In the domestic textile industry, a “warm current” is blowing.
1 Unexpected Airborne
In autumn, some domestic textile processing plants finally started to get busy after experiencing the epidemic.
A printing and dyeing factory in Zhejiang issued an internal document before the National Day: There will be no holidays on October 1st for the “National Day” and “Mid-Autumn Festival”, and each employee will receive a subsidy of 200 yuan, which will be included in the monthly salary. reflect.
“The National Day holiday time has also been compressed this time. It used to be three days, but this year it is only two days to meet the delivery deadline.” A staff member of the purchasing department of a home textile processing factory in Shandong said that he As early as before the holiday, we began to feel that the textile market was improving. “The number of (overseas) orders we have received recently has gradually increased.” He noticed that the vacant work stations in the first half of the year have been filled and reworked. “For factories like ours that do export sales all year round, the quality level is online. As long as Construction can start normally and the construction period can be guaranteed.”
“Actually, it started to be very busy in September.” According to him, the factory originally had a week It is normal to have one day off, but this year the factory basically has two days off every week. Starting from late August, the factory’s orders increased, and factories began to work overtime and urgently recruit workers. During the National Day, many factories did not take holidays to meet delivery deadlines.
Part of the reason why textile orders have improved recently comes from overseas. Many manufacturers have received some “urgent orders” and “flying orders” from India. Most of these orders are “emergency orders”. Since they do not have an advantage in labor costs, it is difficult for these orders to stay in the country for a long time.
2 Returned orders
In recent months, my country’s domestic Home textile orders have recovered from the “cold winter” in the textile and apparel industry in the first half of the year and ushered in a new round of boom.
The “turnaround” of the textile and garment industry will mainly occur in the second half of this year. Data show that from January to August, the national textile and apparel export volume was US$187.41 billion, a year-on-year increase of 5.6%, and the growth rate was 1.3 percentage points faster than that from January to July. In the month of August, the national textile export volume was US$14.72 billion, a year-on-year increase of 47%; the clothing export volume was US$16.21 billion, a year-on-year increase of 3.2%, achieving positive monthly growth for the first time this year.
The reason for this is that on the one hand, the peak season for foreign trade has arrived; on the other hand, many overseas orders have been rapidly transferred from India and other countries to domestic production recently.
India is the world’s largest cotton producer, the world’s largest jute producer, and the world’s second largest silk producer. Its yarn production capacity accounts for 22% of the world’s. Textile revenue has always been one of the main pillars of the Indian economy and one of India’s largest sources of foreign exchange earnings. The textile industry accounts for about 15% of India’s total export revenue. The large outflow of orders here is due to the shutdown of the textile industry due to the impact of the new coronavirus.
The transferred orders are mainly concentrated in the home textile sector. There are two reasons for this phenomenon. “First, China has strong control over the epidemic. Compared with Other countries have the ability to accept orders for resumption of work and production; secondly, domestic cotton prices are relatively low, which has a price advantage brought by low cost.”
In addition to home textile orders, some Other foreign orders in the textile industry have also been transferred to domestic production. Luo Liangzhen’s company mainly produces handbags, luggage, belts and other products. Around August, a customer suddenly gave the company many orders that were originally in India, mainly wallets and handbags.
So, what is the impact of some foreign textile and garment industry orders returning to China on domestic textile companies?
In the first half of this year, the domestic textile industry was basically at a standstill, especially in the area of foreign trade orders. The inventory in the textile industry continued to accumulate. For downstream factories, capital and inventory costs All have brought greater pressure to enterprises. With the restart of the European and American economies, the transfer of these orders to China is a great benefit for downstream enterprises. According to their research on some downstream enterprises, they found that in large supermarkets in Europe and the United States, The demand for home textiles is very large. Because there was no replenishment during the epidemic, the inventory of these household items in supermarkets was exhausted. Therefore, the intensity of replenishment is very strong.
Currently, orders are returning and the factory is increasing part of its production capacity and adding some special skilled workers, but the overall saturation level of orders is not very high.
3 Where to go for industrial upgrading?
Although the current export performance of the textile industry is excellent, some return orders are generally judged to be “emergency orders” in the textile and apparel industry.
The textile industry is a labor-intensive industry and is very sensitive to labor costs. In recent years, as domestic labor costs have increased, many brands have relocated their factories. To Vietnam, Laos and other Southeast Asian countries.
Once India’s domestic production capacity recovers and the domestic production cost advantage is reduced, it remains to be seen whether orders can remain in the country for a long time. These textile orders need to be�It is not that easy to transfer back, especially in the leather goods industry where the technical level is not very high, so it is relatively simple to transfer overseas.
So, if my country wants to continue to maintain the international competitiveness of the textile and apparel industry, upgrading the industrial chain has become the most important direction.
As the country with the most complete textile industry chain in the world, our country has always been the leader in competition. However, at present, our advantages are mainly reflected in mid- to low-end products, not in High value-added products, so in the high-end field of textiles, we still need to polish our own technology and processes to make up for the gap with developed countries.
Although China’s textile industry has the advantage of industrial supporting facilities, under the background of environmental protection pressure and rising production and processing costs, some links in the domestic textile industry will still maintain a trend of outward transfer. However, labor intensity is not the only word for the textile industry. In addition to bulk goods such as cotton yarn and gray cloth, downstream fabrics and clothing are more personalized. Design and style determine the product premium and sales speed.
Alibaba Rhino Intelligent Manufacturing is one direction, and it will definitely develop in this direction in the future. It does not reduce the production capacity of China’s textile and garment industry, but increases production efficiency. The increase in efficiency requires very few people. This is a manufacturing upgrade.
Whether it is from the perspective of population development or technological development, China’s industrial upgrading of textiles and clothing All have great possibilities. As China’s textile industry chain continues to mature, its international status will rise to a higher level.
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