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    Zhejiang Zhuji Sample: Conception Of Upgrading Industrial Cluster Roadmap

    2008/8/11 15:02:00 20

    Industrial Structure Of Textile Industry

    In the high cost and international market, China's textile industry is in increasingly difficult position.

    But the textile industry in Zhuji, Zhejiang, has achieved very rare achievements.

    In the first half of this year, the total output value of textile industry in Zhuji amounted to 32 billion 56 million yuan, accounting for 37.1% of the total industrial output value of the city, an increase of 11.1% over the same period last year.

    According to the statistics of China Textile Industry Association, as of May 2008, the average profit rate of the whole industry was only 3.97%, and the industry deficit expanded to 22.85%.

    Zhuji is an important manufacturing base in East China. The market share of socks, pearls, aluminum-plastic pipes, satin and embroidery machines ranks first in the country.

    A report by our reporter in Datang town of Zhuji showed that the hidden dangers of small and medium-sized socks enterprises and processing households were serious.

    At the same time, Zhuji computer embroidery machine industry is facing a loss crisis in the whole industry.

    The production and sales of the main embroidery machine enterprises have dropped sharply, and the development of the enterprises has been seriously restricted.

    "In the era of high cost, we must re-examine the traditional market model based on OEM and low volume."

    Zhang Handong, director of the Zhejiang international economic and Trade Research Center, told our reporter that Zhejiang's economy must overcome the current difficulties and achieve greater development in the future. We must establish a new market strategy and drive industrial innovation with market innovation.

    Behind the 11000 Datang socks Enterprises

    Datang town of Zhuji is the largest stocking production base in the whole country and even in the world.

    A document entitled "the basic situation of Datang Hosiery Industry in the first half of the year" shows that the hidden dangers of small and medium-sized socks enterprises and processing households are serious.

    According to the document, recently, the owner of Yiwu golden Wu group was unable to repay loans abroad because of its chain breaking. At least 40 hosiery enterprises in Zhuji, such as other places, were defaulted in receivables, amounting to millions of dollars.

    In response, a Zhuji official told the newspaper that "our industry has some operational risks and hidden dangers, so we need to study countermeasures as soon as possible".

    Among them, Datang town has gathered more than 11000 hosiery enterprises, producing 11 billion 900 million pairs of socks annually, making it the 65% largest share in the domestic market and 30% more shares in the international market. The annual output value of hardware in Dian Kou Town is 15 billion yuan, of which the production of aluminum plastic composite pipe accounts for about 70% of the whole country.

    But this "capacity overlord" has been greatly reduced in terms of efficiency.

    "Socks enterprises in Zhuji are mainly small businesses, and only 126 socks enterprises with annual output value of more than 5 million yuan, accounting for only 1% of the total, which once made the Datang socks industry fall into a passive position."

    Zhuji socks Management Association Fu Zhiqiang told reporters.

    Lou Zhijian, Secretary of Datang town Party committee, told this newspaper that the main reason for the good performance in the first half of the year was the annual order and some overseas orders due to the financial turmoil in Southeast Asia.

    Zhuji sewing machine industry loss

    Unlike the Datang socks industry, Zhuji computer embroidery machine industry is facing a loss crisis in the whole industry.

    According to the data released by China Sewing Machinery Association in July 10th, in 2008 1-5, China's sewing machinery industry's total industrial output value, sales value, industrial added value, gross profit and net profit and net profit increased, and 1/3 of the enterprises appeared to have a deficit.

    This is the first time in recent 8 years in China's sewing machine industry.

    As the main producing area of computer embroidery machine in Zhuji, the reaction is particularly obvious.

    "From the industry as a whole, the biggest difficulty now is the shortage of funds."

    Nagata Mihiro, director of the China Sewing Machinery Association, told our reporter that in June, the Sino Russian joint venture went to Zhejiang for emergency investigation. The results showed that almost all the small businesses were closed down, and the middle enterprises were in a semi shutdown state, and there were various problems in the leading enterprises.


    Yang Xiaojing, secretary-general of China Sewing Machinery Association, said that the homogenization of products was serious, low added value, insufficient independent innovation, and the market value chain was flooded with low-end products, which directly led to the urgent need to adjust the whole manufacturing industry structure.

    The problem in the sewing machine industry is that the downstream textile and garment industry is in arrears, and the funds are hard to recover.

    According to different sources, most textile enterprises including sewing machine industry have touched the bottom line of survival.

    Zhuji occupies more than half of the country's embroidery machine industry capacity, so the situation is even more critical.

    In June 21st, when attending the seminar on the sustainable development of computer embroidery machine industry in Zhuji, Yang Xiao Jing, Secretary General of China Sewing Machinery Association, learned that there were about 600 enterprises in the first half of 2006, but there are only 200 left to the present, and 50% to 60% enterprises have gone bankrupt.

    By 2005, the total output of Zhuji embroidery machine was 30000~32000, accounting for 45% of the national market, and basically formed a more complete industrial chain.

    According to the latest statistics of Zhuji economic and Trade Bureau, the embroidery machinery manufacturing industry in this year has realized output value of 2 billion 416 million yuan, a decrease of 3% compared with the same period last year, sales revenue of 2 billion 380 million yuan, a decrease of 2% over the same period last year, and the total profit of 260 million yuan, down 5% from the same period last year.

    Optimize the industrial chain

    Lou Zhijian, Secretary of Datang town Party committee, believes that to solve the practical problems faced by Datang socks industry cluster, we must change the path dependence of many socks enterprises in the industrial chain and the capital chain's low end.

    At the town people's Congress, Lou Zhijian proposed that the key to Datang's entry into the top ten towns of the whole country is to achieve a new breakthrough in the quality and brand of the socks industry.

    He calculated such an account: in 2005, the average export price of socks in the whole country was 0.26 US dollars / double, but the export price of Datang socks was lower than this price.

    If the export price of each pair of socks is raised by 0.1 US dollars, the whole Datang Hosiery Industry can add a net profit of nearly 10 billion yuan, which is equivalent to redeveloping a sock industry.

    Lou Zhijian told our reporter that the government led industrial cluster innovation is not reflected in the specific support of an industry or project, but to actively guide and plan for innovation, provide good public products and public services.

    Since 2000, Datang has invested billions of yuan, and has completed the construction of key projects such as the city of light textile socks, industrial supporting projects, and so on.

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