Conform To The New Trend And Grasp The New Demand -- China Textile Federation: China'S Textile Industry Ushering In A New Pattern

As a big textile country in the world, China's current good development trend has attracted worldwide attention. Many overseas textile machinery enterprises all attach great importance to the Chinese market and look forward to more understanding of the development of China's textile industry.

Against this background, the first day of the opening of the ITMA2019 textile machinery exhibition was hosted by the China Textile Industry Federation and the Shaoxing Municipal People's government. It was hosted by the CHINA TEXTILE, China textile, Shaoxing Keqiao people's government and Shaoxing Keqiao economic and Technological Development Zone Management Committee. The International Textile Manufacturers Federation (ITMF), the Italy Textile Machinery Association, the Spanish Textile Machinery Association, the China Textile Machinery Association, the China printing and dyeing industry association, the China International Trade Promotion Committee and the textile industry branch supported the "Summit on sustainable development of the global textile industry" held at the Barcelona Exhibition Center in Spain.

Taking the theme of "new trend and new demand" as the theme, this Summit Forum on sustainable development of the global textile industry has attracted more than 30 countries and regions and more than 200 textile machinery enterprises CEO and responsible persons. At the meeting, Gao Yong, secretary and Secretary General of the China Textile Industry Federation, introduced and interpreted the current development of China's textile industry.

Endogenous dynamics continue to increase

Consumption is the direct embodiment of people's need for a better life, and is also the ultimate goal and core power of production. The Chinese market with nearly 1 billion 400 million people is experiencing a new golden age of consumer upgrading.

Gao Yong said that in 2018, China's year-end consumption expenditure contributed 76.2% to GDP growth, and became the first driving force for economic growth for fifth consecutive years. According to the standards of international organizations, 15 cities in China's coastal and central regions have reached GDP standard of developed economies per capita, covering nearly 150 million of the population. Consumers are becoming more mature and rational. They no longer regard the price, quantity, new products, trademarks and flaunting degree as the main considerations of consumption. Instead, they show a series of changes from the satisfaction of quality of note to the promotion of quality, from visible material products to more service consumption, from imitative wave consumption to personalized and diversified consumption.

According to the statistics of China's National Bureau of statistics and China Customs, in 2018, the retail sales of clothing and shoes and hat textiles increased by 8% over the same period last year, and the growth rate was 0.2 percentage points higher than that in 2017. The total export volume of textiles and clothing reached 276 billion 730 million US dollars, up 3.5% over the same period last year, and the growth rate was 2 percentage points higher than that of last year. China's 37 thousand Textile Enterprises above Designated Size realized 5 trillion and 370 billion 350 million yuan in main business, an increase of 2.9% over the same period last year, a slowdown of 1.3 percentage points over the previous year, and a total profit of 276 billion 610 million yuan, an increase of 8% over the previous year. The growth rate was 1.1 percentage points faster than that of last year. According to statistics, the fixed assets investment in the whole industry increased by 5% over the same period last year, a slight slowdown of 0.2 percentage points over the previous year.

Gao Yong said that China's domestic demand market continued to play a supporting role in 2018, and online retail growth was particularly good. The online retail sales of apparel products in China increased by 22% over the same period last year, and the growth rate was 1.7 percentage points higher than that in 2017. Capacity utilization remained at a high level, and the utilization rate of chemical fiber and textile industries (excluding garments and spinning machines) reached 81.8% and 79.8% respectively, which were higher than the average level of 76.5% of China's industry. Industrial, home textiles and clothing three terminal industries remained stable throughout the year. The contribution of chemical fiber and textile machinery to the whole industry's economic development was enhanced. The main business income, gross profit and investment completion amount of the chemical fiber industry increased by 12.4%, 10.3% and 29% respectively, all above the average level of the whole industry.

The external environment is complex and changeable.

In response to the changes in the external environment in 2019, Gao said that the external environment facing China's textile industry was more complex in 2019.

On the one hand, domestic and foreign market demand growth still has certain support foundation. China's overall stable macroeconomic environment and the continuously upgraded domestic demand market will still provide the basic driving force for the textile industry's innovation and development, and the proposal to promote the formation of a strong domestic market task has also pointed out an important development direction for the textile industry.

