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Hand In Hand And Make More Efforts To Digitally Transform Shandong'S Home Textile Industry By Pressing The Upgrade Shortcut.

2019/12/19 10:18:00 0

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When it comes to the textile industry, people at home and abroad will think of Suzhou and Hangzhou in China for the first time. However, the old brands of home textiles such as Rui Xiang Xiang and Fu Tian are all from Shandong. As the 22 key industries in Shandong's transformation and upgrading, the textile and garment industry is a traditional pillar industry in Shandong, and is one of the 5 trillion industries in the province's industry.

In recent years, under the new and old energy conversion strategy of Shandong Province, accelerating the transformation and upgrading of old kinetic energy, promoting the growth and development of new kinetic energy, and effectively promoting the development of high quality industry are the first elements. In the new consumption era and the trend of digitalization, how can traditional industries transform and upgrade?

Perhaps this problem can be found from the workshop of Shandong Gaomi City's home textile factory. The company, founded in 1987, was formerly a Gaomi towel factory. It opened 28 markets inside and outside the country. Its export share ranked first in the industry for 20 consecutive years, and 50% of China's towel in the US market was produced by sun. At the same time, it is also a typical foreign trade manufacturing factory. Decathlon, IKEA, Muji, crocodile and other international brands are its main foreign trade customers. However, since 2016, the whole industry has experienced a downturn, and the "order production" has made the whole industry feel tremendous pressure.

"Over the past 30 years, although our products sell well in the global market, the structure of the domestic and foreign export markets is not balanced enough, and they are not coordinated enough. Especially in the global industrial chain, the rapid fluctuation of supply chain and the rapid change of industry technology and business mode, it is a strategic choice to push enterprises to transform from production scale to brand benefit. In December 10th, Wu Mingfeng, general manager of Fu Ye group, told reporters on twenty-first Century economic report that the domestic market development and brand building will be accelerated. In the next five years, the proportion of domestic and foreign sales of the group will be adjusted to 50% from the current 20% to 80%, so as to achieve the balanced development of trade at home and abroad, and eventually establish a healthy growth mode with brand as the core driving force.

There are more than 200 textile companies that share the same aspirations as Gaomi City. In recent years, with the disappearance of demographic dividend, they are doing everything possible to break through the plight of "pure foreign trade + foundry". At present, only a few large enterprises are gradually building their own brands, and more companies are still quietly subcontracting.

To this end, the Gaomi City government has taken the lead in setting up a "new brand alliance" to jointly speed up the development of the home textile industry and promote the transformation and upgrading of the regional real economy. Local leading enterprises in home textile, labor insurance, food and other superior industrial clusters will collectively borrow lots of resources to find new breakthroughs.

Fu sun home textile was founded in 1987, formerly known as Gaomi towel factory. Its export share ranks first in the industry for 20 consecutive years. - Data pictures

New targets for foundries

"Jieyu's products were originally used to make big cards." Wu Mingfeng pointed to the towel products of the company's Jieyu brand and told the visiting media.

In this sentence, there is both a confidence in the product and a hint of hidden helplessness. The world's largest towel factory is the world's largest towel factory. They produce tens of thousands of tons of textile products every year, which are exported to more than 80 countries and regions, such as the United States and Japan, and even the luxury brands such as Chanel and Hermes are included.

"This beach towel is made by us for LACOSTE. It was listed in Shanghai last year and sold short on the first day of listing." Wu Mingfeng showed a beach towel to the media. The price of the beach towel is 40 dollars, but the Jieyu brand beach towel product of the same quality can only sell 100 yuan on the electronic business platform. The price difference between private brand products and big name OEM products is shocking.

Branding is imminent. The company's 2018 earnings data showed that the total revenue of the shares rose 5 billion 171 million yuan, an increase of 7.24% over the same period, and the export of products was 3 billion 141 million yuan, accounting for 60.74% of revenue. Net profit attributable to shareholders of listed companies was 435 million yuan, an increase of 5.99% over the same period last year. The export market, which relies heavily on its sales volume in 2018, was 473 million US dollars, up 10.37% from the same period last year. From the product line, the home textile product revenue was 4 billion 123 million yuan, an increase of 6.14% compared with the same period last year, and the towels series revenue was 3 billion 444 million yuan, up only 1.47% from the same period last year.

