Textile and garment industry enters a new phase of transnational

On the eve of the new year, Assistant President of the China Textile Industry Federation and Executive Vice Chairman of the China Textile Industry Branch of the China Council for the Promotion of International Trade Xu Yingxin told reporters that China’s textile industry has entered a new phase of multinational distribution, and the industry needs to actively and steadily “go global” to build a multinational Supply chain, maintaining a sustainable competitive advantage, and at the same time realizing the position of a global industrial value chain through outward expansion or cooperation of brands, technologies, and market channels. This year, the marketing department will provide more detailed and in-depth services to the industry in the form of special investment talks, overseas market visits, and round table forums to help companies go further and better.

In 2014, China changed from a capital-importing country to a capital-exporting country. National strategies such as the “One Belt and One Road” also entered the implementation stage. As a textile and clothing industry that participated in the international market earlier, “going global” and “globalization” "Transnational resource allocation" and other transnational supply chains are hot topics for the industry to upgrade and upgrade under the new normal. How to better encourage and guide qualified enterprises to improve their position in the world value chain through efficient and rational allocation of transnational resources, and ultimately achieve the goal of a strong textile country, the China Textile Industry Federation in the textile industry "One of the key issues in the planning.

Create "China + N" Transnational Supply Chain

Since last year, the total growth rate of China's textile industry has slowed down significantly. With the rising cost of production factors, the price of cotton has been higher than 30% in the international market in the past three years. The increasing environmental protection cost has also gradually reduced the cost advantage of China's textile industry in international competition.

How to effectively solve these constraints, so that China's global industrial division of labor occupies a more favorable position? The answer is to use cross-border resource allocation, build "China + supporting countries" supply chain. This is an important way for China to cope with challenges at home and abroad, expand industrial development space, and build a strong textile country. It is also a major means for China to encourage enterprises to allocate resources across borders. As of the end of 2013, China's textile and garment companies have set up more than 2,600 factories abroad and are located in 108 countries and regions. Especially in the fields of cotton spinning and knitting, there have been many successful cases in China. For instance, the Rainbow Group has launched two cotton spinning projects and a textile industrial park project in Vietnam with a capacity of 1 million spindles, effectively circumventing the domestic risk of high cotton prices, and making full use of the China-ASEAN Free Trade Zone’s zero tariff policy. We sold back to the mainland and got better returns. Zhejiang Kohl Group made full use of the advantages of cotton raw materials and land and energy cost advantages in the United States to invest in the Airstream Spinning Project in South Carolina. There are also many large-scale knitting companies, such as Shenzhou International, Dongdu Group, and AB Group, which have invested in green land in countries with low labor costs, such as Cambodia and Vietnam, and have achieved good results.

"China Intelligence" boosts independent brand breakout

Another major task of transnational resource allocation is to upgrade China's textile industry from "Made in China" to "China's Zhi Zhi" and encourage and guide companies in the acquisition of assets at the level of raw material control, branding, and technology, in order to be at the high end of the value chain. The field has a place and will push more independent brands to the international market.

In fact, China's textile and garment industry is increasingly acquiring mergers and acquisitions of developed brands and upstream raw materials. For example, Ruyi Group acquired Australian Cottonfield Farms, Furida Group acquired Canadian New Zealand Dissolving Pulp Company, and the Bank of China Cashmere Industry acquired Duncan Yarn, a world-renowned British cashmere yarn producer. These are all efforts made by enterprises to eliminate bottlenecks in resource guarantees and gain brand and technology premiums.

At the same time, some outstanding companies have opened up the road to brand internationalization in different ways. The first way is for companies facing the sea

The foreign market has created its own brands, such as Dong Shang and BASIC EDITIONS. The second way is for companies to extend their own domestic brands to internationalization, such as Bosideng, Jiangnan commonwealth, and admiration. The third way is for companies to do OEM, when they have mastered Certain customer needs and overseas channel characteristics, and then to the brand development; the last way is through overseas mergers and acquisitions, the purchase of existing brands and their market channels and design resources. For example, in October 2013, Wansli successfully acquired MARCROZIER, a French silk company with a history of more than 120 years, and invited the original CEO of Hermès Silk Holding Group to join Wansli Group for brand operation.

Rational investment reduces the failure rate of "going out"

In spite of this, there are many cases in which textile companies failed to invest in the industry. Successful companies have their own characteristics, while failing companies have many similar factors. In this regard, Xu Yingxin said that many “going global” enterprises have lost their business because of the lack of risk assessment of investment and acquisition on the one hand, and the lack of international operation capabilities and brand marketing capabilities of Chinese companies, on the other hand. . From this, the China Textile Industry Federation hopes to guide the textile companies to form a joint force in the context of the country's grand strategy and to carry out joint foreign investment and reduce investment risks.

In addition, the Marketing Department of the China Textile Industry Federation will also deepen related services in four areas this year: First, establish a database to track the situation of foreign investment companies and summarize and analyze; Second, continue to lead enterprises to fully inspect the market. In the past two years, the marketing department has led companies to inspect the United States, Myanmar, India, and Bangladesh. This year, the focus of their visits will be on Ethiopia in Africa. The third is to enhance the interaction between companies, associations, and the government, and to provide good communication services. The fourth is to organize training for enterprises. Xu Yingxin stated: "On the March 18th in China International Fabrics and Accessories (Spring and Summer) Expo, we deliberately organized a series of lectures on overseas investment in China's textile and apparel industry, inviting financial experts and investment experts to target overseas* * Provides training services for companies willing to 'go global' in terms of risks, etc." In order to allow Chinese textile and apparel companies to walk steadily, farther and better, the China Textile Industry Federation’s marketing department will do its best to go global for companies. Good service.