Sun Ruizhe Delivered Keynote Speech At 2019 China Fashion Summit And China Fashion Hangzhou Summit.

Dynamic innovation is rooted in linkage; a sustainable future is based on sharing. The essence of fashion is to eliminate and rebuild. Our realistic responsibility is to build a platform, strengthen dialogue, coordinate resources and cross borders. Innovation linkage, sharing the future. In June 24th, the 2019 China Fashion summit was held in Yi Shang Town. The speech of Sun Ruizhe, President of China Textile Industry Federation, attracted wide attention at the meeting. The textile and clothing weekly published the original speech for readers.

Speech at the 2019 China Fashion Summit

Sun Ruizhe, President of China Textile Industry Federation

I am delighted to participate in the Sino Italian fashion summit and the Hangzhou summit of Chinese clothing. Dynamic innovation is rooted in linkage; a sustainable future is based on sharing. On behalf of the China Federation of textile industry, I would like to express my sincere welcome to all the guests from Italy who come from far away and express our sincere hope for the upcoming journey of fashion thinking.

Fashion is always in the progressive tense: seeking novelty, mutation, reincarnation and evolution. It is the eternal charm of the fashion industry to keep all the good things, keep the heart beating, and keep the desire to create all the beautiful life. It is also a precious source of power to constantly capture the evolution of consumption demand and the change of lifestyle in an innovative perspective.

Take this opportunity to share with you the current and future of Sino Italian fashion industry cooperation.

First, the macro new interface for the development of fashion industry.

With the deepening of international division of labor, global value chain cooperation has become the main form of international trade. The industrial chain is closely intertwined with the innovation chain, resource elements and infrastructure. Between industries and regions are no longer a simple comparison of competitive advantages, but most of them are cooperative symbiosis. Infrastructure, population structure and knowledge economy, as important variables, are driving changes and promoting the formation of new equilibrium points.

First, infrastructure, a fundamental change in the underlying structure of global economic development.

The paradigm of global production and lifestyle, innovation and development is changing to the direction of digitalization, networking and intellectualization. In 2017, the global digital economy amounted to US $12 trillion and 900 billion. Of the top ten of the world's market capitalization, the number of digital companies has increased from 1 in 2007 to 7 in 2018. The integration of virtual and reality has become an important trend in global business development.

The information infrastructure that transcends natural and political boundaries is becoming an important variable affecting the global economic structure. The world is turning from political space (how to legitimately divide the earth) into functional space composition (how to effectively use the earth).

Based on this, the first consensus is that we should continue to adapt to the changes in infrastructure, actively promote the intelligent transformation of industries, and strengthen the establishment and effective utilization of digital core assets such as industrial core data, key technology innovation, enterprise user data and so on.

The two is population composition, and the trend of global labor force structure and distribution is changing.

The current global labor structure is undergoing a trend change. According to world bank data, in 2017, the proportion of people over 65 years of age in high income countries reached 17.43%, 7.43% in middle-income countries and 3.37% in low-income countries. In 2018, China's population aged 65 and over was 167 million, accounting for 11.9% of the total population. The speed and degree of aging in China is obviously faster than that in the development stage.

The development potential of the region and the growth space of the industry depend to a large extent on the intensity of human resources, especially the participation of young people. There are two aspects of the changes brought about by the change of population structure: one is the rapid formation of a larger consumption market for the elderly. Merrill Lynch bank predicts that by 2020, the global consumption power of the population aged 60 and above will reach US $15 trillion per year. Two, the supply side of the industrial chain will be profoundly changed, and the labor-intensive industries will be more motivated to transfer to the regions with young labor force, so the layout of the global industrial chain will be adjusted accordingly.

Based on this, the second consensus is that we should make good use of the relatively stable growth period of the current domestic population, actively respond to the constantly unbalanced population structure, on the one hand, enhance the attractiveness and training ability of the fashion industry to young workers, and accelerate the shift from labor-intensive to technology intensive and capital intensive.

The three is the knowledge economy, which has changed the core elements of driving the global economy.

At present, the relative importance of factors affecting economic development is changing significantly. The importance of low skilled labor as a factor of production has gradually decreased. At present, only about 18% of the world's merchandise trade is driven by labor cost arbitrage. In the past 2000-2016 years, the share of global intangible asset investment (such as R & D, brand, etc.) has increased from 5.5% to 13.1%, and technological innovation and cultural creativity are creating value at an alarming rate. In terms of textile and garment industry, the rapid development of customization, smart wearable, functional textiles and so on in the depth of information technology, textile technology, material technology and cultural innovation.

