Monday, March 16, 2009

Textile Market is so Large, 1.3 Billion People Need to Wear Clothes

Among eight textile academicians in Chinese Academy of Engineering, five academicians "the most powerful think tank" came here yesterday to analyse the development of Shaoxing textile industry.

Yesterday, the first report meeting on transforming and upgrading the industries of Zhejiang province----a special report meeting on textile industry was held in Shaoxing. Xu Kuangdi, president of Chinese Academy of Engineering, lead 5 textile academicians to Shaoxing for analysing the current situation for textile companies and textile industry.

This is the largest report meeting on textile held in Shaoxing in the highest level so far. There are only 8 academicians researching on textile. 5 academicians come to Shaoxing, reflected that the country attaches the importance on the textile industry closely related to the people's livelihood.

The textile industry as a pillar industry in Shaoxing accounts for above one quarter of the total industrial production value of the whole county. To cope with the impact of the financial crisis, so many experts come to Shaoxing, give the guidance and make suggestions to textile companies, which undoubtedly can further enhance companies' confidence.

Xu Kuangdi: Tighten the pocket first, then open the pocket

Xu Kuangdi said, it was difficult to know when the impact caused by the financial crisis ended up. However, no matter what the situation is, the key point is changing "the crisis" to "the opportunity". In fact, transforming and upgrading is the only way to cope with the financial crisis. The current situation also is the opportunity for companies. If companies do not adjust production according to the market orientation and raise the product added value, they will struggle for survival hardly.

Xu Kuangdi said, in such a special situation, to go through the difficulties and realize the transformation and upgrade, what companies should do is "to tighten the pocket" and keep calm. It means that companies should try their best to save energy, reduce consumption and save costs for preserve the strength. "Tightening the pocket" is one of the important elements to realize the transformation smoothly. Once the economy has a sign to recover, companies should "open their pockets" to enhance investment and seize opportunities for development. "In the past, people always think the strategy is important. In fact, the tactics is also very important." Xu Kuangdi said.

Xu Kunyuan: the population of 1.3 billion, how large the market is

"Market is a prerequisite for production. Companies can recover and start production only when the market runs." In face of the shrinking market demand arisen from the international financial crisis, Professor Xu Kuangyuan, vice-president of China Textile Industry Association believes that the textile industry still has the room to develop on the international market. The huge textile consumption amount of 1.3 billion people indicates that the domestic market must rely on the native textile industry to meet the needs. Therefore, the potential to explore the domestic market will gradually provide a large room for the textile industry.

“Actively exploring the rural market will play an important role in developing domestic market.” Xu Kunyuan said. As the rural reform deepens in our country, the income of rural residents and consumption capability will be highly improved, this also means that the high-end consumption products including clothes and home textile etc. will continue to grow.

Textile companies should enhance the sales network construction, increase the sales in remote villages, and pay more attention on developing new products suitable to rural market to meet the demand of rural consumers in different levels.

Ji Guobiao: a large market in industrial textile

It is inevitable that textile enterprises must transform and upgrade the industry, but how should they transform and upgrade the industry? Ji Guobiao, member of Chinese Academy of Engineering and expert from State Assets Administration Committee indicates, in recent years, in the processing of textile materials development, besides clothes and home textile, industrial textile has already become an important new emerging field. In Japan and Europe, industrial textile accounts for 25%~35% of the total amount, but in China, only 16%.

“Therefore, developing industrial textile and broadening the application is another effective way to promote transformation and upgrade of the textile industry.” Ji Guobiao suggests, textile companies where the conditions permit can focus on producing industrial textile, such as the products used in construction site (geogrid, high-intensity geotextile, waterproof rolling material etc. ), medical products (isolating clothes, surgical clothes, artificial organs, bionic textile materials etc.), agricultural products (water-saving irrigation, greenhouse, release packaging materials etc.) , high-temperature environmental-friendly filtering materials and so forth.

Ji Guobiao believes that when developing new products, textile companies also should focus on the brand development and sales channel construction, integrate textile technology with fashion culture, and constantly make innovation. Of course, brand construction relies on high quality products. If a company produces quality products, the company can win customers, markets and reputation at home and abroad.

Mei Ziqiang: Companies can diversify the export market

“The textile industry is a traditional pillar industry and an important livelihood industry in our national economy, and an industry having powerful international competitiveness.” Mei Ziqiang, member of Chinese Academy of Engineering and senior engineer of China Textile Scientific Research Institute thinks that, to cope with the financial crisis, the textile industry must co-ordinate the domestic and international markets well, explore diversified export markets and keep the international market shares, and actively expand new emerging consumption market based on the original international market shares.

Mei Ziqiang suggests that textile companies should emphasize on independent innovation, technological renovation and optimize the structure, and promote the restructuring and the industrial upgrade. The eastern coastal areas like Shaoxing should attach importance on textile products with high technological content, high added value and low resource consumption, help the central and western areas cultivate talents, advocate and guild textile and garment enterprises to move to the central and western areas. In addition, small and medium-size textile companies account for the large percentage of textile industry, the relevant departments should increase the supportive policies to small and medium-size textile companies, such as raising textile export rebate rate and offering credit support etc.

Source: Daily Business Newspaper Editor: Zhu Wenming

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