Qingdao's Textile And Garment Industry Is In Urgent Need Of Transformation Due To Weak Export Growth

This year, the downturn in external demand is spreading in the export oriented manufacturing sector. Affected by this, one of the pillar industries in Qingdao. Spin Garment exports showed a downward trend.

Data show that in the first half of this year, the city's textile and apparel exports amounted to 3 billion 360 million US dollars, down 3.2% from the same period last year. Recently, reporters in Jimo clothing base and other places interviewed learned that in order to cope with the downturn in the export situation, textile and garment enterprises have accelerated the pace of transformation and upgrading.

Export growth is weak.

"Prices fall, demand drops..." At present, our situation is far more difficult than the 2008 when the international financial crisis broke out. " As the head of a sizeable garment export company in the island city, facing reporters, Li Xingjian gave no secret of the company's current situation. He also told reporters that the days of individual peers were even worse, and some southern companies had already failed.

"Sales revenue in the first half of this year was basically the same as last year, and export growth was weak. From the order, the orders in the first half of 3 to April and the second half of the year are full, but this year, the order can only be maintained for 2-3 months, and the orders from foreign customers are not enough. Pan Weisheng, director of the party office of Qingdao Development Group Holdings Limited, told reporters.

During the interview, the reporter learned that the continuous downturn of the market made textile and garment export enterprises plunge into an unprecedented predicament. Many companies were short of orders, and the operating rate was seriously insufficient. Some enterprises had a stock crisis and a serious backlog of products. Statistics show that in the first half of this year, the export volume of 7 enterprises in Qingdao's garment export top 20 enterprises has declined to varying degrees. Of the top 20 textile export enterprises, 9 enterprises declined, and some enterprises' exports even dropped by more than half.

　 "Peacock Flies Southeast" staged

"In fact, the demand is not the most terrible, the most terrible is our gradual loss of competitive advantage." Li Xingjian said that labor-intensive industries are like migratory birds and wherever they go. With the weakening of demographic dividend and the rise of production factor prices, China's textile and apparel industry is losing its advantages in terms of human cost and land cost compared with emerging Vietnam and other Southeast Asian countries.

Statistics show that at present, the average wage of our textile and garment enterprises is about 188-300 euros, which is 2-3 times the lowest wage in the world textile industry in Bangladesh (about 80 euros). Vietnam, India, Pakistan and Bangladesh rely on cheaper raw materials and labor costs to snatch large quantities of overseas orders.

"Since this year, the orders we have lost have basically gone to Southeast Asia." Li Xingjian said, at present, many world class brands have transferred the foundry factories to Southeast Asia, or chose partners in Southeast Asia, which is simply a draw for us.

Transformation is the only way out

How can Qingdao's textile and garment industry achieve sustainable development?

In the view of Zheng Mingmei, President of Qingdao textile and garment industry association, Qingdao's textile and garment enterprises have not changed much over the years because of their "lack of independent brands, weak innovation ability, and the gap between Jiangsu and Zhejiang". According to statistics, at present, there are 739 textile and garment enterprises above Designated Size in Qingdao, but most enterprises do not have their own registered trademarks, independent brands and high value-added products. Exit The proportion is relatively low, and most enterprises still focus on OEM and sample processing. "For a long time, the vast majority of enterprises can only rely on earning processing fees to survive and exchange large amounts of resources for meager profits, which are basically at the low end of the international value chain." Zheng Mingmei said.

In the majority of respondents, the Qingdao textile and garment industry, which once had the reputation of "Qingtian", has been lagging behind in the same industry competition in China. The advantage accumulated over the years is weakening, and export pressure is inevitable. Pressure has spawned momentum. It should be said that Qingdao textile and garment enterprises are accelerating the pace of transformation.

Pan Weisheng said that while winning customers from fabric and style innovation, the marketing of independent brands has been increasing and is changing from ODM to OBM. In this year's grim situation, the price of products that are issued will increase by about 5% compared with the same period last year, and the output value of new products will continue to be over 45%.

Qingdao Phoenix dyeing and printing has focused its attention on process reengineering. We must invest heavily in energy conservation, emission reduction and environmental improvement. The integrated technology and device for recycling resources in the batik industry has been listed in the fourth batch of recommended catalogue of advanced technologies for energy saving and emission reduction in China's printing and dyeing industry, which has brought considerable benefits.

The red collar group is seeking breakthroughs in brand building. We have established more than 300 unified and standardized outlets in the country, and have entered the more than 20 countries and regions of the United States, Italy and Canada with their own brands, and established the flagship store of red collar international brand, and gradually developed their own brand overseas.

In an interview with reporters in Jimo, the reporters also saw that in order to enhance the competitiveness of enterprises in overseas markets, Jimo accelerated the construction of public service platform for garment trade, with a total investment of 260 million yuan. Now it has built up the inspection platform for garment materials and sewage treatment platform, the public technology R & D platform of the cedar group, the public service platform of the advanced custom design of the red collar group, namely, the 20 public service platforms of the public training platform for clothing, providing product design, R & D, testing and exhibition services for more than 400 garment enterprises in the base.

Analysis of the industry, clothing To solve the problem, we need to provide policy support in brand building, industrial chain improvement and personnel training, so as to create a lasting and healthy industry development environment and enhance the enterprise's "hematopoietic capacity".