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    Rational Investment In Textile And Garment Industry To Reduce The "Going Out" Failure Rate

    2015/3/2 10:59:00 9

    TextilesClothingTransnational

    In 2014, our country changed from capital importing country to capital exporting country, and the national strategy of "one belt and one road" also entered the implementation stage, as an early and deep participation in the international market. Textile and garment industry "Going global", "globalization" and "transnational resource allocation" have become the hot words for the industry to transform and upgrade under the new normal. How to better encourage and guide qualified enterprises to enhance their position in the world value chain through efficient and rational allocation of transnational resources, and ultimately achieve the goal of textile power, is one of the focuses of China Textile Industry Federation in the "13th Five-Year plan" of textile industry.

    On the eve of the Spring Festival, the assistant chairman of the China Federation of textile industry and the vice chairman of the textile industry branch of the China International Trade Promotion Council, Xu Ying Xin, told reporters that China's textile industry has entered a new stage of transnational layout. The industry needs to build a transnational supply chain and maintain a sustainable competitive advantage through active and prudent "going global", and at the same time, enhance the position of the global industrial value chain through outward expansion or cooperation through brand, technology and market channels. This year, the Ministry of marketing will provide more detailed and in-depth services for the industry in the form of special investment lectures, overseas market visits and round table forums, so as to help enterprises go further and better.

      Build "China +N" transnational supply chain

    Since last year, the total growth rate of China's textile industry has obviously slowed down. With the rising cost of production factors, cotton prices have been higher than 30% of the international market in the past 3 years. Environmental cost With the increasing year by year, the cost advantage of China's textile industry in international competition has gradually declined.

    How to effectively solve these constraints and make China occupy a more advantageous position in the global industrial division? The answer is to create a supply chain of "China + supporting countries" through the allocation of transnational resources. This is an important way for our country to deal with challenges at home and abroad, expand industrial development space, and build a strong textile power. It is also a main means to encourage enterprises to deploy transnational resources. As of the end of 2013, China's textile and garment enterprises set up about more than 2600 factories abroad, distributed in 108 countries and regions. Especially in the field of cotton spinning and knitting, there are many successful cases in China. Such as Tianhong Group launched 2 cotton spinning projects and 1 Textile Industrial Park projects in Vietnam, with a capacity of 1 million spindles, effectively avoiding the risk of high cotton prices in China, and making full use of the zero tariff policy of the China ASEAN Free Trade Area to sell products back to the mainland. Zhejiang Cole group makes full use of the advantages of US cotton materials and land and energy costs to invest in the air spinning project in South Carolina. There are also many large knitting enterprises, such as Shenzhou International, Dong Du group and AB group, which have invested greenbelt in countries with lower labor costs, such as Kampuchea and Vietnam, and have achieved good results.

    "China Intelligent Manufacturing" boost Independent brand Break through

    Another major task of transnational resource allocation is to transform China's textile industry from "made in China" to "made in China", and encourage and guide enterprises to acquire assets at raw material control, brand and technology level, in order to occupy a place in the high-end field of value chain and push more independent brands into the international market.

    In fact, China's textile and garment industry is increasing the number of brand technology and upstream raw materials for mergers and acquisitions in developed countries. For example, Ruyi Group acquired Australia cotton field farm, fyda Group acquired Canada's new West dissolving pulp company, and the silver cashmere industry purchased the world-famous British cashmere yarn producer Duncan cotton mill. These are the efforts of enterprises in breaking down the bottleneck of resource protection, acquiring brand and technology premium.

    At the same time, some excellent enterprises have opened the way of brand internationalization through different ways. The first way is to set up an independent brand for overseas market, such as Dong Shang and BASIC EDITIONS; the second way is to extend the internationalization of domestic independent brands, such as Bosideng, Jiangnan cloth and love, etc. the third way is to do OEM first, then master the needs of customers and the characteristics of overseas channels, and then develop to brand. The last way is to buy the existing brand and its market channels and design resources through overseas mergers and acquisitions. For example, in October 2013, Wan Shi Li successfully acquired MARCROZIER, a French silk enterprise with a history of more than 120 years, and invited the original Hermes silk holding group CEO to join in the brand operation of Wan Shi Li group.

      Rational investment reduces the "going out" failure rate

    Nevertheless, many cases of investment failure of textile enterprises deserve the industry's deep thought. Successful enterprises have their own characteristics, but there are many similar factors in failed enterprises. In this regard, Xu Yingxin said that many of the "going out" enterprises failed because of inadequate assessment of investment and acquisition risks, and on the other hand, because of the lack of international operation capability and brand marketing capabilities of Chinese enterprises. As a result, the China Textile Industry Federation hopes to guide textile enterprises to form joint efforts under the background of the National Grand Strategy and to cooperate with others to invest abroad and reduce investment risks.

    In addition, the market department of China Textile Industry Federation will deepen related services in 4 aspects this year: first, establish a database to track and analyze the situation of foreign investment enterprises; and two, continue to lead enterprises to fully explore the market. In the past two years, the Ministry of marketing has led enterprises to inspect the United States, Burma, India and Bangladesh. This year, the focus of the inspection tour will be Ethiopia in Africa. The three is to enhance the interaction between the three parties of enterprises, associations and governments, and to do well in communication services; and the four is to organize cross flow training for enterprises. Xu Yingxin said: "in March 18th, to be held in Shanghai, China International fabric and accessories (Chun Xia) fair, we organized a series of lectures on overseas investment of China's textile and garment industry," inviting financial experts and investment experts to provide training services for enterprises willing to go out in the light of overseas financing and risk. In order to make China's textile and garment enterprises go steadily, further and better, the market department of China Textile Industry Federation will do its best to provide services for enterprises to go out.


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