Crisis or opportunity? The probable events that will happen in the fabric printing and dyeing indust

2019 will be a year of crisis and reconstruction in the fabric and dyeing industry. Against the background of weak global economic growth, insufficient market demand and constraints on resources and environment, problems such as productivity rebound, foreign trade difficulties and soaring costs will bring huge challenges to the future development of the industry. For this reason, the relevant departments of the state also indicated that they would continue to promulgate corresponding guiding policies to give the industry the greatest help from the aspects of intelligent manufacturing and environmental protection. At the same time, enterprises should also practice hard - ldquo; Winter Resistance & rdquo; and use Internet thinking, cloud computing, big data, Internet of Things and other technologies to develop front-end design, back-end marketing, terminal control extension, and strengthen their own capabilities.
1. Market Trends
Productivity regain
Price war is imminent
The market has entered a period of confusion.
Occurrence probability:
With the improvement of environmental protection and the promotion of supply-side reform, in recent years, relevant clusters in many large textile provinces have issued policies not to increase production capacity, and also to eliminate and transfer backward textile production capacity. However, in the process of “ Tenglong for Birds & rdquo; it should have formed a pattern of industrial transformation and resource integration, but in northern Jiangsu, Anhui, Jiangxi, Hubei and other places, new factories have sprung up like mushrooms after a spring rain.
It is understood that many factories that should have faced elimination in Jiangsu and Zhejiang areas have shifted their production capacity to other places and expanded exponentially. In 2018, we gradually shut down 200 looms in Jiaxing, Zhejiang Province. It is expected that 300 looms and 500 looms will be put into operation in the north of Jiangsu Province by stages in the future, and the production capacity will be expanded to 800 looms. The owner of a textile mill in Zhejiang disclosed that: & ldquo; in 2019, 80% of the eliminated capacity will re-enter the market, coupled with expanded capacity, which will have a great impact on the market. ”
At present, this sign has begun to emerge in the Jiangsu and Zhejiang markets. Recently, a lot of foreign goods have come into the market, and the market has begun to weaken, feeling that the supply is not as tight as before. Industry analysts say that whether downstream demand can absorb the new capacity of the market will undoubtedly become a difficult problem to control the future market. If the capacity of foreign grey fabric can not be digested downstream in time, the price war may reopen in 2019.
Foreign trade difficulties
The market has entered a period of confusion.
Occurrence probability:
For the current situation of the foreign trade market, some people in the industry have used the words & ldquo; boil & rdquo; figuratively. In the past, the days of seizing the first chance relying on price advantage are gone forever. Nowadays, with the rising cost of labor and the weakening of international market demand, the textile and foreign trade industry has the tendency of ldquo; honesty and fairly old rdquo and so on.
Looking back on the interviews in 2018, when the relevant leaders of enterprises were asked about the factors affecting the development of foreign trade, most of the enterprises'answers were influenced by foreign trade policies, especially the trade friction between China and the United States. Many textile enterprises concerned said that they were afraid to take orders from the United States market easily in 2019, or would reduce orders, without considering entering the United States market. In the context of the Sino-US trade war, tariffs have also been adjusted by many other countries, which is also an important factor affecting enterprises'orders in 2019. In addition, due to the rising costs of labor, raw materials and other factors, the weakening of international market demand, and the lack of innovation ability of enterprises, the trend of traditional foreign trade orders declining and fragmentation still exists in 2019.
In addition, due to the transfer of textile industry, the garment industry in Southeast Asian countries is developing continuously, but the development of local supporting industries takes time, so the international market still needs to import a large number of yarn, grey cloth, fabric and other raw materials from China. So overall, the fabric foreign trade market in 2019 is not very clear.
Soaring costs
Profits further shrink
Occurrence probability:
In 2019, the fabric printing and dyeing industry faces three high costs. The first is labor cost. With the rising labor cost in China, the labor cost of manufacturing industry in some developed areas has been higher than that of industrial robots. Secondly, the cost of raw materials, due to the continuous improvement of national environmental protection, dyestuffs and intermediates in northern Jiangsu and Shandong areas have not reached the expected pace of re-construction, dyestuffs prices in 2019 are bound to settle high.
In addition, transportation costs also make enterprises feel that the high costs are not only restricted by information asymmetry and the protection of local interests, but also caused by the return of empty vehicles to factories, resulting in a serious waste of resources.
The profit margin of enterprises has been squeezed repeatedly. Facing this situation, many manufacturers feel pressure, but it is not easy to raise prices. Mo Donghai, assistant general manager of Jiaming Dyeing and Finishing Co., Ltd. in Zhejiang Province, admits that although the voice of the industry has increased over the past years, it is still difficult to raise the price of products. Even if some customers accept the price increase, the increase in dyeing fees is not proportional to the actual increase in cost. He disclosed that since the company opened in 2002, dyeing fees have risen only a handful of times.
