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    China'S Textile Trade "Soft Strategy" To Solve Market Predicament

    2012/11/15 20:45:00 22

    Textile And ClothingTextile ExportsTextile Trade

     

    China

    Spin

    clothing

    The strategy of industry should be changed from hard strategy to hard strategy and soft strategy, and clever strategy.

    How to solve the dilemma and stabilize exports? How to optimize products, markets, industrial structure and foreign trade patterns? The correct policy strategy stems from the understanding and analysis of the complicated factors in the special era of China's textile industry.


    China's textile and garment market share will continue to rise.


    In the ten years after the start of twenty-first Century, the two biggest influences on the world and China's textile industry were the demise of China's accession to the WTO WTO (2001) and the distortion of the multi trade agreement (MFA) of the trade system (2005).

    The termination of China's largest textile producing and exporting country joining the WTO and MFA led the global textile trade to take the lead in returning to the principle of free trade, so that the comparative advantages of all countries, including developed countries, were released, and the global textile and garment trade grew rapidly.

    During this period, textile exports from the world and China included fiber, textiles, clothing and

    shoes

    Exports of such products are growing, while China's growth is faster.


    In 2001~2010, China's textile exports increased by 4 times, and imports of clothing increased 3 times.

    Further analysis and prediction show that in addition to China's large imports of textile fibers, the export volume in the world market has been slightly reduced, and the export and market share of textiles, clothing and footwear will continue to rise.


    Global Sourcing Trends


    Lower demand for mid-range products


    The demise of China's accession to the WTO and MFA accelerated the restructuring of the global textile industry and returned to the process of trade liberalization. The distorted trade barriers were gradually eliminated, and the decisions made by international buyers were more reasonable.

    Manufacturing cost is still an important factor for buyers to choose the place of purchase, but this is only a part of the pfer of buyers' orders.

    A research report from the world bank reveals an interesting phenomenon: in the post MFA era, countries and regions with increased clothing export also have high wage countries and regions except for low wage cost countries, while middle income countries have seen little or even less export growth.

    In the financial crisis, buyers in order to avoid market risks, cater to the needs of fast market and personalization, increased the number of quick orders, urgent orders and supplementary orders, reduced the number of orders, increased the number of small orders, reduced the number of orders, increased the orders of low-end and high-end, and increased the growth of mid-range products.


    Winning the post "X" era


    China's textile and garment industry should respond


    After the "X" era, the world's textile and clothing trade will continue to grow. Although the financial crisis and the European debt crisis have led to a decline in demand in the international market, China's textile and clothing export trade is still the engine of economic growth, which is an important judgement and decision support for the development of China's textile industry.

    According to the above analysis, enterprises, industry and government should make corresponding strategies in line with the trend of industrial development in the post "X" era.


    Nowadays, the mode of "selling" and "buying and selling" export trade is losing competitiveness. Textile export enterprises should strengthen product development and original design, promote automatic storage and digital distribution, provide "one-stop supply", "packaged services", and create new trade mode.


    In addition, enterprises should try to make flexible manufacturing and improve trade circulation.

    Through digitalization and Internet, IOT technology, such as single piece production system (UPS), online design and RFID RFID logistics and distribution technology, to meet the market trend of fast fashion, low inventory, high turnover and multiple varieties.

    Such as Shanghai Jialin Jie.

    {page_break}


    Adhering to cleaner production, corporate social responsibility (CSR) and sustainable development is the foundation of an enterprise.

    Cleaner production and CSR are not only the soft constraints of the textile industry, but also the competitiveness of the industry and even the country.

    In fact, this is a necessary condition for international textile trade. Therefore, this should not be a passive strategy, but also an active strategy for China's textile industry.


    Improving trade environment, strengthening infrastructure construction and policy research.

    From OEA to OBM, value chain upgrading or flexible production chain integration requires higher requirements for pportation, communications, logistics, energy and financing.

    We should strengthen the systematic study of Taxation (including import and export tariffs), financing, import and export quotas, especially cotton raw materials policy.


    Without import, it is impossible to achieve comparative advantage. Excessive surplus will increase the pressure of RMB appreciation. The imbalance of import and export trade will easily cause friction.

    Lower tariffs and moderately enlarge import restrictions (including quotas) of raw materials, the industry should encourage imports of advanced textile equipment and promote industrial upgrading.

    In addition, imports of textile and apparel consumer goods with high end or complementarity should also be increased to meet the increasing domestic demand and raise the level of domestic fashion consumption market.

    In short, balanced trade policy can achieve inclusive, balanced, harmonious and sustainable development.


    Integration of China's textile and apparel supply chain.

    Building supply city (base) and trade platform is the need of the international market, and is also the unique advantage of Chinese textile relative to other textile exporting countries.

    Some industrial clusters in China have already had such an attempt and time, such as Yida, Zhejiang East is striving to become an efficient integrated supplier.


    The pfer of textile and garment industry and the optimization of regional layout should be accelerated.

    Regional homogenization and homogenization of textile industry are the fundamental reasons for industrial congestion and deterioration of competition environment. In the planning of industrial roadmap, all regions should have clear market objectives, form professional sector characteristics, clarify the corner color in the national industrial chain and even the global value chain, and in the third round of China's textile industry pfer process, determine the industrial location of each region to achieve the optimized layout of the national textile and garment industry.


    In view of the difficulty of financing for textile and garment enterprises, the government and relevant financial institutions should change their tight credit attitude towards textile enterprises, so as to foster the upgrading of enterprises from pure processing exports to brand design and research, even if processing export enterprises, as a result of changes in foreign trade patterns (such as one-stop foreign trade services), also need working capital and working capital.


    Re examining cotton policy is of great significance to the development of China's textile and garment industry.

    China is the largest fiber producer in the world. It is also the largest importer of fibers and the importer of fiber products.

    On the whole, the import of a large quantity of fiber materials and the export of fiber finished products are conducive to giving full play to China's comparative advantages, expanding the scale of China's economy and promoting the upgrading of China's economy.

    Therefore, we need to consider cotton import quota and tax system comprehensively, and we need to study the pros and cons of the policy.

    In any case, because of the price and quantity constraints of imported raw materials, the competitiveness of China's textile industry and even the inversion of domestic cotton prices and import yarn prices are obviously unreasonable.


    In addition, the government should also strengthen the construction of infrastructure and industrial living environment.

    These are not only hard facilities, such as communications, pportation, resources, etc. these aspects need to be improved, but more importantly, soft conditions, such as reducing traffic and logistics charges and costs, including government affairs and public services.

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