Sun Ruizhe: Management Innovation Is The Only Way To Improve The Quality And Efficiency Of Textile Industry.

August 11th, from China

The fifth national printing and dyeing industry management innovation conference held by Sheng Hong Group Co organized by Sheng Hong Group Co., Ltd. was held in Shengze Town, Wujiang District, Suzhou.

China

The speech delivered by Sun Ruizhe, vice president of the Federation of industry, at the annual conference on management innovation, is as follows:

We are in the age of change. Yesterday's successful experience may be the rope that holds back tomorrow. We must not wait for it.

Once used to thinking, may be overdue tickets, we can not fight the boat.

The usual method used to be in the past is probably the bamboo basket in the well, which we can't fish for.

The situation is so demanding that we must be bold in innovation and never rigid.

First, management innovation is the only way to improve the quality and efficiency of the industry.

In recent years, China's textile industry has entered a new normal development characterized by "speed change, structural optimization and dynamic pformation".

The main indicators of the industry are growing more slowly, and the development of the whole industry presents a L growth trend.

In the first half of this year, the national textile industry added value increased by 6.5% compared to the same period last year, slowing down 0.3 percentage points compared with the same period last year, which is lower than the national GDP growth rate by 0.2 percentage points, higher than the national industrial added value 0.5 percentage points.

In 1-6, the main business revenue of the textile industry was 3 trillion and 346 billion 240 million yuan, an increase of 4.64% over the same period last year, with a total profit of 169 billion 40 million yuan, an increase of 6.31% over the same period last year.

The cost continues to increase, the main business cost increased by 4.72% compared with the same period last year, the sales expenses increased by 4.27% compared with the same period last year, the management expenses increased by 5.09% compared with the same period last year, and the financial expenses decreased by 0.93, of which the interest expense decreased by 7.18%, but because the interest expense accounts for only 14.56% of the three expenses, the increase of total body cost is worth paying close attention to.

In 2016 1-6, fixed assets investment of 5 million yuan or more in printing and dyeing industry was 16 billion 82 million yuan, an increase of 5.58% over the same period last year.

The main business revenue of the company was 175 billion 525 million yuan, an increase of 2.19% over the same period last year, and the total profit was 8 billion 78 million yuan, an increase of 10.37% over the same period in 2015. This reflects to a certain extent the effect of the printing and dyeing industry's industrial upgrading, technological progress and management innovation.

The growth rate tends to be gentle, and the industry maintains L development trend.

The direct result of the downturn of demand, the intensification of competition among industries and enterprises, the increase of resources and environment, and the increase of production factor cost, but the deeper reason lies in the supply side, structural and institutional problems formed and accumulated in the process of high growth before the industry.

In order to solve these development problems and achieve pformation and upgrading, the industry needs to accelerate technological innovation and equipment upgrading, enhance the hard power of the industry, and it is more urgent to deepen management innovation and explore management systems, management concepts and management methods that meet the requirements of the industry and the times.

Two, management innovation is a realistic requirement to adapt to environmental changes.

The economic logic of management innovation is to optimize and adjust production relations so as to achieve more efficient and efficient allocation and utilization of economic resources, production factors and knowledge capabilities, and then emancipate and develop real productive forces.

The effective adjustment of production relations requires not only to consider the conditions and endowments of enterprises themselves, but also to adapt to the objective changes in the environment in which they match.

The current changes in the textile industry are mainly reflected in five aspects:

Black swan event becomes normal

From Britain to Europe, the coup of Turkey changed from Trump's rise in the US election to the rapid rise of cotton prices in the past period.

There are three reasons why the black swans are concentrated and normalized.

One is destructive innovation.

Worldwide, the group technology revolution characterized by intelligence, green and ubiquitous is booming and profoundly adjusting the division of labor, reshaping the competition pattern and changing the contrast of forces.

In the wave of technological innovation, the uncertainty of the industry has been significantly enhanced, and a large number of new forces have risen rapidly, and quite a few star enterprises have suddenly fallen.

The two is policy adjustment.

After the financial crisis, the world economy remains in the doldrums, and all kinds of contradictions concealed by high growth have been concentrated in the past.

This is particularly evident in some single emerging economies.

Economic uncertainty increases policy variables.

Many political events abroad are related to economic depression in varying degrees.