On the other hand, a variety of uncertainties and uncertainties have increased significantly. The contraction of US dollar liquidity and the exacerbation of international trade protectionism have increased the downside risks of the global economy. China's macro-economy is also facing greater pressure because of the rising international environmental risks. In particular, Sino US trade frictions have been tortuous and difficult to solve in the short term, which has greatly increased the uncertainty of the international trade environment of the textile industry, not only directly affecting export orders and related production and employment, but also will have a potential impact on the international procurement pattern and the international division of labor and investment layout structure of China's textile industry.

According to the National Bureau of statistics and the customs express, in the first quarter of 2019, the retail sales of clothing, shoes and hats and needle textiles increased by 3.3% over the first quarter of the year, the growth rate was 6.5 percentage points lower than that of the same period last year. The retail sales of Online apparel products increased by 19.1% over the same period last year, while the growth rate was 14.8 percentage points lower than that of the same period last year. However, it continued to maintain a two digit growth rate. Export pressure has increased. The total export volume of textiles and clothing in the first quarter was 56 billion 330 million US dollars, down 1.8% from the same period last year, and the growth rate was 7.4 percentage points lower than that of the same period last year.

China Textile overall prosperity index meets expectations

Gao Yong believes that, from the statistical data and the index of the enterprise survey questionnaire, the first quarter of the industry shows some characteristics: first, the textile production and sales index have declined. In the first quarter of 2019, due to the weak market demand at home and abroad and the influence of the Spring Festival holiday, the production growth and market demand of China's textile industry had slowed. The two is the decline in product sales prices, the purchase price of raw materials. In the first quarter of 2019, the sales price index of products dropped and the purchase price index of raw materials increased. It can be seen that the cost of raw materials in China's textile enterprises has been raised, but it has not been spanmitted to the price of the products synchronously, resulting in the squeezing of the profits of the enterprises. Three, inventory of raw materials and finished goods decreased. In the first quarter of 2019, China's textile production enterprises slowed down, the inventory was more active, and the inventory of production enterprises declined rapidly.

Gao Yong said, overall, affected by the market slowdown and other factors, China's textile industry overall prosperity index is in line with expectations. With the gradual improvement of China's domestic market environment and the influence of relevant policies, there will be room for recovery in the two quarter, and enterprises' confidence in the two quarter will be enhanced.

New pattern of textile development in China

China is the largest textile and garment producer, consumer and exporter in the world. It is the most complete and most complete country in the textile industry chain. Gao Yong said that with the development of science and technology and the advent of the Internet + era, China's textile industry is opening up a new pattern.

(1) enterprises are more interested in going out.

Gao Yong said that in recent years, due to the rising labor costs in China and the advantages of low labor costs in Southeast Asia, plus the preferential tax and preferential policies implemented by the countries in the region, many textile and garment enterprises have been digging gold and Southeast Asia, and investment in Southeast Asia has gradually become a hot trend. Especially for Vietnam, Kampuchea, Burma, Laos and other countries, investors are more interested. In 2017, Chinese textile enterprises were also complying with this trend and integrated into the army of nuggets and Southeast Asian countries. Since 2018, dozens of textile enterprises including Tianhong textile, Hongkong Yida group, Hong Kong Group and Lu Tai textile have expanded to build factories abroad. At the same time, textile enterprises in the economically developed areas of China are also building factories in the central and western regions such as Xinjiang.

(two) "Internet +" changes the status quo of textiles.

As a traditional pillar industry in China, "Internet + textile" is changing the status quo of textile industry. Gao Yong said that with the development of the past two years, a large number of "Internet +" B2B platforms have emerged. "2017~2018's China Textile and apparel industry internet development report" pointed out that the total e-commerce spanactions of textile and clothing in 2017 amounted to 5 trillion and 280 billion yuan, an increase of 18.65% over the same period last year, accounting for 18.11% of the total e-commerce spanactions in the country. Among them, the volume of e-commerce spanactions between textile and garment enterprises (B2B) was 4 trillion and 90 billion yuan, an increase of 18.55% over the same period last year. The total retail sales of apparel and household textiles were 1 trillion and 180 billion yuan, up 20.08% over the same period last year, accounting for 21.58% of the total retail sales of physical commodities in the whole country.

