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The Key To China'S Textile Industry In The Face Of New Challenges Is Change.

2013/10/12 11:22:00 19

Textile Industry Challenge Global Supply

The twenty-ninth annual meeting of a href= "http://news.sjfzxm.com/news/list.aspx Classid=101112107105" > International Garment alliance < /a > (IAF) was held in Kunshan, Shanghai at the end of September. The experts of international garment and textile industry gathered to discuss the solution of the two challenges faced by the Chinese mainland in response to the reduction of foreign demand and the increase of production costs. 
Hong Tianzhu, chairman of the mainland China Tianhong textile company, said in the meeting, "in addition to moving some of the production out of the mainland of China, it is also a challenge for the mainland companies to upgrade factories and processes, forcing our companies to change and upgrade, because this is the only way to survive and create new situations, and the mainland industry has been crawling along the low-end market for years, resulting in overcapacity and massive waste of natural resources". The company, which is also listed in Shanghai and listed in Hongkong, is one of the world's largest suppliers of cotton spinning core spun yarn and fabrics and garments. 
 the conference was jointly organized by the international garment Federation (IAF) and the China Textiles Import and Export Chamber of Commerce (CCCT), which has 12000 members. The conference elaborated on the problems faced by the Chinese textile industry. Jiang Hui, President of CCCT, pointed out that "according to the statistics of the chamber of Commerce, the total export value of textiles and garments in mainland China in 2012 was $254 billion 900 million, an increase of 2.8% over the 2011 US $247 billion 900 million, which is a bad year in mainland China. 
"P > he acknowledges that many US and EU brands have been spanferred to the lower cost countries such as Bangladesh, Vietnam and India. According to the study of McKinsey management consultants, these countries will have a very large growth in attracting orders in the next five years. 
The main theme of the conference is "how to create value in the global fashion supply chain"? Many leading executives in mainland China say they understand that exporting to a mature market is no longer an absolutely important source of revenue for the company. Instead, it is also important for domestic markets and exports to emerging markets such as Russia, the Middle East and ASEAN (P) countries. 
 Tianhong textile's global investment /p >
 the spanfer of sales focus is the key for Tianhong to gradually shift the production line from mainland China. For example, we plan to invest four hundred million yuan (US $63 million 100 thousand) to build a spinning mill in Uruguay. The first stage is scheduled to be completed in 2014 with an annual output of 20 thousand tons. Hong Tianzhu said at the conference that setting up factories in Uruguay will not only allow the company to avoid paying anti-dumping duties imposed on the mainland's export products by major markets, but also help to quickly change the demand for fast fashion American retail businesses. 
Besides, P also shifted its focus to chemical fiber yarns to balance the risk of price fluctuations due to the purchase of cotton and cotton processing. At the same time, we will invest 180 million US dollars to set up factories in Turkey, producing 16 thousand tons of cotton core spun yarn and blended yarn annually for European customers. For Vietnam, which has already entered the company in 2006, Tianhong will invest 2 billion 500 million US dollars to build an industrial area on the Sino Vietnamese border. The case will be launched by the end of 2013. The high precision supply chain management system and wastewater treatment facilities will be built in the area. The investment target is to spanfer the production line to the mainland manufacturers in Vietnam. 
 the key niche of Tianhong to Vietnam is the output of Vietnam, which can enjoy the preferential support of the span Pacific Partnership Agreement (TPP) supported by the United States, and the products can be exported to the relevant TPP member countries including Japan. Hong Tianzhu predicts that many mainland Chinese enterprises will make significant investments abroad in the next few years. 
 < a > href= > http://news.sjfzxm.com/news/list.aspx > Classid=101112107107 > supply chain < /a > challenge > /strong > /p >
 the strategy of investment and production of Chinese mainland enterprises spanferred to Vietnam and other places, so that they can enjoy substantial benefits, but this also brings great challenges to the operation of the company. In fact, it is indispensable for a company to succeed in its business and to set up a fast response, specific and precise global supply chain, and its importance is important for mainland China enterprises to internationalize. 
KurtCavano, vice president of Oakland GTNexus, specializes in cloud supply chain management technology (cloud-basedSCMtechnology), emphasizes that "SCM is a new way of thinking from the perspective of network (P); whether you are looking for orders from Africa or other foreign countries and see the complexity of the supply chain, you know that you really have to deal with a whole group of partners. This is a fundamental change from the traditional idea of corporate internal (insidethecompany) and internal thinking (internalthinking). 
To break the gap between the internal and external thinking, P can save the retailers and suppliers by up to 3% of the cost, which can be achieved by cloud computing system. The cloud creates networks for partners, enabling everyone to receive messages in real time, just like Facebook (Facebook). The traditional old method is that a retailer should liaison with many different suppliers, including raw material suppliers, factory owners, financial institutions, logistics companies and inspection companies. Everyone needs to know the relevant information at the same time. 
 some enterprises have benefited from < a href= "http://news.sjfzxm.com/news/list.aspx Classid=101112107108" > cloud SCM < /a > for example, American fashion retailer Guess has been actively expanding global business to bring pressure to its suppliers, but because of cloud SCM system, Guess can see the manufacturing process and shipment information in real time, so that the product can be delivered to the manufacturer, and the company can pay the manufacturer. Cavano emphasizes, "the new SCM system will make you no longer squeeze profits from your partners, but will enable them to grow stronger and do better services for you".