Since 2018, Sino-US trade friction has gradually escalated. As one of the important industries in domestic trade with the United States, the exports of the textile and apparel industry have been severely affected by the increase in tariffs imposed by the United States. The proportion of textiles and clothing imported by the United States from China has dropped sharply, while the growth rate of imports from India, Vietnam, Pakistan and other countries has increased significantly. The Sino-US trade friction has accelerated the transfer of textile and clothing orders to other countries. Of course, judging from the history of changes in the global textile industry, the transfer of production capacity and industrial upgrading of the textile manufacturing sector are the general trend, and the current trade environment has only accelerated this process.
Since the First Industrial Revolution, Britain took the lead in realizing the industrial production of cotton textiles and became the center of the world’s textile industry. The global textile manufacturing center has experienced several changes in emerging Asian countries and regions such as the United Kingdom, the United States, Japan, South Korea and Taiwan, and China. Currently, China has become the world’s largest exporter of textiles and clothing. In recent years, the development of Southeast Asia’s textile manufacturing industry has entered a fast lane due to comparative advantages in labor, raw materials and other production factors as well as tariffs and trade barriers. As the global textile manufacturing center continues to shift, the division of labor and trade patterns in the textile industry continue to change, and the global textile industry value chain is also in the process of continuous reconstruction.
Judging from the previous processes of global textile industry center transfer and value chain reconstruction, the industrial technological revolution is the foundation for the formation of the world’s textile manufacturing center. The small family workshop model of textile production was replaced by mechanized factories during the Industrial Revolution. The United Kingdom, the first country to master industrial technology, became the world’s textile manufacturing center for the first time; cost factors (raw materials, labor, etc.) became the world’s textile manufacturing center. main driving factors. The United States became a textile manufacturing center in the early 20th century due to its abundant cotton raw materials and immigrant population. From the Second World War to the 21st century, the textile manufacturing center moved from the United States to Asian countries, mainly due to differences in labor costs; exchange rate factors and trade environment factors accelerated the transfer of the textile industry. Japan and other Asian countries have experienced rapid development in the textile industry and gradually increased trade surpluses. Large, developed countries led by the United States have hindered textile exports through exchange rates, trade restrictions and other means, prompting the transfer of textile manufacturing industries to other less developed countries and regions.
In the entire textile and apparel industry chain, the labor-intensive garment manufacturing link is at the bottom of the “smile curve” and has the lowest added value. Design and R&D in the upstream of the industry chain and brand marketing in the downstream have higher added value. The development process of the textile industry in various countries includes: developing low value-added manufacturing links → extending the industrial chain upstream and downstream → transferring low value-added links → strengthening high value-added links such as R&D, design or brand retail. It can be seen that the gradual transformation from low value-added product manufacturing to downstream brand retail or upstream R&D and design has improved the country’s position in the industrial chain and strengthened its relative competitive advantage.
The future development of my country’s textile industry will inevitably continue this trend, shifting low value-added links from mid- to low-end textile manufacturing to high-end manufacturing and upstream and downstream industry links. Therefore, in the process of the global textile and apparel manufacturing center gradually shifting from China to Southeast Asia, in order to fully leverage the technical strength and management experience accumulated over the years in the process of industry changes and value chain reconstruction, strengthen competitiveness, and enhance my country’s industrial status In view of their position in the chain, the main future development directions of domestic textile manufacturing enterprises include:
(1) Comply with the industrial development trend and deploy overseas production capacity. Utilize the raw material and labor cost resource advantages and preferential policies of Southeast Asian countries to enhance the competitiveness of products in the global market. At the same time, a large number of textile companies have set up factories in Southeast Asia to form industrial clusters, making cooperation between upstream and downstream companies more convenient and helping to reduce the circulation costs of raw materials and products. The increase in the proportion of Southeast Asian production capacity not only enhances the profitability of each company, but also enhances each company’s market competitiveness and its ability to resist risks when the international trade environment deteriorates.
(2) Utilize the technology and management experience accumulated in the textile industry for many years to upgrade production equipment and promote the automation process. On the one hand, it can reduce labor costs and improve efficiency in the production process. On the other hand, it can improve product quality, transform from low-end product manufacturing in the past to high-end product manufacturing, increase product added value, and meet the ever-changing consumer demands of the market.
(3) Extend the industrial chain to upstream and downstream production or R&D and design links. By extending the industrial chain to upstream and downstream and creating a vertically integrated production model, it can synergize with the company’s original business, speed up response, enhance customer stickiness, and improve overall profitability.
(4) Extend the industrial chain to downstream brand retail. Through internal incubation or external acquisition of brands, pure production enterprises are transformed into brand manufacturing enterprises. The added value of the brand retail link is high. Textile manufacturing enterprises extending downstream can connect the resources of the manufacturing industry chain and the needs of the downstream market. At the same time, combined with their financial advantages, they can create Lay the foundation for a strong brand. </p
