Independent innovation into a tool for the transformation of the textile industry

On November 17, Guangzhou International Textile City, the industry's leading enterprise, released the "China Weaving·Guangzhou Value" textile industry company research report, which aroused the attention of the entire industry. The report shows that Chinese textile companies are generally faced with multiple challenges such as rising costs, intensified market competition, and shortage of funds. Textile companies rely on technological innovation to become an industry breakthrough weapon. It is understood that the report is an in-depth study of 1268 Chinese textile companies.

The textile industry faces multiple challenges

Under the “New Normal” when the growth rate is slowing down, research shows that whether it is a production-type enterprise or a circulation-type enterprise, Chinese textile companies generally face three major problems: rising costs, intensifying market competition, and shortage of funds. For example, for the textile circulation enterprises in the Guangzhou area, the proportion of enterprises that need to address the problem of intensified market competition and rising costs are 82.9% and 79.3% respectively, while 42.5% of the national textile circulation enterprises are facing funding shortages. In addition, 33.6% of textile circulation enterprises across the country are faced with the impact of electricity suppliers, and 29% of production companies are facing major challenges in terms of energy conservation and emission reduction targets.

Is the shortage of funds available for financing? The research report shows that 70% of the surveyed companies still rely on banks to meet demand, while the ratios of choosing foreign capital, private lending, and meeting financing requirements through listing are approximately 40%, 30%, and 20% respectively. Banks have high interest rates, high barriers to entry, and difficulties. Financing institutions have low confidence in the prospects of the textile industry and become a major obstacle to companies' access to financing. The lack of channels is a major obstacle to corporate financing.

We also learned that while the downward pressure on China's economy continues to increase, domestic and foreign demand is also declining. This has made the issue of overcapacity and inventory increase increasingly prominent. According to research reports, 57.6% of textile enterprises in the country believe that there is excess capacity. Among them, 56.2% of the textile manufacturing enterprises believe that the weak ability of independent innovation of enterprises is the main cause of excess capacity in enterprises.

More than half of companies rely on new products to increase growth

In this investigation, independent innovation drives the research results of sales, which has set a clear direction for the transformation and upgrading of the industry. The results of the survey clearly point out that innovations such as new fabrics, new models, and e-commerce are just the “troikas” that increase the sales volume of textile companies. The report shows that, whether it is a production-oriented company or a circulation-oriented enterprise, new products are an important factor in driving sales. 50.5% of the nationwide circulation enterprises believe that new fabrics and new styles are important reasons for the increase in turnover. 68.6% of textile production enterprises in the country and 64.1% of textile circulation enterprises in the country all believe that the transformation and upgrading of the Internet is the primary measure to enhance their competitiveness.

In line with the development of the trend, Guangzhou International Textile City also announced that the official e-commerce platform, surface accessories APP, and market intelligence navigation shopping guide terminal three e-commerce tools formally launched, and began to explore the "industry + Internet" new model. With its own intellectual property rights image recognition technology, it provides buyers with a photo search search board, which also provides specialized merchant navigation and merchandise shopping services for buyers on the spot. Mao Guowei, deputy general manager of this international textile city in Guangzhou, believes that the textile industry should base itself on the trend of global economic integration, and promote the transformation and upgrading of the entire industry through technological innovations.