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    Textile Industry Chain Join Forces To Overtake On Curve, Speed Up And Internal Circulation

    2021/6/21 20:12:00 0

    The Textile Industry Chain Makes Joint Efforts To Overtake On The Curve And Speeds Up The Internal Circulation; Spin

    At present, the century changes and the century epidemic situation are interwoven and superimposed, and the global instability and uncertainty have increased significantly.

    The textile industry is still in the stage of deep adjustment and transformation. It is necessary to base on the new goal of China's modernization development and the new pattern of dual cycle development with domestic large cycle as the main body, and take the "14th five year plan" as a new starting point to adapt to the new situation and realize new development.

    Internal circulation is becoming an economic hot word. The tide of the times is surging, and "economic internal circulation" is an important strategic choice to deal with the current international and domestic situation. Farewell to the extensive development of the single export-oriented economy, solid internal training, will also become an important opportunity for China's textile and clothing industry to move towards high-quality development.

    On April 16, less than a month after the outbreak of the Xinjiang cotton incident, the National Bureau of Statistics announced that China's GDP in the first quarter reached 24931 billion yuan, an increase of 18.3% over the same period last year. This data means that China's economy is full of vitality after the epidemic, which has attracted the attention and admiration of the whole world.

    In addition, according to the data of the National Bureau of statistics and China National Business Information Center, in the first quarter, the retail sales of clothing, shoes, hats, needles and textiles above the national quota was 340.1 billion yuan, up 54.2% year-on-year. The absolute scale has returned to 99.4% in the same period of 2019; Over the same period, the retail sales of clothing products of 100 key large-scale retail enterprises increased by 51.1% year-on-year. The retail sales of online wearing goods increased by 39.6% year on year. China is the world's largest cotton consumer and the second largest cotton producer. This series of data also confirms that "Xinjiang cotton is not enough for China itself".

    01. Cotton production in Xinjiang

    After the Xinjiang cotton incident, many well-known Chinese brands such as taipingniao, Hailan home, ur, Senma and so on have voiced their support for Xinjiang cotton; Chinese consumers are indignant and support Xinjiang cotton. The indignation is that the issue has touched the bottom line of the country. However, what makes many consumers more surprised and proud is that China's cotton occupies such an important position in the world, especially the quality of Xinjiang cotton is so high. In fact, many people know for the first time that "the world cotton looks at China and China's cotton looks at Xinjiang".

    Xinjiang cotton is out of the circle! At the same time, the voice of supporting domestic products and domestic brands is also increasing. The Xinjiang cotton incident is not so much a booster to promote Chinese brands to overtake on the curve, but more like a mirror. It reflects the status quo and changes in national self-confidence, market demand, consumption attitude, and the whole textile industry chain.

    Support for domestic products is not only to safeguard the national interests, but also to reflect that the consumer market has changed quietly. International brands are not irreplaceable in the Chinese market. In recent years, the rise of the national tide, domestic brands have already entered the vision of Chinese consumers, and more and more recognized. Take clothing brands as an example, many domestic products are better in terms of quality, design, cost performance and reaction speed. This is not only the excellent performance of a certain brand in the consumer end, but also the embodiment of the comprehensive strength of the whole textile and clothing industry chain.

    02. Redefining fast fashion

    Take reaction speed as an example, less than half a month before the Xinjiang cotton incident, the Xinjiang cotton series products cooperated by ur and Huafu fashion have appeared in the former's more than 290 stores in the country. The speed is amazing and praised by all walks of life. This reflects two strengths, one is brand power, the other is the supply power of textile industry chain.

    Brand used to be the biggest pain point in China's clothing industry, which has been greatly improved in recent years. Once we talked about fast fashion, we would only think of Zara in Spain, H & M in Sweden, gap in the United States and UNIQLO in Japan; But now, ur stores in China have become a punch in place for many consumers. The space with design tension and rich and diversified products make this local brand go out a road different from the traditional fast fashion brand. It can be said that ur is redefining fast fashion.

    In the past five years, it has been regarded as a cold winter of fast fashion. Many European and American giant brands have experienced growth decline, shop closures and even bankruptcy. In 2020, the spread of the epidemic makes the already depressed fast fashion industry more uncertain. H & m lost nearly 1 billion yuan in the first quarter of this year, and its profit fell 155.6% year-on-year. At present, it has closed 20 stores in the Chinese market and is expected to close 250 stores in the global market this year; Zara's revenue fell by 27.6% in fiscal year 2020, and its pre tax profit plummeted by 70%. Zara plans to close 1000-1200 stores by the end of this year. However, ur, a Chinese benchmarking brand, has always maintained an upward growth curve. In 2020, its revenue will exceed 5 billion yuan and the number of stores will be more than 40. It will even expand its fashion layout overseas. At present, it has opened stores in Singapore and Thailand.

    What is the reason for ur to rise against the market? In this regard, ur founder Li Mingguang said: "with the global fast fashion entering the transformation period, ur keenly aware of the changes in the industry. In 2015, ur actively upgraded its brand positioning and defined ur as" fast luxury fashion ". In addition to maintaining the trend design and rapid updating of fast fashion, it also improved the product quality, store image and consumer experience simultaneously, For domestic consumers to bring a refreshing feeling. "

    03. Complete the supply chain and support the quality dream

    "For a long time, consumers have criticized the products of fast fashion brands as not good enough and environmentally friendly. We hope to change these pain points and improve the quality, fabric and workmanship. Ur pays more attention to fabric selection and quality control, while maintaining preferential prices, the product quality is better than foreign fast fashion brands. " In fact, to achieve such a goal, it is not enough to have dreams and brand power, but also need strong industrial chain support.

