Face The Big Change! Sun Ruizhe Talks About The Innovative Development And Prospect Of China'S Textile And Garment Industry

Editor's note Recently, the forum of "innovation and development of textile and garment industry under the great changes" was held during the "assisting Henan garment industry - 2020 brand clothing live broadcast conference". Sun Ruizhe, President of China Textile Industry Federation, delivered a keynote speech entitled "innovative development and prospects of China's textile industry under the great changes". He analyzed the situation of the textile industry affected by the epidemic situation this year, and pointed out the direction for the next industry development. This newspaper specially arranges and publishes the speech, shares with the profession colleague.

At present, we are going through a historic pass. The total diagnosis of new coronal pneumonia in the world has reached nearly 10 million, more than one thousandth of the global population. In the context of the changes in the past century, Xinguan epidemic has undoubtedly become an important variable affecting global development. According to the latest outlook released by the world bank on June 8, affected by the epidemic, the global economy will shrink by 5.2% this year and fall into the most severe recession since World War II. The proportion of economies with declining per capita output will reach the highest level since 1870. Emerging market countries and developing economies will shrink collectively for the first time in at least 60 years. Under the pressure of development, for the sake of short-term interests, some countries are going against the tide, trade protectionism is rising and geopolitical conflicts are deepening. Global development is facing huge systemic risks.

The profound enlightenment of these great changes is as follows: Mankind is a community of shared destiny. The ultimate value of all political and economic activities must be to seek happiness for the people. The textile and garment industry, which pursues the value of "truth", "goodness" and "beauty", is just such an industry for the well-being of the people of China and the world.

Responsibility and mission of China's textile and garment industry

The responsibility and mission of the textile and garment industry lies in constantly meeting the people's new expectations for a better life, promoting national prosperity, national rejuvenation and people's happiness. Such responsibility and mission are embodied in three relationships.

One is the relationship between products and people. This is essentially the relationship between supply and demand, and the process of supply is the process in which product elements continue to meet demand. The evolution of textile fiber materials from using nature and imitating nature to returning to nature and super nature is the upgrading of human survival demand, living demand, quality demand and development seeking. As a multi value carrier, the pursuit of multi function and beautiful form of textiles and clothing essentially reflects people's search for the value of "quality, taste and conduct". With the improvement of function and performance, textile products play an increasingly important role in the field of national economy and people's livelihood and major strategic areas. Textile products are the deep integration of science and technology and fashion, and are the development aesthetics of production, life and ecology. The trend of people's consumption demand upgrading will not be reversed, and the role of textile products in meeting the people's good life is irreplaceable. 　

The second is the relationship between enterprises and society. Society is the environment for the development of enterprises, and enterprises construct social ecology. In the process of the exchange of material and society, textile enterprises are adapting to each other. Textile enterprises are important creators of social wealth. As the main supplier of important livelihood products, textile enterprises continue to create material wealth, prosper regional economy and drive the development of related industries. Textile enterprises are important exporters of social innovation. From material innovation and product innovation to design innovation and mode innovation, from basic research, production management to digital economy, textile enterprises have strong innovation vitality. The characteristics of long industrial chain, high degree of correlation and high degree of regionalization make the innovation of textile enterprises have significant spillover effect. Textile enterprises are important undertakers of social responsibility. The huge economic volume, employment capacity, high degree of internationalization and marketization determine that industrial enterprises are important positions to promote the construction of social responsibility.

Third, the relationship between industry and state. Textile industry is a powerful undertaker of serving the country and strengthening the country and enriching the people. It plays an important role in realizing the great rejuvenation of the Chinese nation. The industry is an important force to support the construction of a powerful country. The complete industrial system and systematic innovation ability make the textile industry have a strong international competitive advantage, and it is the industrial sector with the most potential to take the lead in realizing the construction of a powerful country. Industry is an important supporting force for building a moderately prosperous society in an all-round way. As the pillar industry and livelihood industry of the national economy, textile industry plays a constructive role in stabilizing growth, promoting employment, benefiting people's livelihood and preventing risks.

Industry is an important supporting force for the construction of a community with a shared future for mankind. As a key area of international high-quality production capacity cooperation, textile industry strongly promotes the industrialization process and industrial development of related countries. Industry is an important supporting force to establish cultural confidence. As a cultural carrier, the development of the industry carries the creative transformation and innovative development of contemporary culture.

