Wang Tiankai: Solving New Year's Textile New Normal

At the beginning of the Year of the Sheep, many textile people were not able to "joy." This is because in the past 2014, the new normality of the slowdown in the industry has brought a lot of pressure to the company, and some turning points in the operation of the textile economy are also attracting attention. How to accurately determine the international and domestic economic environment in which the textile industry is located, predict the industry economic trend in the new year, and grasp the key points of industrial transformation and development? In order to find the answer to the question, the reporter recently interviewed Wang Tiankai, president of the China Textile Industry Federation.

The new normal under dialectical survival

Model innovation is imminent

Reporter: From the perspective of the textile economic operation data in 2014, China's textile industry is showing some new changes. For example, the main economic growth indicators of the above-scale enterprises have all been reduced to single-digit growth; another example is the arrival of textile and apparel import and export in late 2014. Negative growth in the first month of 2015. What happened to the Chinese textile industry?

Wang Tiankai: The Chinese textile industry has entered a new normal state of slowing growth. With regard to the main features of this new normal, I think it can be summed up in three sentences: First, the growth rate is slowing down and slowing down. Second, the development pressure is increasing and the differentiation is accelerating. Third, the power conversion is urgent and the key innovation is made.

Specifically speaking: First, the growth rate is slowing down and slowing down. As the consumer goods industry, the textile industry is closely related to the country's macroeconomic development. As China's economic growth slows down, it will eventually affect the industry's demand growth. Under the new normal, the textile industry has grown from high-speed growth to medium-speed growth. From last year's point of view, the major economic growth indicators of enterprises above the designated size will fully increase from double-digit growth to single-digit growth, just confirming this point. But at the same time as the slowdown in growth, we must also take note of the slow progress. First, industrial textiles still maintain a good growth trend. Driven by the strong demand of the national economic development strategy for industrial textiles, the main economic growth indicators for industrial textiles maintained double-digit growth in 2014. Therefore, under the new normal, industrial textiles will still maintain rapid growth. . Second, the adjustment of the industrial structure has been accelerated. Under the new normal, the industry has been accelerating the adjustment of industrial structure, regional structure, corporate organizational structure, and product structure.

Second, the pressure for development has increased and the differentiation has accelerated. Under the new normal, the pressure on the overall operation and development of the industry has increased. Enterprises, large or small, have generally felt that it is more difficult to survive. The reasons for this include the relatively weakening demand growth, intensified resource and environmental constraints, rising factor costs, the acceleration of end-user demand changes with personalization and differentiation, and micro-market factors such as phased production and structural overcapacity in some industries. The most important reason is that entering the new normal, the original production model is difficult to sustain, and the new model is still exploring the formation process. Therefore, some advantageous enterprises are having difficulty maintaining the growth of business performance, and a considerable number of small and micro enterprises will face the pressure of survival. Therefore, the survival of the fittest will be intensified in the new normal, and the division of enterprises will also be accelerated.

The third is the urgent need for power conversion and key innovations. Under the new normal, the core of the industry's development is to promote transformation and upgrading, change the dependence on investment-driven, factor-driven, and rely on innovation in technology, brand, management, system, mechanism, and business model to promote the development of the industry.

Reporter: The innovation drive has been spoken for many years, but the textile industry still has the problem of insufficient original technology and original design capabilities. In the textile industry with a higher degree of marketization, how can we continue to promote basic research work? How to guide enterprises not to eager for quick success and sustainable development?

Wang Tiankai: It should be said that for technological innovation, textile companies have attached great importance to subjective understanding. Many companies have also carried out some practices through cooperation with universities and research institutes. However, for cross-industry, cross-field, and basic research, there is often no power to complete. In recent years, many industrial technology alliances have emerged in the textile industry. This is also an exploration of solving this problem.

The industry is driven by innovation. Technology is the cornerstone, the market is the source, talent is the fundamental, and the institutional mechanism is the key.

First, we must make breakthroughs in key technologies, key equipment, and key products for the industry, such as functionalized and differentiated chemical simulation fibers, intelligentization, development and application of digital devices, high-end industrial textiles, and energy-saving emission reduction technologies. Wait.

Secondly, focusing on the end market, aiming at differentiated and individualized consumer demands and changing consumption patterns and consumer demand, accelerate product structure adjustment, promote enterprise management innovation, innovate systems and mechanisms, innovate production and business models, and promote enterprises from production. Type-to-production and service-oriented enterprises.

In addition, we must further follow the principle of decisive role of market allocation of resources, speed up the optimal allocation of resources, and actively promote regional restructuring, including the creation of new international advantages, and further promote the optimal allocation of transnational resources.

Accelerating the pace of innovation requires a good environment at the national level. According to the principle that the market allocation of resources plays a decisive role, some important issues in the textile industry chain are solved. For example, in order to accelerate the reform of cotton resources allocation and introduce a mature policy to protect the interests of farmers, we will accelerate the release of cotton import quotas. Imagine if, under the huge cotton price gap at home and abroad, if you can make profits by throwing cotton down, then which cotton textile company can feel at ease with craftsmanship and strong products?