Industry experts predict that in 2019, fluctuations in the international environment are more likely, and domestic demand is still in a downturn.The sensitivity of downstream enterprises to price will be further enhanced. As & lsquo; sandwich layer & rsquo; the profits of fabric printing and dyeing enterprises will further shrink.
2. Policy orientation
Intelligent manufacturing
Focus on Industry & ldquo; Intellectual Highlights & rdquo;
Cut a knife into the past
Occurrence probability:
In the new industrial revolution and developed countries, we should strengthen the development of advanced manufacturing technology & ldquo; re-industrialization & rdquo; in the process, China's fabric printing and dyeing industry is facing the gradual loss of low-cost manufacturing advantages, the mismatch between traditional production and operation mode and the rapid development of network information technology, the low starting point of intelligent upgrading and the low end of the value chain, the safety of network services and the imperfect cooperative credit mechanism. And it is not conducive to many challenges such as intelligent transformation.
Therefore, in recent years, China has issued a number of policies to support the rapid development of intelligent manufacturing. From the publication of "Intelligent Manufacturing Equipment Industry & ldquo; Twelfth Five-Year Plan & rdquo; Development Plan", "Intelligent Manufacturing Technology Development & ldquo; Twelfth Five-Year Plan & rdquo; Development Plan" to "Intelligent Manufacturing & ldquo; Thirteenth Five-Year Plan & rdquo; Development Plan", a series of intelligent manufacturing policies and related promotion measures have been issued, which have played a positive role and are accelerating the level of intelligent manufacturing industry, which not only ensures the level of intelligent manufacturing industry. The transformation and upgrading of manufacturing industry in China can be achieved smoothly, and intelligent manufacturing will become a new opportunity for textile industry and economic development momentum.
From the main policies and regulations of intelligent manufacturing issued in recent years, it is not difficult to see that in 2019, the state will continue to strengthen the research and development and production of textile intelligent manufacturing industry, the proportion and scale of intelligent equipment in fabric printing and dyeing industry will continue to expand, and the development of intelligent manufacturing will continue to heat up.
Bad coin clearance
Cut a knife into the past
Occurrence probability:
Since May 2018, the Ministry of Ecology and Environment has issued several papers requesting that the local government prohibit environmental protection & ldquo; one-size-fits-all & rdquo;. It also formulated the "Prohibition of Environmental Protection & ldquo; One-size-fits-all & rdquo; Opinions on Work", requiring the inspected areas to resolutely eliminate the occurrence of inaction and temporary disorderly acts in peacetime, and to prevent the indiscriminate implementation of centralized shutdown, shutdown and shutdown of production.
From October 26 to 27, 2018, the National Conference on Eco-environmental System clearly proposed that environmental protection should be prohibited, and that simple and crude acts such as emergency shutdown, shutdown and shutdown of production should be avoided under the pretext of ecological environment. The meeting said that the next step will be to take measures to further promote the prohibition of environmental protection & ldquo; one-size-fits-all & rdquo; work, issue more detailed documents, put forward requirements one by one for relevant environmental protection areas and regulatory measures, check both omissions and disorderly actions, and establish a long-term mechanism.
Industry insiders analysis, in 2019, if the local government can really implement the prohibition of & ldquo; one-size-fits-all & rdquo; policy, will be very conducive to the production and operation of formal fabric printing and dyeing enterprises and the clearance of bad currency in the market. In fact, the fabric printing and dyeing enterprises need more policy guidance and support, and the most important thing is to take the road of circular development. Direct shutdown is effective, but it hurts the whole textile printing and dyeing ecosystem. Some high-quality SMEs can also play a driving and leading role in upgrading and restoring production. They can also represent a group and lead related industries to a healthy development path of environmental protection.
Western transfer
A New Pattern of East-West Mutual Assistance
Occurrence probability:
At the end of 2018, when the Ministry of Commerce held a press conference, it said that the next step would be to increase support for the development of the western region, continue to support the western region's participation in the construction of &ldquo, and &rdquo along the way. The FTA will be transformed into a new height of reform and opening up, and encourage and guide foreign investment to invest more in the western region. New pattern of opening up in an all-round way.
It is not difficult to find that, with the rising cost of production factors, the fabric printing and dyeing industry cluster originally concentrated in coastal developed areas is accelerating its transfer to the western region in recent years. Wang Jiayi, president of China Filament Weaving Association, once pointed out that local governments in emerging industrial clusters attach great importance to implementing environmental protection measures, and the newly built parks are generally better than the old parks along the eastern coast. New enterprises can actively implement environmental protection obligations, whether self-built sewage treatment facilities or park unified treatment, can achieve 100% sewage treatment, reclaimed water reuse rate of more than 90%.
