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Is the crisis still an opportunity? 2019 The high probability events that will occur in the fabric printing and dyeing industry...

Release Date:2019-01-04 Number of Times Read:462

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2019 will be a year of crisis and reconstruction in the fabric and printing and dyeing industry. Under the background of weak global economic growth, insufficient market demand and lack of resources and environment factors, problems such as resurgence of production capacity, difficulties in foreign trade, and soaring costs will bring huge challenges to the future development of the industry. To this end, the relevant state departments also indicated that they will continue to introduce corresponding guiding policies, giving the industry the greatest help from the aspects of intelligent manufacturing and environmental protection. At the same time, enterprises should also practice "Yudongshu", using Internet thinking, cloud computing, big data, Internet of Things and other technologies to design and develop, back-end marketing, terminal control extension, and strengthen their own capabilities.

1

Market trends

Resilience of production capacity

The price war is on the verge

Quotes enter the lost period

Probability of occurrence: ★★★★☆

Along with the advancement of environmental protection and supply-side reforms, in recent years, many relevant clusters of major textile provinces have issued policies that cannot increase production capacity, and they have to eliminate and transfer backward textile production capacity. However, in the process of “Tenglong for Birds”, it should have been a pattern of industrial transformation and resource integration. However, in northern Jiangsu, Anhui, Jiangxi, Hubei and other places, new factories have sprung up.

It is understood that many manufacturers that were supposed to be eliminated in the Jiangsu and Zhejiang regions will transfer their production capacity to other places and expand exponentially. "In 2018, we gradually shut down 200 looms in Jiaxing City, Zhejiang Province. It is expected that 300 sets and 500 looms will be put into operation in the north of Jiangsu Province in the future, and the production capacity will be expanded to 800 units." Said: "In 2019, 80% of the capacity that has been eliminated will re-enter the market, coupled with the expansion of production capacity, this will have a big impact on the market."

At present, this sign has begun to emerge in the Jiangsu and Zhejiang markets. "There has been a lot of foreign goods coming in the market recently, and the market has begun to weaken. I feel that the supply is not as tight as before." Insiders analyzed whether downstream demand can digest the new capacity of the market and undoubtedly become the future. The problem of the market, the expansion of the production capacity of the foreign fabrics, if not timely digested by the downstream, the price war will be reopened in 2019.

Foreign trade is in trouble

Quotes enter the lost period

Probability of occurrence: ★★★★☆

For the current situation of foreign trade market, some people in the industry have used the word "熬" to describe it. In the past, the days of relying on price advantage to seize the opportunities are gone forever. Nowadays, with the rising of labor costs and the weakening of international market demand, the textile foreign trade industry is quite "incorruptible."

Looking back at the interview in 2018, when the relevant person in charge of the enterprise was asked about the factors affecting the development of foreign trade, most of the enterprises' responses were influenced by foreign trade policies, especially the impact of Sino-US trade friction. Many textile companies were responsible. People said that in 2019, they would not easily accept orders from the US market, or they would reduce the order volume and not consider entering the US market. In the context of the Sino-US trade war, many other countries have adjusted tariffs, which is also an important factor affecting the company's 2019 orders. In addition, due to rising costs of labor, raw materials, etc., weakening demand in the international market and insufficient innovation capacity of enterprises, the trend of traditional foreign trade orders falling and fragmentation still exists in 2019.

In addition, due to the shift of the textile industry, the garment industry in Southeast Asia is constantly developing, but the development of local supporting industries takes time. Therefore, the international market still needs to import a large amount of raw materials such as yarn, grey cloth and fabric from China. So overall, the foreign trade market for fabrics in 2019 is still not clear.

Cost soaring

Profits are further shrinking

Probability of occurrence: ★★★★★

In 2019, the fabric printing and dyeing industry faced three high costs. The first is labor costs. As China's labor costs continue to rise, the labor costs of manufacturing in some developed regions are higher than the cost of industrial robots. Followed by the cost of raw materials, due to the continuous advancement of environmental protection in the country, the progress of the resumption of dyes and intermediates in northern Jiangsu and Shandong has not reached the expected level, and the price of dyes in 2019 is bound to remain high.

In addition, transportation costs also make enterprises feel "headache". Industry insiders admit that the reason for the high cost is not only restricted by information asymmetry and related local interests protection, but also vehicles are often empty vehicles back to the factory, and resources are wasted.

The profit margin of enterprises has been repeatedly squeezed. In the face of this situation, many manufacturers are under pressure, but price increases are not easy. "Mo Donghai, assistant general manager of Zhejiang Jiaming Dyeing & Finishing Co., Ltd., admitted that although the industry's right to speak has increased compared with previous years, the difficulty in raising the price of products is still large. Even if some customers accept the price increase, the increase in dyeing fees and The actual increase in costs is disproportionate. He revealed that since the company opened in 2002, the number of dyeing fees has risen to a handful.