Wu Mingfeng's strategy is to give the whole group the power to push foreign trade and domestic sales to one to one, and get a share from the broad domestic demand. The new business platform may bring new opportunities for this old business. After all, in 2018, the total cost of marketing publicity of the company was only 5 million 286 thousand and 700 yuan, which was a drop in the bucket compared with those of hundreds of millions of brands.

A lot of cooperation is a shortcut. "There is a lot of momentum in development. We also want to use our brand new brand plan to enhance our brand so that people in the whole country can use our good towels. Later, we have to do more work alone. Strive to achieve annual sales of 1 billion yuan on the platform. Wu Mingfeng further revealed that the potential of the domestic market has been enormous since the double eleven national network retail sales exceeded 870 billion yuan, an increase of 26.7% over the same period last year, and the breakthroughs in the scale of second participating exhibitions.

Data is the best proof. In December 9th, the group launched a series of "same quality" products, including the export of superior products, cotton four piece sets and so on, at a price of 99 yuan, compared with the previous 30 days. The turnover grew 1735%, the total payment increased by 1031%, and the number of visitors increased 38 times.

For this phenomenon, Liu Yanfei, vice president of home textile and household Committee of China Textile Business Association, predicts that the three or four line market and town area will become a new growth point of home textile home. "In 2018, the consumption level of residents increased, and the fastest growth was rural residents. In recent years, the per capita consumption in rural areas has undergone great changes, and the proportion of basic demand has gradually decreased. The proportion of household, education and entertainment has increased continuously, which has provided market space for home textile industry. "

With the change of consumption structure and consumption channels, the sinking of channels and the integration of two lines will be the future trend of home textile industry. Yongquan, the vice president and head of home textile business, said that in the coming year, the platform will tilt its resources and strive to cultivate 100 new brands of home textile products that sell over 100 million yuan.

From individual to industrial belt

It is understood that the international market is the world's main selling market for home textiles, and exports have ranked first in China's textile industry for 20 consecutive years since 1999, accounting for nearly 45% of China's exports of American towels, 33% of Japanese towels and 25% of European towels.

This is only a microcosm of the entire textile industry in Shandong. Many new brand initiatives are moving from "single factory support" to "industrial belt activation". In December 10th, at the "new brand plan" conference held by the government of Gaomi City, Shandong, Yongquan said that with the deep linkage of "new consumption + new manufacturing", many products were expanding the "ten billion subsidy" of the phenomenal entry to the consumer category and industrial belt of the people's livelihood.

Before this, the new brand plan put forward more and more, focusing on China's small and micro manufacturing enterprises, plans to support 1000 Chinese factories, to provide R & D advice, big data support and traffic slant for enterprises, and help China create the lowest cost to cultivate new brands. The conference was the first time to launch a new brand alliance with the local government for the first time, and to carry out the covering layout of the industrial belt.

The first alliance members are made up of 15 local key manufacturing enterprises, such as Fu Ye group and Xingyu labor insurance. Xingyu labor insurance, founded in 1992, is one of the largest manufacturers of labor insurance products in China. Its products are exported to Europe, America and Southeast Asia. But with the new consumption trend of new scenes, new customers and new channels, the company is in urgent need of change. "The company will rely on more efforts to promote online sales, speed up the opening of new consumer markets, and explore incremental consumer demand." Mr. Yu, a deputy general manager of Xingyu labor insurance, told the twenty-first Century economic report that its flagship store has been growing rapidly in recent years.

According to the briefing, the company will sell some core technology products to network sales to create core product brands. "Through the platform of big data technology advantages, collect personalized needs, high-end products customized as the future direction of development." He said.

