01
Dilemma
Industryshuffle is in progress
Since March, the unexpected “late spring cold” of the epidemic, the complex evolution of the situation in Russia and Ukraine, and the rising prices of raw materials have had an impact on the stable recovery of the textile industry, and market expectations have fluctuated greatly. At present, the triple pressures faced by the development of the textile and apparel industry of shrinking demand, supply shocks, and weakening expectations have not changed. Some unfavorable factors are still evolving in a complex manner, and new downward pressures have further increased. We must have a full understanding of the challenges and tests.
During the interview, the reporter learned that for Keqiao textile companies, rising raw material costs, unsmooth logistics, outflows of orders, increased inventory pressure, increasing congestion points in the industrial and supply chains, and tight cash flow are the main problems facing companies this year. basic normality. The extreme pressure brought about by the epidemic is like a mirror, clearly reflecting the strengths and weaknesses of Keqiao’s textile industry – a complete industrial chain does not mean that the industrial chain is strong. What is certain is that a quiet “shuffle” is underway.
“In the case of high inventory and low demand, the phenomenon of selling goods in the market occurs one after another.” Xiang Liqun, the person in charge of Shaoxing Daokuan Textile Co., Ltd., used “involution” to describe today’s industry competition. According to reports, the company mainly sells various types of curtain products, which are sold to Europe, the Middle East and other countries. As the domestic epidemic affects the smooth supply chain and the global epidemic affects the demand side, similar companies are facing the reality of sharp decline in orders during what should be the peak season for gold, silver and silver, and “price reduction” has become a measure for many textile companies to stimulate the market. one. “Even for orders that have been placed, the price increase of raw and auxiliary materials, the uncertainty of the delivery date of the dyeing factory, and the unsmooth logistics of finished products will affect the supply chain and franchisee relationships, laying hidden dangers for subsequent operations.” Are you considering expanding domestic sales? Proportion? Xiang Liqun admitted that transformation is not easy. “At present, the cake in the domestic market is getting smaller and smaller, and we are also facing a silent price war. Moreover, the rules of the game for foreign trade and domestic sales are different, and companies dare not make a U-turn easily.”
Xiang Liqun’s situation is almost a reflection of the current Keqiao textile enterprises. “Gold, Three and Silver” should have been the traditional peak season for textilefabrics companies, but now companies are stuck in the “quagmire” of product price cuts. It can be said that the recent price cuts in the market have exposed the current dilemma facing the textile fabric industry.
Shaoxing Jia Simin Textile mainly sells children’s clothing fabrics domestically. General Manager An Lun believes that although everyone still has hope for the future market, the situation of “big fish eating small fish” in the textile industry will become more and more obvious, and the market elimination rate will also continue to increase. However, the uncertainty brought about by the epidemic itself is even more worrying. Recently, Anlun has been doing two things every morning: turning on his mobile phone to check the latest progress of the epidemic nationwide; and taking turns asking customers with whom he cooperates frequently about the epidemic situation in their respective regions.
“Currently, as an enterprise, losing weight is the only way, and saving money to survive is the way out.” An Lun said frankly that the impact of the epidemic will still be reflected throughout 2022, and will involve technology and comprehensive services in the later period. capabilities, and even include some financial packages. For some small textile enterprises, it will be more difficult to build a sales network solely and rely mainly on price competition, because it is difficult for small enterprises to provide comprehensive services. This also means that in this competition, companies that focus on service will stand out.
02
Breaking the situation
Take the initiative to accelerate the search for new growth
The more difficult it is, the more it tests resilience; the more challenging it is, the more it inspires a breakthrough.
Recently, reporters learned from the China Textile City Construction Management Committee that in the first quarter of 2022, the China Textile City market delivered a gratifying answer and achieved a “good start.” . Data show that from January to March, the China Textile City’s fabric market turnover was 49.48 billion yuan, a year-on-year increase of 0.21%; the China Textile City’s online transaction volume was 15.49 billion yuan, a year-on-year increase of 42.42%. The turnover of the “online and offline” markets of China Textile City reached 64.97 billion yuan. This is today’s Keqiao textile economy: stability is the top priority and progress is made while maintaining stability. It’s a smooth start, with bright spots and difficulties; hope and difficulties. Opportunities and challenges are intertwined, and motivation and pressure coexist. Behind the data are industries, factories and workshops, as well as market merchants and thousands of lights.
The textile industry has a huge market and provides countless possibilities for enterprises, so enterprises are well aware of the importance of responding to drastic changes in the market through innovation. Dynamically adjusting production capacity and finding the second growth curve in an uncertain environment have become the primary rules for textile companies to survive during the epidemic.
“Currently, companies are further expanding production capacity on the basis of strengthening epidemic prevention and control, especially producing diversified products to open up markets and get back the time and orders delayed by the epidemic.” Business Manager of Zhejiang Huida Textile and Garment Co., Ltd. Gu Zhuowei said that the company currently ensures that epidemic prevention and production are balanced based on its own actual conditions. Huida Textile mainly deals in various types of cotton dyed fabrics and denim fabrics. It is a fabric supplier for internationally renowned brands such as Levi’s, Lee, H&M, and Uniqlo. Under the epidemic, Huida Textile is actively seeking to transform from B2C to C2B, and develops antibacterial, cold-feeling, aromatic, acetic acid and other series of fabrics from yarn raw materials, and continues to work hard on product functionality.