It should be said that The responsibility and mission, value and responsibility of the textile industry have been fully reflected in the epidemic. Faced with the impact of the epidemic, China's textile industry has played an important role in protecting life and health, stabilizing people's livelihood and employment, and promoting economic development. From March 1 to May 31, China exported anti epidemic materials to 200 countries and regions, including 70.6 billion masks and 340 million protective clothing, which strongly supported the global epidemic prevention and control. The development of the industry has greatly promoted the implementation of "six stabilities" and "six guarantees".

Development status of China's textile and garment industry

With the strategic achievements of epidemic prevention and control in China, the production order of the industry has been basically restored, the domestic demand market has gradually recovered, and the main economic indicators of the industry have improved marginally. Although it is still under great pressure from the economic downturn, the situation is gradually changing to a better direction.

Production growth slowed down. The capacity utilization rate of textile industry is lower than the normal level, but the decline rate of production growth rate continues to narrow. According to the data of the National Bureau of statistics, from January to may, the industrial added value of Enterprises above Designated Size in the textile industry decreased by 8.2% year-on-year, 3.1 percentage points narrowed than that from January to April, and the growth rate in May turned negative to positive. Among them, the industrial use, chemical fiber and filament weaving industry has become the main growth force. In May, the manufacturing industry of industrial textile products showed a rapid growth of 88.3% driven by the centralized production of anti epidemic materials such as masks and protective clothing; the chemical fiber filament weaving and printing and dyeing finishing industry showed a growth of 6.7% with a cumulative decline of 2.9% under the gradual recovery of domestic consumption; the chemical fiber industry showed a growth of 4.3% driven by the downstream market and the rise of crude oil price The decrease was narrowed to 2.9%. Affected by the shrinking terminal demand, the industrial added value of clothing industry and household textile industry decreased by 12.8% and 10.6% respectively from January to May. The industrial added value of textile machinery manufacturing industry decreased by 20.8% year on year. In the major categories of textile products, except for non-woven fabrics, there was a decrease compared with the same period last year. From January to may, the output of chemical fiber, yarn, cloth and clothing of Enterprises above designated size decreased by 3.2%, 18.1%, 27.6% and 17.9% respectively.

Market demand is insufficient, but the decline rate continues to narrow. Affected by the epidemic situation, domestic consumption of textile and clothing goods is still weak, and online and offline sales have dropped sharply compared with the same period of last year, but the decline rate has been narrowed. According to the data of the National Bureau of statistics, from January to May this year, the retail sales of clothing, footwear, knitwear and textiles of units above the national quota decreased by 23.5% year-on-year, 5.5% lower than that of January to April. In order to make up for offline losses, textile enterprises generally strengthened the construction of online channels, and the decline rate of online retail continued to narrow. From January to may, the retail sales of online wear goods decreased by 6.8% year-on-year, 5.2% lower than that from January to April.

In the "618 Shopping Festival" in 2020, the total amount of orders placed by Jingdong and tmall will be 269.2 billion yuan and 698.2 billion yuan respectively, both of which are new records. Among them, clothing, shoes and hats, and knitwear and textiles rank first in the retail sales of the whole network. Driven by the export of epidemic prevention materials, the decline rate of industry export gradually narrowed. According to the data of China Customs express, from January to may, China's textile and clothing exports reached US $96.16 billion, a year-on-year decrease of 1.2%, and the decline rate continued to narrow by 8.8% compared with the previous four months and 0.7% lower than that of the same period of last year. Among them, the textile export volume increased by 21.3% year-on-year, and its proportion in the export value increased to 60.3%; the clothing export continued to decline, with the export volume decreasing by 22.8% year-on-year.

The scale of investment has been greatly reduced. Under the influence of the epidemic situation, industry enterprises generally lack investment confidence and ability, and the scale of investment has shrunk significantly. According to the data of the National Bureau of statistics, from January to May this year, the completion of fixed assets investment in the textile industry decreased by 30.5% year on year. In terms of industries, the investment in textile industry, chemical fiber industry and clothing industry decreased by 26.2%, 23.2% and 39.2% respectively. In terms of regions, the total investment of the five eastern coastal provinces except Zhejiang Province has shrunk significantly. The investment in clothing industry in Jiangsu, Fujian, Shandong and Guangdong Province has decreased by 68%, 44.9%, 50.4% and 80% respectively.

