Sun Ruizhe: Upgrading Of Textile Industry Concentration

< p > < strong > upgrading of industrial concentration is an inexorable trend < /strong > < /p >

< p > reporter: more and more advantageous resources in the industry are being concentrated to some large enterprises. But China's < a target= "_blank" href= "http://www.91se91.com/" > textile < /a > a target= "_blank" href= "target=" > clothing industry is still dominated by small and medium-sized enterprises.

How can large enterprises promote the coordinated development of SMEs in the supply chain? < /p >

< p > Sun Ruizhe: this involves the upgrading of industrial concentration.

From the perspective of social development and industrial development, the improvement of industrial concentration is an inevitable trend.

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After P reform and opening up, from the perspective of the stage of forming industrial competitiveness, first, the improvement of industrial concentration is due to the comparative advantage of labor cost in the industry, and we quickly establish a solid industrial foundation.

After that, with the passage of time, the clothing department of the Ministry of light industry was incorporated into the textile department, and clothing became an important part of the textile system. The important significance of the move was that the industry began to establish industrial matching and brought efficiency to our industry.

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< p > the development of the industry to the last century 90s was based on the Asian financial crisis of 1997.

Because of this financial crisis, the currencies of China's neighboring countries were competing for depreciation, while China fulfilled the responsibilities of the great powers and insisted that the renminbi would not depreciate. However, this brought great impact to China's textile a href= "http://www.91se91.com/news/index_c.asp" and the garment industry < /a >.

At that time, the loss of the whole industry was due to the original intention of technological pformation. The cotton spinning spindles were compressed from 40 million ingots to 10 million spindles.

What did not occur to mind is that the original intention of the technological pformation was to form a national retreat and advance, and the state-owned enterprises had largely retired from the competitive field of textile and clothing, and the private enterprises have been developing vigorously.

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< p > into the new century, with the global financial crisis in 2008 as the boundary, the textile and garment industry has entered a new stage of shuffling.

A typical phenomenon at this stage is the upgrading of industrial concentration, which will inevitably bring new driving forces for development: a number of excellent enterprises attract more human resources and grasp more market resources and obtain considerable benefits through their own investment in technological R & D, effective integration of supply chain and the establishment of effective business models.

We see that market resources and profits are tilting towards 1/3's good companies.

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< p > in the industrial chain, the more the industry moves, the more obvious the degree of industrial concentration will be. For example, some excellent chemical fiber enterprises and spinning enterprises are becoming more and more concentrated.

However, it is noteworthy that the textile industry has such a phenomenon: as a long cycle production industry, it has to face the fast fashion demand of consumers.

This brings us to a question of how to use this long cycle production to satisfy fast fashion.

The upstream has formed a concentration degree. It has to predict the whole market in the process of socialized production, and these enterprises must have strength.

The research and release of fashion trends should be divided around the rules of the industrial chain. The longer the time is, the longer the time cycle will be: 24 months ahead of the color release, 18 months ahead of the yarn, 12 months ahead of the fabric, and 6 months ahead of the garment.

As a garment closer to consumers, it should express fast fashion. However, there will be a relatively dispersed pattern in the type and scale of enterprises involved, rather than concentrated in the upstream.

Accordingly, the final concentration can be seen in two aspects: first, a number of upstream enterprises and brand enterprises are concentrating; first, there are still a number of scattered enterprises in the middle garment processing links.

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< p > reporter: you talked about industrial concentration just now.

In fact, in the supply chain management, there is also the integration of procurement in international trade.

It is more advantageous for the brand enterprises to concentrate their orders on suppliers.

But there is also a contradiction, many enterprises consider the cost changes and other risks, and do not dare to receive large bills and long lists.

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< p > Sun Ruizhe: indeed, in the international trade links, there has been a very important trend in the past 10 years: the integration of procurement and the integration of supply requirements have been continuously improving.

In 2007, I went to Germany, a company in the country introduced that before 2000, there are 20000 suppliers worldwide, reduced to 8000 by 2007, and will continue to shrink in the future, with a target of less than 2000.