Green weaving was first realized in the emerging industrial park, which strongly supported the healthy development of textile industry. Industry experts said that the current is the window period for the adjustment and development of fabric printing and dyeing industry. They suggested that enterprises around the country should seize the opportunities and make some achievements. At the same time, they predicted that China's fabric printing and dyeing industry will gradually form an industrial division of labor in 2019, with coastal developed areas as product research and development and sales bases, and western areas as product production and processing bases.
3. Development Direction
Brand strategy
Internet Helps Development
Avoiding Homogeneous Competition
Occurrence probability:
At present, with the increase of foreign technical trade measures and the intensification of domestic competition, the contradiction between supply and demand in the market is becoming more and more prominent. However, in such a severe market environment, the market share of some world-famous brands has not decreased, but has become larger and larger, and the survival space of enterprises without brands - ldquo; crack & rdquo; has become narrower and narrower. Therefore, it will become unprecedented important and urgent to build up a good brand image in 2019.
Industry experts suggest that enterprises should not only improve product quality and establish intellectual property protection mechanism, but also see how to build brand strategy.Due to the wide range, fast speed and low cost of Internet brand promotion, and the increasing purchasing power of the mainstream consumers, small and medium-sized fabric printing and dyeing enterprises are facing a rare opportunity for development. Relevant enterprises can vigorously develop their own brands from the aspects of differentiation strategy, new media publicity and innovation and optimization of products.
In addition, the use of the Internet platform to promote corporate brand, but also make industry information highly transparent, downstream customers can compare horizontally and horizontally, select their own suppliers. On the other hand, this kind of transparent and open information has a profound impact on the business mode and operation mode of enterprises. It promotes the formation of mutual incentives, mutual supervision and mutual promotion among fabric printing and dyeing enterprises, and ultimately makes the industry achieve a fair and open market environment.
Enhanced R & D
Avoiding Homogeneous Competition
Occurrence probability:
Nowadays, differentiation has become a major feature of fabric enterprises. Many responsible persons of relevant enterprises say that conventional products have lost their advantages, and we must open up new & ldquo; Blue Sea & rdquo; through R&D and innovation. Both process research and product development are necessary means to create more market demand. Only by constantly understanding market demand information and constantly developing new process and new products, can we meet the different needs of the market and avoid homogeneous competition.
Zhang Xian, vice president of China Textile Import and Export Chamber of Commerce, said that China's textile industry is in the critical period of transformation and upgrading. Innovation and R&D is the basic path of industrial development. One of the most important manifestations is that the proportion of R&D investment of enterprises has increased substantially. It is the future direction of China's textile industry to carry out R&D innovation, say goodbye to uniformity and take the road of differentiation.
In recent years, the textile industry's R&D investment has continued to increase, and the ability of scientific and technological innovation has steadily improved. In 2017, the research and development expenditure of textile enterprises above the scale was 44.974 billion yuan, an increase of 75% over 2012, and the intensity of R&D investment reached 0.69%, 0.0% higher than that of 2012.23 percentage points; R&D patents have increased substantially, and annual licensing of invention and utility model patents has increased to more than 40,000 patents per year, an increase of 60% over 2012. There is no doubt that in 2019, the proportion of R&D investment will be further expanded.
Spot trading
Realize small and fast production
Occurrence probability:
In the context of global apparel consumption & ldquo; Fast Fashion & rdquo; the traditional mass production of domestic fabric enterprises is decreasing. Market demand makes stable quality, short production cycle and fast delivery the mainstream core competitiveness of fabric enterprises, and also drives fabric suppliers to improve their models. At the China International Import Expo in 2018, the mode of imported fabrics can be cut off in spot has attracted many people's attention. In 2019, spot trading will become one of the focuses of major fabric enterprises.
In the future, the demand of individualization and popularization will coexist for a long time, and the realization of whatever kind of demand will be based on small batch production. Personalized garment enterprises will require small batch production in fabric factories. Popular garment brands also need to control the movable sales rate and capital utilization rate, as well as small batch and batch production. Spot fabrics trading model can exactly meet the needs of this kind of & lsquo; small and fast production & rsquo. Industry insiders emphasize that spot is not equal to inventory, spot trade needs strong co-ordination, operation and management support ability of fabric enterprises, and also has full foresight ability in clothing design.
In addition, spot trading mode also has many advantages for fabric enterprises, such as fast delivery and quick return of funds, which equals to improving the utilization rate of funds. From the price point of view, it will not be very high, but it will be very helpful for the whole year's capital recovery operation of enterprises. ” Industry experts analyse.