Among the central regions, Hubei Province was more seriously affected by the epidemic. The investment in textile industry, clothing industry and chemical fiber industry decreased by 75.2%, 69.8% and 62.4% respectively, while that of Anhui Province and Henan Province decreased by 47.9% and 31.4% respectively. In the western region, the investment amount of three sub industries in Xinjiang all showed negative growth, and the investment in chemical fiber industry in Sichuan Province decreased by 70.5%. Due to the small base number, the investment growth rate of Shaanxi Province and Gansu Province was higher.

The benefit situation deteriorated obviously. In the case of insufficient production and sales, the textile industry has seen a sharp decline in revenue. According to the data of the National Bureau of statistics, from January to April this year, 33000 Textile Enterprises above Designated Size realized 119425 billion yuan of business income, a year-on-year decrease of 19.7%, and a total profit of 37.7 billion yuan, a year-on-year decrease of 32.1%. The profit margin of business income was 3.2%, 0.5 percentage points lower than that of the same period of last year. Among the 12 textile sub industries, except for silk and industrial textiles, the profits of other industries are under pressure. Among them, chemical fiber, textile machinery, cotton spinning industry performance deterioration is more prominent. In terms of total profit, the total profit of chemical fiber industry decreased by 49.56% year-on-year; the total profit of chemical fiber industry decreased by 49.60%. From January to April, the losses of textile enterprises above Designated Size nationwide reached 33.3%, 11.2 percentage points higher than that of the same period of last year, and the loss amount of loss making enterprises increased by 44.1% year on year. The turnover rates of total assets and finished products were only 0.9 times / year and 10.3 times / year respectively, slowing down by 22.7% and 27.5% compared with the same period of last year. The proportion of enterprise's three fees was 7.5%, 0.4 percentage points higher than that of the same period of last year.

In the face of the huge pressure under the epidemic situation, industry and enterprises actively promote innovation in the field, channel and market. Many enterprises take the epidemic situation as an opportunity to continuously extend the industrial chain and expand to the market of medical protection products. Focusing on channel innovation, industry enterprises actively layout live e-commerce based on high cost-effective product supply chain, and create demand by strengthening interactive experience. At present, clothing products have become the largest trade volume category in live delivery. In terms of market adjustment, many foreign trade enterprises promote the adjustment of export to domestic sales through their own adjustment, with the help of Alibaba, pinduoduo and other e-commerce platforms.

The situation of China's textile industry

Under the epidemic situation, the characteristics of the world's century change are more obvious, and the uncertainty and instability of development are more prominent. In the face of an unprecedentedly complicated situation, we should distinguish the trend from the disturbances and seek to open a new situation in the changing situation.

First, we should adapt to the pattern of production and make profound adjustments.

With the collective rise of emerging market countries and developing countries, the division of labor and the pattern of interests with global value chain cooperation as the core have changed. This is partly the result of the continued antagonism between the state and unilateralism. The outbreak of new crown pneumonia magnifies some disadvantages of globalization and further strengthens the atmosphere of trade protectionism. Some countries are beginning to seek a new balance between efficiency and security. Building a diversified, safe and controllable supply chain is becoming an important direction of global industrial policy. For example, the United Kingdom recently formulated a "security project" plan to reduce its dependence on China and other major importing countries. Some countries, such as the United States and Japan, are also trying to guide the return of manufacturing. The distribution of supply chain is the result of long-term evolution of market rules, and the position of China's textile industry in the global value chain will not change in the short term. But reducing dependence on made in China has become an option. This means that the space for China's textile industry to seek development in the middle and low end of the global value chain is getting smaller and smaller, and accelerating industrial upgrading is the only way.

Second, we should adapt to the market pattern and make profound adjustments.

The world is still in the period of deep adjustment after the financial crisis, and the market demand continues to decline. The spread of the epidemic has further aggravated the shrinkage of global textile and clothing consumption. In April, the retail sales of clothing and apparel in the United States decreased by 89.3% year-on-year, while the retail sales of textiles and clothing in Japan and the European Union decreased by 53.6% and 62.8% respectively. From traditional department stores to fashion retail, they are under great pressure. Sales of PVH group, INDITEX group and gap company decreased by more than 40% in the first quarter. Many brands and traders cancel orders, which directly impacts the industrial chain. According to the survey of 600 enterprises in the world by ITMF, from May 20, 2020 to June 8, 2020, the average decline of enterprise orders is more than 40%. It is estimated that the global business turnover will fall by an average of 32% in 2020. There is a chronic lack of global demand. The importance of domestic demand market is more prominent. On the other hand, the global trade pattern is focusing on regionalization. The proportion of intra regional trade in global goods trade is rising continuously, which has become a new feature of globalization. Since 2018, free trade agreements such as cptpp, EPA, usmca have come into force one after another, and evfta and RCEP will also enter into force this year. The adjustment of market structure will have an important impact on the development of textile industry.

