Leading change and creating the future
——Speech at 2020 China fashion conference
Vice president of China Textile Industry Federation
President of China Garment Association
2020 is an extraordinary year. The clothing industry is facing unprecedented challenges and pressures. At the same time, we also see that the clothing industry is an industry with highly market-oriented ideas and feelings. On the one hand, in the case of shortage of epidemic prevention materials, many enterprises actively switch to production of masks and protective clothing, which play an important role in winning the war of epidemic prevention and control. At the same time, in the face of the new crown epidemic situation, geopolitical influence and other marketing difficulties, clothing enterprises are thinking and responding rationally, constantly adjusting and innovating, showing the spirit of confidence, love and persistence in the industry.
In the first half of this year, the sudden outbreak of the new epidemic situation has brought great impact and impact on the industry. With the effective prevention and control of the domestic epidemic situation, the operation of the industry has gradually improved and the domestic market has obviously recovered. According to the statistics from January to August, the decline rates of domestic and export markets have been narrowing, especially in August, which achieved the first positive growth since this year, with domestic sales increasing by 4.4% and export increasing by 3.23%. The market indicators showed positive recovery changes. From the main economic and benefit indicators of the industry, although there has been a certain marginal improvement in the economic efficiency indicators since the third quarter, the speed of the decline of the industry operation quality and efficiency indicators is still lower than that of the market. From January to August, there were 13168 Enterprises above the designated size in the whole industry. Their operating income decreased by 14.36% year-on-year, the total profit decreased by 25.63%, and the profit margin of operating income was 4.28%, 0.65 percentage points lower than that of the same period last year. This shows that the overall operation pressure of the industry is still great.
Of course, the difficulties and pressures of the industry today are directly related to the impact of the epidemic, but objectively speaking, it is not entirely the case. Because over the past few years, we have actually been in an era of great transformation and transformation. The most important feature of this change is that we want to enter a new era of digital economy from industrial economy. The epidemic situation only accelerates the medium and long-term trend, and adds a new variable in this great change. The epidemic may be more like a typhoon. After the typhoon, the basic ecology of industry and market will be gradually restored, but what will not change is this era of change.
A new round of scientific and technological revolution, especially the development of digital technology, is bringing about the reconstruction of global economic and social order. From the perspective of industry, digital technology comprehensively promotes the digitization and networking of all elements and links of the industry, and triggers the reorganization and reform of business processes, production methods and market connection modes, forming a new system of industrial cooperation, resource allocation and value creation 。 At the same time, the new commercial civilization with sustainable development as the core and characterized by open economy, technological economy and green economy is also in the process of formation.
For the clothing industry, we are facing multiple superimposed changes. First of all, great structural changes are taking place in consumer demand, which comes from the change of consumers' lifestyle and fashion awareness. The individualization, quality, style, value and multi culture of consumption are becoming more and more obvious. Especially for the younger generation, their understanding and demand for fashion are completely different. At present, the problem of the market is not entirely the problem of slowing down of growth, because China is already a market of more than 3 trillion yuan, and it is impossible that the total scale is still double-digit growth every year. The key is the structural change of consumption demand behind it. The Internet is constantly changing the mode of business, such as live broadcasting, digital exchange, and so on.
Therefore, for most of the enterprises that have developed in the reform and opening up in the past few decades, facing these changes, compared with the enterprises growing up in the information technology era, it seems that there is some tradition in the enterprises growing up in the information technology era. The demand of consumers has changed. Has our supply changed? Is it enough? The way we connect with the market has changed. Have we used new tools to build new relationships with consumers?
This year's epidemic can be said to be a powerful push for us. 2020 has become an important watershed in the evolution of human from industrial civilization to digital civilization. The so-called real "future has come". Therefore, for our enterprises, the most important thing is to fully realize that we have entered a new era of digital economy, deeply understand that the ecology of industry and market is undergoing subversive changes, and that all production, organization and business activities of enterprises need to be benchmarked against the new requirements of such a new era and objectively examine their own Whether the management model and growth model can keep pace with the times and surpass, and whether they can achieve innovation and transformation in the new ecology.
