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Chairman Liu Jiaqiang Introduces The Development Path Of China'S Wool Textile Industry In Recent Three Years

2022/11/11 0:03:00 0

Wool Spinning

From the outbreak of the epidemic in 2020 to now, within three years, the great changes in the world that have not happened in a century have accelerated evolution, new trends of economic globalization, weakening of manufacturing globalization, acceleration of digital globalization, and changes in the layout of global industrial chain, value chain and supply chain. China's wool textile industry is an important force to promote the world's wool textile development. It is a major exporter of wool textile products. It is an important force to promote social and economic development and common prosperity. It links the three industries of animal husbandry, industry and trade, promoting regional coordination, ensuring people's livelihood and employment, and creating high-quality life.

How about the development of China's wool textile industry in the past three years? Has the global position changed? At the 91st International Wool Textile Conference held recently, Liu Jiaqiang, President of China Wool Textile Industry Association, introduced the development path of China's wool textile industry in recent three years, so that colleagues in the international wool textile industry have a further understanding of China's wool textile.

   01. Catering to the new trend and maintaining stable development of the industry

In the past three years, China's wool textile industry has been actively responding to challenges, catering to new consumption trends, constantly building a new development pattern, integrating into the domestic consumption cycle, leading the industry's new concept of science and technology, green and intelligent development, and seeking common development with the international wool textile industry.

In the past three years, China's wool textile production has been stable and developed. While effectively preventing and controlling the new epidemic situation, the wool textile industry has maintained a stable and development situation by carrying out technical transformation, automation and even intelligent upgrading. From 2020 to 2022 (data up to August), the average growth rate of wool yarn output is 5.3%, which is significantly higher than the average decline of - 4.7% between 2017 and 2019. Among them, in 2020 and 2021, the annual output of wool yarn will maintain continuous growth, and it is expected that the output of wool yarn will continue to increase in 2022. In 2021, China's wool yarn output will be about 180000 tons, with a year-on-year increase of 4%. From January to August 2022, the output of wool yarn will reach 100000 tons, with a year-on-year increase of 9%.

From 2020 to 2022 (data up to August), the average growth rate of wool fabric production is 4.9%, higher than the 1% growth rate from 2017 to 2019. The rapid growth in recent three years is mainly due to the rapid growth of wool fabric output since 2022. From January to August in 2022, the output of wool fabric is about 300 million meters, with a year-on-year increase of 42%. The output level has exceeded the annual output of 2021.

The number and scale of China's wool textile enterprises did not shrink significantly. The scale and capacity development of China's wool textile industry is closely related to the world's wool textile industry. Due to the continuous decline in the number of wool processing enterprises, the number of wool processing enterprises has been in a negative trend from 2013 to 2013. From 2013 to 2021, the average decline in the number of wool textile enterprises above designated size is 4.3%. Since 2022, with the recovery of international wool textile industry situation and wool textile product consumption market situation, the number of wool textile enterprises has increased. As of August 2022, the number of wool textile enterprises above designated size has reached 911, with a year-on-year increase of 6.8%.

China's wool textile industry has many excellent leading enterprises, leading the industry obviously. At present, there are six listed enterprises in the wool textile industry. According to the semi annual report released by the six wool textile enterprises in August 2022, the business income growth rate of the leading enterprises in the industry is close to or more than 10%, and the profit margin level is about 5% ~ 20%, which is obviously higher than the average level of the industry. With the further deepening of the cooperation between the industry and the financial market, more and more wool textile enterprises are expected to obtain more beneficial development through the combination of industry and finance.

The wool textile industry has actively integrated into the domestic consumer market cycle, helping to build a new development pattern of double cycle. After the outbreak of Xinguan epidemic, in a long period of time, the international freight transportation was blocked and the international consumption situation was not smooth. The wool textile industry, which had a high degree of external dependence, actively responded, explored the domestic market, connected with domestic brands, retail and downstream industrial chains, and adjusted and transformed the products, production cycle and circulation channels in the domestic market. As of 2021, the proportion of domestic sales of wool textile exceeded 60%, 6% higher than that in 2020, and the contribution of domestic consumer market to industry recovery still exceeded that of international market. Among them, the proportion of domestic sales of wool textile products with wool as the main raw material increased continuously for two years. The export market of cashmere products is stronger.

