Textile Industry: Remodeling Value Chain In Ten Years

In the uncertain era, the evolution of China's textile internationalization has gradually begun to be determined.

A clear signal is that in the past we exported cheap and beautiful products, and now Chinese clothing enterprises begin to export them.

In August 31st, Zhang Tao, vice president of Anta, was a "happy and untroubled" day.

On this day, Zhang Tao boarded the podium of the Business School of Columbia University in New York.

What Zhang Tao wants to say is "emerging Chinese companies are global business."

Professor Liao Jianwen of the Yangtze River Business School believes that "in recent 10 years, the emerging Chinese companies have undergone pformation and upgrading in many aspects, especially the pformation of the development strategy of many enterprises from low-end cost advantage to brand driven business."

In Liao Jianwen's view, Anta's visit to Columbia University is the representative of Chinese emerging enterprises' impact on the global business pattern through the idea of "creating China". It is the export of successful samples of Chinese enterprises to the US under the background of China's economic rise, and Chinese enterprises will face more competition from international enterprises in the future.

Anta is not a case.

In October 31st, Sun Huaibin, director of the China Textile Economic Research Center, told reporters that "the domestic market has been internationalized."

Some of our national brands and local brands have actually been competing in the domestic market and international brands.

Even more gratifying to Sun Huaibin is that some Chinese clothing brands have entered the world fashion capital of Paris, Milan, London, New York and Tokyo.

Ten years of gold

This is a valuable golden year for ten years.

As expected, despite the many uncertainties, China's textile industry has achieved a very definite growth.

Recalling the changes in the past ten years, the feeling of sun Huaibin is "no surprise."

From quota period to post quota era, the quota is limited to trade liberalization, from trade friction to anti-dumping, and then to trade protection; from subprime crisis to financial crisis, and then to debt crisis; from the rise of labor cost to the fluctuation of raw material prices to the appreciation of RMB, all the way is rough, but Chinese textile industry is still "mountain flower".

In 2002, "the three main economic indicators of China's textile industry's gross output value, profits and exports all reached a record high" - this news shows the most encouraging news in the ten major reports of China's textile industry that year's entry into the WTO.

In 2005, the textile industry continued to maintain an accelerated growth momentum in the first year of the post quota era, and the economic data reached a new high.

This election news once again proves the strong competitiveness of China's textile industry.

Data show that in 2010, China's textile exports totaled 206 billion 500 million US dollars, an increase of 75.72% compared to the 117 billion 500 million year old export quota of the global textile trade quota, which was increased by 75.72% in 2005, compared with 56 billion in 2000.

This figure is still rising.

According to the statistics of China's customs express, from 2011 to September, China's total exports of textiles and clothing amounted to US $186 billion 139 million, up 24.26% over the same period last year.

Textile exports amounted to 70 billion 904 million US dollars, an increase of 25.9% over the same period last year, and clothing exports of US $115 billion 235 million, an increase of 23.3% over the same period last year.

The change of quantity has also led to qualitative changes.

At present, China's textile exports account for more than 3 of the world's market share.

It is understood that in 2010, China's textile and clothing exports accounted for 32.71% of the global market share, compared with the 2000 before the accession to the WTO, China accounted for 15% of the total world trade doubled.

"China's textile industry has a relatively strong internal driving force, and its own industry adjustment and upgrading has always maintained a relatively high and relatively strong international competitiveness."

Sun Huaibin said, "under the complex and changeable international environment, we can still maintain relatively high growth. This shows that our entry into WTO will bring more opportunities to the textile industry as a whole."

Growth ceiling

The deterioration of the international trade environment is the reality that Chinese textile enterprises have to face.

Data show that from 1980 to 1989, China was accused of anti-dumping accounted for 4.6% of the total number of anti-dumping cases in the world; 1990 to 1999 reached 13.2%; from 2000 to 2009, China was accused of accounting for 26.3% of the total number of anti-dumping cases, and 2005 to 2009 was 34.7%.

Sun Huaibin admits that although the free trade under globalization has become a mainstream, trade barriers have not been eliminated with the advance of trade liberalization.

