How To Go Out Of The Spinning And Weaving Industry To Become A World Textile Power

There are two main ideas for the next step of "going out" in the spinning and weaving industry.

Before reform and opening up,

The supply of products is in short supply. The industry mainly solves the problem of dressing all the people of the whole country. It must save food and clothing and extrude some textile products for export in exchange for foreign exchange.

After the reform and opening up, the capacity of the industry was released, and the supply of tickets was cancelled in 1983.

It has become the largest foreign exchange earning industry in China.

Today, the capacity of the industry has been fully released. My fiber processing capacity exceeds 50% of the world, and the volume of trade exceeds 1/3, becoming the world's largest exporter of textiles.

"Under such circumstances, relying solely on the output of products can no longer meet the needs of the development of the industry itself, and capital development is inevitable."

"Only when we face two markets and use two kinds of resources to export products and export capital, can we be able to say that we are a textile power."

The leading consciousness of Xie Ming, President of Jiangsu Textile Industry Association, undoubtedly plays an important leading role in the development of large industrial provinces.

In recent years, Jiangsu textile enterprises "go out" has also developed from the initial small businesses to large enterprises with capital accumulation and ability to export capital.

Taking Jiangsu Dong Du Textile Group Co., Ltd. as an example, it has experienced a gradual process of "going out" from operation, finance, production to brand, and has achieved international regeneration of R & D, design, brand and channel.

In March 15th, the China Federation of textile industry held a forum on key enterprises' overseas investment under the new situation in the key industrial province of Jiangsu.

More than ten textile enterprises such as Huafang group, Australia Ocean Group, Jiangsu Dong Du, Jiangsu Xin Fang, Zhangjiagang Jinling, Jiangsu Datang and so on, have in-depth exchanges.

At present, overseas investment has been

To the industry chain upstream yarn, dyeing and finishing and other fields of spread; initially small businesses, and now many large enterprises have begun to layout overseas; domestic labor, environmental protection, land and other costs will continue to rise, spinning enterprises to pfer production base to foreign countries will not change the trend.

Where is the next opportunity? {page_break}

Lin Yunfeng, vice president of the textile industry branch of the China Council for the promotion of international trade, believes that the next step of "going out" includes two main ideas: one is to take the raw materials and the upstream resources, and the other is the extension of the brand.

In the second half of this year, the textile industry association of China Council for the promotion of international trade will try to communicate with relevant associations in Italy to further explore the possibility of cooperation in all aspects.

M & A is a hot topic.

In 2014, the number of overseas mergers and acquisitions in mainland China increased sharply, with a growth rate of more than 1/3, a record high.

In spite of the lack of giant pactions, the amount of overseas M & A pactions in 2014 still amounted to $56 billion 900 million, after the historical peak of $66 billion 900 million in 2012.

In 2014, the UTG investment fund, Shanghai textile, Ningbo pioneer new material, Shanghai Jialin Jie, Shandong Ruyi, Shenzhen Mass Phil's intra industry mergers and acquisitions, made the textile industry global mergers and acquisitions also began to emerge.

Bao Haifeng, partner of PWC Shanghai M & amp; m service department, believes that for textile and apparel enterprises, there are two main opportunities for good M & A opportunities.

First, some good brands in Europe and America have not appeared in the Chinese market.

China has a population of 1 billion 400 million and ASEAN has a population of 260 million. With such a large volume of consumers, with the increase of GDP per capita and the increase of consumption level, there will be a good market and consumer demand.

European and American brands are looking for opportunities to go to emerging markets in Asia. This is a chance for Chinese companies to seek cooperation in some equity or management rights.

On the other hand, China

We are gradually moving towards the high end, and we can also help upgrade the upgrading of Southeast Asia and ASEAN countries, and gradually achieve the gradient pfer of low end capacity.

How to control overseas investment risk? Wu Ming lawyer, a partner of Beijing Dacheng (Shanghai) law firm, proposes to start from four aspects.

First, a comprehensive assessment of political and policy risks, and a systematic assessment of the political, legal and social environment of the country of investment by means of a political risk agency.

In recent years, our country is also trying to establish a national risk system. In view of the 60 countries most concerned about by Chinese enterprises, the China Export and Credit Insurance Corp has issued a national risk report.

At the same time, enterprises should also strengthen communication with the state offices abroad.

Two, we should make full use of overseas investment insurance.

The Multilateral Investment Guarantee Agency under the World Bank Group provides investment guarantees.

American Overseas Private Investment Company, Japan's trade and industry province trade bureau, German forehead trust inspection company and heaus credit insurance company also provide related insurance services.

Three, diversification of investment and diversification of financing.

Choose different countries, industries and products to invest separately, and raise funds to international banks or banks in many countries.

Four, in the form of investment, the form of joint venture or cooperative operation should be chosen to increase the proportion of local employees in the company.

Procurement of products from host countries.

Take the road of localization and actively fulfill the responsibilities of social enterprises.