This year, the outbreak of the new coronavirus pneumonia epidemic has profoundly affected the development of my country’s textile and apparel industry. From the central to local governments, a series of export-to-domestic support policies have been implemented one after another. Judging from August data, China’s economic troika of investment, exports, and consumption has recovered as a whole. Against the background of a general decline in performance in the first half of the year, textile and apparel How will the industry turn around in the future?
Industry insiders said that the epidemic has intensified the industry reshuffle, but in recent years, companies have continued to accelerate the pace of international production capacity cooperation, accelerating global layout and effectively improving the company’s long-term order acceptance capabilities and international competitiveness. As the domestic industrial system gradually recovers, most companies are optimistic about the potential of the domestic market while continuing to explore the international market. However, they also need to make appropriate transformations to develop marketable export products and put them into the domestic market, which is a big challenge.
The epidemic has intensified the industry reshuffle and the leading companies have obvious advantages
From the perspective of the overall environment, although the export of anti-epidemic materials is still supporting the growth of China’s textile exports, However, the negative impact of the epidemic on textile manufacturing companies cannot be ignored. First, the domestic epidemic is serious, factories have been delayed in resuming work, and production capacity is unstable. Second, the scale and rebound of the epidemic sweeping the world may increase the risk of overseas customers cutting orders.
As of September 7, 369 textile and garment companies in Shanghai, Shenzhen, Hong Kong and US stocks have released their 2020 semi-annual reports. According to statistics, 369 textile and garment companies achieved operating income of 6817.28 in the first half of 2020. billion, a decrease of 52.483 billion yuan compared with 734.211 billion yuan in the same period last year. The net profit attributable to the parent company was 5.163 billion yuan, a decrease of 42.393 billion yuan compared with 47.556 billion yuan in the same period last year.
“The textile and apparel industry chain and supply chain formed over the years are undergoing severe tests, and the downturn in demand caused by the epidemic has become a major constraint.” Cao Jiachang, President of the China Chamber of Commerce for Import and Export of Textiles, believes that the current international community as a whole Affected by the epidemic, it is expected that the overall demand in major global markets will decline by 15%-25% throughout the year. Logistics obstruction, restricted channels, and increased inventory pressure have made the situation of traditional textile foreign trade companies even worse.
According to data from the General Administration of Customs, from January to August 2020, my country’s total apparel exports were US$82.61 billion, a year-on-year decrease of 15.74%, and the decline was 0.8 percentage points narrower than that from January to July. In the month of August, my country’s clothing exports reached US$16.21 billion, a year-on-year increase of 3.23%. It was the first time that positive monthly growth returned after seven consecutive months of negative growth during the year.
In the context of the overall negative impact and the recovery of foreign trade is still in its early stages, internal resources are being shuffled in the recovery of the industry, intensifying the cleanup of small and traditional enterprises, bringing industry changes ahead of schedule. Leading high-quality companies that can provide stable production capacity are favored during the crisis, while more brands have to return to a new starting line.
Ju Xinghai, a researcher at Guosheng Securities, said that the epidemic environment tests the production stability of suppliers, and leading companies perform better. Companies that can integrate the industrial chain have an advantage. The epidemic also drives resources to the leaders in the industry. Corporate concentration. The semi-annual report of the well-known clothing brand Meibang Apparel shows that in the first six months of 2020, Meibang Apparel achieved a total revenue of 1.602 billion yuan, a year-on-year decrease of 40.64%, and a net profit loss of 478 million yuan, a year-on-year decrease of 247%. Regarding this sharp drop in performance, the company explained that it was mainly affected by the epidemic. However, it is worth noting that in the past three years, Meibang Apparel’s net profit lost 305 million yuan and 825 million yuan respectively in 2017 and 2019. The problem seems to have been buried for a long time. .
