In the past century, the global textile industry has almost followed the migration route of the global manufacturing industry and completed several obvious transfers.
At the end of the 19th century, European industrial countries that completed the Industrial Revolution transferred their remaining industrial products, technology, talents, and funds to the United States; after World War II, manufacturing industries in Europe and the United States moved to Asia, mainly Japan; in the 1960s and 1970s, Europe and the United States and Japan’s transfer of labor- and technology-intensive industries outwards. This time, the undertaking is still in Asia, and the “Four Asian Tigers” have quietly emerged. Immediately afterwards, China, with its rapid economic development and vast market, became an important destination for the transfer of manufacturing industries. With this transfer, China’s textile industry accumulated abundant industrial resources, further consolidated its industrial foundation, and became a global player. The largest textile country.
In fact, as China’s economic strength has significantly increased, “going out” has long been upgraded to a national strategy, and more and more companies have turned their development goals to overseas; at the same time, the “Belt and Road” construction advocated by the country is also constantly expanding its “friends” Circle”, many countries in Southeast Asia, Central Asia, Africa, etc. have begun to become new investment hotspots, and cost factors and trade factors have become the main reasons for promoting domestic textile enterprises to “go global.”
According to data from the “Special Consultation Report on the Opportunities, Challenges and Countermeasures of the Internet for China’s Textile Machinery Industry” by the Qianzhan Industry Research Institute:
In 2014, my country’s overseas direct investment in manufacturing was US$19.33 billion, far exceeding the amount of foreign direct investment attracted during the same period. As of the end of 2014, China’s textile industry has invested in more than 2,600 textile and apparel production, trading and product design companies in more than 100 countries and regions around the world, most of which are located in Asia. Since 2004, about 200 domestic garment companies have built production workshops in Southeast Asia.
Q1 “Move out” or “move in”?
“The transfer of the textile industry is very fast and ruthless.” Hu Keqin, who has been engaged in the textile industry, said that he watched the textile companies in Daegu collapse. At that time, this part of the market was transferred to Shaoxing, China and other places, “Because our prices are cheap, The equipment is not bad, but they can’t compete. Customers are coming here, and the Daegu market is quickly declining.”
Examples such as Daegu, South Korea illustrate that gradient transfer in the textile industry is a problem that companies must face. Industrial transfer not only occurs between countries, but also between different regions within the country. In other words, companies must be clear about what to keep and what to transfer.
The new round of global textile industry transfer is characterized by the transfer of low- and medium-end products to Southeast Asia and the return of high-end products to Europe and the United States. China’s textile industry is faced with the challenge of “high-end products cannot be achieved and low-end products cannot be achieved”.
In April 2007, Hongdou Group joined hands with Chinese and Cambodian enterprises to start the construction of the Sihanoukville Special Economic Zone with a total planned area of 11.13 square kilometers. Today, among the 109 companies settled in the Sihanoukville Special Economic Zone, in addition to Chinese-funded companies, there are also local companies from Europe, the United States, Japan, South Korea and Cambodia. They mainly involve labor-intensive industries such as textiles and clothing, hardware, machinery and electronics, luggage and leather goods, and have created jobs for the locals. There are 16,000 positions.
Chinese down jacket manufacturer and seller Bosideng has also expanded production in Southeast Asia. Bosideng sources said that the trend of ordering parties to implement a transnational production system is increasing, which has become the reason why the OEM (OEM) business has lost some orders. This also shows that the purpose of transferring production is to cut manufacturing costs.
However, there are certain risks and worries associated with relocation. In the spring of 2014, large-scale anti-China demonstrations took place in Vietnam to protest China’s oil exploration in the South China Sea. Factories of Chinese mainland and Taiwanese companies became targets of attacks. Therefore, shifting production abroad also involves geopolitical risks such as supply chain disruption.
In fact, in recent years, more textile companies have set their sights on distant places, and moving to the west has also become one of their choices. There, companies can enjoy policy dividends that are unreachable in the central and eastern regions. Today, Xinjiang, where the textile industry is developing in full swing, has already become a hot spot for industry “inward migration”. However, once the comprehensive cost gap is narrowed, the company will still have to start the next transfer.
Q2 If you don’t transfer, you must upgrade
Experience shows that if you are an enterprise that can adapt to market demand and have core competitiveness, you do not necessarily have to “go global.” After all, although relocating is good, not all problems will be solved there. The internal strength of the enterprise is the core. If it is not competitive at home, it will be difficult to survive “going global”.
Transfer + Upgrade
Therefore, in recent years, “transfer and upgrading” has become the main theme of the transfer of the textile industry. Whether it is eastern enterprises “going out” to invest overseas, or transferring part of their production capacity to the central and western regions, or in the process of undertaking transfers and new enterprises in the central and western regions, most investments are accompanied by the elimination of backwardness, transformation and upgrading, the introduction of new equipment, and the relocation of equipment. Phenomenon is no longer common, especially in national settingsUnder the conditions of constraints and sustainable strategies, transfer and upgrading have turned from hot discussions among entrepreneurs into actions and become an important choice for enterprises.
