A good opportunity to remove “thickness” in the wool textile industry
After the revitalization plans for the steel and automobile industries passed the review of the State Council, the spring breeze of policy once again blew towards the textile industry. The textile industry adjustment and revitalization plan reviewed and approved in principle by the State Council executive meeting will provide credit support to enterprises with good fundamentals but temporary operating and financial difficulties, and clearly proposes to promote and guide textile and garment processing enterprises to transfer to the central and western regions. What impact will this revitalization plan have on the wool textile industry? Our reporter conducted an exclusive interview with Peng Yanli, Chairman of the China Wool Textile Industry Association.
Reporter: After the introduction of the spinning industry’s revitalization plan, in your opinion, where is the key point of boosting the wool textile industry?
Peng Yanli: For the wool textile industry, the focus now is to expand domestic market demand and boost corporate confidence. Because the wool textile industry has been oversupplied for a long time, it is difficult to offset the pressure caused by the shrinking external market by simply increasing orders from foreign customers. Therefore, the market development of wool textile enterprises must gradually shift to the domestic market.
From the current basic level of domestic consumption, the consumption level of urban residents is relatively high, while the consumption of rural residents is at a very low level. The largest potential market for domestic sales of textiles and clothing is still in rural areas. The reason lies in two aspects. On the one hand, the consumption level in rural areas is currently at a relatively low level and has a lot of room for improvement; on the other hand, my country’s rural areas have a population of 7.8 billion and the market potential is very large. If the billions used to subsidize export tax rebates are used to subsidize textiles, like the way home appliances are sent to the countryside, the effect may be more direct and obvious.
Now stimulating domestic demand has greater autonomy and possibilities, can develop home textile products, meet the demand for the diversification of wool spinning products, and expand the demand for rural textiles. We can also combine the expansion of domestic demand with the adjustment of industrial structure, and combine short-term benefits with long-term development. Although the crisis has brought difficulties to the development of the industry, it is also an opportunity for us to adjust.
Reporter: The wool textile industry is a labor-intensive industry. Can the implementation of this industrial revitalization plan improve the employment level of the industry?
Peng Yanli: The revitalization plan clearly proposes to guide textile and garment processing enterprises to move to the central and western regions. This shows that in the process of promoting the development of the textile industry to the west, the country’s first priority is to absorb the local labor force and create jobs for the local labor force Chance. The second focus is to improve the income level of herders. Most of the domestic wool comes from the western pastoral areas, which has a lot to do with the income of herders. Based on these two points, the transfer of industries to the central and western regions can not only expand the industrial scale of the western region, but also effectively increase the income level of farmers and herdsmen.
In addition, judging from the current industrial layout, the production capacity of my country’s wool textile and clothing industry is mainly concentrated in the Yangtze River Delta and the Pearl River Delta. The production capacity, sales revenue, and export volume of these two regions account for a large part of the country high ratio. From the perspective of developing regional advantages and industrial clusters and improving the intensification level of the textile industry, this pattern of production concentration is conducive to improving economic benefits. However, due to space limitations in the core areas of the Yangtze River Delta and Pearl River Delta, the problem of over-density of enterprises has emerged. Therefore, the pace of adjustment must be accelerated to promote the transfer of the textile industry to the central and western regions.
Reporter: For a long time, the production capacity of wool spinning companies has been surplus. In this crisis, it is an important task to eliminate backward production capacity and adjust the product structure. For the wool textile industry, how should product and technology upgrades be carried out?
. When production capacity exceeds demand and market competition becomes fierce, it is difficult to avoid the elimination of some uncompetitive enterprises. When the cost of production factors rises, enterprises should mainly improve economic efficiency by improving labor productivity, reducing energy and raw material consumption, and increasing product added value, and change their business methods to improve their own quality. In terms of enhancing independent innovation capabilities and the ability to digest and absorb imported technologies, strengthen the research and development of functional and differentiated fibers, textile processing technologies and key industry equipment; strengthen the integration of upstream and downstream industrial chains, promote the integration of industry, academia and research, and improve Our country’s enterprises�Position in the international textile and apparel supply chain.
did not exist. When most textile companies are in trouble, some wool textile companies have shown advantages in the face of adversity. For example, Jiangsu Sunshine, Shandong Nanshan and other companies have increased the innovation of new products, spent great efforts on technological innovation, and embarked on the path of differentiated competition. Most of the textiles produced by these enterprises are mid-to-high-end products with high added value. Compared with conventional products, their added value is greatly improved. Adhering to technological innovation is the key for enterprises to break through difficulties.
Reporter: For the wool industry, innovation includes not only the innovation of production technology and product level, but also the innovation of raw materials, quality, and varieties. So where should we innovate in the market development process?
Peng Yanli: To improve the market competitiveness of products, quality is the key. Only by steadily improving quality can we remain invincible in the increasingly fierce market competition. Especially in the current sluggish situation in the wool textile industry and the continued market downturn, the quality of products is directly related to the survival of the enterprise.
Increasing the “brand contribution rate” is a difficult task for the survival and development of textile companies in the future. Brand cultivation must adhere to quality standards, and innovation is the core of brand cultivation. It is necessary to constantly introduce new products. Even if a product is of good quality, if there are too many people making it, the price will not be high and new products will have to be introduced. New products have been launched and the quality is good. We need to increase investment in publicity, expand market share, and provide good after-sales service. If you only focus on the growth of scale and quantity without brand added value, it will be difficult to survive this sexual crisis. In this regard, we must correctly understand the favorable and positive factors for the development of the wool textile industry, seize opportunities, strengthen confidence, and promote industrial structure adjustment and industrial upgrading.
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