Locking up a global vision

Create new international advantages

Reporter: The current global economy is also showing a new normal. Under such circumstances, how should China's textile industry create new international advantages? With the major adjustment in the global industrial division of labor, what role will China's textile industry play in future international competition and cooperation?

Wang Tiankai: At present, the global economy has entered a new normal during the process of slow recovery, and all countries are seeking changes and adjustments. For example, in the United States, “reindustrialization” and “revitalization of manufacturing” and Germany’s “industry 4.0 strategy”, emerging economies and resource countries, including developing countries, are also changing the mode of development and adjusting the industrial structure. These changes and adjustments will It has an impact on the global textile industry. Therefore, it is an important trend for the common development of the global textile industry to strengthen integration and integration among countries.

In 2014, I made a theme report at the annual meeting of the International Federation of Textile Manufacturers (hereinafter referred to as the "International Federation of Textiles"), arguing that the global textile industry is facing common opportunities and responsibilities. In terms of opportunities, the first is that the new pattern of the international market will bring new market opportunities for the global textile industry. At present, the diversified pattern of the international textile and apparel market is increasingly prominent. The demand for industrial textiles for clothing, home textiles and related industries will continue to increase. The future global fiber consumption demand will continue to increase, and emerging markets including China will become the main growth driver. The second is the new trend of technological change to increase the momentum for textiles to deepen international cooperation. This new trend of technological change will promote the deep integration of information network technology and manufacturing, strengthen the integration of resources for the textile industry chain and supply chain, and provide opportunities for innovative marketing. Third, the new system of international division of labor will promote the coordinated development of the global textile industry. Including the revitalization of manufacturing industries in developed countries to strengthen the high-end and high value-added links in the industrial chain, the emerging economies accelerate the industrial transfer in the textile manufacturing sector and accelerate structural adjustment, and regional free trade relations affect the investment direction of the textile industry. This adjustment of division of labor will intensify international industrial competition to a certain extent, but resource integration, cooperation, division of labor, and coordinated development are still the mainstream trends.

In terms of responsibility, the most important thing is that global climate and environmental responsibility imposes requirements on textiles to strengthen joint actions. Efforts to break through key technologies, realize full-process, low-carbon, clean processing and manufacturing, enhance development concepts, and realize long-term, low-carbon and green development in the entire life cycle, require the wisdom of all countries in the world to contribute together. The textile industry has a long industrial chain from fibers to end products. With the deep integration of the global textile industry chain, it is necessary to have a unified understanding of all aspects of the industry chain. From this perspective, low carbon and green are the common responsibility of the global textile industry. It is also the fundamental interest link for the global textile industry to achieve win-win cooperation.

Looking at China's textile industry in this context, we have seen that since the reform and opening up, especially after joining the World Trade Organization in 2001, China has built up a relatively complete and efficient textile industrial chain with global competitive advantages by continuing a large amount of advanced investment. Through the highly-competitive industrial clusters, the division of labor and the economies of scale, China's textile industry occupies an irreplaceable position in the world's textile and apparel supply chain system. At the same time, the rapid growth of China's domestic market has continued to add a rare historical purchasing power to the world's textile machinery, raw materials, intermediate products and end products. Over the past few decades, a number of leading backbone enterprises have emerged in the Chinese textile industry. They have made continuous progress and breakthroughs in manufacturing efficiency, operational efficiency, R&D innovation, brand influence, multinational distribution, and profitability.

At present, the global textile industry is undergoing historic reshaping and transformation at both the supply chain and purchasing power levels. As the largest producer, exporter and consumer of textiles and garments in the world, China will simultaneously play an active role in the global textile supply chain and repurchasing of purchasing power in the process of transformation and upgrading of its own industries. China's textile industry will actively promote the "going out" of enterprises for transnational resource allocation. At the same time, the Chinese textile industry actively supports multilateral and bilateral free trade agreements worldwide, adheres to the stand of openness and development, and welcomes textile industries around the world to fully explore China's rapidly growing domestic market potential and cooperation opportunities. China's textile industry will actively integrate with the world's colleagues in the process of transnational distribution, and create a national wealth for all countries while continuing to make due contributions to improving the quality of life of global consumers.

Reporter: In 2014, you became the first international textile federation from China. What do you think this means for the better integration of the Chinese textile industry into the world?

Wang Tiankai: In 2014, it was the 110th anniversary of the establishment of the International Textile Federation. The China Textile Industry Federation joined the International Textile Federation in the name of an industry organization in 2009. Faced with this international industry organization, which has more than 100 years of history and includes industry organizations and companies in nearly 30 countries and regions on five continents, whether it is China’s accession to it or it sincerely welcomes China’s accession, it is the Chinese textile industry. It is determined by the status and role of the international textile industry.

China occupies more than half of the total global fiber processing, and is the world’s largest textile and apparel producer, consumer, and exporter. China's accession not only satisfies the need for information and cooperation opportunities among the members of the International Textile Federation, but also enables the Chinese textile industry to gain the right to speak on this platform so that the global textile industry can truly understand China. Through the "close" contact with international counterparts in recent years, we can see that the rapid development of China's textile industry has caused some countries and regions to have doubts and even misunderstandings. Through the IFLA platform, representatives of the Chinese textile industry can seek truth from facts to explain the situation, help disperse the false claims, and resolve inexplicable accusations. This provides a good atmosphere for international colleagues to increase understanding and seek cooperation, and also effectively mitigate Avoid some trade frictions caused by misunderstandings.

