Outlook 2016 Textile Enterprise Transformation and Upgrade

Wang Tiankai, president of the China National Textile and Apparel Council, emphasized that in 2015, the main business income of textile enterprises above designated size is estimated to be RMB 750 billion. In 2015, the national textile and garment export value is estimated to be 292 billion US dollars.

The transfer of the textile industry to the central and western regions continued. The proportion of the company's main business income in the central and western regions to the entire industry rose from 16.8% in 2010 to 22.2% in January-September 2015. Xinjiang is a new investment hotspot. The pace of “going out” of textile enterprises has also been further accelerated. Key enterprises have accelerated their investment in manufacturing bases in neighboring countries and gradually began to develop into the high-end areas of industrial chains in developed countries.

The company attaches great importance to continuously increasing its investment in science and technology and achieving results. The brand awareness of the entire industry has been greatly improved and a brand system of the entire industry chain is being formed. A number of key technologies in the industry have made progress and been promoted. Digital and networking technologies are widely used in all aspects of the industry chain.

However, there are also many problems that plague the development of the industry, including: the domestic and foreign cotton spreads are still relatively large, and the quality of domestic cotton is declining; some industries have excess production capacity, low equipment utilization, high product inventories, capital turnover difficulties, and labor costs. As a result, the per capita wages of textile companies are 2 to 3 times that of Vietnam and 5 times that of Bangladesh; the integration of scientific and technological resources has not yet led to integrated innovation; R&D investment has been relatively insufficient, and innovative talents are still lacking; and textile companies are adapting to increasingly stringent environments. There are technical, management, and financial pressures under governance requirements.

In 2016, the demand for foreign major consumer goods is difficult to substantially improve, but the export boosting effect brought by the depreciation of *** or will make foreign demand improve. In the future, the growth rate of apparel investment in the textile industry will remain at a relatively high level, but industry leaders have already adjusted their inventory. In 2016, the overall supply and demand pattern of the textile and apparel industry will not change substantially from 2015.

The entry of fast fashion brands has increased the competition in the industry, the rapid development of the Internet, and the fierce competition in the textile industry. The cotton spinning capacity in Southeast Asia and Xinjiang will continue to impact the mainland market.

According to the law, a normal state of an industry is that 70% to 80% of enterprises can make profits, 20% to 30% of enterprises can maintain or lose profits, and enterprises need to see which “echelon” they belong to. The future is not the scale of the world, but several aircraft carriers in charge of the market, the subdivision of the field takes absolute advantage, the characteristics of the king.

Wang Tiankai, chairman of the China Textile Industry Federation, believes that in 2016, the complex and grim external situation will not change. Although the international market has positive factors for the accelerated recovery of the United States, the overall momentum for recovery is insufficient and it is difficult to change the weak trend. The downward pressure on China's economic growth is still prominent. It is still necessary to eliminate industrial excess capacity and optimize the economic structure. Although domestic demand will remain stable, there is no room for accelerated growth. In addition, external factors such as rising comprehensive costs, intensifying international competition, and arduous environmental protection tasks will still test the industry's ability to adapt and continue to maintain stable development. It is still critical to further accelerate transformation and upgrading.

In 2016, there are several issues companies need to focus on:

First, the export situation is more severe. The pace of overseas transfer of textile production capacity and orders such as cotton spinning and knitting has accelerated. The recovery in the international market was weak and the demand in emerging markets was slowing down. The tendency of enterprises to invest in Vietnam will be more clear, and they need to pay attention to the direction of production transfer.

Second, from a variety of perspectives, the growth rate of domestic demand has slowed down, and companies need to tap market potential. The more difficult the period is, the more they have to clench their teeth and the Long March of the Red Army, leaving behind elites. On the one hand, enterprises feel insufficient domestic demand. On the other hand, textile companies still have insufficient capabilities in product development and brand building. Compared with the rapid expansion of domestic sales of fast-selling brands abroad, they need to find gaps and accelerate their transformation. development of.

Third, the elimination of enterprises will be more cruel, excellent and excellent, no characteristics, the road will be narrower and narrower. In the future, whether it is market positioning or resource integration, it is necessary to rely on its own advantages to find a good position, fight a counterattack, and fail to close the industry. Only backward thinking will be defeated.

Fourth, shortage of high-grade cotton resources. Sun Weiting, chairman of Huafu Color Spinning Co., Ltd., believes that the high-grade cotton in 2016 will be relatively tight. To produce high-grade products, it is necessary to control these resources.