Accelerate global layout and resource utilization to support enterprises in breaking out externally
In times of crisis, difficulties arise and opportunities emerge. At a time when many countries’ industrial and supply chains have been severely damaged or even “shut down”, China’s industrial system has taken the lead in returning to normal operation, and its export competitiveness will be further highlighted. Cao Jiachang pointed out that in recent years, in the face of competition and the rise of low-cost countries, my country’s textile and apparel foreign trade industry has actively implemented the “Belt and Road” initiative, accelerated the pace of international production capacity cooperation, and accelerated transformation and upgrading in R&D, design, intelligent manufacturing, etc., for recycling The awareness and execution of utilization and sustainable development concepts are also getting stronger and stronger.
A survey by the China Chamber of Commerce for Import and Export of Textiles shows that leading companies in the country such as Oriental International, Jiangsu Cathay, and Zhejiang International Trade have invested or cooperated with factories overseas, and some leading companies plan to Within the year, 20%-30% of production capacity will be transferred to overseas factories. Accelerating globalization has effectively improved the company’s long-term order-taking capabilities and international competitiveness.
Ma Li, an analyst at Zheshang Securities, said that compared with the revenue recovery, what is even more valuable is that the overall cash flow and inventory situation of the apparel industry in the first half of the annual report is well controlled, and the ability to resist risks has been improved. The outstanding performance of the apparel leader in terms of operating quality in the semi-annual report has increased the market’s confidence in the stability of the apparel leader’s performance.
In terms of investment, textile and apparel companies are more cautious, and the scale of investment in the entire industry is still shrinking. However, the willingness to invest in high-performance fiber, nonwovens and other industries has increased significantly. The investment trend tilted towards high quality will help the textile industry. Sustainable development of the industry.
Looking around the world, the Chinese market was the first to show positive recovery momentum. “From a macro perspective, the growth rate in the third quarter will be significantly faster than that in the second quarter.” Fu Linghui, spokesperson of the National Bureau of Statistics, pointed out that from the perspective of the later trend, demand will rebound, investment will accelerate, and consumption willThe recovery of consumption is gradually increasing its impact on the entire economy.
Seize the opportunity of change and open up new development space inward
While “going out”, textile and garment enterprises are also actively opening up new development space inward. Against the background of shrinking international demand, China’s ultra-large-scale market advantage provides broad space for foreign trade companies to switch exports to domestic sales, and more high-quality export products to domestic sales will also enrich the domestic market supply and further stimulate the vitality and effective demand of the domestic market.
In order to help foreign trade companies smooth their sales channels, the Ministry of Commerce actively builds a consumption promotion platform; the Ministry of Industry and Information Technology carries out special actions to increase varieties, improve quality, and create brands in the consumer goods industry…Shanghai and other places have introduced zero commission and traffic support based on actual conditions , deposit exemption and other preferential e-commerce policies; major e-commerce companies have also set up special areas and special events for export products.
On the other hand, opportunities for change in the textile and apparel industry have also arrived. As the logic of the business world is quietly changing, the industry’s production decisions based on experience in the past must now be transformed into real-time, full-scenario insights and understanding of consumers. In the age structure of China’s Internet population, the proportion of those born in the 90s and 95s has increased rapidly, with the proportion of those born in the 90s reaching 44%. How to make your brand and production meet the needs of young users has become a key issue in the online transformation of enterprises. .
In this regard, industry insiders said that under the background that leading companies are stepping up their efforts to improve the construction of data analysis systems for their product design, production, and ordering, domestic large and medium-sized small and medium-sized textile foreign trade companies should focus on studying how to online In the process of upward transformation, we will highlight regional economic characteristics, accurately reach consumer groups, and improve market expansion efficiency.
Liu Hui, chief data officer of JD.com Big Data Research Institute, believes that for small and medium-sized brands, another key force in expanding the Chinese market lies in technology, especially intelligent supply chain technology based on big data. E-commerce may have It will expand towards the “goods find people” model, connect to the e-commerce digital supply chain, and realize intelligent push. Product information can be directly delivered to the user groups with consumption demands and purchasing abilities that best match, allowing small and medium-sized enterprises to skip market shaping and category shaping. , directly impress consumers with the product’s cost-effectiveness.
Liu Hui believes that the consumer reverse customization model will be more and more helpful to enterprises in the future. By accurately combining consumer demands for product and sales customization, Made in China is expected to achieve a certain degree of overtaking in corners. , becoming a global benchmark project. </p
