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    Textile Fabric Sales Situation Showed No Signs Of Improvement

    2014/11/12 9:50:00 7

    Textile FabricsSales SituationSigns

    At the local level, the first Textile Expo held in Jiangsu (Shengze) was successfully held. The three day exhibition attracted more than 3 textile and apparel buyers from all over the world to search for business opportunities. For the two sides, more than 1000 orders of intent have been reached, and the number of fabrics to be traded is over 30 million meters, and the turnover volume is over 150 million yuan.

    In the China International fabric design competition sponsored by the China Federation of textile industry, Wujiang has a total of 168 fabrics finalists for China's popular fabrics. Of the 168 award-winning fabrics, 166 are selected by Shengze textile enterprises, reflecting the strong fabric research and development strength of Shengze textile enterprises.

    But in the view of Cai Xuexiong, President of Wujiang Silk Association, since the second half of 2012, Shengze's textile industry has been in the process of deep adjustment. "This year's market is not good, it is not prosperous and has many difficulties."

    Cai Xuexiong's statement was supported by data from the China Eastern Silk Market Management Committee: in the first three quarters of this year, sales of fabrics in Shengze's textile industry dropped by 12% over the same period last year. Since the beginning of this year, sales of textile fabrics have shown no signs of improvement.

    In depth Adjustment period

    There is no timetable for when to end.

    In the evening of October 22nd, Zhao Juguan, the deputy director of the Wujiang high tech Zone Management Committee and the director of the China Eastern Silk Market Management Committee, was interviewed by our reporter.

    In Zhao Ju's view, the main reason for the current plight of Shengze's textile industry is "overcapacity." According to incomplete statistics from the District Commission, there are 280 thousand looms in Wujiang now, and the capacity is 28 billion meters per year, accounting for 1/3 of the total output of the country. Among them, Shengze has occupied more than 60% of the total capacity of Wujiang's textile industry. No matter from which point of view, "too much volume" is almost a consensus among the parties.

    Zhao Juguan believes that Shengze textile industry must be viewed from the perspective of "world market". "From the worldwide perspective, the textile industry is gradually shifting to some Southeast Asian countries, and the amount of ASEAN is also going up." Because ASEAN countries sell textiles to Europe and the United States and have nothing to do with tax barriers, coupled with low labor costs and low energy costs, their products are highly competitive.

    Due to the diversification of trade means, Wujiang's fabric exports increased by 9% from 1 to September this year, but the domestic market was in a doldrums. However, the 9% increase in exports does not mean that the international market has fully recovered. The recovery of the US economy is tortuous. The European Union, on the whole, has not gone out of the recession except a few countries such as Germany.

    The two or three year downturn in Shengze's textile industry can be traced back to the international financial crisis that broke out in 2008. When the international market replenishing supplies in 2009, Shengze's textile industry had an illusion that it was the massive recovery of the market and the "golden age" of the textile industry. Shengze's textile production capacity increased sharply. However, since the second half of 2012, the continuous downturn of the market has hurt a lot of small and medium-sized enterprises. With the pressure of loan repayment and the continuous rise of labor costs, many enterprises are in a state of inadequate operation.

    Wang Jianyun, President of Wujiang Private Economy Research Association, believes that the textile industry can not be static. The most active factors of industrial change are cost and technology. "From these two points of view, the current situation of Shengze's textile industry is due to industrial transfer, and the other is the oversupply of medium and low-grade textile products and overcapacity."

    There is no consistent conclusion as to how long the textile industry is at a low ebb tide.

      Shrimp has shrimp road crab and crab road.

    A successful road trip. enterprise Also many

    For Shengze town with deep textile industry foundation and tradition, large and medium sized textile enterprises are everywhere, and smart Shengze textile people will not wait for death.

    "The day before yesterday, we are still holding a quality review meeting to discuss the current situation." On the afternoon of October 23rd, Gao Sujian, deputy secretary of Sheng Hong Group's Party committee, told reporters that since 2011, the profitability of the chemical fiber industry has been declining. Sheng Hong group is no exception. "When the market is good, the gross profit margin of a ton of silk can be 10%. Now 3% to 5% is not wrong. Sheng Hong has been regarded as one of the few profitable enterprises in the industry.

    Sheng Hong Group's annual production capacity of chemical fiber is 1 million 650 thousand tons. Mei Feng, chief engineer of Gao Su Jian borrowing group, said that as far as the world's per capita possession of chemical fiber volume is concerned, the capacity is far from enough. "From a market perspective, it can only be said that there is a surplus in stages." Gao Sujian believes that such a market situation also forced transformation and upgrading of the industry.

    Mei Feng told reporters that in terms of the industry status of Sheng Hong group, the group will not only focus on immediate interests, they will spend more energy, money and manpower on R & D. Sheng Hong group is currently committed to the development of biomass fiber, has broken the monopoly of the United States DuPont Co in the international market, China can compete with DuPont in this piece, only Sheng Hong.

    In 2013, Sheng Hong Group's sales volume was 51 billion 300 million yuan. Gao Su Jian predicted that with the launch of the Lianyungang PTA project of Sheng Hong group, the sales volume of the group could exceed 70 billion yuan this year.