This enterprise is a chain type business form, its purchase quantity is very big, needs in the quality, the delivery time and so on forms the pattern which matches with it, has the request to the supplier.

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< p > in recent years, with the change of exchange rate and the unexpected factors of raw material costs, many enterprises are afraid to take orders now, because they are afraid that they will cause losses.

This requires enterprises to have a judgement of market risks.

Nowadays, some large export enterprises will take advantage of some financial means to avoid risks, such as the use of banking related businesses, so that banks can lock in a foreign exchange rate and not allow enterprises to make losses because of exchange rate changes.

In addition, some excellent companies are also using commodity futures market, not just spot trading, but through this way to protect their long-term interests.

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< p > reporter: what about the smaller commodities such as wool, < a href= "http://www.91se91.com/news/" > Real Silk < /a > without futures market?

< p > Sun Ruizhe: this will test an entrepreneur's judgement of the market trend. How can they "greedy" when others are watching and fear, and enter a little more at low prices.

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< p > strong > pformation and upgrading to enhance the competitiveness of the supply chain < /strong > < /p >

< p > reporter: how can the role of the supply chain be reflected in the pformation and upgrading of enterprises? < /p >

< p > Sun Ruizhe: there is a big trend in pformation and upgrading. This direction must be universally applicable. For example, through technological, brand, talent and other efforts to promote pformation and upgrading of enterprises.

However, from the perspective of road choice, there is no uniform pattern.

The pformation and upgrading of enterprises can not regard the terminal brand building facing consumers as the only way.

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< p > according to the characteristics of the industry, brands can be divided into two categories: one is the industrial manufacturing brand, the other is the consumer oriented brand directly facing the consumer terminal.

There are many industrial manufacturing brands in Italy. They have established good cooperation mechanisms and ecological environment around some terminal brands, and have developed very well.

Italy has excellent fabric production enterprises, some of which have made an extension, such as Zegna, which started from fabrics, and then successfully pformed into an enterprise that has both fabric production and terminal consumer brands.

But more importantly, there are quite a number of enterprises in Italy. They focus on brand service and do their own products.

Many famous brand products in the world have the shadow of Italy enterprises, such as CHANNEL, DIOR and so on. These a target= "_blank" href= "http://www.91se91.com/" > brand clothing "/a" fabric is provided by many Italy fabric enterprises.

Italy's excellent industrial brand makes the consumer brand at the social level highly dependent on them.

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< p >, therefore, pformation and upgrading are not necessarily the way for all enterprises to make consumer brands.

As long as we build up our own characteristics and strength, we can make brands as well as industrial manufacturing.

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< p > reporter: now the pformation and upgrading of some industrial clusters including the eastern coastal areas are in full swing.

What other suggestions do you have for it? < /p >

< p > Sun Ruizhe: the eastern coastal areas, such as Dongguan, have a very strong industrial base, and there are also important market resources.

But now, its industrial base and market resources are challenged to a great extent.

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< p > from the perspective of industry, its manufacturing industry is trapped in factors such as rising labor costs. From the market perspective, some early developed regions such as Humen are coming from behind some central cities, and have a great momentum of substitution, such as Guangzhou, Shenzhen and other cities, which have made rapid progress in recent years.

That is to say, the market is not developing further in some traditional clustered areas, but developing rapidly in some central cities.

The reason is that the traditional market is mainly wholesale, but now these markets in the central cities have double functions of selling wholesale and retail, and a large part of the attention has been placed on attracting consumers.

The reason for this is that the business channel of the traditional Chinese department store business mode is very high, and the business cost is very high, and consumers and brand enterprises can not get enough profit. The booming professional market, such as the white horse business circle in Guangzhou, has become a brand incubator, where consumers can find clothes with reasonable price and reasonable style.

Therefore, traditional industrial clusters focus on the wholesale market, and are now being challenged by the specialized market of "wholesale + retail" in central cities.

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< p >, in these areas, if the industry is beginning to adjust the manufacturing industry in the past few years, the pformation and upgrading of the professional market is imperative now.

