Adjusting innovations to absorb domestic demand nutrients

“How does the manufacturing industry resolve the pressure in the era of high costs? Where is the road to the development of the industry?” On March 29th, the third executive director of the fifth session of the China Knitting Industry Association was held in Beijing. Vice President of the China Textile Industry Federation The issue raised by Zhang Yankai in his opening speech set the meeting as a good opportunity for deep industry exploration.

After visiting the Expo, fabrics exhibition, and yarn exhibition held recently, Zhang Yanxi felt a deep impression. He said: “Whenever the industry is in a bad situation, the exhibition will receive a lot of attention. This year, despite the exhibition of the three major exhibitions. The area did not change much, but the number of overseas exhibitors increased significantly, and the number of overseas exhibitors at the Expo increased by 40%. At the yarn show, only dozens of exhibitors from India and Pakistan had their presence. The exhibition has set up a European boutique exhibition with nearly 100 exhibiting companies from Italy.” From upstream to terminal, the Chinese domestic market is recognized by international counterparts. Zhang Yanxi said: “The industry must unswervingly proceed from the production process to raw materials. The adjustment of the proportion and product structure.” For example, he showed that an Italian fabric company exhibited a cotton fabric with a high-yarn yarn of Wuxi No. 1 cotton, which was priced at 900,000 yuan per ton. After the price of 69 euros per meter. The price of domestically produced high-end fabrics is only 100 yuan per meter, which is a long way away. From the low-end market perspective, China's fabric companies are also facing competition from India and Pakistan. At present, China has become the largest user of cotton yarn in India. From the above situation, Chinese textile companies can only expand market space if they insist on adjustment and innovation.

Yang Shibin, president of the China Knitting Industry Association, and Zhang Yanxi share the same goal. He used the data of international blockbusters at the box office in China, the average price of each football club package, and the per capita disposable income of provinces and cities to reflect the real domestic market. He pointed out that since 2005, the sharp increase in the import price of knitted garments has demonstrated that domestic consumption in China has continued to increase. However, textile companies are unable to enjoy the resulting benefits. The reduction of exports and domestic inflationary pressures have caused companies to face reshuffling and restructuring. For enterprises, only the adjustment of the market structure and product structure can increase the success. He encourages enterprises to actively go out and use two markets and two resources. In addition to paying attention to competition with some developing countries in Southeast Asia, the United States and South Korea cannot be ignored.

At the same time, Yang Shibin pointed out that product innovation is crucial during the adjustment process.

At the meeting, Cao Xuejun, Director of the Textile Division of the Consumer Products Division of the Ministry of Industry and Information Technology, introduced the government’s policies to support the real economy and cultivate the domestic demand market. She said that the Ministry of Industry and Information Technology will launch an appraisal of the Industrial Design Award, evaluation of the level of integration of enterprises, and the Year of Services for Small and Medium-sized Enterprises, which will play a positive role in nurturing brand value, improving the management level, and financing of small and medium-sized enterprises.

In addition, the meeting commended the company that was awarded the “user trustworthy knitting yarn” and read out the “Decision on Determining Luohe Town in Jingzhou, Hubei Province as a Pilot Unit for Textile Industry Clusters”.