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Spread Of Epidemic Situation At Multiple Points To Promote Digital Transformation Of Textile And Garment Industry

2022/8/10 18:42:00 0

Digitization

Since the beginning of this year, the development of textile and garment industry is facing great pressure due to the spread of epidemic situation, rising raw material cost, low demand and the characteristics of the industry. On the whole, with the efficient and stable international competitive advantage, the export growth momentum will continue on the basis of the export record high in 2021; However, the domestic market is not prosperous in the peak season and even weaker in the off-season, which has significantly affected the performance of most enterprises.

In the second half of the year, the textile and garment industry will still face pressure in terms of cost, demand, order transfer and international situation. Enterprises should seize the new opportunity of digital transformation and strive to achieve high-quality development of science and technology, fashion and green.

There are hidden worries in export growth

Since this year, the overall external demand has been good. Although the export of some provinces and cities in China declined temporarily due to the epidemic situation, they resumed work and production rapidly after the closure, and the logistics recovered smoothly, which reflected the strong supply chain toughness of China. According to the data released by the General Administration of customs, in the first half of 2022, textile and clothing exports totaled 156.49 billion US dollars, an increase of 11.7% year-on-year. Among them, clothing export growth is particularly rapid.

Lu Fuyong, associate professor of the National Institute of opening up at the University of international business and economic cooperation, said that there are three main reasons for the rapid growth of China's textile and garment exports in the first half of 2022. First, the international market for China's textile and clothing demand is relatively stable, orders from the EU, the United States, ASEAN and other major markets fluctuate little. Second, China's textile and clothing products supply capacity is good, and the export product structure can be adjusted rapidly with the international market demand. For example, due to the general relaxation of epidemic control in foreign countries this year, China's export of anti epidemic textile and clothing products has declined, but the export of commuter and outdoor clothing products has grown faster. Third, the export price of China's textile and clothing products has maintained a certain growth rate due to the rise of global energy and raw material prices.

However, the export situation of textile and garment industry in the second half of the year is not optimistic. Since the second quarter of this year, many textile and garment factories have encountered the problem of declining export orders, especially small and medium-sized enterprises. At this stage, enterprises can not receive orders, which will directly affect the export data in the second half of the year.

From the long-term trend, the industry generally believes that this is the performance of overseas orders transferred to Southeast Asian countries. According to the latest estimation of China Textile Import and Export Chamber of Commerce, the transfer scale of textile and garment orders in China was about 6 billion US dollars in the first half of the year. In the second half of the year, the transfer of textile and garment orders in China is likely to accelerate.

Lu Fuyong analyzed that the international market demand is the most important factor to support export growth. In addition, the increase of uncertain factors such as epidemic situation, geopolitics, trade environment and exchange rate fluctuation will inevitably increase the risk of international trade. Of course, it also depends on the supply and marketing capabilities of China's textile and garment export enterprises, as well as the effectiveness of relevant industrial policies.

It is gratifying that since this year, China has continued to make efforts in stabilizing foreign trade policies and measures. At a special news conference recently held by the Ministry of Commerce, Zhang Bin, deputy director of the foreign trade department of the Ministry of Commerce, said that at present, the development of foreign trade faces high risks, great difficulties and many uncertain factors. The relevant person in charge said that in the second half of the year, in terms of stabilizing foreign trade, the Ministry of Commerce will focus on three major points, namely, expanding increment, stabilizing stock and strengthening security, and actively promote exports and expand imports. At the same time, all localities are actively introducing corresponding policies and measures to stabilize foreign trade.

Bright spot in dim domestic sales

Compared with the domestic textile plate, the performance of domestic sales is relatively dim. According to the early warning of the first half of the year published by many clothing listed companies recently, the performance of many enterprises has dropped significantly.

"We all know that the performance will not look good, but the decline is still unexpected." Ms. Lei, an industry veteran, told reporters.

Women's wear enterprises are particularly affected, and GELIS predicts that the performance will decrease by about 75% in the first half of 2022; The net profit in the first half of the year is expected to be 3.58 million yuan, down 87.14% year on year. Leisure clothing enterprises also have a hard time. Taipingniao expects its net profit to decrease by 68% in the first half of the year; In the first half of the year, Meibang apparel is expected to have a net loss of 620 million yuan to 680 million yuan.

"Textile and clothing domestic sales situation is not optimistic, mainly by the domestic overall consumption is relatively weak." Lu Fuyong analyzed that in the past three years, the impact of the new crown pneumonia epidemic on China's economy and residents' income is all-round. The consumption ability and consumption level of residents have declined significantly. The rigid demand for women's wear and leisure wear is small, so the decline in sales is more significant.