Knowledge as a key variable in the profound changes in the global economy and geopolitical structure, the competition around the global intellectual property layout has become increasingly fierce. Technology monopoly, standardization and platform formation have become the main way to compete for the initiative in international competition.

Based on this, the third consensus is that while strengthening openness and innovation, we will pay more attention to independent innovation, while deepening the application and innovation while deepening the basic innovation.

Two, the key target of China's fashion industry development:

Five dimensions of "high quality development"

At present, China's textile and garment industry is accelerating to become an innovation driven technology industry, a culture led fashion industry and a responsible green industry. "Technology, fashion and green" is becoming a new orientation of work in the new era, a new label in the industry, and a new social cognition.

The change of the industry's own attributes determines the future development goal of China's fashion industry, taking the textile and garment industry as the core representative, that is, to achieve three-dimensional, realistic and sustainable "five development" around the high quality development.

1, opening up and development: make full use of two domestic and international resources to create a new pattern of opening to the outside world.

2, balanced development: promote supply and demand balance, regional balance and industrial balance, and form new advantages of industrial development.

3, full development: improve the level and efficiency of development, make innovation and application more adequate, and make the environment more complete, and achieve new breakthroughs in industrial development.

4, security development: to achieve the independent and controllable key core technologies, to achieve industry resource safety, quality safety and trade safety, and to build new safeguards for the development of the industry.

5, multidimensional development: promoting industrial and financial cooperation, two integration, civil military integration, technological integration, and shaping new boundaries for the development of the industry.

Three, the bright future of the Italian fashion industry.

"Innovation linkage, sharing the future"

Today, the elite of China and Italian fashion industry are gathered together. This is rooted in the past, present and future, based on our cooperative achievements and the strategic consensus that is forming.

First of all, the cooperation basis of the two countries' textile and garment industry is solid and stable.

In 2018, Italy was the third largest exporters of EU to China. Its exports were mainly concentrated in machinery, transportation accessories, fashion textiles and furniture industry. In 2018, Italy's total exports to China increased by 22.2%, of which fashion and textiles accounted for 13% of the total volume. At the same time, China's demand for leather goods and accessories in Italy has increased at an annual rate of 20%.

At the same time, the increasing purchasing power of Chinese consumers is a great driving force for the development of Italy's fashion industry. According to Mediobanca of Italy investment bank, 33% of Italy's luxury brands come from China. Based on the great potential of the Chinese market, the Italy government set up the "China task force" in August 2017 to further consolidate and strengthen trade relations between the two countries in the field of fashion industry.

Secondly, the cooperation resources of the two countries' textile and garment industry are highly complementary.

SMEs, industrial clusters and so-called "traditional" sectors are three interrelated and equally important aspects of Italy's manufacturing system. They outline the general outline and important features of Italy's industrial economy from different angles: they are highly based on small and medium enterprises in the form of production organization, and are well known for their large number of industrial clusters in the structural layout. They are highly concentrated in the four major manufacturing sectors, including clothing and fashion, home decoration, automation, machinery and equipment, food and beverage.

Unlike other countries, Italy can become one of the international fashion centers, largely due to its unique fashion industry. The remarkable feature of Italy's fashion industry is the seamless synthesis of product development, new materials, new technologies, new social styles, celebrities, traditions and art. The inheritance of family elements and traditional handicrafts is an important feature of Italy fashion.

The industrial structure of China's textile and garment industry has similar characteristics, such as the high density distribution characteristics of small and medium-sized enterprises in the whole industrial structure, and the industrial cluster as the important cell body of the industrial economy, gathering, division of labor and highly coordinated in the form of regional development.

Only in the various links of production, design, marketing and communication can the value of "strength increase" be released. Reciprocity, mutual benefit, interconnection and interoperability are our initial thoughts of strengthening cooperation. Here, I hope to throw out problems and let us work together to find the best, systematic, and landing solution.

It can be envisaged whether the future can strengthen the cross regional and inter industry resource complementarity and horizontal linkage between the two industrial clusters. Can it speed up the value combination between the creative design ability of Italy industrial cluster and the manufacturing advantage of China's industrial clusters? Is it possible to graft Italy's craftsmanship into China's mature commercial brand, its huge consumer market and the continuous integration of online and offline business channels?

Thirdly, the direction of cooperation between the two countries is clear.

From the industry positioning, China's textile industry is actively transforming and upgrading to the "innovation driven technology industry, culture led fashion industry and responsibility oriented green industry". We look forward to more in-depth cooperation with Italy fashion industry.

First, from the dimension of "technology", we lock in "intelligent manufacturing" and "smart retailing", and improve the strategic cooperation of fashion industry in the new era.

