Outlook 2016: What Is The Key To Pformation And Upgrading Of Textile Enterprises?

Wang Tiankai, President of China Federation of textile industry, emphasized that in 2015, the income of textile enterprises above Designated Size to achieve main business revenue was estimated at 70500 billion yuan in 2015.

The export volume is estimated at $292 billion.

The textile industry continued to move to the central and western regions. The proportion of the main business income of the central and western enterprises in the whole industry rose from 16.8% in 2010 to 22.2% in 2015 1~9, of which Xinjiang is a new investment hot spot.

The pace of "going out" of textile enterprises has been further accelerated, and backbone enterprises have speeded up the construction of manufacturing bases in neighboring countries, and gradually began to develop in the high-end industry chain of developed countries.

Enterprises attach importance to increasing investment in science and technology and achieve results. The brand awareness of the whole industry has been greatly improved, and the whole industry chain brand system is being formed.

A number of key industries have made progress and have been promoted. Digitalization and networking technologies are widely applied in all aspects of the industrial chain.

But there are also many problems that perplex the development of the industry, including: the difference between domestic and foreign cotton is still larger, and the quality of domestic cotton is still decreasing; some industries have excess capacity structure, low utilization rate of equipment, high inventory of products, and difficulties in capital turnover; labor costs continue to rise; the average per capita wage of textile enterprises is 2~3 times of that of Vietnam, and that of Bangladesh is more than 5 times; the diversification of science and technology resources has not yet formed an integrated innovation capability, and R & D investment is relatively insufficient, and innovative talents are still lacking; textile enterprises are under the pressure of technology, management and capital to meet the increasingly stringent environmental governance requirements.

In 2016, foreign demand for major consumer bodies could hardly be improved. However, the export boosting effect of RMB devaluation will improve external demand.

The growth rate of clothing investment in the textile industry will remain at a high level in the future, but the industry leading enterprises have already adjusted their inventory. In 2016, the overall supply and demand pattern of the textile and garment industry will not change substantially compared with that in 2015.

The fast fashion brand entry has intensified the industry competition, the Internet has developed rapidly, and the textile industry has become more competitive. Southeast Asia and Xinjiang's cotton spinning capacity will continue to impact the mainland market.

According to the law, the normal state of an industry is that 70%~80% enterprises can make profits. 20%~30%'s business can be flat or loss, and the enterprise depends on which echelon it belongs to.

The future is not the scale of the world, but several aircraft carrier control market, the subdivision area occupies the absolute superiority, the characteristic is the king.

Wang Tiankai, President of China Textile Industry Federation, believes that the complex and severe external situation will not change in 2016.

Although the international market has positive factors to accelerate the recovery of the United States, the momentum of the overall recovery is insufficient and it is difficult to change the weak trend.

The downward pressure on China's economic growth is still outstanding. It is still necessary to resolve industrial overcapacity and optimize the economic structure, while domestic demand will remain stable, but there is no room for accelerated growth.

In addition, external factors such as rising comprehensive costs, intensifying international competition and arduous tasks of environmental protection will still test the adaptability of the industry and continue to maintain the pressure of steady development.

Still the key.

In 2016, there are several issues that businesses need to focus on:

First, the export situation is more severe.

Cotton spinning, knitting and other textile production capacity and orders to overseas pfer progress has accelerated.

The recovery of the international market is weak and the demand for emerging markets is slowing down.

The trend of investment in Vietnam will be clearer, and the direction of production pfer needs to be concerned.

Two, from a number of aspects, domestic demand growth is slowing down. Enterprises need to tap the potential of the market. The more difficult period is, the more we need to grit our teeth. The long march of the Red Army is all elitist.

On the one hand, enterprises feel inadequate domestic demand.

In terms of product development, brand building and other capabilities, there are still deficiencies. Compared with the rapid expansion of some foreign fast selling brands in China, we need to find gaps and speed up their pformation and development.

Three, the elimination of enterprises will be more brutal, superior and superior, without characteristics, and the road will be narrower and narrower.

In the future, no matter market positioning or resource integration, we need to rely on our own advantages to find a good position, and fight the war of counterattack, without breaking down the industry, only backward thinking will be defeated.

Four, high grade cotton resources are in short supply.

Sun Weiting, chairman of Huafu color spinning, believes that the middle and high grade cotton will be relatively tight in 2016. To produce high-grade products, we need to control these resources.