The constant adjustment of policies and the increasingly fierce political competition among countries have increased the uncertainty of the development of the industry.

The three is market implicated.

With the development of market economy, the relationship between enterprises and the market is becoming more and more closely related.

The occurrence of emergencies in a region of the world will not only affect the procurement, production, pportation and sale of products, but will also affect other regions through trade activities, capital integration and information interconnection.

The black swan event has become the norm, and the result of enterprise operation is more and more influenced by external uncontrollable and unknown factors, which puts forward higher requirements for the robustness of enterprise management.

Increasing complexity of trade relations

From the perspective of trade relations, regional trade agreements show an increasing trend all over the world.

There are only 76 regional trade agreements effective from 2010 to June 2016.

Because the reciprocity clauses in the regional trade agreements are mainly aimed at the countries in the agreement, while promoting the economic growth of the countries in the agreement, the cross regional economic and trade cooperation has been cut to a certain extent, resulting in fragmentation of the global trading system.

There is a large number of intra regional trade between China and Asian countries, while other strategic agreements are in force in many other countries.

A deal in the industry may involve more than one free trade agreement.

The overlapping of free trade agreements further increases the technical difficulty for enterprises to master the relevant rules.

From the perspective of cost structure, the comprehensive cost gap of global textile manufacturing is shrinking, due to factors such as technological revolution, capital cost, raw material price, energy price and policy environment.

The global textile manufacturing cost tends to be flat, which makes the supply trend of the industry decentralization.

Under such circumstances, how to carry out the regional layout, optimize the allocation of resources in the global scope, and organize the global supply chain, enterprises need more strategic considerations.

New characteristics of consumption demand

New changes are taking place in the industry demand side.

First, pay attention to products and pay equal attention to experience.

While paying attention to price and quality, consumers begin to pay attention to consumption experience and cultural expression, and market demand for service, customization and entertainment becomes the trend.

A survey by independent consultancy company Gartner (Gao Dena) shows that 89% of enterprises believe that the customer experience will become the core competitiveness of the company in 2016.

The China luxury goods report points out that the proportion of customized business in the luxury industry has reached 20% in 2015.

The two is the sinking of the urban market to the urban market.

With the general improvement of residents' income, the deepening of urbanization process and the rapid rise of the middle and high income class, the market potential of the industry is increasing day by day, and it begins to sink to the cities and towns.

Bain consulting predicted that in the 2015-2020 years, the composite annual growth rate of China's online retail market was 22%, of which the growth rate of the first tier cities was 15%, the second line was 21%, and the three line and below were 26%.

The three and below towns will account for about 50% of the total.

The three is the 28 economy coexists with the long tail economy.

The consumption demand is mainly from the past imitation type and the wave consuming type, and is developing towards diversification, differentiation and individuation.

The acceleration of information technology, especially the prosperity of e-commerce, makes the fashion industry's long tail effect more obvious.

Studies have shown that in the online sales of Chinese clothing, the share of big brands is less than 10%, while the share of long tail brands reaches about 50%.

Market demand is the wind vane of enterprise management.

The change of demand requires that business management must be adjusted accordingly.

The information economy accelerates into the industry

In the production and manufacturing process, the trend of intelligent manufacturing and machine generation is obvious.

Since 2013, China has become the first big industrial robot application market. In 2015, it sold 75 thousand units, up 36.6%, accounting for about 30% of the world, and the density of robots increased from 11 / 10000 people to 36 per 10000 people from 5 years ago.

According to a survey conducted by the China Internet Network Information Center (CNNIC), in 2015, 19.9% and 11% of manufacturing enterprises had planned or adopted automated manufacturing and industrial robots.

In decision analysis, AI based on data mining and algorithm is applied and penetrated into all stages of design, R & D, production, operation, management and service.

The management information system represented by ERP, CRM and PLM has been widely applied to the industry and enterprises, effectively supporting the daily operation and management of enterprises.

In the marketing service sector, the total e-commerce volume of textile and clothing was 3 trillion and 700 billion yuan in 2015, an increase of 25% over the same period last year.

B2B pactions amounted to 2 trillion and 850 billion yuan, an increase of 27.8% over the same period last year.

The huge network scale has provided huge market space and innovation platform for the development of textile and garment industry.

D2C, C2B, sharing economy, net red economy and other industries new models, new formats and new attempts are emerging.

