In the 1970s, South Korea’s textile and apparel industry developed rapidly, which effectively promoted the Korean economy. In recent years, South Korea’s textile and apparel industry has strived to achieve a second industrial renaissance based on unique design and cutting-edge technology, while also strengthening cooperation with China. Recently, Zheng Dongchang, vice president of the Korea Textile Industry Federation, accepted an exclusive interview with People’s Daily Online to introduce the relevant situation of the Korean textile industry.
Reporter: First of all, please briefly introduce the Korea Textile Industry Federation.
Vice President Zheng Dongchang: The Korea Textile Industry Federation was founded in 1975 to explore the development potential of the Korean textile industry and provide support for the industry to gain international competitiveness. The federation has three departments including business planning, industrial support, and commercial marketing, with more than 60 employees. We provide support for expanding exports, international marketing, international cooperation, business activities, etc., while also working hard to cultivate talents and create jobs. In recent years, the Federation has also provided assistance in building big data platforms and building smart factories, which have attracted much attention in the fourth industrial revolution. In addition, environmental issues have received much attention recently, and the Federation also provides support for the field of sustainable development.
Reporter: Please introduce the current situation and future development direction of South Korea’s textile and apparel industry.
Vice President Zheng Dongchang: South Korea’s textile and apparel industry began exporting in 1955. In the early 1970s, the export volume reached 40% of the country’s total exports. Leading South Korea’s economic growth. However, starting in the 1990s, wages in South Korea have risen sharply, and the government has shifted the focus of the industrial structure to heavy and chemical industries. South Korean textile companies have moved overseas in search of low labor costs, resulting in a slowdown in domestic economic growth. In 2005, the original textile export quota system was completely abolished. Although it has experienced difficulties, the Korean textile and apparel industry still has a balanced manufacturing foundation of raw silk, fabrics, dyeing, processing, design and clothing. The textile and apparel industry now accounts for 11% of South Korea’s overall manufacturing industry. In the wave of the fourth industrial revolution, the two concepts of “speed dating factory” and “speed dating store” have given rise to the new term “speed dating factory store”. We are actively helping related industries to develop in this direction and helping them to pass the big Data enhances one’s competitiveness. After an industry develops for a long time, the processing and manufacturing environment will gradually deteriorate. Improving the processing and manufacturing environment, replacing production equipment with cutting-edge equipment, and improving production efficiency are all topics we are studying. In addition, we are helping companies develop various high value-added products, including industrial textiles, and we are also concentrating on encouraging entrepreneurship so that young people can devote themselves more to the textile and apparel industry.
Reporter: What results have Korean clothing companies achieved by entering China? What is an effective marketing strategy?
Vice Chairman Zheng Dongchang: Korean clothing companies began to enter China in 1994. In 1994, the women’s clothing brand “DECO” entered the Chinese market for the first time. In 1996, many companies such as “Yilian” began to enter China. However, although many companies have opened up the Chinese market, they know little about the Chinese market and have achieved little success. In recent years, Korean companies have begun to strengthen their localization by signing long-term patent licensing agreements with Chinese companies or entering into strategic cooperation with outstanding Chinese apparel companies. And recently, distribution channels have also shifted from offline to online. At the same time, exchanges among young people are also increasing, and their understanding of the markets of China and South Korea will be significantly improved in the future. The Textile Industry Federation also actively promotes cooperation with enterprises and institutions such as the China Textile and Apparel Industry and the China Textile Association. We also use relevant display platforms to help Korean companies more easily access the Chinese market. This year marks the 20th anniversary of the Korea International Textile Exhibition. Every year, more than 150 Chinese companies come to participate in the exhibition and cooperate with Korean companies. In addition, in 2003, we also held the “Preview in China” exhibition in China together with famous Korean designers. Now we are also cooperating with Asia’s largest fashion exhibition – China International Clothing and Accessories Expo.
