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Overcapacity in the industry, environmental protection pressures are increasing, and production costs continue to rise... Domestic textile industry is accelerating transformation and upgrading under the pressure of the market, Sanshui Textile Enterprise has “enough†the essence of supply-side structural reforms, and the industrial chain is from a single Links to the weaving, dyeing, finishing, garments and other industrial chain extending upstream and downstream links, relying on the industry chain strategy to successfully open the high-end textile market, standing on the forefront of the transformation and upgrading of the textile industry.
Off-season is not light
Double annual performance is expected to be achieved
In July, many textile companies ushered in an off-season production season. The volume of orders and production tasks plummeted, seemingly to reduce the burden on production workers and machines. However, in the production workshop of Mingzhou Group in Sanshui Datang Industrial Park, the arrival of the off-season has not been met as in previous years. On the contrary, the production workers and production machines are still operating at full capacity and the monthly dyeing of 800 to 1,000 tons is maintained. High productivity.
"In July and August of previous years, it was all off-season. It was normal to dye only 300 tons to 400 tons per month," Liu Qinghai said. In fact, the prosperous production and marketing of knitted fabrics on the famous continent is not a two-month event. In the first half of this year, Minzhou has completed its sales for the entire year. Liu Qinghai’s sales revenue increased by 100% year-on-year. . "This is a new peak period for the development of Mingzhou for over 10 years."
Coincidentally, Foshan Fengze Textile Co., Ltd., which is less than one kilometer away from Mingzhou Group and whose main line is denim, also showed a trend of “not being off-season†in production and sales. "It is estimated that sales in the first half of this year have exceeded 900 million yuan, an increase of 20% over the same period last year," said Li Shenglin, general manager of Fortress Textile. Fortress Textile ushered in not only a year of good performance, but also a year of capital increase and production expansion. The company plans to pursue the victory and launch a new dyeing cloth business next year.
Mingzhou and Fortress are different from most of the simple printing and dyeing companies in Sanshui. They have relatively complete industrial chains such as weaving, dyeing, finishing, and garments. This industry chain last year assisted Minnesota to beat multiple competitors to qualify for Decathlon's global priority procurement supplier. This year, Fortress received a one million yard denim fabric production order from Spain's well-known clothing brand ZARA, becoming a driver for the two companies. The main thrust of a new business outbreak.
Sanshui Datang Town is a textile printing and dyeing professional park. Currently, it is the most concentrated place for printing and dyeing in Guangdong. This drives Sanshui's textile industry to maintain a good growth momentum. Secretary-General of the Datang General Chamber of Commerce Liu Jinwei recently noted that in the analysis of the development of the Sanshui textile industry, of the more than 80 textile printing and dyeing enterprises in Datang, the enterprises with rapid growth this year are relatively abundant in the industry chain, such as Minnesota and Feng. Ze, Zhonghui, and precision are among the many links in the group that have formed spinning, weaving, dyeing, finishing, and garments.
One-stop production
A high degree of autonomy in grasping market discourse
The China Textile Industry Association’s in-depth report on the domestic textile market released in April showed that home textiles and apparel orders were concentrated in advantageous companies with relatively complete industrial chains this year. In the case where orders are generally insufficient in the industry, enterprises with relatively complete industrial chains are concentrated. The number of orders did not decrease. It is not difficult to find that Sanshui Textile Enterprises, such as Mingzhou, Fortress, Zhonghui, and Precision, have already demonstrated strong competitiveness in the market competition in their exploration of the industrial chain.
Under the background that the national textile industry is still at the depth of market adjustment, what is the significance of implementing the industrial chain strategy for textile enterprises? How does the industrial chain extend upwards and downwards to improve the competitiveness of enterprises?
At the beginning of the business, Sanshui Textile Company was mostly a single-link enterprise, either spinning or weaving, or printing and dyeing, or garments, of which printing and dyeing companies accounted for as much as 70%. The single-link production mode means that companies have high dependence on upstream and downstream partners, and product quality, delivery cycle, and technology research and development are not controllable factors. However, these drawbacks have not been revealed in the era of price competition in the domestic textile industry.
