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As a major textile country in the world, China's current good development trend has attracted the attention of the world. Many overseas textile machinery enterprises have said that they attach great importance to the Chinese market and look forward to learning more about the development of China's textile industry.

In this context, the first day of ITMA2019 Textile Machinery was hosted by China Textile Industry Federation and Shaoxing Municipal People's Government, "CHINA TEXTILE", "China Textile" magazine, Shaoxing Keqiao District People's Government, Shaoxing Keqiao Economic and Technological Development Zone Management Committee, the "Global Textile Industry Sustainable Development Summit Forum" supported by the International Federation of Textile Manufacturers (ITMF), the Italian Textile Machinery Association, the Spanish Textile Machinery Association, the China Textile Machinery Association, the China Printing and Dyeing Industry Association, and the Textile Industry Branch of the China Council for the Promotion of International Trade "Held at the Barcelona Exhibition Center in Spain.

With the theme of "New Trends and New Demands", the Global Textile Industry Sustainable Development Summit Forum attracted more than 200 CEOs and heads of textile machinery companies from more than 30 countries and regions. At the meeting, Gao Yong, Secretary of the Party committee and Secretary General of the China Textile Industry Federation, introduced and interpreted the current development of China's textile industry.

　　Endogenous power continues to increase

Consumption is not only the direct embodiment of people's need for a better life, but also the ultimate goal and core driving force of production. The Chinese market, with a population of nearly 1.4 billion, is experiencing a new golden age of consumption upgrading.

Gao Yong said that in 2018, China's annual final consumption expenditure contributed 76.2 percent to GDP growth, becoming the first driving force of economic growth for the fifth consecutive year. According to the standards of international organizations, the per capita GDP of 15 cities in China's coastal and central regions has reached the standards of developed economies, covering nearly 0.15 billion of the population. Consumers are becoming more mature and rational. They no longer regard price, quantity, new products, trademarks and the degree of ostentation as the main considerations of consumption, but show a series of changes from the satisfaction of weight to the pursuit of quality improvement, from tangible material products to more service consumption, from imitation type consumption to personalized and diversified consumption.

According to data from the National Bureau of Statistics of China and China Customs, in 2018, China's retail sales of clothing, shoes, hats, needles and textiles above designated size increased by 8% year-on-year, and the growth rate was 0.2 percentage points higher than that in 2017. The total export volume of textiles and clothing reached 276.73 billion billion US dollars, an increase of 3.5 percent over the same period last year, and the growth rate was 2 percentage points higher than that of the previous year. China's 37000 textile enterprises above designated size achieved main business income of 5370.35 billion billion yuan, a year-on-year increase of 2.9 percent, and the growth rate was 1.3 percentage points slower than the previous year; the total profit was 276.61 billion billion yuan, a year-on-year increase of 8%, and the growth rate was 1.1 faster than the previous year. percentage point. According to statistical data, the industry-wide fixed asset investment increased by 5% year-on-year, a slight slowdown of 0.2 percentage points from the previous year.

Gao Yong introduced that in 2018, China's domestic demand market continued to play a primary supporting role, and the growth of online retail was particularly good. China's online retail sales of wearing goods increased by 22% year-on-year, and the growth rate was 1.7 percentage points higher than that in 2017. Capacity utilization remained at a high level, with the capacity utilization rates of the chemical fiber industry and textile industry (excluding clothing and textile machinery) reaching 81.8 per cent and 79.8 per cent, respectively, both higher than the average level of China's industry of 76.5 per cent. The three major terminal industries of industrial use, home textile and clothing remained stable throughout the year, and the contribution of chemical fiber and textile machinery to the economic development of the whole industry increased. Among them, the main business income, total profit and investment completion of the chemical fiber industry increased by 12.4, 10.3 and 29% respectively compared with the same period last year, which were significantly higher than the average level of the whole industry.

　　The external environment is complex and changeable

In response to the changes in the external environment in 2019, Gao Yong said that in 2019, the external environment facing China's textile industry will be more complex.

On the one hand, the growth of domestic and foreign market demand still has a certain supporting foundation. China's overall stable macroeconomic environment and continuously upgraded domestic demand market will still provide the basic driving force for the innovation and development of the textile industry; the task of promoting the formation of a strong domestic market has also pointed out an important development direction for the textile industry.