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< p > on the professional market, we can focus on the international trend, such as the evolution of traditional exhibitions and traditional markets in foreign countries.

In foreign countries, those exhibitions that were completely open in the past and could be attended only by paying money are almost invariably failed. Now these successful exhibitions have certain threshold, whether fabric exhibition or clothing show, they are a relatively closed circle, and their enterprises have the ability to product development and influence the market trend, such as MAGIC SHOW in the US, PV exhibition in France, and so on. This is the mode of Las Vegas.

The exhibition is no longer simply aggregated together to form a paction, but to become a qualified, able to cross the threshold of a common trading platform for enterprises.

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< p > foreign trading market is also changing, and a new mode has emerged, that is, the year-round display of brand.

This year-round display is aimed at channels and downstream franchisees, and it has a great impact on the existing exhibitions.

At present, some people are paying attention to this aspect, but no concrete practice has been carried out yet.

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< p > this year-round display and the successful exhibition just mentioned is a closed form. If it is not for its invited merchants, it will not enter the booth.

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< p > reporter: at present, whether the industry is in the process of pformation and upgrading or in the process of continuous development, the rise of labor costs is a prominent problem. What do you think of it? < /p >

< p > Sun Ruizhe: the rising cost of labor is a social problem.

On the one hand, the promotion of wage level can raise the income of labourers, on the other hand, it also leads to the rise of absolute cost of labor. Especially, compared with the cost of labor in neighboring countries, the comparative advantage of our labor factor cost is being diluted.

In this regard, we can only improve labor productivity by means of advanced equipment and upgrading labor skills, so as to offset the negative effects brought by the rising labor costs, and there is no other better way.

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P > the simple labor intensive industries, such as the middle and low end "a" href= "http://www.91se91.com" > clothing processing < /a >, will be challenged. It is an inevitable trend to pfer to the relatively low labor costs in areas with relatively low labor costs.

Nowadays, many enterprises are pferring industries outside.

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< p > reporter: the outward pfer of such industries is actually "going out".

Then, is it possible for an enterprise to go out to see its way to optimize its supply chain? < /p >

< p > Sun Ruizhe: in the whole supply chain management process, on the one hand, the core concerns are cost and quality. The basic competitiveness of enterprises can be formed through quality control and cost control. On the other hand, the advantages of dislocation competition should be formed in the aspects of product design, product development and business mode.

At the same time, enterprises should also pay attention to the safety concerns of consumers, environmental protection and other issues, because this is their social responsibility.

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< p > enterprises taking into account the reduction of market and resource allocation costs, going out is also a necessary step.

China's development actually benefited from globalization. In the process of reform and opening up, the layout of globalization has always been accompanied by the development of industries, that is, European and American countries have arranged their procurement throughout the world. China has seized the opportunity in the process of reconfiguration of such market resources and established an industrial system including the textile industry.

At present, Chinese enterprises are also focusing on the two aspects of resources and market "going out".

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< p > the first step out of the resource rate is a group of < a href= "http://www.91se91.com" > chemical fiber enterprise < /a >, for example, the group is China's largest viscose enterprise, it successfully acquired all the shares of Canada's new special cellulose Co., Ltd., which is a professional manufacturer of global wood dissolving pulp (commonly known as wood pulp); other enterprises in Brunei and other places seek to build more upstream development, and build factories for PTA, PX and other projects.

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< p > a group of brand enterprises going out of the market. Now, some brand enterprises have established their own brand terminal stores in some foreign countries.

Some brands have entered some developing countries, for example, Humen's YISHION has entered Vietnam. In Hanoi and Hu Zhiming, department stores can see YISHION brand; some brands have entered a higher level market, such as love has entered Singapore and other countries, Bosideng has opened flagship stores in the UK; and some brands are seeking to enter the European and American market areas, for example, Yaguang, home textile industry, has entered the supermarket including the United States, including WAL-MART, as an independent brand.

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< p > at present, domestic textile < a href= "http://www.91se91.com" > garment enterprise < /a > going out to focus on the penetration of cost and market channels, we can regard it as a strategic step of supply chain optimization.

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