A semi annual report released by the World Trade Organization (WTO) in October 27th this year indicates that economic pressures are inducing the G20 group to seek protectionism and protect the domestic market in the wrong way.

The report found that despite the firm commitment of Member States at last G20 summit to limit protectionism, trade restrictions did not improve and countries did not take any further trade restrictive measures.

Predictably, removing trade remedy measures, technical barriers to trade and green barriers will become a stumbling block for Chinese textile enterprises.

After the abolition of quotas, the high degree of competitiveness of China's textile industry has caused some countries' dissatisfaction with us, and has risen to the government level.

So under such a background, it is not unusual to see all kinds of trade frictions and trade barriers.

Sun Huaibin said.

Sun Huaibin said this shows that our strength is growing.

"The stronger you are, the more people will stare at you. The more people stare at you, the easier it will be for trade friction and trade barriers. So we must face up to such a problem and despise this problem."

"The back of trade barriers represents the interests of different countries, ethnic groups and social groups, so we must learn how to avoid them in a reasonable and reasonable way in front of such diversified interests. In addition, we must regulate our own trade practices to deal with them, which is a test for us."

Sun Huaibin said.

More importantly, China's textile enterprises must rely on quality, not quantity, if they want to win in the new international environment.

"Chinese textile enterprises should intensify their industrial restructuring, cultivate their own brands with international influence, actively promote the international operation of textile enterprises, and improve the distribution of China's textile industry in the global value chain," said experts.

New internationalization

5 years ago, Hong Tianzhu decided to invest in Vietnam.

Hong Tianzhu, chairman of the board of directors of Tianhong Textile Group, the 10 largest enterprise in China's cotton textile industry, has been thinking about how to build the core competitiveness of textile enterprises in the future.

For Hong Tianzhu, it is an important way to internationalize the cotton spinning industry.

So far, the size of rainbow has reached 40 million spindles in Vietnam.

"In fact, the profits made by Vietnam in Vietnam are more than the domestic scale."

"The labor costs of China are rising now. Compared to the factories that come here, China's brand clothes are sold back to the mainland of China for sale," said Li Guo en, chairman of the Vietnam textile and Garment Association. "The labor cost saved is enough to digest the corresponding pport expenses."

Regarding this, Du Yuzhou, President of the China Textile Industry Association, said: "how to create world famous brand? Only when the ability of pnational allocation of resources is enhanced, can we qualify to create the so-called world famous brand.

We have already begun to do so, such as Tianhong has begun to operate internationally, but I hope it is not only a pnational enterprise, but also a pnational industry chain.

Relevant experts said that China is a major producer and exporter of textiles and clothing. Cultivating and expanding the export of its own brand clothing is the only way to enhance the competitiveness and economic efficiency of our textile and garment industry. It is also the only way for our country to pform from a big exporter of textile and garment production to a strong export power for textile and garment production.

"Anta does not make Nike in China, it wants to be Anta in the world."

Ding Shizhong, chairman of Anta's board of directors, is also an expression of the ambitions of Chinese textile enterprises.

However, Wang Tiankai, vice president of China Textile Industry Association, admits that the international marketing channels of domestic textile enterprises are still lagging behind, which has seriously weakened the international competitiveness of China's textile industry.

In Wang Tiankai's view, the next ten years will be a critical period for China to move from a big textile country to a strong textile country. The internationalization of the textile industry is the most important link. "But now the internationalization of the domestic textile industry has not yet formed a climate, and the process is still too slow."

"To close the door is not a powerful textile power, domestic enterprises to do strong or to participate in the international competition."

Wang Tiankai said that to build a textile power company, there must be a number of international textile enterprises with first-class brands, first-class talents, first-class marketing capabilities, first-class scientific research ability and first-class resource allocation ability.

Now, though some domestic textile leading enterprises have begun to develop the sales channels in developed countries such as Europe and the United States, the effect is not satisfactory.

"In general, it is because the international marketing channels of enterprises are too backward and not strong enough."