�� There are many textile companies in Keqiao that are rapidly transforming according to market demand. Textile companies such as Huida Textile are diligently practicing their internal skills, adjusting their product structure, increasing the proportion of textile products with strong versatility and functionality, and ensuring that their products There will be no worries about sales after the epidemic.
In addition to dynamically adjusting production capacity, more companies are choosing to seek new sales channels. Not only that, in order to expand the market, some companies have also imitated the popular online anchors and started online live broadcasts to make sales more innovative and thoughtful.
Daokuan Textile originally mainly used overseas exhibitions as its sales channel. Since 2019, the company has insisted on regular “one-on-one” live video broadcasts for customers, and has made curtain products into finished curtains and decorated exhibition halls for matching. Customers are provided with online services. Xiang Liqun admitted that compared with previous years, the effectiveness of online services has declined this year because the entire supply chain has been affected by repeated epidemics and the international situation. “But no matter what, we will still stick to our original intentions and services, and we will never lie down.” This is also the voice of many Keqiao textile companies. The more difficulties they face, the more they must show their talents.
03
Pattern
Control risks in the long term
The key to the economic work requirements of “stability is the top priority and making progress while maintaining stability” is whether market entities can stabilize expectations and develop steadily. When the epidemic becomes a fact, “perception” determines the “way out.” Each market entity connects the economic lifeline and urban and rural circulation, and is related to people’s daily necessities, food, rice, oil and salt, as well as three meals a day and four seasons. Under the current impact of exceeding expectations, Keqiao is lighting more policy “bonfires” to warm market entities and stabilize development expectations.
Shaoxing HaiangjinExport Co., Ltd. is a foreign trade company that focuses on the Nigerian market. Xu Qinfeng, the person in charge of the company, said that this year due to the rise in oil prices due to the conflict between Russia and Ukraine, the Nigerian exchange rate plummeted. At the same time, with the recurrence of domestic epidemics and safety issues, international logistics shipping schedules are tight and sea freight rates continue to rise. Under this situation, market procurement trade serves as a channel to explore new business opportunities. When the traditional foreign trade situation is unstable, products with invoices can be exported through general trade, and products without invoices can be exported through market procurement tradeGo out and adopt the two-legged approach of “general trade + market procurement” to stabilize your sales.
Individual industrial and commercial households have a deeper understanding of market procurement and trade methods. On the one hand, it is the integration of domestic and foreign trade at the operational mechanism level. Through the process transformation of “domestic trade in the transaction link and foreign trade in the logistics link”, small, medium and micro enterprises can use “domestic trade” Carry out “foreign trade” in the form of “trade”. On the other hand, it is a typical manifestation of specialized division of labor in the field of foreign trade. Market merchants only need to focus on transactions, and they do not need to participate in various complex and professional businesses in the export link. This is also the idea of most Keqiao enterprises that join the market procurement trade method. They hope that they are not only business owners, but also suppliers, and also foreign trade enterprises, running multiple lines in parallel to achieve highquality of the enterprise. development.
Responding to uncertainty with certainty is the confidence that governments and enterprises have in coping with it. The certainty lies in the many market entities that are sensitive to market information and capable of responding to crises, and also in the strength of the industry that has been cultivated for many years. Recently, in order to effectively undertake the provincial and municipal “5+4” policy system, accelerate the construction of “Strong Intelligent Manufacturing Districts”, give full play to the guiding and pulling role of policies, further optimize the industrial structure, stimulate market vitality, and activate corporate momentum, Keqiao The district issued the 2022 “Several Opinions on Promoting the High-Quality Economic Development of Keqiao” and formed a policy package to benefit enterprises. In addition to high-quality policies, the whole district has sorted out 19 policies to benefit enterprises, covering aspects such as expanding effective investment, reducing burdens and strengthening enterprises, scientific and technological innovation, and stabilizing and promoting two industries, among which 5 Each policy is a continuation of last year’s policy. This year, 14 new policies have been formulated. At present, the “Keqiao District “Major Project Year” Action Plan”, “Implementation Opinions on Further Promoting the Integration and Improvement of the Printing and Dyeing Industry”, “Shaoxing Keqiao” “Opinions on the district reducing the burden on enterprises and stimulating the vitality of enterprise development”, “Several policies on accelerating the construction of a “hometown of celebrities”talents to strengthen the district in the new era”, “On organizing enterprises to carry out stay-at-home programs” There are 5 policies including “Notice on Application for Policies to Support Industry Stability and Growth”.
The cultivation of new factor advantages is accelerated, and the comparative advantages of traditional factors exist for a long time. The epidemic lasted for more than two years. In this arduous historical test, Keqiao’s textile industry system and capabilities withstood the “stress test” and “refused to lie down and still faced every day’s work with 100,000 preparations.” This is The attitude shared by the textile companies interviewed this time is believed to be the inner monologue of all industry participants. In the current changing market, innovation has long been a consensus among enterprises in the modern textile industry chain. The window period for industrial modernization has arrived, and they must stand on the commanding heights and open up a new chapter in the changing situation.
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