{page_break}

Sharing economy has become the trend

Worldwide, the sharing economy is rising rapidly. Opening and sharing has become a trend.

According to CrowdCompanies statistics, the global share of economic investment in 2015 was US $14 billion 206 million.

According to the National Information Center, China's share of the economic market is about 19560 billion yuan in 2015, and its average annual growth rate will be around 40% in the next five years.

Textile and apparel industry has made many attempts to share the economy, mainly in three areas.

First, capacity sharing is the main content to integrate the idle capacity of the industry and realize the sharing of resources such as machinery, equipment and scientific research facilities. It represents enterprises with Amoy factories and Antarctic electricity suppliers; the two is product sharing, taking clothing leasing and textile clothing recycling as the main content, representing enterprises with LETOTE, magic wardrobe and so on; three, creative sharing, taking the crowdsourcing of design creativity, product development and other fields as the main content, representing enterprises such as Threadless.

Industry development and sharing of the economy will help to make full use of existing resources and resolve excess capacity. It will help to focus on developing their own advantages and promote division of labor in the industry. It will help to converge and integrate resources and enhance innovation capability. It will help to reduce duplication of construction and promote green environmental protection.

But open sharing, especially the sharing of creative design, also poses challenges to the protection of property rights, especially the protection of intellectual property rights.

"Deep and fierce, Asanori."

Management innovation needs to change from time to time.

Adapt to changes in the industry to meet development requirements.

Four development trends of industry management innovation at present

People-oriented management innovation

Putting people first is to respect the main position of employees, to manage and maintain human resources as the first resource of enterprises, to emphasize people's hearts and minds, to return to talents, to participate in business decisions, to make every effort to develop enterprises, to enjoy everyone's work, to inspire employees' initiative and creativity, and to realize the common growth of enterprises and employees.

Data-driven management innovation data driven is relying on information technology such as big data, cloud computing and Internet of things, with information system and intelligent equipment, for data management and data mining, supporting enterprise production and decision-making, optimizing business process and execution, promoting knowledge production and accumulation, and then achieving efficient decision-making, rapid development, flexible manufacturing and precision marketing of enterprises.

Responsibility oriented management innovation

Responsibility orientation is to deeply explore the connotation of social responsibility, integrate the implementation of social responsibility into the development strategy of enterprises, integrate into the production and promotion process of products and services, integrate into the value chain and industrial chain, enable enterprises to serve the interests of shareholders and employees, and also seek benefits for external stakeholders.

Building ecological management innovation

To build an ecosystem is to break the closed loop of industry by integrating intelligence, intelligence, manufacturing, finance and innovation, and to stimulate the superposition effect, aggregate effect and multiplier effect of innovation, so as to achieve cross-border integration and synergy.

Three, management innovation is an important solution to solve the industry problems.

The printing and dyeing industry, as an important part of the textile industry, is an important link in the textile production chain to complete the deep processing of products, increase the added value of products, and enhance the quality, function and value.

At present, industry development and business operation are facing some practical problems.

The main performance is the gradual weakening of the comprehensive cost advantage, the weak innovation ability of enterprises, the continuous improvement of pollutant emission standards, the increasing pressure of environmental protection, the lack of information level, the excessive reliance on manual and experience in production and operation, the lack of clear positioning and meticulous management in enterprise development strategy, and the increasingly prominent problems of safety production and chemical ecological safety.

Pain point is the breakthrough point.

Through management innovation, finding the key point of practice is the key.

We can start from four aspects:

1, if you want to do something good, you should first use it.

Improve the personnel system.

In accordance with the law of innovation, we should cultivate and attract leading talents, senior managerial talents and highly skilled talents in science and technology, so that we can make the best use of talents and make full use of them.

Improve infrastructure.

Speed up the application of ERP, PLM, SCM, CRM and other management information systems.

We should speed up the use of digitalization, networking and intelligent equipment in all aspects of printing and dyeing, and promote the pformation from single equipment intellectualization to the overall factory intellectualization.

Improve the matching process.

With the introduction of information technology, enterprises need to implement business process reengineering, so that online and offline collaboration can be achieved, function and business can match, and manpower can adapt to the system.

2, we must focus on everything and start from scratch.

Those who do not seek the overall situation should not be able to find one.

