Where Will The Garment Industry Go And Its Development Prospects?

Analysis of the pfer path and development prospect of China's textile and garment industry

With the disappearance of the advantages of domestic labor dividends and so on, the textile and garment industry is turning into a trend of turning factories abroad.

Through overseas investment, we can make rational use of our own scale and industrial chain advantages, and avoid China's disadvantages in raw material prices, labor costs, trade technical barriers, and so on.

At present, the pfer of international textile and garment industry has gradually evolved from the gradient pfer of industrial structure to the gradient pfer of value-added links.

The pfer will not be completed in 35 years. We need to continue to give full play to industrial advantages and develop more high value-added areas.

Transfer of international textile and garment industry

General law of industrial pfer

First, from the labor-intensive industries, and then to the pfer of capital and technology intensive industries; the two is to pfer from relatively developed countries and regions to sub developed countries and regions, and then pfer from sub developed countries and regions to developing countries and regions; three, the completion of half of the international textile and garment industry pfer begins with processing and assembly, and then accumulates through capital, technology, management experience and so on, and finally changes to the localized production of parts and raw materials to achieve industrial pfer; four is international.

The technical level of industrial pfer is usually a technology that enters the stage of standardization.

At this time, technology is relatively stable, less technology input and cost advantages become the main constraint factors of competitiveness.

New characteristics of industrial pfer

First, investment in the third industry has become a new hot spot in international industrial pfer.

In the mode of investment, research and development and the third industry's foreign direct investment increased rapidly, and the proportion of investment increased at the same time; two, the international textile and garment industry was jumping.

The order of internationalization can start from any part of the pnational corporation system, and any part of the value added chain can be arranged in the place that can make the greatest contribution to improve the overall performance of the company. Three, production outsourcing has become a new mainstream mode of international textile and garment industry pfer.

Among them, OEM production, also known as fixed-point production, has become the main form of production outsourcing; four, the overall relocation trend of the international supply chain in the international textile and garment industry; five, the pfer of international textile and garment industry, gradually pferred from the gradient pfer of industrial structure to the gradient pfer of value-added links.

Among them, the global value chain is divided into three parts: technical links, production links and marketing links.

Multinationals seek the best allocation of resources globally. According to the characteristics of each country, they pfer all links to the countries that can best enhance their competitive edge.

The pfer route of international textile and garment industry

The textile and garment industry is a labor-intensive industry with some capital and technology intensive factors, which are mainly embodied in mechanical equipment, technological level and management experience.

The main direction of capacity pfer in textile and garment industry is chasing lower cost, and after the pfer of production capacity, the enterprises staying at the original production base concentrate more on high value-added links - high-end design and production.

R & D and production of new fibers, textile machinery, supply chain management services.

The picture shows the pfer route of the international textile and garment industry.

The picture shows the current value chain distribution of the global textile industry.

The pfer status of China's textile and garment industry

First, the pfer between regions in the country.

In most parts of China, the imbalance of economic development is widespread.

The pfer of industries from developed areas to underdeveloped areas can not only significantly reduce the production costs of enterprises, but also promote economic cooperation in the provinces.

The picture shows the current situation of China's textile and garment industry pfer.

The textile and garment industry in the developed coastal areas is pferred to the central and western parts of the country, in line with the state's industrial adjustment policy. It can win the support from all levels of governments in the central and western regions and enjoy many local preferential policies.

At the same time, favorable development conditions and preferential policies in the Midwest also attract overseas industries to enter.

For example, Xinjiang cotton textile industry.

Xinjiang is the largest quality cotton production base in the country, its cotton planting area accounts for 40% of the country, the total cotton output accounts for 60% of the country, and the cotton production accounts for 15% of the global cotton output.

In 2014, the national pilot cotton direct subsidy in Xinjiang, the target price direct subsidy policy will continue to stabilize the production of cotton in Xinjiang, and continue to enhance the status of the Xinjiang cotton industry in the country.

According to Xinjiang's opinions on developing the textile and garment industry to promote employment, Xinjiang set up a special fund of 20 billion yuan for textile and garment industry development, which is mainly used for textile and garment industrial park infrastructure.

Standard factory buildings, technological pformation of enterprises, construction of high standard printing and dyeing wastewater treatment facilities, as well as operation cost subsidies, spot price and freight subsidies, credit risk compensation, etc., will support the development of local textile and garment industry.

Meanwhile, Xinjiang releases ten preferential policies for textile and garment industry, and plans to drive 1 million people to employment in 2023.