Gao Yong believes that e-commerce brings more convenience to the textile industry besides the spanaction process, and more importantly, it breaks through the original geographical restrictions and combines the supply and demand of fabrics and garment factories across China to solve the problem of traditional cloth selling and cloth searching.

(three) technological innovation has injected new impetus into the industry.

The world is in the stage of a new round of technological revolution and industrial spanformation. The new generation of information technology, represented by Internet, big data and artificial intelligence, is changing rapidly. In this regard, Gao Yong said that promoting the integration and development of the digital economy and the real economy, accelerating the continuous spanformation of new and old development kinetic energy and creating new industries and new formats are the common tasks facing all countries.

Gao Yong said that recently, the textile industry in China has seen an upsurge of "machine substitution". Its starting point is to improve the automation and efficiency of production links and replace traditional manual operations with machines. According to incomplete statistics, at present, the digital rate of production equipment in domestic textile enterprises has reached 36.06%, the networking rate of digital production equipment has reached 27.74%, the popularization rate of information in production management links has reached 50.49%, and the proportion of enterprises realizing control and integration has reached 19.82%.

"Green" sustainable development has become the mainstream.

Standing in the new historical position, China's textile and garment industry is accelerating the spanformation of quality, efficiency and power. Gao Yong said that as the first entity in the world to carry out social responsibility work at the industry level, China's textile industry has actively adjusted the industrial structure, eliminated backward production capacity, deepened technological innovation, reduced the total amount of pollutants and greatly improved the quality and efficiency of development.

The textile industry has always attached importance to technological equipment innovation and spanformation, and strive to reduce consumption and increase efficiency. 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 label for the development of the industry.

The textile industry takes the lead in promoting social responsibility, emphasizing on human responsibility, environmental responsibility and market responsibility. The textile industry, as an important participant, contributor and leader of the construction of ecological civilization in the industry, has set up a "green template" in its own successful practice. In 2005, the textile industry built China's first social responsibility management system CSC9000T; in 2014, the world's first supply chain environment (chemicals) footprint system; in 2018, it pioneered the pilot implementation of the CSR standards overseas.

In 2019, the printing and dyeing industry started well. But with the spanformation of the new round of industrial revolution and the global industrial competition mode, especially by the continuous rise of China's labor costs, the continuous rising of dyeing and chemical materials prices and the increasing tightening of national environmental policies, the spanformation and upgrading of China's printing and dyeing industry is imminent. The important support for the spanformation and upgrading of the supporting industry is inseparable from the advanced equipment of technological innovation and intellectualization. At present, many advanced equipment suppliers in the world are important partners of Chinese enterprises.

Environmental protection, energy saving, digital monitoring and intelligentization are the focus of the development of printing and dyeing equipment in the future. Energy conservation and emission reduction are still the main line of printing and dyeing equipment development. These can also be seen from the exhibits of 2018 China International Textile Machinery Exhibition and ITMA Asia Exhibition. There will be much room for future development of digital monitoring technology and equipment for printing and dyeing process. The establishment of digital monitoring system for printing and dyeing workshop and the realization of whole process data collection will become the mainstream direction in the future. Digital inkjet printing machine is still a hot topic in the industry.

Gao Yong pointed out that the current world is undergoing a great change in the past hundred years, and the development of kinetic energy has been profoundly adjusted. Under the impetus of technological innovation and trade cooperation, the global industrial chain, value chain and innovation chain are deeply intertwined, and the links are increasingly close. The division of global industrial division is reshaping, and international competition is becoming increasingly fierce. But the general trend of world development is still "win-win cooperation, open sharing".

Finally, Gao Yong said that in the new era, how the global textile industry can build together and work together to innovate the global textile industry chain, realize technology driven, fashion led, green energy, lead the wisdom to create a new era, and take a more open mind, responsibility and co governance, resource sharing, is a common topic all over the world. Sustainable development is becoming the consensus and goal of the global textile industry. Gao Yong hopes to work hand in hand with the global textile industry and work together to achieve this goal.