How Will The Global Spinning Industry Structure Change?

Because of labor force,

And other production costs continue to improve, China

The international competitiveness of enterprises in the low end products has gradually weakened, and the products of India and Pakistan occupy market share.

At the same time, the scale of Vietnam's spinning production continues to expand and become a force that can not be ignored.

How will the global spinning industry change? How should China's spinning enterprises upgrade and upgrade? The United States and Taiwan, China

What enlightenment can we bring to the pformation of enterprises?

On the 2016 imported yarn forum held recently, guests discussed and discussed the competitive advantages and development plans of different regions, and how to win cooperation.

It is easy to see the development direction of the global spinning industry.

India, Vietnam and Pakistan each have their own advantages.

From the source countries of China's pure cotton yarn imports, India, Pakistan and Vietnam rank the top three.

In 2015, India had the largest share of pure cotton yarn imported from China, while Pakistan and Vietnam were two or three.

In January of this year, ~4 data showed that the proportion of imported pure cotton yarn from Vietnam increased rapidly, surpassing India and becoming the first.

Will India's leading role in the import of yarn from China be shaken?

Ujwal R.Lahoti, vice chairman of the India Cotton Textile Export Promotion Council (TEXPROCIL), analyzed the advantages of India's spinning industry.

India is the largest cotton producing country in the world. Cotton production has an advantage over spinning production. It has the advantage of raw materials, and India has the world's leading textile industry, equipment manufacturers and the youngest production managers.

India has the ability to increase production efficiency and produce higher quality yarn through various technologies in order to produce more competitive yarn.

Ujwal R.Lahoti believes that cooperation between India and Chinese textile producers is very necessary.

In view of the obvious and sustainable advantages of India in textile manufacturing, the convergence between Chinese textile entrepreneurs and India supply chain is favorable.

At the same time, due to the advantages of China and India on different raw materials, the two sides can complement each other in raw material links.

The rational utilization of the advantages of Chinese textile enterprises to India yarn and grey fabric enterprises is conducive to enhancing the competitiveness of Chinese textile enterprises themselves.

India textile industry will become the most competitive textile industry in the world after integrating into China's textile supply chain.

China and India can achieve mutual benefit through investment cooperation.

Dharmendra Goyal, general manager of India Tirupati Yarns, believes that India has an advantage in terms of production cost and exchange rate. If cotton yarn output is effectively raised, India cotton will be more competitive.

He suggested that India cotton yarn should reduce its dependence on the Chinese market and expand to the world, especially to other Asian countries such as Bangladesh, Vietnam and Pakistan.

Vietnam's yarn market share is growing rapidly. Textile companies in China are also more interested in Vietnam. Are there any more opportunities in Vietnam in 2016? Nguyen Van Tuan, chairman of Vietnam Cotton Textile Association (VCOSA), said that the TPP and EVFTA agreement will bring long-term benefits to Vietnam's textile and garment industry.

At present, Vietnam's clothing export destination countries, the United States accounted for 47%, the United States imports from Vietnam Vietnam's average tariff of 17.5% (12%~32%).

According to the TPP agreement, if the "Yarn Forward" rule is fulfilled, the import tariff will be abolished.

Vietnam's clothing exports to the European Union accounted for 15% of the total, and the EU now imports an average tariff of 9.6% from Vietnam.

After the entry into force of the EVFTA free trade agreement, import tariffs will be abolished within 7 years.

According to the plan, the Vietnamese textile and garment industry will reach 5 million workers in 2025, 17 million 900 thousand spindles and 12 billion square meters of fabric output, and the export volume will reach 50 billion dollars.

In 2000 ~2013, foreign direct investment in Vietnam's textile and garment industry was US $8 billion 200 million, while foreign direct investment in Vietnam's textile and garment industry reached 5 billion 800 million US dollars in 2014 ~2015.

Pakistan cotton yarn once occupied the largest share of China's imports of yarn. Why did it shrink in recent years? Is there any potential for improvement? Ahmed Ellahi, general manager of AA LEATHER, believes that Pakistan is facing a decline in cotton production (a 34% decline this year), and there is no export tax rebate, and it is difficult to obtain R & D support.

In addition, the investment in Turkey's spinning industry has increased sharply, making Pakistan face fierce competition.

But there is no denying that Pakistan still has its own advantages.

The development goal of Pakistan's textile industry is that textile exports doubled from 13 billion US dollars to US $26 billion in 2020, and the textile industry's share in GDP rose from 8.5% to 10%, and the share in the global textile and garment export market increased from 1.8% to 3%. The number of textile industry employment increased from 15 million to 30 million, and the textile industry increased by 1 billion US dollars / year.

Transformation experience of China Taiwan and the United States

For Chinese textile enterprises, the requirements for pformation and upgrading are very urgent at present, but how should they be pformed? The pformation process of textile industry in Taiwan and the United States of China may be a reference.