Industry experts predict that in 2019, the international environment is more likely to fluctuate, and domestic demand is still in a downturn, and the sensitivity of downstream companies to prices will be further enhanced. The profitability of fabric printing and dyeing companies as 'sandwich layers' will further shrink.

2

Policy Guidance

Intelligent manufacturing

Focus on the industry "smart high point"

Cut into a past

Probability of occurrence: ★★★★★

In the process of the new industrial revolution and the developed countries to strengthen the development of advanced manufacturing technology and "re-industrialization", China's fabric printing and dyeing industry faces the gradual loss of low-cost manufacturing advantages, the mismatch between traditional production and business models and the rapid development of network information technology, and the starting point for intelligent upgrading. Low and the industry is at the low end of the value chain, network service security and collaborative credit mechanisms are not perfect and are not conducive to intelligent transformation and many other challenges.

To this end, in recent years, China has issued a number of policies to vigorously support the rapid development of smart manufacturing. From the "12th Five-Year Plan for the Development of Intelligent Manufacturing Equipment Industry", the "Twelfth Five-Year Plan for Intelligent Manufacturing Technology Development" to the "Development Plan for the 13th Five-Year Plan for Intelligent Manufacturing", a series of intelligent manufacturing policies and related promotion The introduction of measures has produced a positive effect and is accelerating the level of intelligent manufacturing in the manufacturing industry. This not only ensures the smooth realization of the transformation and upgrading of China's manufacturing industry, but also makes intelligent manufacturing a new textile industry opportunity and economic development momentum.

It is not difficult to see from the major policies and regulations on smart manufacturing introduced in recent years that in 2019, the state will continue to increase the research and development and production of the textile intelligent manufacturing industry. The proportion and scale of smart equipment in the fabric printing and dyeing industry will continue to expand. Development will continue to heat up.

Bad money out

Cut into a past

Probability of occurrence: ★★★★★

Since May 2018, the Ministry of Ecology and Environment has issued several essays requiring local governments to ban environmental protection “one size fits all”. It also formulated the "Opinions on "Prohibition of Environmental Protection" across the board of work", requiring the inspected areas to resolutely put an end to the usual inaction and temporary chaos, and prevent indiscriminate implementation of centralized shutdowns, closures, and suspensions.

From October 26 to 27, 2018, the National Eco-Environment System related meeting clearly stated that it is necessary to prohibit environmental protection from being “one size fits all” and resolutely avoid the simple and violent behaviors such as emergency shutdown, suspension of business, and suspension of production under the pretext of ecological environment. The meeting said that in the next step, measures will be taken to further promote the “one size fits all” policy for ban on environmental protection, and more detailed documents will be issued to address the relevant environmental protection fields and regulatory measures, and to make requests one by one, to check the inaction and to investigate the chaos, and to establish a long-term mechanism. .

According to industry insiders, in 2019, if the local government can truly implement the policy of “one size fits all”, it will be very beneficial to the production and operation of regular fabric printing and dyeing enterprises and the clearing of the market. In fact, fabric printing and dyeing enterprises need more guidance and support from the policy, and the road of circular development is the most important. Although the direct shutdown is effective, the damage is the entire textile printing and dyeing ecosystem. Some high-quality small and medium-sized enterprises will be rectified and upgraded, and production can also play a leading and leading role. It can also represent a group and lead the relevant industries to a benign development path of environmental protection.

Western transfer

New pattern of mutual benefit

Probability of occurrence: ★★★★☆

At the end of 2018, the Ministry of Commerce held a press conference and said that the next step would be to increase support for the development of the western region, continue to support the western region to participate in the "One Belt and One Road", and transform the free trade pilot zone into a new highland for reform and opening up. Encourage the introduction of more foreign investment in the western region, and promote a new high-level comprehensive opening pattern of linkage between the land and the sea and between the east and the west.

It is not difficult to find that as the cost of various production factors continues to rise, the fabric printing and dyeing industry clusters originally concentrated in developed coastal areas are accelerating their transfer to the western region in recent years. Wang Jiayi, president of the China Filament Weaving Association, pointed out that local governments in emerging industrial clusters generally attach importance to the implementation of environmental protection measures, and the new parks are generally better than the old parks on the eastern coast. Newly-built enterprises can actively implement environmental protection obligations. Whether it is self-built sewage treatment facilities or unified treatment in the park, it can achieve 100% sewage treatment and more than 90% water reuse rate.