Here, I would like to share with you five aspects of the understanding of industry innovation and change:
First of all, digital transformation. Digitalization is the basic requirement for enterprises in the era of digital economy. The digital upgrading of the whole links from consumption perception to R & D design, manufacturing, management, supply chain and marketing should be the primary task of all enterprises in transformation. If digital tools want to become infrastructure, online will become the viability. Although the forms of enterprises are different, data-driven will become the standard configuration for the future development of enterprises. To achieve more accurate supply and demand matching, more flexible and diversified product supply, more agile and flexible supply chain, and more efficient management and operation, all embody the logic of digitalization from the front to the back. Science and technology is the era. We can see that many enterprises still able to develop against the trend under the influence of the epidemic this year are in the forefront of the full link digital upgrading and online and offline integration.
Second, organizational change. Digital technology is bringing about the change of enterprise organization form, business process and operation mechanism. The way of organization is the relationship of production. Enterprises need to think about whether their organizational mode is aging? Is our management philosophy and team aging? How to adapt to the new requirements of flat organizational structure, networking and co creation and sharing in the era of digital economy, through the iterative upgrading of the organization, improve the organizational capacity and efficiency, release the internal flexibility and stimulate the vitality of innovation, and then extend to the external collaboration, build a symbiotic relationship with the upstream and downstream resource related parties, and realize the collaborative value The key to the reconstruction of the core competitiveness of enterprises in the new era.
Third, we should focus on our core competence. No matter how the times change, clothing industry as a basic consumer goods industry, to provide consumers with the best products and services is always the essence of the industry. For enterprises, in such changes, it is more necessary to focus on the reform and improvement based on their own core competence, pay attention to the enhancement of quality and the evolution of adaptability, rather than the growth of scale. Only by improving the basic ability and innovation ability, highlighting the uniqueness, differentiation and irreplaceable, focusing on, deeply cultivating and upgrading products, and committed to shaping long-term value, can enterprises win a long-term future.
Fourth, enhance cultural creativity. Today, we are facing a social ecology with multiple life styles and cultural landscapes. Culture, value and experience have become the main characteristics of consumption. All kinds of trend culture, subculture, avant-garde art, sports, games, animation and so on are all cross-border fusion, clothing is an important expression and attitude. At the same time, with the development of China's economy and society as well as the background of the country's prosperity, Chinese consumers, especially the young generation, are constantly strengthening their national spiritual value and cultural consciousness. How to embody the eastern cultural connotation and life aesthetics, and meet the contemporary lifestyle and aesthetic, and solve the contemporary and global problems, we need our culture Creation. Cultural creativity is not only the actual need of structural change of consumer demand, but also the core support of industrial value creation, which needs us to make contributions for a long time.
Fifthly, we should deeply change the concept and values of development. Today, sustainable development has become a global consensus and an important yardstick for measuring industrial economic activities. Human based responsibility, environmental responsibility, market responsibility, and sustainable fashion reflect the social consciousness of enterprises and the spiritual quality of entrepreneurs. It is not only an important content of the construction of new commercial civilization, but also an important strategy of market competition for enterprises today and in the future. To create a better enterprise in the world, to give responsibility and belief to products and brands, and to be rooted in the culture, values and vision of the enterprise, and to achieve a warm, respected and great enterprise must be an important embodiment of our mastery of fashion discourse and occupying the commanding height of the industry in the era of digital economy.
The above five aspects are part of the refinement and carding of the transformation and innovation practice of China's clothing enterprises. Therefore, although the industry is suffering from the pain of reform and facing many difficulties, pressures and uncertain factors, the mainstream of the industry is constantly changing its development mode with strong toughness and innovative ideas, constantly accelerating the deep integration of digital technology and industry, actively promoting the new development pattern of dual cycle, and firmly moving towards industrial renewal and energy level Upgrade and develop with high quality.
Historically, I think this is a new start for China's garment industry in the era of digital economy. It is also a new historical starting point for China's garment industry to upgrade its creativity and soft power in an all-round way and reshape its new advantages against the background of the country's Centennial goal! Great changes, great challenges, but also great opportunities for China. With the complete industrial system and accumulated industrial advantages and competitiveness built up over the past 40 years of reform and opening up, with the huge space brought about by the structural change of China's consumer market and the empowerment of digital technology, China is most qualified and bound to undertake the mission of leading the global garment industry innovation and reform in the era of digital economy. "Lead the change, create the future", as the so-called "the right path in the world is vicissitudes"!