Huang Weiji, Secretary General of Taiwan Textile Development Association, introduced the development process of Taiwan textile industry.

In the 90s of last century, the textile industry in Taiwan was faced with internal and external competition pressure.

In 2000, China's Taiwan textile industry formulated a rapid follow up development strategy.

First, follow the "goose type theory" and follow Japan's development of functional chemical fiber.

Two, we should promote the plan of reinventing industry competitiveness, help textile operators to improve their financial and financing mechanisms, speed up investment, push forward the construction of overseas strongholds, enhance the competitiveness of the international market, strengthen R & D investment and enhance technological capabilities, fully implement the electronic quick response and scientific and technological management, develop industrial manpower, introduce high-tech talents, strengthen the production and marketing integration system combined with the advantages of both sides of the textile industry, enhance the image of textile industry and consolidate the foundation for development.

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In terms of products, Taiwan textile industry focuses on the development of innovative functional textiles, mainly used in sports, leisure and outdoor products.

In the course of development, it is also faced with obstacles such as long development cycle and low product recognition. Therefore, Taiwan Textile Association has established a functional textile verification mechanism (TFT).

At present, the TFT verification mechanism has become an international standard.

Huang Weiji said that when faced with internal and external pressures, poverty will change and change will be achieved.

The industry should encourage each other to overcome difficulties through cooperation instead of zero sum competition.

Innovation is the driving force of the development of enterprises and the cultural characteristics of the industry.

The US textile industry once again raised concerns after the announcement of the US manufacturing return plan.

Sheffi, director of Asian operations at Frontier, USA, analyzed the pformation of the US textile industry in detail.

After second industrial revolution, the textile and garment industry was also a pillar industry and a large number of employment in the United States. However, in 1950 ~2001, the proportion of textile industry in the US GDP was reduced by 16%, and the employed population decreased by 30%.

Although the number of employees has dropped by about 30%, the output of the textile industry has remained stable, even during the period.

Nowadays, in the American spinning product structure, air spinning accounts for 67%, ring spinning accounts for 20%, jet spinning accounts for 10%, and vortex spinning accounts for 3%.

The textile industry in the United States has achieved specialization and automation through industrial pfer, mergers and acquisitions, and invested heavily in information systems, management systems, mass customization, and achieved the pformation through the application of information technology and flexible management to meet the special needs of customers.

How does China's cotton textile industry adapt to high cost?

In recent years, China's cotton textile industry boom index is in the 45~50 interval, and the industry is running short.

According to Wang Qingcui, vice president of China Cotton Textile Industry Association, with the acceleration of pformation and upgrading of enterprises, adjusting products to adapt to the market, the fourth quarter of last year, the operation of enterprises has stabilized, and the prosperity index has risen slightly.

According to Wang Qingcui analysis, with the improvement of environmental management requirements and the cost and quality of cotton, the arrival of the high cost era of yarn production is inevitable.

However, China's cotton textile industry has a complete industrial system and industrial chain, and there will be great potential for domestic demand market in the future.

It is expected that as the national economic growth rate continues to slow down, the industry will maintain a low growth rate.

The output of products has dropped down rationally, the adjustment of product structure has been speeded up, and the task of upgrading and upgrading technology is arduous.

High quality cotton supply gap, cotton new policy will be clear; import yarn growth slowed down, domestic cotton consumption or upgrade; foreign trade in the short term is difficult to warm up, international trade competition will be more intense.

Wang Qingcui pointed out that in the context of the supply side reform, the adjustment and innovation of cotton textile enterprises focused on 5 aspects: first, improving the quality of products, increasing product varieties, providing effective supply; second, developing production towards digitalization, continuity and intellectualization; third, enhancing the innovative development capability of non cotton fibers; fourth, integrating the upstream and downstream industries, and coordinating the two markets in the world; fifth, improving the quality of domestic cotton and solving the structural contradiction between supply and demand.

Sheffi compared the textile industry between China and the United States.

He believes that the advantages of China's textile industry are relatively controllable labor costs, strong industrial matching capabilities, and complete products; disadvantages are scattered enterprises, small businesses, low per capita efficiency, inadequate development of new products and new technologies, and lack of matching technology.

The advantages of the textile industry in the United States are scale, productivity, design and technology. The disadvantage is that production lacks flexibility and pays more attention to quantity and productivity.

Sheffi suggested that China's textile industry should upgrade its industries based on comparative advantages, retain the middle and low end, strive to move towards the high-end and take the road of pformation with Chinese characteristics.

We should strengthen technological innovation and brand building to enhance international bargaining power.

For enterprises, Sheffi believes that production enterprises should be lean production, reduce waste, business oriented enterprises should be data oriented to achieve rapid response.