Looking at Zhejiang’s textile industry seeking progress amid changes from the stories of three companies
Walking into the Puyuan Wool Sweater Market in Tongxiang City, Zhejiang Province, the outdoor temperature is close to 40°C, and the indoor sweater production and sales have reached the peak season. On the first floor of Jiaxing Tiwei Fashion Co., Ltd.’s factory, cartons filled with finished woolen sweaters are ready to go.
Under the comprehensive impact of the epidemic, the average annual revenue growth of this clothing OEM company in the past two years has still reached 30%, and the annual output value has exceeded 200 million yuan. This year’s order growth is expected to exceed 20%.
Shen Weiguo, general manager of the company, told reporters that at the beginning of 2020, as market competition intensified and the company’s situation became differentiated, the company decisively decided to comprehensively update its equipment and successively invested 300 million yuan to purchase more than 300 fully formed seamless knitting machines. By inputting a digital pattern, the new equipment can automatically complete the process from a piece of yarn to a finished garment in 90 minutes.
“The epidemic has accelerated the transformation of the apparel industry.” Shen Weiguo analyzed that from large-volume, multi-link division of labor to “fast fashion” and direct-to-consumer, production-oriented enterprises must more accurately match market demand, have rapid response, and determine sales. Only by improving production capacity can the risk of inventory backlog be avoided.
The reporter learned that as the same industry has significantly upgraded its production equipment, Jiaxing Tiwei Fashion Co., Ltd. has focused on design and replaced special computers for designers to gain advantages with richer version designs.
Zhejiang is a major textile province in my country. Professional markets such as Keqiao China Textile City, Haining China Leather City, and Puyuan Woolen Sweater Market are well-known in the country and even internationally. Influential. Faced with the global epidemic and changes in the foreign trade environment in recent years, many textile companies have responded to the situation and made progress amid changes.
Zhejiang Xige Industrial Co., Ltd., also located in Puyuan, is mainly engaged in the production and direct sales of men’s clothing. It has more than 1,000 offline stores and more than 7,000 employees across the country. Affected by the epidemic, offline store customer traffic has decreased, and corporate profitability has declined.
Chen Xianxi, chairman of the company who has been engaged in the clothing industry for more than 20 years, admitted that “changes are too fast”. The rapid rise of live broadcasting in recent years has driven the reshaping of the clothing sales model.
In order to adapt to changes, “Xi Ge” tested live streaming e-commerce in early 2020. Its current sales ratio has rapidly increased to 15%, and it is expected to account for 50% within 4 years. On September 4 this year, the live broadcast e-commerce building invested by this company is about to open, which will support thousands of sweater companies in Puyuan to quickly form a live broadcast e-commerce gathering place by leveraging their industrial chain advantages.
“The traffic interface has been moved online, and the comparative advantage remains offline.” Chen Xianxi said that to make live streaming e-commerce bigger and stronger, it also needs stable and efficient offline channels as support. Based on this advantage, Zhejiang’s textile professional market can stabilize its position and accumulate new advantages.
The annual textile export volume of Keqiao District, Shaoxing City, Zhejiang Province exceeds 100 billion yuan, and its trade covers 192 countries and regions around the world. In the first half of the year, Keqiao achieved exports of 61.953 billion yuan, a year-on-year increase of 31.4%, and the total export volume hit a new high for the same period in previous years.
Zhejiang Lisheng Import and Export Co., Ltd. is a textile trading company in Keqiao. Its revenue in 2019 was US$80 million, which dropped to US$60 million in 2020 due to the epidemic, and increased to US$120 million in 2021 due to transformation.
The reporter learned that at first, this company mainly exported low-value fabrics. It was very difficult to focus on “volume” and the added value was not high. Forced by the epidemic, the company transformed into mid-to-high-end fabric trade early last year. Unexpectedly, the business volume increased instead of decreasing. This experience allowed the company to break through the “psychological barriers” and bravely step out of the “comfort zone.”
“The global textile industry has always existed, but its profit points will shift.” Liu Yongqin, chairman of the company, said that companies must follow the trend, transform and upgrade as early as possible, and continue to climb upstream in the value chain.
At present, this foreign trade company is focusing on improving its professional level and comprehensive capabilities, and using “soft power” to enhance its competitiveness.
“There are always more solutions than difficulties.” Lan Jianping, deputy director of the Zhejiang Provincial Development and Planning Institute, believes that the transformation practices of these three companies show that “crises” and “new opportunities” often coexist, and companies focus on positive On the other hand, those who have the courage to accelerate growth in difficulties and gather advantages in adversity can achieve transcendence in the waves of the market economy.
AAA
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights and interests, please contact us and we will change or delete it as soon as possible.
AA