In 2014, as the representative of the China Textile Federation, I served as the International Textile Federation**. During the limited two years of service, it will fully meet the needs of the member companies, increase the vitality of the International Textile Federation, and seek the common development of the global textile industry; The global vision will further promote the sustainable and scientific development of China's textile industry. In 2015, the International Textile Federation will strengthen the communication and exchange of information, and brewing the development report of the global textile industry and the development of the global textile industry***.

Steady growth is a top priority

Four tasks ending "12th Five-Year"

Reporter: Another year of "**". At this point, industry professionals will pay special attention to what new signals the country’s macroeconomic and political policies have transmitted to the industry. This year, which macro policies do you think will positively promote the healthy development of the textile industry?

Wang Tiankai: According to the deployment of the Central Economic Work Conference, the five major tasks of economic work in 2015 include: striving to maintain stable economic growth; actively discovering and nurturing new growth points; accelerating the transformation of agricultural development methods; optimizing the spatial pattern of economic development; strengthening protection and improvement Livelihood work. The meeting also proposed a series of objectives aimed at loosening the market and promoting reform and opening up.

I noticed that the first of these five major tasks is to work hard to maintain steady economic growth, and the other four are all deployed around the task of steady growth. The five tasks highlighted the idea and practice of stabilizing growth through transformation of methods, structural adjustments, reforms, and innovations. This shows that steady growth is the top priority of the economic work in 2015. Paying attention to some of the new formulations can help us analyze and grasp the development of the industry.

For example, the central government stated in its mission of "striving to maintain stable economic growth": "We must adhere to the principle that macroeconomic policies must be stable, micro-policies must live, and the overall thinking of social policies must be underpinned," and that "positive phased policies must be vigorously implemented." Monetary policy should pay more attention to moderate and gradual strengthening of the supporting role of strategic emerging industries and service industries, and strive to promote traditional industries to the mid-to-high end." It can be seen from the above that the central government will ensure steady economic growth at the macro level, and its focus will be on changing the way and adjusting the structure. Similarly, the textile industry must take the opportunity to promote transformation and upgrading, including accelerating the transition from production to production and service.

In the task of “proactively nurturing new growth points,” the central government mentioned that “the market must live”, “reforms must be real” and “policy should be wide”, and proposed “mainly relying on the market to discover and cultivate new growth points”. "Innovation must be implemented to create new growth points" and "create a policy environment and institutional environment conducive to popular entrepreneurship and innovation of market players." The textile industry is the closest to the market and SMEs are predominant. Therefore, these references will create a better atmosphere for the textile industry to further enhance the driving force and vitality of innovation drive.

In “Optimizing the spatial pattern of economic development”, the central government proposed “to improve regional policies, promote coordinated development among all regions, coordinate development, and jointly develop” and “the overall strategy for the development of the western region, the revitalization of the northeast, the rise of the central region, and the eastern region to take the lead in overall development.” Actively implement, "We must implement the 'Belt and Road Initiative,' coordinated development of the Beijing-Tianjin-Hebei, and the Yangtze River Economic Belt's three major strategies. We must strive for a good start this year," "We must break through regional and interest barriers through reform and innovation, and comprehensively increase resources." Configuration efficiency." The adjustment of regional structure is an important direction for structural adjustment of the textile industry. The policies proposed by the central government and the three new strategies for implementation will provide impetus to the accelerated adjustment of the textile industry.

Reporter: 2015 is a crucial year for comprehensively deepening reforms. It is the first year for comprehensively promoting the rule of law and is also the year for the completion of the “Twelfth Five-Year Plan”. What is the overall situation and main tasks of the textile industry in 2015?

Wang Tiankai: Regarding the overall situation of the textile industry this year, despite the pressure of maintaining the stable operation of the industry as a whole, it is still necessary to make efforts to stabilize growth and adjust the structure to resolve various types of contradictions. According to the spirit of the meeting of the Central Economic Work at the end of 2014, the following four main tasks should be considered.

The first is about stable growth and structural adjustment. It requires in-depth investigation and research to focus on resolving some of the outstanding issues and problems in the development of the industry, including raw materials, production capacity, environmental protection, layout, and small and medium-sized enterprises.

The second is to accelerate the innovation drive in accordance with the laws of the market, focusing on science and technology, brands, sustainability and talent, as well as promoting the transformation of business models and the integration of the two industries, and steadily promote the transformation and upgrading of the industry.

The third is to complete the "13th Five-Year Plan" industry development plan. The “Thirteenth Five-Year Plan” is a sprint phase for the construction of a strong textile country. Therefore, it will focus on researching and clarifying the indicator system of textile powers, especially the scientific evaluation of the industry’s technology and brand contribution rate.

The fourth is to strengthen the self-construction of the China Textile Federation, strengthen the study of key issues in the development of the industry, and improve the service capabilities and level of the industry.