Home textiles categories still have huge dividends waiting to be released in the consumer market. In December 9th, a lot of platforms launched the brand promotion of the home textile industry synchronously. On the same day, the daily sales of home textiles category reached 12 million, and the average growth rate of the visitors in the brand shops exceeded 200%, and the total sales of the spike group reached 2 million 500 thousand.

Liu Yanfei analysis shows that the rise of new consumption demand, such as the three or four line sinking market, brings a huge new market. Before the Gaomi hand in hand with the high-density home textile industry belt, a lot of work has been carried out in depth cooperation with Nantong industrial belt home textile enterprise Southern life. Southern life joined the new brand plan in July this year, aiming at the second tier middle class and three or four line high income earners. In November 18th, on the national day of cooling off, GMV broke through 12 million, and sold four pieces of SKU in a single bed, 85 thousand items a day, and created industry records.

At present, Nantong home textiles has successfully created 10 well-known trademarks in China, such as Luo Lai, violet, golden sun, San Fu Island, Lan Siyu, dream language and dream Tianzi. Data show that in the total domestic textile business transactions, 50% sellers, 70% shipments are in Nantong, Nantong home textile business sales of around 30 billion yuan.

Coincidentally, a lot of data also reveal that there are more than 5000 enterprises from Jiangsu, Shandong and other textile provinces, and the overall GMV of home textiles in Shandong is over 300% over the same period last year. Home textile is already one of the fastest growing categories, and the industry has a new brand of "thousand sail competition".

Digital manufacturing

Professor Fan Jianyong, Professor of industry and regional economic research center of Fudan University, points out that the further direction of C2M strategy is the upgrading of industrial cluster, which requires the accuracy of algorithm to improve productivity. A lot of unique features are the ability to group consumers in hundreds of ways. This combination of "customization" and "scale production" is very different from the "long tail phenomenon" of the traditional e-commerce platform, making C2M, which has mostly stayed in the mouth and the concept, for the first time has a deep foundation for large-scale landing. "This will bring about a revolution for Chinese manufacturing."

By the end of September, a total of over 1800 customized products have been launched, with orders exceeding 70 million orders. It has become one of the main sources of the new generation of local brands. The platform is expected to achieve the one billion level of customized product annual orders in three years.

Unlike traditional e-commerce giants, many of them are smart enough to match supply and demand based on the understanding of "people". Using distributed AI technology to gather different demand sides of different groups of people, not only will massive demand be directly linked to factories, but also on the basis of protecting consumers' privacy, the full dimensional interpretation of consumption data will feed upstream enterprises. "From algorithm, product, operation to brand lab, our whole chain has enriched the team structure of the new brand plan." Yongquan introduced that, data to understand domestic consumers, precisely matching demand is the first step.

Therefore, for traditional brands, the upgrading of the production line, increasing the input of intelligence, and improving the production efficiency through information technology are also the trend. In the industrial belt of Nantong, a number of home textile enterprises such as Ou Tong, LAN Si Yu, Kerry and so on have also built an automatic production line with an increase of 30% in production efficiency. Violet home textiles has invested about 20000000 yuan in the development of home textile series, including seven functional products, including probiotics, Chinese medicine and sleep. In 2015, the sales of functional products of violet home textiles accounted for 55%, and technology products were becoming the core competitiveness of enterprises.

In Gaomi City, investment in science and technology has also been put on the agenda. Wang Wenqi, mayor of Gaomi City, said in the speech that the gross domestic product of the whole city was 52 billion 260 million yuan in the first three quarters of this year, and that the general public budget revenue was 4 billion 630 million yuan from 1 to October. "In recent years, our city has been promoting the industrial transformation and upgrading process. We have always integrated platform integration, brand operation and digital transformation as an important starting point, focusing on Internet + brand + intelligence +". At the same time, we also realize that the impact of the small and medium-sized enterprises' brand degree is not always high, which has always been in a passive position and has become a major bottleneck restricting the development of enterprises.

With the increase of raw material prices and the transformation of retail channels, a large number of brands of home textile industry have been eliminated. In January 2017, the number of bedding industry brands was 8888, and by the end of January 2018, it had dropped to 4570, and the brand elimination ratio was close to 50%. It can be seen that the pressure of transformation and upgrading of home textile industry is very large.