Third, it is necessary to adapt to the pattern of factors and make profound adjustments.

At present, the fourth industrial revolution is booming. The relationship between technological innovation and social production is being adjusted. Science and technology has become the core variable to reshape the industrial pattern. The mode of industrial development and the industrial boundary are undergoing profound adjustment. From the perspective of supply, the cross integration of technology makes a large number of intelligent textiles and multi-functional textiles emerge in large numbers, the product connotation is constantly enriched, and the application scenarios are constantly expanded. All links of the industrial chain are speeding up the transformation to the direction of digitalization, networking and intellectualization, and the level of lean, flexible and service-oriented industrial supply is constantly improved; the rapid development and industrial application of green fiber preparation technology, clean production technology, green printing and dyeing technology, and fiber recovery technology are also deepening. From the perspective of demand, driven by technology, the mode of resource organization and connection with the market of the industry has undergone profound adjustment, and new modes, new formats and new attempts such as scene economy, online celebrity economy and sharing economy have developed rapidly. Especially during the epidemic period, the mode innovation of live delivery, community marketing and online exhibition effectively made up for the blank of offline channel suspension. The industry must speed up the adjustment of industrial structure brought by technological innovation and strive to gain competitive advantage in the rapidly changing world.

China's textile and clothing industry has significant advantages

Under the changing situation, the fundamentals of China's textile industry for a long time have not changed, and the trend of high-quality development has not changed. The development of the industry has obvious advantages, and we are fully confident that we can cope with various changes.

First, institutional advantages. The party's leadership and the socialist system with Chinese characteristics are the greatest advantages for the development of the industry. This has been fully proved in this epidemic prevention and control. Since the 18th National Congress of the Communist Party of China, the modernization level of national governance system and governance capacity has been accelerated, and China's socialist market economic system has been continuously improved. With the deepening of market-oriented reform, the organic combination of "effective market" and "promising government", resource efficiency and enterprise vitality have been fully released; the process of legalization has been continuously promoted, the formation of a competitive neutral environment has been accelerated, industrial development has been more standardized, and market competition has been more equitable. From commerce and commerce to finance, the whole economy has entered a new stage based on rules and regulations. The continuous improvement of the system provides a fundamental guarantee for the industrial development.

Second, industrial advantages. The advantages of having a complete and robust industrial system are more prominent under the epidemic situation. From raw material supply, design and development to textile dyeing and processing, three terminal manufacturing, brand operation and retail, China's textile industry has formed the largest and most complete industrial system in the world. This ensures the independence and security of the industry. On this basis, the textile industry is one of the few industrial sectors in China with the ability of closed-loop innovation of the whole industrial chain. Technological innovation, process innovation, product innovation and mode innovation can be rapidly produced and applied. Cultural and creative attributes make the industry precipitate a lot of design, creativity, IP and other resources. The advantages of systematic innovation make China's textile industry increasingly become an important source of global textile industry innovation.

Third, market advantages. China has the most growing consumer market in the world. In 2019, the total retail sales of consumer goods will reach 41.2 trillion yuan. Among them, the total retail sales of clothing, shoes, hats, needles and textiles above the national quota increased by 2.9% to 1.35 trillion yuan. The huge domestic demand market provides support for the industry to better play the scale economy, scope economy and network effect. Multi level consumption is an important feature of domestic market. Relying on the world's largest middle-income group, consumption upgrading is the general trend; the process of urbanization is deepening, and the potential of sinking market is also releasing. Internet consumption is becoming more and more mature and transnational consumption is developing rapidly. Diversified demand promotes multi-dimensional innovation. The domestic demand market is forming the cornerstone of high-quality industrial circulation.

