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    Chinese Textile And Garment Enterprises Can Only Rely On R & D To Enhance Their International Competitiveness.

    2019/4/8 13:20:00 12287

    ChinaTextile And ClothingEnterprisesIntelligent Manufacturing

    Faced with frequent trade frictions, large fluctuations in the RMB exchange rate, labor shortages and rising production costs, Cao Jiachang, President of the China Textiles Import and Export Chamber of Commerce, said at the recent "2019 China and Asia Textile International Forum" held in Shanghai, that the leap from OEM to ODM (independent design and R & D) and OBM (private brand export) is the fundamental basis for China's textile and garment to maintain export competitiveness. Intelligent manufacturing and pformation and upgrading are inevitable choices for Chinese textile and garment enterprises to maintain export competitive advantage.




    Reporters learned that in 2018, China's textile and garment industry suffered 14 trade relief investigations, including 11 new cases, involving 7 countries in Mexico, India, Argentina, Turkey, Egypt, Madagascar and the United States, involving polyester staple, flax yarn polyester, cowboy cloth, polyester processing yarn and so on, and 3 sunset reviews.

    The total amount involved in the 14 cases was about $260 million.

    Although the amount is not large, but also to the main business of these products and market adverse effects.




    There is a strong correlation between RMB exchange rate fluctuations and China's textile and clothing exports.

    In the first quarter of 2018, the RMB exchange rate showed a rapid appreciation and a sharp fluctuation, which caused many problems to export enterprises.

    Some enterprises say that the adverse effects of the exchange rate fluctuation are no less than the impact of Sino US economic and trade frictions.

    "Cao Jiachang said that exchange rate fluctuations put forward higher requirements for China's textile and garment export enterprises to strengthen the use of various tools to avoid exchange rate risks.




    The problem of labor shortage and rising costs still exists.

    The statistical bulletin of the 2018 national economic and social development, released by the National Bureau of statistics, shows that the working age population of 16~59 is 897 million at the end of 2018, 4 million 700 thousand less than the end of 2017, the first time it has fallen below the 900 million population threshold, and the proportion of working age population in the total population is 64.3%, which is lower than 0.6 percentage points in 2017.

    In 2018, 16 provinces and municipalities raised the minimum wage standard, an average increase of 7%.




    Environmental pressures are also increasing.

    According to the Research Institute, if the cost of raw material procurement, labor costs, tariff preferences and income tax preferences are taken into consideration, the net profit margin of most textile and garment exporting enterprises in their Southeast Asian factories is 5~6 percentage points higher than that of the domestic market.

    Many enterprises are ready to make preparations for both domestic and foreign factories at the same time to cope with the new global economic and trade situation.




    "Half of China's fabric and clothing output is sold to the international market, which means that half of the 20 million employed population of China's textile and clothing depends on the international market.

    "Cao Jiachang said that in 2017, the R & D investment of China's textile and garment industry grew by 22.6% over the same period last year, and it also reflected the efforts of China's textile and garment industry to actively upgrade and upgrade.




    "From OEM to ODM and OBM is the fundamental basis for China's textile and garment export competitiveness.

    "Cao Jiachang said that many enterprises actively explore the international marketing network, and actively expand the export of independent design products and private brands through international mergers and acquisitions, cross-border electricity providers, setting up studios and exhibition rooms overseas, and expanding wholesale and retail channels. The Chinese designer brand has also begun to shine in the international fashion week, and China's down jacket business brand has even been on the overseas social media.




    Intelligent manufacturing and pformation and upgrading is an inevitable choice for enterprises to maintain export competitive advantage.

    The integrity and productivity of China's textile and apparel industry chain can not be matched by Southeast Asian countries.

    Clothing production involves many details, and supplies and accessories are all very important.

    "If zippers and buttons are miscounted before production, it will take only two hours in China to solve them. In Southeast Asian countries, at least, the production line needs to be shut down for two days to wait for the accessories to be in place.

    For some complex products, the delivery date of Southeast Asian countries is at least one month slower than that of China. Therefore, fast fashion brands and low inventory brands that need quick replenishment still have competitive advantages in China.

    "Cao Jiachang said that in response to changes in international textile and apparel consumption patterns and procurement demand in recent years, many excellent enterprises focused on high value-added links, upgraded to the direction of enhanced R & D and lean management, invested a lot of money in equipment upgrading and intelligent pformation, and effectively enhanced the international competitiveness of enterprises.




    In addition, the great potential of China's domestic market provides a guarantee for the survival of China's textile and garment industry.

    In 2018, the retail sales of clothing, shoes, hats, knitted and textile products in the above quota reached 1 trillion and 370 billion yuan, an increase of 8% over the same period last year, representing a cumulative increase of 4 times compared to 10 years ago.

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