Looking at the development trend of the textile industry from the Shengze 50 Index

The 50 Index has brought a lot of inspiration to the development of the Shengze Textile Industry Cluster and even the entire Chinese textile industry. This is the crisis that traditional industries are currently facing, and it is also an opportunity to update everything from products, technology, brands to vision and concepts. The traditional manufacturing industry must adhere to the scientific concept of development, effectively transform the economic development model, accelerate the transformation from quantity expansion to quality and efficiency, from investment-driven to innovation-driven, increase the technological content of products, and increase the added value of products, so that Only in this way can we have stronger risk resistance and market competitiveness.

In-depth analysis found that 50 large-scale textile companies in Shengze have the following common features: 50 companies are willing to invest in talent and technology development, and have obvious advantages. For example, Jiangsu Xinmin Textile Technology Co., Ltd. currently has 1,459 employees, including 136 scientific and technological developers, a ratio of about 9%. Wujiang High-tech Textile Co., Ltd. currently has 135 employees, including 45 technical R&D personnel, a ratio of about 9%. Reached 33%. 50 companies have strong new product development capabilities. For example, Jiangsu Xinmin Textile Technology Co., Ltd. developed 72 new products last year. In addition, 50 companies such as Longlong Textile, Wujiang Chemical Fiber Weaving Factory, Xinwu Textile, and Xiangxing Group are also able to “produce new products every month” in terms of new product development. , new products are constantly coming online.” The products produced by 50 companies are mostly mid-to-high-end products with high added value and obvious competitive differentiation. For example, Wujiang Kingdee Air-jet Weaving Factory is currently producing memory fabrics, Baida Silk Air-jet Weaving Factory is producing metallic cloth, Memory Fabric Mastercard is producing corduroy, memory fabric Wujiang Fuhua Weaving is producing high-density nylon and high-density fine-grained peach skin series. The product Hantong Jet Weaving focuses on producing “smart and exquisite” fabrics. The emergence of these new products has greatly improved the added value of the products. Compared with conventional fabrics, its added value is more than 10 times, thus effectively getting rid of the vicious circle of vicious competition of conventional products and improving the competitiveness of enterprises. 50 enterprises The product differentiation rate has therefore reached more than 80%. 50 Enterprises sell both internally and externally, and the domestic market occupies a dominant position. Companies such as Xinmin Technology and Zhonglian Warp Knitting mainly focus on the domestic market. Wanshida Jet Weaving, Xiangsheng Textile Dyeing and Finishing, Runda Jet Weaving, High-tech Textile, Guangyu Textile, etc. have certain export markets. This also fully shows that under the influence of unfavorable factors such as RMB appreciation and trade restrictions, 50 companies have begun to fully explore the domestic consumer market, which is a good practice of the development idea of developing both domestic and foreign sales markets advocated by the China Textile Industry Association.
Against the background of rising labor costs, rising commodity prices, rising RMB exchange rates and rising bank interest rates, China’s traditional manufacturing industries, such as the textile industry, are facing unprecedented pressure. Since the beginning of this year, the textile industry’s voice in society has increased significantly. For Shengze, an important organization in China’s textile industry, some media even made negative reports on “companies that have suffered a large number of losses, suspended production and closed down.” However, the author found that in the first half of this year, the Ministry of Commerce’s “China Silk·Shengze Chemical Fiber Index”, especially the Shengze 50 Index, found that this was not good given the development of the textile industry. Shengze Company has a certain scale of high-quality products. . By increasing efforts in new product development, developing differentiated products with high added value, and implementing domestic and overseas sales market strategies, the market is still performing well. The Shengze Textile Industry Cluster is moving towards the industrial structure defended by the China Textile Industry Association. The updated goal is to advance and enter the path of sound development with a development model that is more in line with the scientific outlook on development.

The 50 index shows that Shengze’s high-quality textile enterprises have strong risk resistance capabilities
It has been more than half a year since the “Shengze Silk and Chemical Fiber Index” of the Ministry of Commerce of China was officially launched on November 24 last year. In the past six months, it can be said that China’s textile industry is entering a cold winter. Several unfavorable factors in the development of the textile industry have gradually affected Shengze Textile Industry Group. The monthly market confidence index of the “China Shengze Silk and Chemical Fiber Index” shows that the monthly prosperity index in the “Shengze Silk and Chemical Fiber Index” has been on an upward trend since December last year until March this year. However, in April this year, the monthly prosperity index began to decline. . In May, the monthly market sentiment index has fallen to 95.43. In June, the monthly market sentiment index has fallen to 93.57, 7.5 points lower than the benchmark index on November 24 last year.

An important reason for the decline in the monthly market confidence index is that international crude oil prices continue to hit new highs, which leads to rising costs for chemical fiber companies. The rising product price derivatives are difficult to maintain at the accelerated rate of raw materials, making it difficult for polyester products to pass on cost pressures without problems. The profit margins of chemical fiber companies are getting smaller and smaller. On the other hand, the macro-environment at home and abroad is not conducive to the survival of textile and garment enterprises, the final demand enterprise. The exchange rate of the US dollar against the RMB was broken, and domestic monetary policy was tightened. Many textile and garment companies had difficulty in obtaining loans and were strapped for funds. With the adjustment of commercial processing policies, the increase in loan interest rates, the implementation of new labor laws and the increase in raw material costs, the national polyester chemical fiber industry is struggling.

However, the “50 Index” representing the largest 50 silk and chemical fiber weaving companies in Shengze District has moved to the opposite market. The base period of the Shengze 50 Index is August last year.��, the benchmark is 1000 points. After the “50 Index” left its downward trend in January and February of this year, it began to increase in March. The Shengze 50 Index fell in April, but in May, the Shengze 50 Index still showed a slight upward trend, closing at 1147.50 points. The monthly index 50 rose to 1205.28 points. It showed an upward trend compared with the general decline in the market sentiment index. This shows that when the market environment is not good, large companies have a stronger ability to resist risks.

The author’s research found that in the first half of this year, the entire textile industry market was not very prosperous, and many small and medium-sized enterprises in Shengze had some problems in their production and operations. However, 50 large textile companies in Shengze were selected into the Shengze 50. They have strong strength in new product research and development and extensive sales channels. Therefore, in terms of market growth rate despite a general decline, the 50 index is still recovering strongly.
Especially after the 5.12 Wenchuan earthquake in Sichuan, due to strong productivity, more than 50 companies directly or indirectly received Oxford cloth production orders from the Ministry of Civil Affairs and the General Logistics Department, which also greatly improved Shengze. 50 index.

Index 50 indicates the direction of industrial improvement

The national textile industry entered this period under the influence of various factors, and the Shengze 50 Index bucked the trend. what is the reason? The author’s in-depth research on the 50 large textile companies represented by the 50 Index found that the 50 large textile companies in Shengze represent the direction of improvement in the textile industry and have taken the initiative to transform. Economic growth has promoted the China Textile Industry Association to increase the contribution rate of products and technologies as well as the contribution rate of brands, which has become a conscious action of these companies. Therefore, these companies have shown strong coping capabilities when industrial development encounters difficulties.

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, please contact us and we will change or delete it as soon as possible.