    "Fu Hua's list is good, we can almost be flat, relatively stable." Xiao Yan, general manager of R & D Department of Wujiang Fuhua Weaving Co., Ltd., led a team of five or six people from the R & D department. She told reporters that Fuhua spent 5% of its sales on R & D, and now there are more than 400 new products developed every year. It has persisted for over ten years, and has better adapted to the needs of the market. Xiao Yan told reporters that the latest biodegradable fabric developed by the company can be directly degraded into carbohydrates without any impact on the environment if they are made into clothes. Xiao Yan pointed to another super thin fabric in the exhibition hall, telling reporters that the fabric was less than 20 grams of 1 square meters, and the commonly used material was 80 to 100 grams / square meter. "This fabric is more suitable for clothing in spring and autumn."

    In the interview with our reporter, Shi Qing Island, chairman of Fuhua weaving company, said that the textile industry in recent years is in a bad market and is a global problem. "Our main measure is to develop new products." In recent years, Fuhua has focused on the development of thin fabrics, thin fabrics save energy, and its functionality is not bad.

    Wujiang Yi Rui textile finishing Co., Ltd., located in Shengze Town Park Road, is an obscure small business. However, the nylon cold transfer printing technology developed by the company has broken through the industrial problem of nylon heat resistance and heat that is not able to bear the traditional printing method, making the company strong in developing new nylon printing market and becoming one of the most competitive enterprises in the printing and dyeing industry.

    "We have spent more than three years on the successful development of the cold transfer printing technology, and invested about 10000000 yuan before and after." Gao Wenzhen, general manager of the company, said that Yi Rui textile is committed to becoming a strategic partner of the global brand. At present, UNIQLO, chill Kong, JACK&JONES and other brands are already the customers of Yi Rui spinning.

    In some of the robust enterprises in Shengze Town, such as Han Tong jet weaving and double profit spinning, our correspondent has a certain scale, relatively few loans, stable customers, and also a leading position in the equipment industry, as well as a stable R & D team. These enterprises have strong ability to resist risks and have stable profitability.

    Adapt textile industry New normal goals

    Transformation and upgrading of Shengze on the road

    "Do not feel anything wrong when you see a drop. Many of these adjustments are rational regression. Cai Xuexiong believes that the survival of the fittest in the market economy is normal, which should be common sense for those who run enterprises.

    In Zhao Ju's view, the textile industry is at a low level, and the bottom up rebound should be the trend in the future. "I think that the medium speed development of the textile industry will be a new normal in the future." Zhao Juguan said that even after the recovery, the textile industry will not be as fast as before, and the growth of 5% to 6% is a new normal pursuit.

    However, even the growth rate of 5% - 6% has a major premise: Shengze textile industry must accelerate the pace of transformation and upgrading. For Shengze, the textile industry is no stranger to transformation and upgrading, and has tasted the sweetness. First, from silk to chemical fiber, in the commonly known "four big silk cities", only Wujiang has succeeded in transformation; two, the market oriented Oriental silk market formed in the middle of 1980s.

    Regarding transformation, Zhao Juguan believes that the first thing to do is to draw on historical experience and make articles on fabrics. Relying on a large number of chemical fiber fabrics, there is no way out. "For example, can we return to silk to some extent on the basis of raw materials?" according to Zhao Juguan, silk fabrics are popular in the international market. "The Japanese silk fabric is more than 400 grams per person per year, and our country has only 15 grams per person."

    Silk fabric is revival. What is the situation in Shengze town? According to the data provided by the China Eastern Silk Market Management Committee, the silk fabric produced in Shengze town accounts for only 0.5% to 1% of the total fabric.

    In addition, Shengze textile enterprises can also develop some comprehensive fabrics. From the first Textile Expo, Shengze's textile enterprises have been developing medium and heavy fabrics and functional fabrics. This also allowed some businessmen who came to participate in the Textile Fair to change the inherent concept of Shengze textile industry: producing only low value-added fabrics or thin fabrics.

    Zhao Juguan believes that with the improvement of living standards, people's requirements for health are getting higher and higher. Like the biomass fiber fabrics developed by Sheng Hong group, it should be a direction for future fabric development.

    Zhao Juguan told reporters that in the process of transformation and upgrading of the entire textile industry in Shengze, the market is also faced with problems such as upgrading the format. In order to form a shopping mall and comprehensive style procurement service, Shengze town is building the "Oriental textile city".

    For the transformation of the Eastern Silk Market, Zhao Ju Guan also provides another way of thinking, that is, the construction of "online Oriental Silk Market". "There used to be an idea that Shengze's textile products were mostly intermediate products and had no standards, so they were not suitable for online trade, but we could set standards without standards." Zhao Juguan said that e-commerce is a trend in the future, which can save a lot of costs.

    As an early test of water, Taobao Shengze industrial belt has been launched, including products from 100 enterprises. "These 100 enterprises are hand in hand to serve." Zhao Juguan said that the state owned market exchange helps enterprises to decorate and carry out marketing. "Our aim is to bring the transaction together first and open up the situation, and then build the two online e-commerce platforms of China silk net and market exchange into an online Oriental Silk Market".

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