Abstract:Affected by environmental protection policies, from 2017 to 2020, the operating income and total profit of textile enterprises above designated size in mainland China continued to decline. From 2021 to 2022, the operating income and total profit of textile enterprises above designated size in China will show an upward trend as a whole. In 2023, the operating income of textile enterprises above designated size will decrease by 10.57% year-on-year to 4,700.9 billion yuan, and the total profit will decrease by 12.82% year-on-year to 180.2 billion yuan, mainly due to factors such as weak market demand in the textile industry, high raw material costs, and a more complex trade environment.
1. Definitions and Classification
The textile industry is mainly an industrial industry that forms raw materials such as clothing and other daily necessities after the primary cotton, wool, silk and other raw materials are processed by certain means. The textile industry mainly includes cotton textile and printing and dyeing finishing, wool textile and dyeing and finishing finishing, hemp textile and dyeing and finishing finishing, silk textile and printing and dyeing finishing, chemical fiber weaving and printing and dyeing finishing, knitting or crochet knitting and its products manufacturing, household textile products manufacturing, industrial textile products manufacturing 8 industry categories, 26 industry sub-categories.
Second, industry policies
The textile industry is not only an important traditional industry in the mainland, but also one of the pillar industries of China's foreign trade, making important contributions to the country's economic development. In recent years, in order to promote the rapid development and transformation and upgrading of the textile industry, the state and relevant departments have successively introduced relevant policies for the textile industry. In April 2023, the Ministry of Industry and Information Technology and the Ministry of Commerce issued the "Notice on Carrying out the 2023 Textile and Apparel Supply Promotion and Upgrading Activities", proposing to further implement the "three products" action of increasing varieties and improving quality and creating brands, improve the development level of textile and garment creative design parks, cultivate textile and garment consumer brands, manufacturing brands, and regional brands, inherit and carry forward excellent Chinese clothing and apparel culture, promote the integration and innovation of "textile intangible cultural heritage" and modern fashion, and promote the spread and popularization of sustainable fashion concepts. In February 2024, the General Office of the Hunan Provincial People's Government issued the Action Plan for Improving the Quality and Upgrading of the Changzhutan National Independent Innovation Demonstration Zone, proposing to promote the upgrading of traditional industries such as green mining, food processing, and light industry and textiles. Accelerate the construction of cemented carbide industry clusters, focus on the development of differentiated high-quality steel, and vigorously develop new building materials such as component building materials.
Third, the development process
The development of the textile industry in mainland China has gone through four periods, namely the expansion period from 1949 to 1978, the adjustment period from 1978 to 1990, the rapid growth period from 1990 to 2003 and the transformation and upgrading stage from 2003 to the present. During the expansion period, the mainland textile industry has achieved industrial expansion and basically built the overall framework of the mainland textile industry. However, due to the fact that the economic management system of the textile industry in the mainland at that time was highly centralized and planned economic system, the structural contradictions in the textile industry were prominent. During the adjustment period, the textile industry in the mainland changed the original planned economic system and turned to the market economic system, and the degree of marketization and socialization of the textile economy was increasing day by day. However, the phenomenon of duplicate construction in the textile industry is also very serious, forming vicious competition between textile enterprises. Since 1998, the mainland textile industry has completed the three major goals of (spindle, attrition and turnaround) after four consecutive years of hard work. The structural adjustment and technological transformation of the textile industry have achieved remarkable results, and in 2003, the mainland became the world's largest textile and garment trading country. Since the 18th National Congress of the Communist Party of China, the mainland economy has shifted from a high-speed growth stage to a high-quality development stage, and the production mode of the textile industry has undergone revolutionary changes. A group of innovative textile enterprises have accelerated towards the higher end of the industrial chain through transformation and upgrading. After several years of digital, networked and intelligent iterative upgrading of the industry, the labor production efficiency, intelligent manufacturing level and digital service level of the entire textile industry have been greatly improved, and labor productivity has been greatly improved.
Fourth, industry barriers
1. Brand barriers
Brand is a comprehensive evaluation and cognition formed by factors such as excellent product quality, perfect after-sales service, good product image, profound cultural connotation, excellent management team and other factors of textile enterprises, and is a huge investment in manpower, material and financial resources of textile enterprises to establish trust with consumers. For new entrants to the textile industry, brand is a huge obstacle that cannot be replaced by capital and resources.
2. R&D technical barriers
Product design and R&D capabilities are important factors that determine consumer brand acceptance in the textile industry. The textile industry market is more sensitive to popular fashion, textile enterprises need to accurately grasp the fashion trend and fashion trend, through the development and design of rich styles of products to quickly respond to the market, which requires textile enterprises to build a professional R & D design team and continue to invest, and constantly improve their product design and innovation capabilities, thus forming R & D design barriers, setting up obstacles for new entrants.
3. Channel barriers
The establishment of a perfect terminal marketing network is the most important sales method for textile enterprises, and the laying of the marketing network requires huge capital costs and time costs. In addition, high-quality store resources are the focus of competition for textile enterprises, which are often scarce. Compared with the new brand, the existing textile brand has a higher awareness, is easier to obtain high-quality store resources, and has greater bargaining power in the sales channel cooperation, which has caused channel barriers for new entrants.
Fifth, the industrial chain
1. Analysis of the industry chain
After years of development, the mainland textile industry has formed a relatively mature industrial chain. The upstream of the textile industry chain is mainly natural fibers, chemical fibers and textile machinery, of which natural fibers include cotton, hemp, silk, etc., and chemical fibers include man-made fibers and synthetic fibers. The middle reaches of the industrial chain are mainly textile processing and finished product manufacturing. The downstream of the industrial chain is mainly the sales of textile products, and the sales channels include e-commerce platforms, shopping malls, supermarkets, shopping centers, specialty stores and wholesale markets, and the terminal is consumers.
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