Although the overall downturn, textile and clothing industry is still no lack of bright spots. From the micro level, some enterprises perform well. Bosden, for example, recently released its annual financial report for the fiscal year 2021 / 2022. The report shows that during the reporting period, the company realized revenue of 16.214 billion yuan, with a year-on-year growth of 19.95%; The profit attributable to equity shareholders of the company increased by 20.6% to 2.062 billion yuan on a year-on-year basis; The gross profit rate increased by 1.5% to 60.1%.

From the macro level, retail consumption has reached the bottom and rebounded. According to the data of the National Bureau of statistics, from January to June this year, the total retail sales of clothing, shoes, hats and knitted textiles reached 628.2 billion yuan, down 6.5% year on year. But in June, the total absolute consumption was 119.8 billion yuan, up 1.2% year on year.

Guoxin Securities released a research report, optimistic about outstanding performance of textile and clothing manufacturing enterprises and the first recovery of brand clothing leader. Since June, with the recovery of domestic demand driven by the improvement of the epidemic situation, domestic consumption has shown a good rebound trend, and the head sports brand has maintained a good growth. Good performance and medium and long-term growth of high-quality manufacturing enterprises investment opportunities. It also reflects the investment in the textile industry. According to the incomplete statistics of tianyancha, from January to July, there were 6 textile and garment financing events, with the financing amount of more than 700 million yuan.

There is still a huge space in the clothing market, but the premise is to survive first. Lu Fuyong believes that for most textile and clothing products with non rigid demand, it is difficult for enterprises to reverse the consumer market demand. Some enterprises through the supply side reform, such as increasing professional, functional, scene design, improve the product pertinence, and then improve the consumption demand; The scene reform of online sales mode also ensures the sales channels of clothing enterprises.

Digital brings new opportunities

In June, the consumption markets of major economies declined, and the world bank, the World Trade Organization and other institutions lowered their expectations for world economic and trade growth. In the second half of the year, the textile and garment industry may face the situation of relatively weak international and domestic market demand, and various uncertainties may increase.

The situation of global economic recovery is not optimistic. Small and medium-sized enterprises should strengthen self-help, reduce cost and increase income. Lu Fuyong suggested that export enterprises need to make efforts at both the supply side and the sales side. On the supply side, we should not only optimize the product supply structure and quality, but also reasonably arrange the supply rhythm, attach great importance to the international logistics trend, optimize the supply chain adjustment ability, and reduce the production cost. On the market side, we should fully tap emerging markets. For example, in the first half of this year, the export growth of Latin American market was very significant. We can take advantage of the new advantages of RCEP and other trade agreements to actively explore new markets.

As for the domestic market, Lu Fuyong said that the transformation of textile and garment enterprises is mainly to specialization, scene and branding, and the design and quality control of the supply side are paid more attention to, highlighting the product identification, so as to enhance the brand loyalty and recognition of consumers. At the same time, the group development trend of enterprises is more obvious, comprehensive textile and clothing enterprise groups can integrate the production and marketing advantages of various categories, and form a strong comprehensive competitiveness.

In the face of the new situation, the Ministry of industry and information technology and other departments recently issued the "three products" action plan (2022-2025) of digital power for consumer goods industry (hereinafter referred to as the "action plan"), aiming to further promote the "three products" strategy in the period of the "14th five year plan" by promoting the consumer goods industry to enhance the ability of digital technology integration and application.

In this regard, sun Ruizhe, President of China Textile Industry Federation, said that the introduction of the action plan has brought new opportunities for the textile industry to better practice the new development concept, integrate into the new development pattern, and realize the high-quality development of science and technology, fashion and green in the new period. In order to implement the action plan, the textile industry should focus on three aspects: first, improve the industrial ecology, and make digitalization a new fulcrum for coordinated development and collaborative innovation of the industry; The second is to improve the basic ability and make the digitalization a new fulcrum for the steady and healthy development of the industry; The third is to broaden the application scenarios, and make the digitalization a new fulcrum to leverage the domestic large market and smooth the double circulation.

The whole scene and specialization of digital technology application has become the inevitable trend of textile and garment industry, and has opened a new subdivision track for the industry. Recently, Shenzhen Suying Technology Co., Ltd., which focuses on providing smart sewing solutions, has completed Angel round financing of more than 10 million yuan. The investor of this round is the frontier technology fund of Innovation workshop, which will be used for product development and customer verification. Director of "labor shortage" and "general manager of China's factory automation" continue to maintain their position in the world.

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