Second, domestic enterprises are pferring overseas.

The pfer of domestic textile and garment industry is not only internal regional pfer, but also with the international textile and garment industry.

Since the emergence of international pfer, a number of textile and garment enterprises in China have pferred production bases to Southeast Asia.

It is understood that there are nearly 1000 Chinese textile and garment enterprises invested in factories in Vietnam, Kampuchea and other Southeast Asian countries, and more than 100 people have invested in Bangladesh.

In short, the domestic textile and garment industry can make rational use of its own scale and industrial chain advantages through overseas investment, and avoid the disadvantages of our country in terms of raw material prices, labor costs, technical barriers to trade, and so on, so as to complement each other's advantages and disadvantages.

Finally, the "opposite direction" shift.

The so-called "opposite direction" pfer, mainly refers to some textile and garment enterprises pfer their R & D centers, marketing centers, company headquarters, undeveloped areas to relatively developed areas or even to developed countries.

Such pfer can quickly create fame for enterprises and enhance their competitiveness.

The enterprises that undertake such "reverse direction" pfer in China are mainly concentrated in the developed large cities, such as Shanghai, Beijing, Guangzhou and Shenzhen, because these large cities have smooth logistics, timely information, developed scientific research power, complete modern service system and perfect industrial chain, all of which provide better development and opportunities for enterprises pferred from "opposite direction".

At present, many famous enterprises in the world have set up regional headquarters in China's developed large cities, reflecting the superiority of these cities in the allocation of global resources.

Development prospect of China's textile and garment industry

The rise of China's textile and garment industry depends on the cost advantage, but at present, with the gradual loss of cost advantage, the pformation of textile and garment industry is necessary.

The key is to find out their comparative advantages, find a breakthrough that can effectively increase the added value, and not just rely on the cost of compression to delay industrial change.

At present, the pfer of international textile and garment industry has gradually evolved from the gradient pfer of industrial structure to the gradient pfer of value-added links.

Although the cost advantage is no longer the same as that of the latecomer countries, we still have room for development in terms of scale, industrial clusters, infrastructure, capital and technology, combined with the pformation of brand suppliers to supply chain requirements.

First, China is the largest in the world.

Producers and consumers.

The annual output of cotton is about 6 million 800 thousand tons, and domestic cotton production can basically meet the cotton demand in the domestic market, and the textile and garment industries in Japan, Indonesia, Vietnam and Bangladesh need to rely heavily on imported cotton, yarn and fabrics.

In addition, China's chemical fiber production accounts for 80% of the world's total, with the world's largest production capacity of chemical fiber, and China's yarn, fabrics, clothing and footwear production ranks first in the world, accounting for more than 30% of the global market share.

Second, industrial clusters.

China is ranked first in all aspects of the textile and garment industry chain, and its industrial chain is complete. There are industrial clusters involving various links such as cotton spinning, chemical fiber, knitting, accessories, accessories and so on. This helps Chinese brands simplify the management of supply chain, shorten the reaction cycle, and strengthen the overall competitiveness of China's textile and garment industry.

Third, infrastructure.

China's infrastructure such as hydropower, pportation and logistics is perfect.

Fourth, the delivery time and quality of products are stable.

Influenced by the above factors, China's textile and garment industry has achieved good reputation in terms of delivery time and quality. China's manufacturing industry has gradually got rid of the image of cheap and low-end goods, and has formed a regional brand advantage compared with its competitors in developing countries.

Fifth, the domestic market is big.

The average annual compound growth rate of local clothing market in China is around 10%, far exceeding the growth rate of 0% to 3% in Europe and America.

In the domestic demand market, China's textile and garment industry does not need to pay import tariffs, the cost disadvantage is smaller, and orders respond faster.

On the whole, the global textile and garment industry is carrying out fifth international pfers. China's comparative advantage in terms of labor costs, investment policies, exchange rate environment and trade barriers is declining, and some textile and garment industries have been pferred to Southeast Asian countries and the Caribbean region.

However, due to the large scale of China's textile and garment industry, complete supporting facilities, broad domestic market prospects, and unbalanced regional industrial development, the pfer of textile and garment industry will not be completed in 35 years. We need to continue to pay attention to giving full play to industrial advantages and developing more high value-added areas.

At the same time, the direction of the pfer of textile and garment industry determines the future. The areas rich in textile related raw materials will receive more attention from the market and attract the inclination of relevant policies. Xinjiang, as an important textile raw material supply area, should be given enough attention.