According to statistics, the market scale of domestic textile industry reached 230 billion yuan in 2018, and it will reach 320 billion yuan in 2022. At present, the first tier of home textile brand has been formed, but the top five brand concentration is not more than 10%. Whether Gaomi or Nantong, in the window of rapid transformation of new and old kinetic energy, the electronic business platform will jointly promote the new manufacturing with the industrial belt, which will inevitably bring opportunities for overtaking corners.

In response, Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, said that many new business platforms, such as the new business platform, echoed the new consumption demand, assisted by artificial intelligence technology, and helped the traditional enterprises to make production adjustment through the concepts of C2M customization and "new manufacturing" index.

Home textile industry reshuffle

According to the China textile business association data, in 2021, the scale of China's home textile industry reached 300 billion yuan, and it is expected to reach 260 billion yuan this year. These data come from scattered textile clusters, specialized markets and brand enterprises all over the country. In the ten years from 2011 to 2021, the home textile home data increased exponentially.

Liu Yanfei believes that the current home textile home industry consumption presents obvious characteristics, mainly home aesthetics and life aesthetics two levels. "In the past, we invested a lot of energy in the research and development of single products, including bed products, curtains, etc., and made great efforts in flower shape and pattern design. Why do we have a lot of stock to sell? That consumption era is over. From single product consumption to collective consumption, after 90 and 00, more attention should be paid to the integration of soft clothing, including integration, smart home and integration of technology components. This is the future trend of consumption and one of the main features of new consumption characteristics.

Therefore, many electronic business platforms such as vip.com are aiming at this market. As of September 30th this year, there were 85 members of the new brand plan, and more than 800 enterprises, including well-known brands, participated in C2M customized production.

We are also concentrating on the production of high-grade products and high value-added products. Gradually improve the upstream and downstream industry chain, and move towards the top of the value chain. "After the alliance, we will use online sales as an important complement to the future, accelerate the opening of the new consumer market, and explore incremental consumer demand, while the company will further accelerate the process of digital construction. The next step will be to rely on the advantages of the Internet platform to further sink the market, expand the protective gloves, and send personal protective products to the workers at the individual protection areas such as unconventional labor and agricultural personalized applications. At the same time, we will collect personalized needs through the platform big data technology advantages, and make the high-end products customized as the future development direction.

In this industry, business logic has changed radically. From the traditional to the commodity as the core, the future is based on the human core, which is the fundamental sign. At the same time, new industrial models were born, such as B2B, C2C, C2F and so on. In the era of on-demand production, customization is possible. In addition, rural consumption has also become a new bright spot. The average growth rate is maintained at 9%. The growth rate of disposable income of urban and rural residents is lower than the overall growth rate of consumption. There is great consumption potential in the future urban consumption and rural consumption market, and the consumption demand is very strong.

In 2018, retail sales continued to grow at a rate of about 30%. Among them, clothing, household appliances and daily necessities are still the main expenses, and the social electronic business platform has become the biggest black horse. Judging from the current situation and trend of China's e-commerce development, China's online retail market has maintained steady and rapid growth in the first three quarters of this year. China's online retail sales reached 7 trillion and 320 billion yuan, an increase of 16.8% over the same period last year. Among them, the online retail sales of physical commodities amounted to 5 trillion and 770 billion yuan, an increase of 20.5% over the same period last year. The growth rate was 12.3 percentage points higher than the total retail sales of social consumer goods in the same period, accounting for 19.5% of the total retail sales of social consumer goods, an increase of 2 percentage points over the same period last year, and a 43.7% contribution to the growth of total retail sales of social consumer goods.

From the perspective of regional economic development. Accelerating the transformation and upgrading of traditional industries and accelerating the transformation of new and old kinetic energy can not be separated from innovation driven by actively promoting new models and new formats. In the future, China's economy should not only focus on the speed of economic growth, but also emphasize the quality of economic development. Therefore, we need to transform the way of economic development. In this process, the transformation of new and old energy is the only way.

 

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