Innovative development and future of China's textile and garment industry

2020 is the decisive year to build a moderately prosperous society in an all-round way, and also a key year for the industry to build a strong textile country. Although the current external situation is complex, China's textile and clothing industry is still in an important period of strategic opportunities. To adapt to the changing situation and win the future, we need to focus on the industrial orientation of "science and technology, fashion and green", put innovation as the fundamental driving force, put it in the core position of the industry, and effectively promote the high-quality development of the industry with new vision, new pattern and new mind.

Focus on systematic innovation and create new industrial supply with basic capabilities as the core. We should strengthen the advantages of industrial manufacturing and continuously promote the upgrading of production capacity and lean development. Optimize product supply, pay attention to the innovative application of technology and design in products, constantly enrich varieties, improve quality and increase value. Strengthen original innovation and basic innovation, reduce neck sticking projects, and focus on the development of fiber materials, intelligent equipment and other strategic industry related fields. We should establish cultural self-confidence, vigorously develop textile industry culture with Chinese characteristics, and promote trend research, design ability and brand building with "masters, big brands, and major events". We should consolidate the advantages of the system, promote intensive development, and enhance industrial concentration. We will continue to improve the efficiency of the industrial chain supply chain, realize the orderly flow of people and property, organically link up production, supply and marketing, and facilitate the development of large and medium-sized enterprises. We should develop the cluster economy, actively promote the construction of world-class advanced textile and clothing industrial clusters, and accelerate the formation of an industrial supply system with distinctive characteristics, complementary advantages, regional linkage and coordinated development.

Focus on market-oriented innovation and form a new industrial cycle based on domestic demand. Market demand is the source of industrial innovation and development. Under the new situation, the industry should develop an open economy based on the domestic market, and gradually form a new development pattern with the domestic big cycle as the main body and the domestic and international dual circulation promoting each other. We should make full use of the relationship between the domestic demand market and the global market, promote the docking of domestic and foreign trade resources with the market, and reduce the transformation cost. We will strengthen the opening up of industries, and realize the flow of products, technology, production capacity, brands and capital in a wider range, in a wider range and at a higher level. On the one hand, we should give better play to the positive role of domestic super large-scale market on the improvement of industrial total factor productivity, and promote industrial upgrading and trade upgrading by upgrading domestic consumption. On the other hand, it is necessary to give full play to the characteristics of demand differentiation and multi-level between domestic and international markets, and drive diversified technological innovation and product innovation with demand-oriented.

Focus on digital innovation and cultivate new driving force of industry with digital economy as background color. Digitalization, networking and intellectualization are the general trend of economic and technological transformation. The integration of digital economy gives the industry the opportunity to restructure its comparative advantage and realize "asymmetric" catching up. On the one hand, we should strengthen the construction of industry information infrastructure, integration infrastructure and innovation infrastructure. We will accelerate the development of industry level and enterprise level industrial Internet platforms and big data centers. On the other hand, strengthen application innovation around intelligent equipment, intelligent operation, intelligent products and intelligent services. Promote the digital transformation of industrial organization mode and market connection mode. We will vigorously develop new manufacturing modes, such as Internet manufacturing and mass customization, to create a smart and flexible supply chain. Further enhance the breadth and depth of e-commerce application in the industry, and cultivate new formats and new scenarios such as live broadcast economy, platform economy, sharing economy and social economy.

Focus on sustainable innovation, focus on social responsibility to create new industrial value. Good value is one of the most distinctive characteristics of textile industry. From a global perspective, corporate social responsibility is fully integrated into the industry's production system, value system and innovation system. We should continue to enrich the tools and methods of industrial social responsibility, and further promote the integration of social responsibility into the development strategy of industries and enterprises, the production and promotion of products and services, and all links of value chain and industrial chain. We should deepen people-oriented responsibility, better meet people's needs for a better life with industrial innovation and development, pay attention to the universality of development, and promote the implementation of industrial poverty alleviation and employment priority policies. We should deepen environmental responsibility, strengthen clean production and green innovation, actively create a green supply chain for the industry, and develop a green low-carbon circular economy. We should deepen market responsibility, improve the industry credit system and trust mechanism, and promote the fairness and justice of the whole society and the all-round development of workers.

"If you accumulate your strength, you will be invincible; if you are wise, you will be able to accomplish everything." Let us follow the trend, take responsibility, concentrate on innovation, and coordinate resources to promote development, so as to create a better life for the people with the high-quality development of China's textile and garment industry! Sun Ruizhe, President of China Textile Industry Federation