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    How Does The Textile Industry Come Back From The Downturn?

    2013/11/18 12:13:00 31

    Textile Industry Is Coming Back.

    < p > 787 the sales volume of the dreamland aircraft is not only concerned by Boeing, but also a concern of Japan's "a target=" _blank "href=" http://www.91se91.com/ "textile" /a "company Dongli (Toray).

    < /p >


    < p > Dongli not only sells textile fibers, but also is a major supplier of carbon fiber in the global market.

    787 the main wing, tail and fuselage of the Dreamliner are made of carbon fiber.

    Carbon fiber is only 1/4 of the weight of steel, but its strength is ten times that of steel. It is widely used in aviation, automobile and sports products.

    Dongli is currently the largest producer of polyacrylonitrile based carbon fibers. In addition to Boeing, 50% of the carbon fiber used by Airbus Company is also from Dongli.

    < /p >


    < p > < /p >.


    < p style= "text-align: center" > < img border= "0" alt= "" align= "center" width= "279" height= "203" width= "" / "" > "


    < p > < /p >.


    The name "P" polyacrylonitrile carbon fiber sounds very harsh. Another name of its name is acrylic fiber, which is relatively familiar to people. As the name shows, the source of this carbon fiber is mainly used as "a target=" _blank "href=" http:// www.91se91.com/ ">" /a ". The textile business, including acrylic fiber, has been the foundation of Dongli's life. Now it is only one of Dongli's many businesses. Moreover, its profitability is only in the last few places in Dongli's business layout compared with the acrylic fiber derivatives and other new materials businesses.

    < /p >


    < p > Dongli was founded in 1926. Its business was to produce rayon.

    In the 2013 fiscal year ended March 31st, Dongli's revenue reached 1 trillion and 592 billion 279 million yen, fiber and textile business income 632 billion 150 million yen, accounted for only about 40% of the total income, Dongli also produced resin, film and other plastic and chemical products, Dongli polyester fiber film products in the world has 20% market share, in addition, Dongli also produces flat panel TV display screen film and liquid crystal color filter, as well as reverse osmosis membrane for water treatment.

    Dongli now defines itself as a manufacturer of advanced materials rather than a textile company.

    < /p >


    < p > the magnificent turn of Dongli has some reference value for China, the world's largest textile power country.

    Hong Tianzhu, chairman of Tianhong Group, has repeatedly complained to reporters that in China, the textile industry is regarded as a sunset industry by the relevant government departments and society, and is considered to have limited potential and a dim future. In fact, the textile industry has done well, that is a solid high-tech industry.

    < /p >


    < p > although the "sunset industry" of "a target=" _blank "href=" http://www.91se91.com/ "hat" /a "is boring, but it is not groundless.

    China is the largest textile country. A large number of textile companies have a place in the market, relying on the cost advantages of labor, land and resources. However, over the past thirty years of reform and opening up and economic development, the cost advantages of the textile industry have been gradually weakened. This is particularly evident from the performance of 02698.HK, the largest cotton textile company in China. Unfortunately, besides the idea of further compressing production costs, Wei Qiao textile seems to have failed to find a way to lead a better life in the future.

    < /p >


    < p > reporter found that from 2002 to 2007, the gross margin of Wei Qiao textile remained at two digits, and the gross profit margin of textile industry was 14.9%, 18.4%, 16.8%, 16.5%, 16.8% and 14.3% respectively.

    When the international financial crisis broke out in 2008, the rapid expansion of China's textile industry stopped abruptly.

    In those days, the gross profit margin of Wei Qiao textile was only 8.7%, and its revenue decreased from 18 billion 590 million yuan in 2007 to 16 billion 450 million yuan.

    < /p >


    < p > after that, although the international market rebounded to a certain extent after 2 years of continuous recession in 2010, the income and gross profit margin of Wei Qiao textile were restored to 17 billion 890 million yuan and 16.1% respectively. However, the outbreak of the European debt crisis in 2011 reduced the income and gross profit margin of Wei Qiao textile to 15 billion 230 million yuan and 1.8% of the ultra-low level respectively.

    < /p >


    In 2012, the gross profit margin of Wei Qiao textile rose to 6.8%, but at the beginning of this century, the gross profit margin of two digits could be gone forever.

    In the face of fierce competition, Wei Qiao textile's future strategy is to revolve around cost cutting.

    In the 2012 earnings report, Wei Qiao textile said: "Wei Qiao textile will reasonably control the production cost through the global procurement and the self-sufficiency of electricity and steam energy, and maintain and even increase market share in the market fluctuation situation through active sales strategy and flexible pricing strategy."

    < /p >


    < p > the strategy of doing business generally has two directions, one is open source, the other is throttling.

    Weqiao textile is a way of saving money, where the cost is low. Wherever the raw material is cheap, which family is purchased, it is like a nomadic tribe living by water and grass.

    If we are comfortable with this way of life and do not try to "open source", the hat of sunset industry will be buckled.

    < /p >

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