Textile Industry In 2019: "Win Without Losing," And Where Is The Way Of Textile Industry In 2020?

It is understood that since entering 2019, the number of textile, clothing, apparel industry and enterprises has been hovering between 13637, compared with the average of 14555 in 2018, and the number of textile and apparel enterprises in August 2019 is 13660, almost 4 years low. As expected, 19 years later, the profits of textile, clothing and apparel industry are shrinking.

In 2019, the total profit of textile, clothing and apparel industry was 5-8, -1.3%, -0.8%, -3.5% and -1.1% respectively. Profits are falling, profits are falling, and practitioners are changing or even going bankrupt.

Figure 22016-2019 loss making statistics of textile and clothing industry

Although the number of textile clothing and apparel industry is decreasing, the proportion of loss making enterprises is rising. The average ratio of deficit enterprises in 16-18 years is 14.9%, 14.1% and 18.2% respectively. The average ratio of loss making enterprises in 2019 was 21.5%. In other words, 21.5 of the 100 textile and apparel industries were losing money. It is understood that the textile and clothing exports are blocked, the domestic market competition pressure is too big, too few, the price war is becoming more and more intense, the profit falls naturally, the loss is not difficult to imagine.

Figure 32016-2019 loss making statistics of textile and clothing industry

The textile and clothing industry has not only declined in quantity, but also the quality is much worse than before.

After 2019, China's textile and clothing industry has increased, especially after entering April. The number of enterprises in the 4-7 months of losses was 10.2%, 7.2%, 9.2%, 10.1%, respectively, which is even more alarming than that in August. It is not hard to imagine that the growth rate of losses in China's textile and clothing industry is expanding in the past 19 years. The total amount of losses in August increased by 33.3% year-on-year, while the average growth rate in 2019 was 29.8% in 2019.

From the data point of view, this year's textile and clothing market is clear at all. No wonder practitioners say that profits are squeezing and not making money this year, and some even say that "no loss is win."

Total imports and exports showed a steady growth.

Since 2015, the total import and export volume of China's textile machinery has increased steadily. According to customs statistics, the total import and export of textile machinery in China in 2019 1-3 amounted to US $1 billion 721 million, down 1.50% compared with the same period last year. Among them: textile machinery imports $819 million, compared with the same period in 2018 dropped by 4.69%; exports of $902 million, compared with the same period in 2018, an increase of 1.58%.

The import market maintained a relatively high growth rate.

With the industrial transfer and upgrading, and the growth of downstream demand, textile machinery maintained a relatively high import growth rate. In 2019 1-3, textile machinery was imported from 58 countries and regions, with a total import value of US $819 million, a decrease of 4.69% compared with 2018. The main countries and regions of import are mainly Japan, Germany, Italy, Belgium and China Taiwan. The trade volume of the top five imports is US $698 million, an increase of 1.83% compared with the same period in 2018, accounting for 85.25% of total imports.

From the perspective of imported products, the import of auxiliary devices and spare parts ranked first in 2018. The total imports amounted to US $899 million, an increase of 7.73% compared with the same period in 2018, accounting for 24.16% of the total imports; seven categories of products were three liters and four; the growth of auxiliary devices and accessories, chemical fiber machinery and weaving machinery were all higher than the average level of the industry.

One of the sporting goods giants in the US, Andrew downgraded its annual forecast for fiscal year 2019. To cut costs, they shut down poor performing stores, cut jobs and reduced procurement costs, but still narrowed their net losses to $17 million.

Intelligence will be the trend of future development.

Intellectualization is not only the inevitable trend of the development of textile machinery in the future, but also the most important feature of the development of textile machinery industry in recent years. With the development of intelligent manufacturing technology in textile field, the textile industry has developed from single machine intelligence to system digitalization, automation and intellectualization.

In terms of intelligence, at present, the guidance of the government includes four points: establishing a demonstration area; improving the standards of intelligent manufacturing; promoting the alliance of intelligent manufacturing suppliers; developing Internet +, big data and artificial intelligence. The intellectualization of textile industry has made some gratifying achievements. In the 2017-2019 level of the Ministry of industry and information technology, a total of 12 projects were included in the pilot project of intelligent manufacturing. In the 2018-2019 years, a total of 6 projects were included in the comprehensive standardization project of intelligent manufacturing; ten projects were included in the new project of intelligent manufacturing.

The six intelligent production demonstration lines of spinning, chemical fiber, printing and dyeing, nonwovens, knitting and garments proposed by the textile machinery industry have already taken shape and laid a solid foundation for the final realization of the end of 13th Five-Year.

All in all, the loss of textile and garment enterprises is not an example, and the industry as a whole is in short supply. Clothing enterprises are struggling to survive, and they are being transmitted to the weaving factories. The order of factories is weak, and prices still have downward trend. According to observation, pure cotton conventional varieties are abundant in stock, domestic supply pressure is increasing, inventory is slower, and the phenomenon of selling is increasing, and prices are showing weakness. Among them, 21 gauze cards, 32 fine slanting and 40 poplin prices are all in the low level of nearly four years.

Therefore, no matter from the angle of industry or from the perspective of grey cloth market, the weakening of textile and clothing market is an indisputable fact. The winter of textile and garment industry is coming.

How should we break the situation?

Traditional textile printing and dyeing industry has the characteristics of high energy consumption, high pollution, high emission and low added value. Although the international crude oil prices continue to be depressed, and domestic and foreign market demand is not so strong, many large scale textile enterprises with high growth and high yield from the raw materials have come to the fore. The common points of these enterprises are: differentiation and functionalization.