On the other hand, various uncertain and unstable factors have increased significantly. The contraction of US dollar liquidity and the intensification of international trade protectionism have increased the downside risks of the global economy, and China's macro-economy is also under greater pressure due to rising international environmental risks. In particular, the Sino-US trade friction is tortuous and difficult to resolve completely in the short term, which greatly increases the uncertainty of the international trade environment of the textile industry, which not only directly affects export orders and related production and employment, but also has a potential impact on the international procurement pattern and the international division of labor position and investment layout structure of China's textile industry.

According to data from the National Bureau of Statistics and Customs Express, in the first quarter of 2019, China's retail sales of clothing, shoes, hats, and knitwear textiles above designated size increased by 3.3 year-on-year, and the growth rate was 6.5 percentage points lower than the same period last year; online retail sales of wearing goods increased year-on-year. 19.1%, the growth rate was 14.8 percentage points lower than the same period last year, but continued to maintain a good double-digit growth rate. Export pressure has increased. In the first quarter, the total export volume of textiles and clothing was 56.33 billion billion US dollars, down 1.8 percent from the same period last year, and the growth rate was 7.4 percentage points lower than that of the same period last year.

　　China's overall textile boom index in line with expectations

Gao Yong believes that from the statistical data and the sub-indexes of the enterprise questionnaire, the industry development in the first quarter showed some characteristics: first, the textile production and sales index declined. In the first quarter of 2019, due to weak domestic and foreign market demand and the impact of enterprise production arrangements on the Spring Festival holiday and other factors, the production growth rate and market demand of China's textile industry slowed down. Second, the sales price of products fell, the purchase price of raw materials. In the first quarter of 2019, the product sales price index decreased and the raw material purchase price index increased. It can be seen that the cost of raw materials for Chinese textile enterprises has increased, but it has not been transmitted to the price of products sold simultaneously, resulting in corporate profits being squeezed. Third, both raw material inventories and finished goods inventories declined. In the first quarter of 2019, China's textile production enterprises slowed down their stocking, inventory removal was more active, and the product inventory of production enterprises decreased rapidly.

Gao Yong said that on the whole, affected by factors such as the market slowdown, the overall prosperity index of China's textile industry is in line with expectations. With the gradual improvement of China's domestic market environment and the effect of relevant policies, there may be room for recovery in the second quarter, and enterprises' confidence in the operation of the second quarter has increased.

　　China textile opens up new pattern

China is the world's largest producer, consumer and exporter of textiles and clothing, and the country with the most complete textile industry chain and the most complete categories. Gao Yong said that with the development of science and technology and the advent of the Internet era, China's textile industry is opening up a new pattern.

(I) enterprises are more interested in "going out"

Gao Yong said that in recent years, due to the rising labor costs in China, the advantages of low labor costs in Southeast Asia, coupled with the tax and policy preferences implemented by countries in the region, many textile and garment enterprises have dug for Southeast Asia, and investment in Southeast Asia has gradually become a boom, especially in Vietnam, Cambodia, Myanmar, Laos and other countries. In 2017, Chinese textile enterprises are also adapting to this tide and integrating into the army of Nuggets Southeast Asia. Since 2018, dozens of textile enterprises, including Tianhong Textile, Hong Kong Esquire Group, Hongdou Group, Lutai Textile and so on, have expanded and built factories abroad. At the same time, textile enterprises in economically developed areas in China are also deploying factories in central and western regions such as Xinjiang.

(II) "Internet" to change the status quo of textile

As China's traditional pillar industry, "Internet textile" is changing the status quo of textile. Gao Yong said that with the development of the past two years, a large number of "Internet" B2B platforms have emerged, including established stars such as Global Textile Network and Alibaba, as well as emerging platforms such as Chain Network, Cloth Network and Searching Cloth.

The "2017-2018 China Textile and Apparel Industry Internet Development Report" pointed out that the total amount of textile and apparel e-commerce transactions in 2017 was 5.28 trillion billion yuan, an increase of 18.65 percent year-on-year, accounting for 18.11 percent of the country's total e-commerce transactions. Among them, the volume of (B2B) e-commerce transactions between textile and garment enterprises was 4.09 trillion yuan, up 18.55 percent from the same period last year; the total online retail sales of clothing and home textiles were 1.18 trillion yuan, up 20.08 percent from the same period last year, accounting for 21.58 percent of the country's total online retail sales of physical goods.