    The Xinjiang cotton series of ur and Huafu fashion, an upstream textile enterprise, is a typical representative of the combination of downstream brands and upstream supply chain. This series of clothing fabrics are all made of Xinjiang long staple cotton. The upstream and downstream work together to provide Chinese consumers with higher quality products with better raw materials. Due to the unique light conditions in Xinjiang, Xinjiang cotton is far superior to ordinary cotton in terms of softness, glossiness, skin affinity and air permeability. Xinjiang long staple cotton is one of the top cotton varieties in the world.

    On March 26, ur announced that it had reached a deep strategic partnership with Huafu fashion to further strengthen the cooperation with Xinjiang cotton supply chain. With Xinjiang cotton coming out of the circle, Huafu Fashion Co., Ltd. has 180000 mu of high-quality cotton fields, 35 ginning plants and an annual cotton business capacity of 600000 tons. Since March, more than 10 brands have established in-depth strategic cooperation with Huafu on Xinjiang cotton, and have supported Xinjiang cotton with practical actions. As a result, consumers who do not know much about cotton and textile frequently leave messages: what is Huafu?

    Why do fashion brands choose Huafu fashion? Li Mingguang's answer is: "Huafu fashion is the world's largest new yarn manufacturer and supplier, and is also the first large-scale cotton spinning enterprise in Xinjiang to plant cotton in Xinjiang. It has always been a close partner of ur; Huafu fashion planting large areas of high-quality cotton fields can provide us with high-quality cotton raw materials It is understood that Huafu fashion began to invest in Xinjiang in 2006. Through 15 years of accumulation, it has built a supply chain system with an annual output of 160000 tons of yarn, which is one of the spinning bases of "three in one" from cotton planting, processing and trading to dyeing and spinning.

    The advantages of Huafu fashion are more than that. Cheng Xiangli, deputy general manager of the company's marketing center, said: "Aksu Huafu started the digital chemical plant project in 2020, committed to building the digital construction of all Huafu's production capacity, subverted and changed many traditional practices, and achieved obvious results in improving equipment efficiency, personnel meticulous management, production improvement, spare parts control, remote on-site environmental control, etc, Provide quality assurance for terminal brands. We will lock in high-quality Xinjiang cotton resources according to the order demand of the brand, establish a cotton base, traceability supply chain system from cotton to yarn to fabric to clothing, and strengthen the endorsement of raw material quality. "

    "In the current competitive global market environment, ur and Huafu, as Chinese local enterprises, should work together to contribute to their respective industries." Li Mingguang said in an interview. Indeed, the upstream textile industry chain and upstream enterprises are very important to the development of downstream clothing brands. Without a matching supply chain, downstream brands can't handle the fast changing market.

    As Yan Yilong, vice president of the national conditions Research Institute of Tsinghua University and associate professor of the school of public management, said, "the most urgent task of the domestic big cycle is to expand domestic demand, stabilize and optimize the industrial chain." Huafu and other textile enterprises are optimizing the supply capacity of China's textile industry. Sun Ruizhe, President of China Textile Industry Federation, once said that China's textile industry has formed the most complete industrial system in the world, and its production and manufacturing capacity and international trade scale have long ranked first in the world. China's textile industry is one of the top five industries in the world. A complete industrial system is the foundation of flexible supply chain, and it is also an important factor for China's textile industry to take the lead in the world.

    04. Supermarkets play the scale effect

    Whether it is the textile industry or Chinese brands can attract the attention of the public, it is the result of national strength, national cultural confidence and market demand.

    As Li Mingguang said, Chinese fast fashion brands have unique advantages. This advantage is backed by 1.41 billion people, including 400 million middle class and 340 million "post-90s" super market. How to give full play to the advantages of China's super large-scale market? The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China proposed to build a new development pattern with domestic circulation as the main body and domestic and international dual circulation promoting each other. From a series of data in the first quarter, as the world's most growing consumer market, China's strong consumption leadership has begun to show.

    With the consumption capacity of the post-95 and even the post-2000's, the market potential of China will be further enlarged. As Li Mingguang said, "Chinese consumers of generation Z are more confident in local culture and have a greater sense of identity with local brands than generation X and Y. in the process of consumption, they not only pursue cost performance, but also need a full range of consumption experience. At the same time, they will express their personal values through consumer behavior." Therefore, ur puts more emphasis on establishing a deeper emotional connection with consumers, so as to make the products closest to the needs of consumers. Although we take the international route, ur pays great attention to the precise matching of products to the needs of local consumers.

    Huafu fashion, with its deep cooperation, is also optimistic about the consumption potential of the domestic market“ With China's economic growth, after the millennium will become the main consumer, domestic market consumption power is considerable. The advantages of environmental protection, comfort and high cost performance of cotton products will be pursued by the consumer market to promote the sustainable growth of China's cotton products industry Chen Ling, President of Huafu Fashion Co., Ltd., said in an interview.

    The movement of the ROC is not the lightness of a feather; The speed of a steed is not the power of a foot. Taking advantage of the internal circulation wind, grasping the market potential and the joint efforts of the whole industry chain, Chinese brands will surely overtake on the curve.

    (source: textile and clothing weekly)

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