Reflections On The "Going Out" Of Domestic Textile Industry

Some media have thought that the textile and garment industry has low technology content, limited innovation space and poor profitability. It is the representative of "sunset industry".

However, the fact that the chairman of UNIQLO reelected Japan's richest and the founder of ZARA has become the richest man in the new world reveals that there is still room for improvement in the profitability of China's textile industry.

(1) grasp the law of economic development and make adequate preparations as early as possible.

It is not difficult to look back on the development of the developed countries in Europe and America. It is a normal economic phenomenon that the cost push forward industry pfer is a kind of normal economic phenomenon.

With the increasing emphasis on high-tech industries in various regions of China,

The survival space of traditional labor-intensive industries is shrinking. Therefore, through industrial pfer effectively allocate resources and open up the market, the production and processing links will selectively migrate to areas with lower cost or near the terminal market. The parent company will increase investment in new product design, R & D and marketing, and climb to the two sides of the "smile curve", which is an effective way to promote industrial upgrading.

Although some of the textile enterprises that have invested abroad have established successful cases for their counterparts in China, they have accumulated valuable experience.

However, if we fail to make adequate preparations and ignore the risk management and control of enterprises, the probability of industrial pfer failure is still large.

The preparations for "going out" include: due diligence and feasibility analysis of investment target countries.

Not only does it include factors such as labor productivity, industrial chain matching and hydropower costs, but also must fully understand the local legal system, cultural customs and political environment and other factors, so as to make a comprehensive evaluation.

For example, the Cole group of Zhejiang invested 218 million yuan to set up a production base in South Carolina, even though the local labor cost is more than three times that of China, but it can be recovered through the cotton raw materials and cotton power consumption. At the same time, the utilization of local developed logistics industry can also greatly reduce the storage cost of cotton, and the talent pool for overseas investment.

Having a number of highly qualified foreign language talents, excellent business management and high quality talents is an important guarantee for enterprises to go out. Especially the skills of management are very important in daily communication and coordination with the host government departments.

On the other hand, not all domestic enterprises are suitable for "going out".

For example, Wei Qiao Textile Group, the largest cotton spinning enterprise in China, has always insisted that the production base should remain in the northern plain of Shandong Province. For many years, it has also gained a higher profit rate by means of industrial chain integration and employee motivation.

(two) dialectically understand trade rules and actively respond to changes in the situation.

With the rapid development of economic globalization, a country's industry will have more opportunities to enhance its position in the global value chain only if it fully participates in international division of labor, cooperation and competition, and speeds up the internationalization process of enterprises.

At present, the development of China's textile industry is faced with pressure from domestic cost increase, blocked financing and export slowdown, as well as the "double squeeze" from the developing countries' order diversion and the high tariff barriers in the European and American markets.

Therefore, we should speed up the development of powerful enterprises.

"To realize the pfer of industry to the outside world should form a consensus in China's textile industry.

We should encourage the leading enterprises in the industry to strengthen cooperation with the host government in the industrial park, and avoid single fight, so as to drive the small and medium-sized enterprises supporting the industry to "ship to sea" to form a tug of war and scale effect, so as to improve the success rate of the industrial pfer to the outside world. This is also the successful experience of Taiwan enterprises in the pfer of foreign countries.

Up to now, a number of textile industrial parks have been established overseas by more powerful enterprises such as Yue Mei Group (Nigeria), Tianhong Group (Vietnam), and Hong Kong Group (Kampuchea). This has reduced risks for other textile enterprises in China to implement the strategy of "going global".

In the process of industrial pfer, enterprises should also grasp market information in time and dialectically understand the rules of international trade.

If the entry into force of the TPP agreement will bring trade diversion effect to China in the short term, the United States and Japan will be more likely to import from the TPP member countries in the future due to the reduction of tariffs and the principle of origin.

At the same time, the TPP agreement has not only improved the standards of intellectual property rights, but also added labor and environmental provisions and linked them with trade, which may become a way for developing countries to impose trade sanctions against developing countries with non TPP members in the future.

However, we should also see that the high standards and new rules of TPP represent the direction of economic globalization. Only when domestic enterprises prepare ahead and respond positively, can they not lose their way in the future competition. By integrating domestic and foreign R & D, brand and channel resources, they will step up to the high end of the global value chain, and realize the rational distribution of production and sales in the world.

Today, with China's economy entering a new normal, the new round of technological revolution represented by information technology provides an opportunity for the pformation of traditional manufacturing industries.

The development of China's textile industry should keep pace with the times. With the opportunity of global industrial pfer, we should rely on new ideas, new materials and new technologies to promote industrial upgrading.

The concept of "Internet +" is deeply affecting the various sectors of the manufacturing industry. It expands the scope of innovation subjects, expands from single enterprises to multiple industrial alliances. It can realize the replacement of machines by digital control, and at the same time, it greatly improves labor efficiency.

Many textile enterprises in China are plagued by the fact that the existing production machines have not yet completed their estimated useful life and have not yet recovered their investment costs. They are reluctant to completely replace the machinery with higher efficiency.

The textile enterprises pferred to developing countries can import more advanced production equipment with lower tariff prices, and build intelligent manufacturing production lines and digital chemical plants by steps, and integrate all links of the industrial chain to realize intelligent management. It can not only alleviate the impact of the shortage of technical personnel in the host country on production, but also adapt to the development trend of the downstream fast selling brand, meet the personalized and differentiated demand for small orders, and expand the potential consumer market.

The concept of "green manufacturing" also affects the future direction of domestic textile industry.

In the past, textile industry was often regarded as a representative of "high energy consumption and high pollution". Many enterprises were unwilling to invest too much in environmental protection in order to increase profits.

Since January 1, 2016, the new version of the environmental protection law has been implemented, improving the environmental protection requirements and increasing penalties for illegal polluters.

In fact, attaching importance to environmental protection and realizing green manufacturing are becoming the consensus of governments.

If the level of economic development is not as good as that of our Vietnamese government, we must put forward a rigid requirement for all foreign enterprises, that is, the sewage treatment system must reach the level a, otherwise the project application will not be approved.

Therefore, by encouraging enterprises to "go out", the pformation of domestic industry is gradually becoming a reality.

On the other hand, the use of advanced energy-saving equipment and technology to reduce the amount of pollutant emissions, reduce water consumption and energy consumption in production, green manufacturing throughout the entire production process will also help to increase the added value of textile products, breaking the EU based on environmental protection standards set up non tariff barriers, so as to ultimately improve the profitability of enterprises.