The textile industry transforms and seeks development amid shocks

Zheng Baoyou is the chairman of Fujian Jinlun High Fiber Co., Ltd., and he is currently preparing for a social gathering. Next month, heads of relevant upstream and downstream enterprises in the textile industry will gather in Changle City, Fujian Province, a major textile town, to discuss development strategies. ​
For some time now, the textile industry has been having a hard time. This is supposed to be the peak season for production, but the situation this year is worrying. Not only did many textile companies in Fujian not usher in the peak season, they were also deeply troubled by insufficient orders, reduced sales, and shrinking profits. Some companies even stopped some production lines. Zheng Baoyou believes that this is an opportunity. “Use this opportunity to develop new products and we will have new vitality!”
Like Jinlun High Fiber Company, many companies seek change through innovation, improve product differentiation and functionality, or introduce foreign advanced equipment, or strengthen product research and development innovation, or use “going out” to release excess production capacity and seek new opportunities. growth point. ​
​Dilemma under internal and external attacks
“At present, under the background that international market demand continues to decline and domestic cost advantages are gradually weakened, factors such as the rise of the textile and garment industry in Southeast Asia and the increasing capital costs of enterprises year by year have affected the overall efficiency of the Quanzhou textile and garment industry to decline.” In the recent meeting of Quanzhou City, Fujian Province At the seventh president’s office meeting of the second session of the Textile and Garment Chamber of Commerce, Zhou Shaoxiong, chairman of Septwolves, analyzed the current situation of the textile and apparel industry. ​
Fujian Province is the fourth largest province in textile and apparel exports in the country. The current situation of the province is also a microcosm of the downturn in the national textile industry. It is understood that in recent years, the overall growth rate of my country’s textile industry has continued to slow down. From 2011 to the first eight months of this year, the industrial added value of textile enterprises above designated size increased by 10.7%, 10.8%, 8.3% and 7.4% respectively year-on-year at constant prices. Especially in the first eight months of this year, the main indicators of textile enterprises above designated size have It entered single-digit growth across the board, with main business income increasing by 8.2% and exports increasing by 5.7%. ​
“The sluggish market, export difficulties, rising costs, and the large difference in domestic and foreign cotton prices have caused most textile and garment export companies to feel unprecedented survival crisis and development pressure.” According to industry insiders, the textile industry is in a state of shock due to “enemies from both sides.” ​
“Most of the textile and garment manufacturing enterprises in Fujian Province are small and medium-sized enterprises. The price difference between domestic and international prices per ton of cotton is large, and raw cotton alone requires higher costs.” The relevant person in charge of the Fujian Textile and Garment Export Base Chamber of Commerce said that since the country implemented cotton Since the introduction of the import quota system, only about 30% of the quota has been allocated to private enterprises every year, and many small and medium-sized private enterprises cannot enjoy it at all. ​
In addition, labor costs are rising steadily year by year. As a traditional labor-intensive industry, textile and clothing enterprises’ labor costs are increasing by 15% year by year, which also makes many traditional textile industries more and more difficult. “The salary of front-line workers is more than 3,000 yuan per month, while the salary of similar workers in Southeast Asia is only more than 1,000 yuan.”
​Differential development, each showing his or her own talents
Recently, Xiamen Yao Ming Ribbon Jewelry Co., Ltd. became the first “crab eater” in Fujian Province’s outbound processing business. Xiamen Customs inspected and released a batch of chemical fiber ribbons exported through outbound processing. The first shipment of export goods since the launch of the pilot work. ​
Outbound processing, the use of advanced equipment, strengthening product research and development innovation… Faced with difficulties, many textile companies have thought of many solutions. The path taken by many companies is to speed up the research and development and design of new technologies and new products, use innovation to drive industrial upgrading, enter into product areas in short supply and key links in the industrial chain, and promote the textile industry to move towards high-end and new types. ​
Shi Nenghui, president of Fujian Xunxing Technology Company, believes that the shortcut to relying on demographic dividends to reduce costs, raise funds and quickly expand to a large scale no longer exists. The main problem in the industry now is overcapacity, and transformation is imminent. “The more we are in a trough environment, the more we must bite the bullet and increase investment. The key is investment in science and technology. By continuously reducing costs, improving quality, enhancing production flexibility, and achieving no waste products and zero inventory, we can ensure that companies are in the market. An advantage over the competition.”
At present, the textile industry in various parts of Fujian shows differentiated characteristics. For example, Changle City has formed a textile industry system integrating chemical fiber, cotton spinning, weaving, dyeing and finishing, clothing, and textile machinery. It now has 1,053 textile enterprises of various types; Sanming City The city has formed a textile industry pattern that focuses on raw materials, cotton textiles, printing and dyeing, and also has a relatively complete range of categories such as knitting, clothing, and industrial textiles. There are 244 textile enterprises above designated size in the city. ​
It’s time for industrial upgrading
“Industrial development cannot continue at a high speed, and it is normal to have ups and downs. However, in the face of declining performance, we still need to look at and analyze the problem rationally.” Zhou Shaoxiong believes that the downturn in the textile industry is due to the economy. the natural laws of development. ​
According to Shi Zhengzhi, secretary-general of the Quanzhou Textile and Garment Chamber of Commerce, in order to maintain the competitiveness of Fujian’s local textile and apparel industry at this stage, companies must do their homework around industrial adjustment and upgrading. To resolve the survival crisis, we must start from optimizing the production capacity structure and improve the textile and apparel productionProduct grade. ​
“The company tightened its belt and took the initiative to make technical reforms, which was forced by the market.” Xu Shaozhen, chairman of Youxi Zhengquan Cloth Co., Ltd., said with emotion that Zhengquan is a medium-sized textile company, but it has invested 6,000 yuan in the past three years. More than 10,000 yuan was spent on technical transformation, reducing labor force by more than half and increasing production capacity by more than 20 times. ​
In the development process of Jinlun High Fiber Company, accelerating transformation and upgrading has become one of the secrets of the company’s rapid growth into an enterprise with an output value exceeding 10 billion yuan. “Every year, a large amount of money is invested to improve processes and improve product quality and performance. These are the ‘bones’ of the company.” Zheng Baoyou said. ​
Recently, the Quanzhou Textile and Garment Chamber of Commerce Fujian Provincial Public Service Platform for Small and Medium-sized Enterprises was officially launched. This is the first and only public service demonstration platform in Fujian Province to serve small and medium-sized textile and garment enterprises. After the platform is launched, it will cooperate with financial leasing companies to establish a long-term cooperation mechanism with textile and garment enterprises in Quanzhou, explore and solve the financing difficulties of small and medium-sized enterprises, and jointly assist the development of small and medium-sized enterprises.
​