Green weaving is the first to be realized in the emerging industrial park, which strongly supports the healthy development of the textile industry. Industry experts said that it is currently the window period for the adjustment and layout of the textile printing and dyeing industry and the development of the industry. It is recommended that local and enterprises should seize the opportunity and make a difference, and at the same time predict that the Chinese fabric printing and dyeing industry will gradually form a coastal developed area in 2019. Product development and sales base, industrial distribution pattern of production and processing bases in the western region.

3

Direction of development

Brand strategy

Internet boosts development

Avoid homogenization competition

Probability of occurrence: ★★★★★

At present, with the increase of foreign technical trade measures and the intensification of domestic competition, the contradiction of oversupply in the market has become increasingly prominent. However, in such a tough market environment, the market share of some world-renowned brands has not only decreased, but has become larger and larger, and the space for companies without brands has become narrower and narrower. Therefore, starting your own brand and establishing a good brand image will become more important and urgent in 2019.

Industry experts have suggested that companies must establish brand strategy in addition to improving product quality and establishing intellectual property protection mechanisms. What they need to see is that because of the wide range of brands, rapid speed and low cost of Internet promotion, the purchasing power of mainstream consumers is increasing, small and medium-sized. Fabric printing and dyeing enterprises have ushered in a rare development opportunity, and relevant enterprises can vigorously develop their own brands from the aspects of differentiated strategy, new media promotion and innovation and optimization of products.

In addition, the use of the Internet platform to promote corporate brands also makes the industry information highly transparent, downstream customers can compare horizontal and vertical, select the right supplier. On the other hand, this kind of transparent and open information has a profound impact on the business mode and operation mode of the enterprise, and promotes the mutual stimulation, mutual supervision and mutual promotion of the fabric printing and dyeing enterprises, which finally makes the industry achieve a fair and open market. surroundings.

Strengthen research and development

Avoid homogenization competition

Probability of occurrence: ★★★★★

Today, differentiation has become a major feature of fabric companies. Many responsible persons of relevant enterprises said that conventional products have lost their advantages, and they must open up new “blue oceans” through R&D and innovation. Whether it is process research or product development, it is necessary to create more market-oriented needs. Only by constantly understanding market demand information and continuously developing new technologies and new products can we meet the different needs of the market and avoid homogenization competition. .

Zhang Xi'an, vice president of the China Chamber of Commerce for Import and Export of Textiles, said that China's textile industry is undergoing a key period of transformation and upgrading. Innovation and research and development are the basic path for industrial development. One of the most important performances is that the proportion of R&D investment in enterprises has increased significantly. It is the future direction of China's textile industry to carry out research and development and innovation, bid farewell to the same principle, and take the road of differentiation.

In recent years, research and development investment in the textile industry has continued to increase, and the ability to innovate in science and technology has steadily increased In 2017, the research and development expenditure of textile enterprises above designated size was 44.974 billion yuan, an increase of 75% over 2012; the investment intensity of research and development reached 0.69%, 0.23 percentage points higher than that of 2012; the R&D patents increased substantially, and the invention and utility model patents were authorized annually. The amount has increased to more than 40,000 per year, an increase of 60% over 2012. There is no doubt that in 2019, the proportion of enterprises investing in research and development will be further expanded.

Spot Trading

Achieve small and fast production

Probability of occurrence: ★★★☆☆

In the context of the “fast fashion” of global apparel consumption, the traditional mass production of domestic fabric companies is decreasing. The “small and fast” market demand has made the quality stable, short production cycle and fast delivery become the mainstream core competitiveness of fabric companies, and it also drives fabric suppliers to improve their models. At the China International Import Expo in 2018, the pattern of imported fabrics that can be spot-cut has attracted a lot of attention. In 2019, spot trading will also become one of the focuses of major fabric companies.

“In the future, the demand for individualization and the demand for mass will coexist for a long time, and no matter which kind of demand is realized, it will be based on small batch production. Individualized clothing enterprises will require small batch production of fabric factories, and popular clothing brands also need to control the sales rate and The utilization rate of funds also needs to be produced in small batches and batches. The trading pattern of spot fabrics can well meet the demand of this kind of 'small fast production'." Insiders stressed that spot is not equal to inventory, spot trade There is a need for fabric companies to have a strong co-ordination, operation and management support capabilities, as well as a full predictive ability in fashion design.

In addition, the spot trading model has many advantages for fabric companies. For example, fast delivery and rapid return of funds are equivalent to increasing the utilization rate of enterprises. "From the price point of view, it is generally not very high, but it will be of great help to the company's annual fund recovery," industry experts said.