"For enterprises to open up the high-end market, to cooperate with domestic and international mid-to-high-end brands, there must be products with strong technology and stable quality," Li Shenglin said. In the past six or seven years, after the domestic textile industry experienced series of changes in low-end product overcapacity and extensive enterprises were eliminated in the market reshuffle, such as Fengze, a company with keen sense of smell, truly recognized the next breath in the textile industry. Will be in the high-end market.
However, the original single-link production mode of Sanshui Textile Co., Ltd. does not have sufficient competitiveness in the development of high-end markets. Mingzhou, which used to have only textile links, has a deep understanding of this. Liu Qinghai said that the downstream printing and dyeing companies face a large number of customers, and it is impossible for them to devote a lot of energy and financial resources to the research and development of the technology required by a given company, and the level of research and development is also limited. As a result, Minzhou brought its printing, dyeing and post-industry links to its industrial chain.
"We once spent 30 tons of cloth on a product's post-process R&D, and tried to make a 20-kilogram cloth for the customer. The customer was very satisfied." Liu Qinghai said that this wayward research and development, If you rely on downstream suppliers in the past to complete, it is simply impossible. Not only has the level of research and development greatly improved, but even the delivery cycle has stabilized from the two or three months in the past, which has been indefinite, to about a month. This is an intuitive change after Minmetals enriched its industrial chain.
Trends
Industrial chain is constantly enriched and improved
From the single production chain to the upstream and downstream industrial chain of the textile industry, Sanshui Textile has tasted the sweetness in the exploration of the entire industry chain. However, it is worth noting that the implementation of the industrial chain strategy is not a one-time process. It is also a courageous transformation of the company's courage and has the ability to support the transformation and expansion of the company's development base.
Fortress has been on the road to the transformation of the industrial chain for more than three years. It has successfully extended the industrial chain from weaving to pulping and finishing, and has driven companies to pay less than 3 million yuan in taxes from 2015 to 2016. 8 million yuan. “The chain needs a lot of investment, not all companies have such a basis.†Li Shenglin bluntly stated that there are many one-stop production processes and the overall investment in management, equipment, manpower, and technology R&D is more than the cost of outsourced processing. Large, but in exchange for the core technology to improve, product quality and delivery time is more stable, which is the invisible value-added.
In the domestic textile industry market, the “overcapacity†is often said to be that the supply of low-end products is far greater than the market demand. Therefore, the reform of the supply-side structure of the industry will focus on the optimization of product structure, expand the supply of high-end products, and improve the core of textile enterprises. With added value such as technology and self-owned brands, the textile industry is still showing strong enthusiasm in the new market. Sanshui has also taken the development of the entire industry chain of the textile industry as one of the key points when it comes to creating a benchmark for the transformation and upgrading of traditional manufacturing industries.
“The industrial chain of Sanshui textile companies is increasingly rich, but there has not been a full-scale industrial chain from spinning to garments.†Liu Jinwei said that taking a close look at the development of the domestic textile industry, the company’s industrial chain is continuously enriched and improved. Will be the trend of the times, Sanshui textile enterprises in this area is still a great article can be.
It is understood that the town of Datang, which is currently building a textile printing and dyeing center in South China, is proposing the development of the entire industry chain for weaving, printing, dyeing, sales, and R&D. This year, on the one hand, it guides enterprises to actively extend the upstream and downstream of the industrial chain, encouraging enterprises and domestic and foreign high-end industries. Brand cooperation and cooperation to enhance the core competitiveness of the textile industry. On the other hand, Datang Town will rely on investment promotion to introduce high value-added links in the industrial chain, promote the construction of cloth sales centers, and provide a more complete industrial chain support for enterprise development. 
Sanshui Textile Co., Ltd. Creates the Whole Industry Chain and Taps on the High-end Market
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