Export is still an important support for the wool textile industry, which is dominated by wool products. From 2017 to 2019 before the epidemic, the total export of wool raw materials and products decreased year by year, with an average annual decline of 7.3%. In 2020, due to the impact of the epidemic on global consumption and freight transport, the total export volume of wool raw materials and products will further decline, with a year-on-year decrease of 34%.

Despite the geographical and tariff advantages of other wool processing regions and the uncertainty of global wool textile consumption situation, China's wool textile industry has always insisted on grasping the global consumer market of wool products. In 2021, the total export volume of wool raw materials and products reached 3.8 billion US dollars. Although there is still a certain gap between the high level and the previous year, it has increased by 23%. Since 2022, the wool textile industry has followed the pulse of global consumer market recovery and quickly occupied the share of the main wool textile consumer market. According to the import data of the United States, the European Union and Japan, the performance of China's wool textile products in these markets is basically stable. From January to September, Japan imported 120.4 billion yen of wool textile products, about 800 million U.S. dollars, a year-on-year increase of 21.5%, an increase of 4.6 percentage points compared with the first half of the year. From January to August, the United States imported 2.7 billion US dollars of wool textile products, a year-on-year increase of 46%; From January to July, the amount of wool textile products imported by the EU from outside the region amounted to 2.4 billion euro, an increase of 44.8% over the same period of last year, both maintaining rapid growth. The growth rate of Japan's textile market, the value of woven goods in the United States and European markets increased by 36%, respectively.

China's wool products consolidate the importance of global wool textile consumer market. Since 2022, the wool textile industry has been following the global consumer market situation, and its market share in major markets has been further improved. According to the latest data, China's wool textile products accounted for 35%, 29% and 40% of the import value of wool textile products outside the EU region from January to July, from the United States from January to August, and from January to September, respectively, which increased by 2%, 8 and 2% compared with the first half of the year.

   02. Forge ahead with the global wool textile industry

At present, the new epidemic situation, geo economic and political situation, rising resource costs and increasing inflation have become the risks of economic, social and industrial development. The wool textile industry can win the initiative only by making joint efforts, taking advantage of the situation and following the trend.

  First, jointly promote the global wool textile consumption situation to a good development.

Domestic demand market will be the focus of wool textile industry in the medium and long-term development. The proportion of domestic consumption in wool textile products is increasing, which requires the industry to actively explore the demand space of various products and consumer markets at all levels for wool textile products. The rise of domestic brands and Guochao culture has brought opportunities for the development of domestic wool textile demand.

In 2022, the main wool textile consumer market is generally in a good trend. From January to July, the total import volume of wool textile products in the United States was 21.6 US dollars, with a year-on-year increase of 51%; Over the same period, Japan imported 66.5 billion yen (about 460 million US dollars), up 20.4% year-on-year. From January to April, the total trade volume of European Union wool textile products was 6.4 billion euro, of which the import volume was 3 billion euro (about 2.97 billion U.S. dollars), with a year-on-year growth rate of 33%. We should grasp the opportunity of the potential development of international wool and knitting products, upgrade and adjust the product structure oriented to international consumption, improve the green and sustainable manufacturing level of wool textile industry and wool products, and meet the growing demand for sustainable products.

  Second, the international wool textile industry chain is closely linked with complementary advantages.

China and the world's wool textile industry structure and layout are facing new challenges. In recent years, the international wool textile industry has developed a new regional layout. Many old wool textile countries have begun to invest in setting up wool textile primary processing and wool textile factories in Southeast Asia and other places. The new wool processing cluster area is not only a competitor of the wool textile processing supply chain, but also an important opportunity for the industrial chain to be closely linked, complementary advantages and re allocation of resources.

  The development and upgrading of wool textile industry is the core of its development.

The recovery degree of each link of the industrial chain is uneven, the price transmission mechanism is not smooth, and the wool textile processing and manufacturing is facing greater cost pressure. The differentiation of enterprise development is more obvious. Only enterprises that can grasp the trend of times change, integrate into the new development mode, constantly upgrade and self reform, can seize the opportunity and realize development. From a long-term perspective, as an improved consumer product, wool textile products meet the needs of consumption upgrading and better life of the people, and the industry will be better integrated into the dual cycle development pattern.

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