From the perspective of intelligent manufacturing, China's textile industry development plan (2016 to 2020) will foster large-scale customization positioning as one of the key development directions. The development trend of mass customization is as follows: customization process modularization, customization scene virtualization, whole product customization platform, Internet + intelligent manufacturing integration.

From the perspective of smart retailing, China's fashion brands are developing in the retail industry chain, supply chain, service chain and Internet technology, relying on e-commerce platform to build vertical vertical and horizontal integrated collaborative relationships, and actively promote the commercially available data in the whole process of production, supply and marketing.

In the future, we hope to lock the two fields of intelligent manufacturing and smart retailing. From the supply side and demand side, we will use information technology, modern design methods, standard technology, agile manufacturing and flexible manufacturing technology to organize a series of high and new technologies. Through the organization structure and manufacturing process reengineering, we will explore the production mode of small quantity and multi variety market in order to customize any quantity of products, and explore smart, convenient, smooth, interesting and interactive intelligent retail experience.

Second, from the "fashion" dimension, we should focus on the new consumer groups and demand changes, and strengthen the strategic cooperation of fashion industry for new consumption.

From the consumer perspective, China's main consumer groups are showing a younger trend. From the perspective of Internet consumption, the trend is more obvious. Among the Internet consumers in China, 10-40 years old consumers account for 75%. Men's delicacy, women's cool, and "neutral wind" all highlight the difference between the new generation's main consumers. In response to market changes, domestic clothing brands are beginning to take the younger route. On the other hand, market segmentation is the source of value. The change of parenting concept and the opening of the second child policy have created opportunities for the rapid development of children's wear industry in China.

From the perspective of consumption trend, consumers of China's fashion industry have changed from paying attention to price to paying attention to variety, quality and brand, and further highlighting the characteristics of healthy consumption, quality consumption and green consumption. The white paper on the rising trend of 2018 new consumption, released by AI consulting and so on, shows that the rise of individualized demand for young people in the new era is more about pursuing individuality and self, and requires unique brand culture to show the distinctive temperament of the owner.

In the future, we hope to focus on new consumer groups and demand changes and take root in different product segments. Based on the global perspective, the "fusion based research" of local fashion trends and consumer lifestyles, we will jointly promote product R & D, cultural connotations and interactive design, with technology and aesthetics as the "center of attack" and fully expand the high added value of fashion products.

Third, from the "green" dimension, we should promote green supply chain management and corporate social responsibility practice, and conserve the sustainable development capability of fashion industry for the future.

On the one hand, China's fashion industry represented by China's textile and garment industry is constantly strengthening and upgrading green production capacity, and continuously promoting energy conservation, emission reduction, cleaner production and recycling economy in the industry. At present, the China Textile Industry Federation has set up a "working group on standardization and energy conservation and comprehensive utilization standardization of China spinning Federation" to continuously promote the construction of green manufacturing system.

On the other hand, China's textile and garment industry has been continuously deepened in the construction of social responsibility, and the construction of humanistic responsibility, environmental responsibility and market responsibility has achieved remarkable results, which has effectively promoted the multi-dimensional responsibility of the industry. In April 2019, the office of social responsibility of the China Federation of textile industry released China's first responsible investment guideline based on the life cycle of overseas investment in Vietnam, the guidelines for responsible overseas investment in China's textile and garment industry to help enterprises integrate into global value chains and investment destinations. Carbon, water and recycling management platforms enrich social responsibility management tools.

In the future, we hope to focus on green production, with energy saving, consumption reduction and pollution reduction as the goal, and implement the whole process of pollution control in the fashion industry. More and more Italy fashion brands can join the green supply chain management and social responsibility practice in China's textile and garment industry, and jointly promote green fashion, respectable fashion and future oriented fashion.

Any fashion culture, regardless of origin and origin, will inevitably experience the evolution process from marginal to mainstream, from small to mass, from grassroots to elite. As the famous scholar Alexandra Novoselov (Alexandra Novosseloff) said, "the final fate of all tall walls is turned into tourist attractions". The network of the global fashion supply chain is replacing the traditional national boundaries of traditional maps. The essence of fashion is to eliminate and rebuild. Our real responsibility is to build platforms, strengthen dialogue, coordinate resources and cross borders. Let's speed up the flow, converge, melt and sublimate the energy between us, so as to build a great tolerance and richness of our culture to achieve "national strength, enterprise win and people's good life".

We look forward to the cooperation between fashion industry and the fashion industry, which can generate a series of amazing fashion chemistry reactions that are heartfelt and unable to stop, and constantly release charm and vision, wisdom and responsibility.