Enterprises should combine the external environment and their own reality to make overall strategic plans to coordinate the relationship between the current and long term, strength and rhythm, major contradictions and minor contradictions, and guide enterprises to operate and practice.

At the same time, enterprises can establish an omnibearing management system, introduce IS09001 quality management system, CSC9000T social responsibility management system, and new product development management system to enhance the integrity and synergy of management, and realize the pition from "rule by man" to "rule by law".

Those who do not sweep the house will not sweep the world.

Enterprises need to put the strategy into practice, deepen the fine management, optimize the specific process, face collaborative R & D, distributed production, fine processing, flexible manufacturing, build enterprise management capabilities, and complete the leap from quantitative change to qualitative change.

3, both ability and integrity, both inside and outside.

First of all, we need to strengthen knowledge management.

The process of creating, recording, sharing, integrating, testing and updating the information and knowledge generated in operation will make tacit knowledge explicit and intellectual property right, and build knowledge competitiveness.

Secondly, we should strengthen cultural management.

Culture influences innovation, strengthens enterprise culture construction, and brings into play the role of value orientation, spirit encouragement and consensus cohesion of enterprise culture, fostering entrepreneurship spirit and craftsman spirit, and enhancing soft power of enterprises.

Third, we should strengthen responsibility management.

Expanding the breadth and depth of social responsibility fulfillment, expanding the scope of corporate responsibility from factories to the whole society, extending the target of responsibility from workers, government and other specific parties to specific parties such as consumers and communities.

The concept of sustainable development and environmental protection should be integrated into the management of enterprises to create a green supply chain system covering green standards, green design, green production, green management, green logistics and green marketing.

We should popularize the application of emission reduction and energy saving technology and improve the utilization efficiency of resources and energy.

4, keep on thin ice, safety first.

Strengthening safety management.

The characteristics of printing and dyeing production are chemical processing, and safety production has always been a problem that printing and dyeing enterprises can not ignore.

At the same time, there are various kinds of chemicals such as dyes and auxiliaries used in printing and dyeing. The impact of chemicals on ecological safety has also become an important source of operational risk.

In the management of enterprises, safety management should always be placed in the top priority, establishing and improving the responsibility system for safety production and standardizing the operation of enterprises.

Enhance management flexibility.

To cope with unexpected events arising from policy adjustments, market fluctuations, climate anomalies and technological subversion, enterprises should enhance management flexibility and Organizational Resilience.

First, maintain proper redundancy.

We used to chase light assets and pursue zero inventory.

But in fact, an appropriate proportion of raw material inventory can effectively balance the abnormal fluctuations of the market, and the cotton problem is a good case.

The two is to avoid single operation.

The rich product category and business format are important ways to disperse the market risk of enterprises.

Three, maintain market sensitivity.

We should maintain the flexibility of production and operation with information technology and respond to the market changes accurately and timely.

{page_break}

The textile industry "13th Five-Year" development plan, which will be released soon, puts forward: "the textile industry is a traditional pillar industry, an important livelihood industry and an industry that creates new advantages of internationalization. It is a combination of technology and fashion, clothing consumption and industrial use. It plays an important role in beautifying people's life, promoting related industries, stimulating domestic demand growth, building ecological civilization, enhancing cultural self-confidence and promoting social harmony."

This positioning is an affirmation of our cause and a requirement for our work.

Here, I share with you the psychology master Daniel Goleman, a new book, "focus". He gave advice to business leaders: "for leaders pursuing performance, they need three kinds of concentration: inner focus, which enables them to listen to intuition and values, make more informed decisions, to focus on others, to make their relationship with others more harmonious, and to focus on them can make them fly freely in the vast world.

If leaders do not pay attention to their hearts, they will drift with the tide. If they do not pay attention to others, they will be in a state of retreat.

In the book of concentration, it is mentioned that as early as 1977, Herbert Simon, the Nobel Laureate in economics, had foreseen the situation today.

He then warned the upcoming information society: "information consumption is people's attention."

Therefore, the more information we have, the less attention we have. "

Therefore, as long as we are willing to do things that others do not want to do, we should concentrate more on the trend; dare to do what we can not think of, create more creativity in the pformation; do something that we are good at doing; be more confident in innovation; be diligent in doing what the society needs to do; be more responsible for our development; our cause will surely continue to grow and our industry will be better.