Transformation and upgrading is the only way for textile companies to get out of difficulty

The textile industry is a traditional advantageous industry in Fujian. It has formed a relatively large industrial cluster and a complete industrial chain. At present, the total textile economy of Fujian ranks fifth in the country. However, with the fluctuation of the cost in recent years, the development of the industry has been unstable, even as a sunset industry. The price of cotton soared and the days of textile companies were very difficult. The price of cotton continued to decline, and textile companies still faced difficulties. Experts point out that as a traditional industry, cotton spinning companies need to seek ways to break the rules.

Dilemma often accompanied

“Weaving operating income decreased by 4.99%, bleaching and dyeing operating income dropped by 33.07%, and yarn dyeing operating revenue dropped by 20.31%.” The textile company Fujian Fengzhu Textile Central News reported that in the first half of the year, its main business was operating at a loss, and its operating profit dropped sharply.

Fengzhu Textile explained that due to the decline in external demand and sluggish domestic demand, the difference in cotton prices at home and abroad caused the export competitiveness of products to decline, which led to a decrease in sales revenue, a decrease in output, an increase in the cost of fixed units, and an increase in labor costs. The gross profit margin decreased significantly compared with the same period.

“Textile companies have been in turmoil and have hardly stopped over the past few years.” The person in charge of a textile company in Changle, Fujian's textile city, told reporters that last year, the price of cotton went through two waves of skyrocketing plunges. It climbed every March last year. The historical high of 34,000 yuan, but then the deterioration of the European debt crisis caused the global commodity market to dive, the international cotton price began to decline. At the beginning of August, the quotation of the main port of imported cotton in China fell generally. The national weighted average price of 328 cotton was 18,325 yuan per ton, a decrease of 41.3%.

This year, cotton prices have been falling all the way, but most apparel and textile companies have said that they have little impact on corporate profits. "A lot of cotton is set in advance, who knows that it will decline so much!" A person in charge of a textile company in Fuzhou City, said that the cost of the decline in cotton prices can not make up for the increase in labor costs. Taking a garment as an example, the proportion of raw materials in cost is decreasing, the proportion of labor costs is increased from 15% to 30%, and the proportion of energy costs is also increased from the original 10% to 15%.

Changle City, the major textile and textile industry in Fujian Province, had a limited year-on-year growth in the tax revenue from the taxation of textiles in the first half of the year. Due to the sluggish market economy environment, Changle Textile's production and operation situation has been difficult.

Internal and diplomatic difficulties

“As a traditional industry, the textile industry is faced with multiple difficulties such as talents, capital, and technology. In the era when the demographic dividend is gradually declining, the traditional advantage is no longer present,” said the relevant person in the Fujian Textile Industry Association.

Earlier, the Ministry of Industry and Information Technology released an analysis report on the operation situation of China's textile industry in the first half of this year. Compared with some emerging countries, China’s textile industry has lost its advantages in low-cost. During the process of economic transformation and upgrading, the structural shortage of the labor force in the textile industry has become increasingly serious. The labor shortage in the eastern region is even more pronounced.

It is understood that there are many reasons for this result. “Although cotton prices have fallen, the labor costs have been rising continuously and the gaps are getting bigger and bigger. Companies have always wanted to transform and upgrade, but due to the lack of management talents and high-tech talents, it is difficult to develop products, innovation, etc.” Changle Wu Hangzhen A person in charge of a textile company said that in the eyes of the people, the textile industry is a low-wage industry, and the basic implementation of shifts, labor intensity, low wages, making more and more people flee the industry. At present, the national labor force in the textile industry is about 12 million. It is estimated that by 2015, the labor demand in the textile industry will reach about 23 million, which means that the labor resource issue will become a key issue affecting the development of the textile industry.

Due to the increase in labor costs, it also caused the loss of orders. It is understood that some foreign companies and orders have now shifted to new types of cheap markets such as Southeast Asia. "Because of the lack of orders, the company is in a semi-cessation state." The head of a textile company in Jinjiang told reporters that since the second quarter, some textile companies were in a state of semi-cessation.

Seeking a new road

Has the textile industry really become a sunset industry? Experts have denied this claim. “The crux of the problem behind the weakness is that since the reform and opening up, the textile industry has followed suit, imitated, homogenized competition, and blind expansion. The industry is inseparable from the industry, and new industries will be found through transition. Method!"

So, what kind of path does it take? In Shishi, some textile companies still maintain high profits when the costs of raw materials and labor continue to rise. Their "secret" is to implement differentiation. As early as a few years ago, they sought to transform and promote differentiation. Shishi Federation Sanhe relied on "low-carbon and environmentally-friendly" fabrics, and this year's development is the same as last year.

“The road to differentiation should undergo a period of cultivation and market verification. Customers should agree with them and consumers should also agree.” Qiu Zhiqiang, general manager of Hongtai (China) Co., Ltd., believes that the path of differentiation in textile companies is inevitable in the future. trend. It is understood that Hongtai Textile has already begun to try blended products.

The Fujian textile industry cluster effect has been significantly enhanced. The province has been awarded the “China Textile Base” in Jinjiang, Changle, and Yong'an, which are the pilot regions of China's textile and apparel industry clusters; 60% of the company’s equipment in the industry has reached the domestic advanced level, among which 30 % Chemical fiber equipment and 15% cotton spinning equipment are at the leading domestic or international advanced level. There have been one enterprise group with output value exceeding 10 billion RMB and 10 enterprises exceeding 5 billion RMB.

According to the plan, during the “Twelfth Five-Year Plan” period, Fujian Textile Industry will focus on the development of new textile fiber materials industry, high-performance industrial textiles, new textile equipment manufacturing, and deep processing of fabrics and apparel products, to the end of the “Twelfth Five-Year Plan” period. The total industrial output value, industrial added value, and export delivery value of textile enterprises above the designated size reached 500 billion yuan, 170 billion yuan, and 100 billion yuan respectively, and the number of enterprises (groups) exceeding 10 billion yuan in the province's textile industry exceeded 8. Five billion yuan exceeded 30.

The transformation and upgrading of textile enterprises is obviously the only way out of the difficulties of Fujian textile companies.