Urgent Tight Inside And Outside China's Textile Industry To Enhance Industry Innovation

In foreign markets, Chinese textile repeated "anti-dumping" actions

, trade friction, while the lower labor costs in developing countries is rushed to catching up; in the domestic market, foreign brands missed high-grade products market, many domestic textile enterprises is still low end of vicious market competition. National Development and Reform Commission and other 10 departments jointly issued a document recently, to speed up the restructuring of the textile industry to enhance industry innovation. Tight inside and outside the textile industry to enhance creativity urgent, time for procrastination.

Cost advantage will be lost

"Anti-dumping" big stick, coupled with some developing countries than in China is still low labor costs, China's textile industry will face in the cost advantage of foreign markets, the loss of the test.

China's textile exports to developed countries often held up "anti-dumping" big stick, this is commonplace for many years. At present, Europe and the United States on the full implementation of China's textile and apparel quota management products, which greatly increased the cost of export enterprises, forcing many companies fought in other countries.

Unfortunately, many developing countries on textile and apparel products in China raised the "anti-dumping" big stick. Since 2005, Ecuador, Peru, Colombia, Brazil, Turkey, India and other countries have instituted safeguards against Chinese textiles and anti-dumping investigations. The momentum did not stop signs, because many of the textile industry is the pillar industries in developing countries, its industrial structure is the study of China or even in support of our country set up in the short term can not afford to live in China impact of low-cost textiles.

But should not be overlooked is that many countries are more low labor cost advantage to squeeze China's textile overseas markets. Huafu Holdings Limited and Chairman of Sun Wei Ting that, once India, Pakistan and Bangladesh and other countries in the textile and apparel products into the international market, China's textile and apparel goods will lose much of its cost advantage.

Industry experts, Bangladesh's labor cost is about 0.07 U.S. dollars per hour, plus high-quality jute in the country, the textile and clothing industry occupies about 79% of the total export exchange earnings, with 2.6% of international market share. More noteworthy is that, near to the size of India's textile industry second only to China, in the first quarter of this year, a very fierce momentum. According to Xinhua News Agency, the first quarter of this year, India's textile exports to Europe and America grew 13%, exceeding the growth rate of 9% in China. In the "post-quota" era, Europe and the United States will share our country's textile export growth to within 10%, and these measures will continue until 2008. This is to power the world's second largest textile industry in India provides a great opportunity to catch up with China.

Recently, news, NDRC officials denied rumors of additional quota of imported cotton, the face of high domestic price of cotton to run the mills face greater challenges of cost control. Moreover, in appreciation of the renminbi, energy, raw materials and rising labor costs under a number of internal factors, China's textile industry will gradually lose in international competition, low price advantage, structural change and improve the innovation is the industry's plan for survival and development .

Domestic luxury market has been eroded

Textile industry, "China" is world-famous, but our own brand and not go out, not only that, they control the domestic market is also facing a huge challenge.

Information technology in the China Textile Network contracted "2005-2006 China's textile and apparel industry competitive conference", the Chinese Textile Industry Association, said Du Yuzhou, Beijing's 35 upscale shops, 60% of imported textile and apparel goods Brand, the top imported brand stores accounted for more than 90%; Shanghai Huaihai Road operating more than 2,000 textile and apparel brands, but 60% are foreign brands. In the case of the country wide open not only a number of foreign luxury brands in the localization of production in China and some second-line brands to enter China's large and rapidly occupy the high-end product market.

Du Chau warned that if companies can not be achieved to enhance innovative ability, then, is not only difficult to maintain the existing 20% in the international market, the profits, but also very difficult foothold in the domestic market.

Has waits to enhance innovation

Du Chau pointed out that the growing internationalization of the domestic market situation, to enhance creativity is not wait.

Some cold figures can be put into the apparent lack of research and development. Responsible official of the NDRC, said textile industry-wide R & D investment accounted for only 0.3% of sales, the majority of high-tech and high dependence on imports of textile equipment; brand design and marketing capabilities independently weak, exports mainly to OEM , own brands on the international market has just started.

Du Chau, said the state industrial census of 2004 showed that over the scale of R & D investment intensity of the apparel industry with only 0.16%, the textile industry into R & D intensity is only 0.3%, chemical industry R & D intensity of only 0.47%. International Fabric Show in Beijing this year, the majority of exhibitors in Europe R & D intensity is 5-10%, while the fabric industry, above-scale enterprises in China the average is 0.3%, below the scale of most enterprises do not research and development capabilities.

Du Chau, enterprises must change to capacity expansion-based approach to development, should enhance the ability of technological innovation mainly take the content development. He said that Textile Industry Association, the contribution rate of science and technology and brand should be the contribution rate as an important measure of business competitiveness indicators, in order to guide the business development model.

Innovation should also need to aggregate the industrial upgrading of national policy support. For example, on tax breaks for innovative companies; drive business composed of complementary businesses, "Industrial Fleet" joint "go out" and so on. The good news is, the state initiatives in this regard have been. According to Department of Market Operation Regulation of Bo Wei chief of the Ministry of Commerce in 2006 for "12 large projects," including economic and trade cooperation zones overseas projects, which will enterprises "going out" to provide subsidies and other investment risks support. The National Development and Reform Commission, also clear, by 2010 the formation of a number of internationally influential brands.

But no doubt that this innovative long way to go, and very tortuous.

Urgent Tight Inside And Outside China's Textile Industry To Enhance Industry Innovation

By: qoqo

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