“China’s textile and apparel industry must force the industrial chain to reposition itself in the international market competition.” Sun Ruizhe, president of the China Textile and Apparel Federation, said at the 2017 Jiangnan International Fashion Summit Forum on May 21 that in recent years, Vietnam, Countries such as Bangladesh have gradually increased their international market share by virtue of their cost advantages and tariff advantages. Since 2010, China’s market share in the European Union, the United States, and Japan has continued to decline, and orders have tended to shift to countries such as Vietnam, Bangladesh, and Cambodia. Therefore, China’s textile and apparel industry needs to be embedded in the global value chain through new positioning.
For example, through the four levels of product, design, marketing, and brand, we can restart the new connotation and high value-added cognitive model of “Made in China” to achieve differentiated competition and gain an improved status and comprehensive premium capabilities in the global division of labor and trade. .
Sun Huaibin, vice president of the China Textile Industry Federation, also mentioned this point of view at the 2017 National Textile Industry Transfer Work Conference and Seminar on Intelligent Manufacturing and Ecological Development: In the transfer of the textile industry, the cost factor is an important driving force for the transfer. However, judging from the current domestic and international environment, this gap in cost factors is getting smaller and smaller, and cost-driven transfer is gradually weakening. Industrial transfer should have new impetus, and intelligent manufacturing and ecological development have become more important driving forces.
Q3 Intelligence, can it cultivate an industry that will never shift for China?
The situation and task of my country’s textile industry breaking through the low end of the value chain is very urgent.
Cao Tingrui, Director of the Textile Division of the Department of Consumer Goods Industry of the Ministry of Industry and Information Technology, said that it is inevitable for the cost-sensitive and labor-intensive textile and apparel industry to seek cost depressions and policy highlands. However, the current transfer of the textile industry has entered a new historical period and new developments must be explored. In terms of methods and paths, we must take intelligent manufacturing and green development as important starting points, accelerate the cultivation of new driving forces and core competitiveness, and achieve transformation and upgrading during industrial transfer.
The deep integration of new generation information technology with the production chain, industrial robots and full-process intelligence have achieved innovative breakthroughs and large-scale applications. Industrial organization processes, industrial competition methods and the global industrial competition pattern have also caused China and the global textile industry to face major adjustments.
As we all know, Hongling was once a traditional enterprise group, and its customization business in the clothing sector achieved great success. In 2007, Hongling established a new company, Qingdao Kute Intelligent Co., Ltd. (hereinafter referred to as Kute), for its customization business. Kute directly connects consumers with producers and designers through the Internet, and personalized customized clothing can be customized from one piece. The traditional clothing customization production cycle is 20 to 50 working days, but Kute has shortened it to 7 working days and achieved mass production. The “Internet + Industrial” solution created by Kute based on its own practice has also been exported to the outside world since January 2016. It has helped more than 70 companies to upgrade and transform. “It does not require too much investment on the original basis. You can move towards data-driven, personalized customization, mass customization and intelligent manufacturing.”
In fact, the value of “Kute Intelligent C2M Business Model” is not limited to a clothing company, nor is it limited to the traditional clothing industry. It has important value and reference significance for the transformation and upgrading of traditional manufacturing industries.
In the industry, Shuyang Textile Industry, which has forward thinking, has also become famous through intelligent transformation in recent years. Especially its proposal of “using intelligence to create an industry that will never shift” has made industry people flock to it.
Shuyang Knitting Industry took the lead in launching the country’s first intelligent knitting industrial park-“Shuyang Intelligent Knitting Industrial Park”. It is reported that the industrial park will establish a “cloud platform” innovative promotion model in the smart knitting park to optimize the promotion effect, promote the docking of the park and clusters, and the docking of clusters and professional markets, and promote industrial transformation, upgrading and coordinated development. At the same time, it also aims at international High-end and cutting-edge knitting technology will strengthen key areas such as material design and preparation, green textile dyeing and processing, intelligent manufacturing and deep integration of informatization and informatization.
In order to strengthen the application of intelligence in the development of the industrial park, the industrial park will also promote model innovation of the Internet, big data, cloud computing, and the Internet of Things in the industry manufacturing links and business fields, and strive to create a platform for the knitting industry ecological chain, using ” The “Internet +” idea builds a one-stop platform that integrates spot trading, warehousing supervision, logistics distribution, quality testing, brand promotion, and product marketing.
The development positioning of “The future of knitting depends on intelligence and intelligent knitting depends on Shuyang” is an expression of confidence. In fact, it is a strong trust in the role of intelligence in promoting industrial development.
Looking at the entire industry, the degree of intelligence is not high enough, but no matter whether it is attempted in terms of equipment, processes or management, it all hits the key point of industrial transfer – the common problem of rising comprehensive industrial costs. Industrial transfer isThis is due to historical laws and capital’s pursuit of profit maximization, but whether it is Hongling or Shuyang, its exploration in the field of intelligence has opened up more room for imagination for the sustainable development of China’s textile industry. Although intelligence is not “eternal” in the textile industry “No transfer” is a decisive factor, but it undoubtedly adds important weight.
Source: China Textile News
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