Gao Yong believes that e-commerce brings not only more convenient transaction process to the textile industry, but also breaks through the original geographical restrictions, uniting the supply and demand of fabric and clothing factories in various parts of China, and solving the traditional problems of selling cloth and finding cloth.

(III) Science and Technology Innovation Injects New Power into the Industry

The world is in a period of a new round of scientific and technological revolution and industrial transformation, and the new generation of information technology represented by the Internet, big data and artificial intelligence is changing with each passing day. In this regard, Gao Yong said that it is a common task for all countries to promote the integrated development of the digital economy and the real economy, accelerate the continuous transformation of new and old development momentum, and create new industries and new formats.

Gao Yong said that recently, there has been an upsurge of "machine substitution" in China's textile industry. The starting point is to improve the automation and high efficiency of the production process and replace the traditional manual operation with machines. According to incomplete statistics, at present, the digitalization rate of production equipment of domestic textile enterprises has reached 36.06 percent, the networking rate of digital production equipment has reached 27.74 percent, the popularization rate of informatization in production management has reached 50.49 percent, and the proportion of enterprises realizing management and control integration has reached 19.82 percent.

　　"Green" Sustainable Development Becomes Mainstream

Standing in a new historical position, China's textile and garment industry is accelerating quality change, efficiency change and power change. Gao Yong said that as the world's first entity to implement social responsibility work at the industry level, China's textile industry has actively adjusted its industrial structure, eliminated backward production capacity, deepened technological innovation, greatly reduced the total amount of pollutant emissions, and greatly improved the quality and efficiency of development.

The textile industry has always attached importance to the innovation and transformation of technology and equipment, and strive to reduce consumption and increase efficiency. China's textile and garment industry is accelerating to become an innovation-driven technology industry, a culture-led fashion industry and a responsibility-oriented green industry-"technology, fashion, green" is becoming a new label for industry development.

The textile industry takes the lead in promoting social responsibility, emphasizing the responsibility to people, the environment and the market. As an important participant, contributor and leader in the construction of ecological civilization in the industry, the textile industry has set up a "green model" with its own successful practice ". In 2005, the textile industry built China's first social responsibility management system CSC9000T; in 2014, the world's first supply chain environmental (chemical) footprint system; in 2018, it took the lead in piloting overseas implementation of industry social responsibility standards.

In 2019, the printing and dyeing industry started well. However, with the new round of industrial revolution and the transformation of global industrial competition mode, especially due to the continuous rise of labor costs in China, the continuous rise of dyeing and chemical prices and the increasingly tight national environmental protection policies, the transformation and upgrading of China's printing and dyeing industry is imminent. The important support to support the transformation and upgrading of the industry is inseparable from technological innovation and intelligent advanced equipment. At present, many advanced equipment suppliers in the world are important partners of Chinese enterprises.

Environmental protection, energy saving, digital monitoring and intelligence are the focus of the development of printing and dyeing equipment in the future. Energy saving and emission reduction are still the main line of printing and dyeing equipment development. These can also be seen from the exhibits of 2018 China International Textile Machinery Exhibition and ITMA Asia Exhibition. The future of printing and dyeing process digital monitoring technology and equipment will have a lot of room for development, the establishment of printing and dyeing workshop digital monitoring system, to achieve the whole process of data acquisition will become the mainstream direction of the future, digital inkjet printing machine is still the development of the industry.

Gao Yong pointed out that the world is currently undergoing major changes unseen in a century, and the development momentum has been profoundly adjusted. Driven by technological innovation and trade cooperation, the global industrial chain, value chain and innovation chain are deeply intertwined and increasingly closely linked, the global industrial division of labor is being reshaped, and international competition is becoming increasingly fierce. However, the general trend of world development is still "win-win cooperation, openness and sharing".

Finally, Gao Yong said that in the new era, how to co-build the global textile industry, cooperate with the innovation of the global textile industry chain, realize science and technology drive, fashion leadership, green empowerment, and lead the new era of intellectual creation. With a more open mind, responsibility and resource sharing, it is a common issue facing the world. Sustainable development is becoming the consensus and goal of the global textile industry. Gao Yong hopes to join hands with the global textile industry and work together to achieve this goal!

(Source: China Textile)