wages continue to rise, raw materials are becoming more expensive, and basically no place to take. China Spin Industry is facing bottlenecks in development. A contingency measure is "going out", investing overseas, finding better ways of resource allocation, and building a more efficient multinational supply chain.

The purpose of "going out" is to reduce costs, avoid barriers and brand.

The "going out" of textile enterprises involves many industrial fields - cotton spinning, knitting, wool spinning, chemical fiber, etc. clothing Both home textiles and textile machinery are available, but their goals are basically the same.

However, labor, land and other cost advantages are the main reasons for many large enterprises to invest overseas.

The red bean group is one of the shareholders of Kampuchea Sihanouk port special economic zone (hereinafter referred to as the "West Port special zone"). The park covers an area of 11.13 square kilometers, and it is an export processing base specially designed for Chinese textile and clothing, hardware machinery and light industrial and electrical appliances small and medium-sized enterprises.

"The monthly basic wage of our park is about 100 dollars." Chen Jiangang, vice president of the red bean group, said that compared with Shanghai, it is indeed a lot cheaper, and the money saved can be transformed into the profits of the enterprise.

In contrast, Shanghai's operators earn $439 a month.

The enterprises entering the western port region can get the preferential standard factory buildings and land, and enjoy a series of tax preferences such as "no land use tax" by the Kampuchea government.

Hong Tianzhu, chairman of the board of directors of Tianhong Textile Group (hereinafter referred to as "Tianhong", 2678.HK) is considered to be an industry "geek". He started planning the global layout for the enterprise very early. In 2007, he invested $400 million in Tung Nai province to build a spinning mill.

According to China's cotton purchase and storage policy, China has formulated a unified purchase price for cotton, but this price is often higher than that of the international market. Last year, when domestic counterparts were still worried about the cost of high cotton prices, the profits of Tianhong increased by 7 times compared to that of the previous year, reaching 486 million yuan RMB, because of the cheaper raw cotton purchased in Vietnam.

But Vietnam is just a step in the global chess game. Hong Tianzhu also said that Tianhong bought 20 hectares of land across the Eurasian mainland, planned to build 300 thousand ingots, and bought 168 hectares of land in Uruguay, South America, and plans to build two factories in Turkey.

The main reason for investing in these two countries is neither the cost nor the market, but the opening of trade barriers. Originally, the tariff of textiles exported to Turkey was only 8%. In 2011, Turkey exported some developing countries such as China to the country and raised the tariff rate to 28%. In addition, the investment in Uruguay was also true, because as long as the local factories directly sold products, they could avoid the losses caused by high tariffs and other trade barriers.

Especially in Southeast Asia, since 2011, the EU has introduced a generalized system of preferences to the least developed countries. Some Southeast Asian countries are exempt from customs duties when they enter the European market, and the tariff on clothing from China is 12%. By investing in Southeast Asia, we can also reduce tariffs on exports to Europe.

In addition to reducing labor and raw material costs and avoiding trade barriers, some enterprises "go global" to enhance their brand image.

Bosideng is a well-known brand of winter clothing for domestic consumers, but it is rarely known abroad. Ding Jianxin, vice president of Bosideng group, said that after working for Nike and Adidas, Bosideng decided to go out with its brand image. From 2008, it opened the first store with Greenwood company, and opened a flagship store in London before the opening of the London Olympic Games in 2012. It has 80 brand stores in the UK.

Many enterprises have invested overseas to take up the top line and have a good relationship with the government. It is said that the red bean has brought the children of some senior officials in Kampuchea to domestic training for two years, and sent them back to work in the West Hong Kong Special Administrative Region.

But this is not enough. "There are more than a dozen ministers' phone numbers in the cell phone, which can be called at any time." As vice president of Huajian group, Hai Yu talked about leading the leading domestic company last year. shoes Exclaimed when exporters built factories in Ethiopia.

"Going out" is sometimes a good move, sometimes not necessarily. Hong Tianzhu commented: "in essence, it is a strategy. Do not emphasize the need to go out. It is not applicable to any enterprise. If the enterprise has difficulties in domestic competition and survival, it will not be able to" go out "because it requires capital, international teams and international market cooperation.

China is the largest textile producer and exporter in the world, but it is relatively weak in terms of human resources, especially in the absence of international talents. "Foreign language talent is not a problem, but to other countries, marketing and innovation of compound talents is too short."

"The most valuable achievement of these" go out "enterprises is to train a group of international textile workers belonging to China. Zhang Xiaoji, a member of the CPPCC National Committee who has long been concerned about the textile industry, analyzed.

In view of the problems encountered by textile enterprises in "going out", President Wang Tiankai said that the industry associations will conduct in-depth research, actively strengthen communication and coordination with relevant government departments, and study countermeasures and suggestions, so as to reduce investment risks and maximize the safety of textile industry capital.