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2023
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Grasp production with one hand and ensure orders with the other, textile enterprises stabilize the "basic market" in the new year.
Author:
The first spring of the year marks the beginning of everything. At the start of the new year, textile enterprises have fully sounded the assembly call to start work, actively focusing on production and ensuring orders, and are putting in a new spirit into the work of the new year, striving for a "good start" in the new year.
Racing against time to catch orders
In recent days, the Xiangnan Textile Industrial Base in Changning City, Hunan Province, has quickly and orderly resumed work and production, with various enterprises seizing domestic and foreign orders and accelerating the production of denim clothing, with production conditions in full swing. In the production workshop of Kangjie Clothing Co., Ltd., cutting, sewing, ironing, packaging... each process is busy but orderly.
"The situation this year is still relatively good. After the new year starts, 150 employees are working overtime, producing 4,000 pairs of jeans a day," said Zhang Deyu, the person in charge of Kangjie Clothing. "Currently, the production scale of the enterprise cannot meet customer order demands, so in 2023 we plan to expand production capacity and increase investment in machinery and equipment, adding another 20% production capacity on top of the 2022 output. Currently, logistics and transportation are much more convenient and faster than before. We are currently producing foreign trade orders, with plans already scheduled until April."
"Although the recent order volume is not large, it is very important for the operation of the enterprise, and we dare not delay for a moment," said Li Longnian, the head of the knitting factory of Xinjiang Tianshan Textile and Garment Co., Ltd. (hereinafter referred to as "Tianshan Textile"). He mentioned that the orders being rushed now include a batch of sales orders before the Lunar New Year, which are hot-selling items ordered by customers from other cities in the country and must be shipped out before mid-month; another batch consists of export orders, mainly for fashion show items for major fashion weeks abroad, aimed at attracting orders through the influence of the runway.
Li Longnian mentioned that Tianshan Textile will increase the technological transformation of production equipment this year, improving its digital and intelligent levels, effectively promoting the transformation and upgrading of the enterprise, achieving sustainable development, and continuously launching innovative products favored by the market.
In addition, at the ongoing first Winter Sports Games in Xinjiang, Xinjiang Yutai Camel Hair Textile Co., Ltd. provided 2,500 sets of camel hair ski suits for athletes and staff at the opening ceremony. Liu Ruhai, the company's deputy general manager, stated that this batch of camel hair ski suits was developed in collaboration with French designers, using the company's unique camel hair resources as filling material, combined with elastic silk as camel hair composite batting, and a national invention patent has been applied for. Liu Ruhai expressed that in the new year, Xinjiang Yutai Camel Hair Textile Co., Ltd. will further upgrade its products and strive for a larger market share.
"This year starts off well, and the company is rushing to produce the first batch of orders for the new year, which must be delivered before the Spring Festival, and the workers are very motivated," said Yang Weidong, chairman of Shandong Qingdao Jifa Group Co., Ltd. He noted that the company currently has sufficient orders, and the workers are intensively producing to ensure market supply.
"This year, we will focus on the integration of technology, fashion, and sustainability as our key points, with the aim of increasing varieties, improving quality, and creating brands as our driving force, and starting from supplementing, extending, and strengthening the supply chain, while focusing on creativity, innovation, and creation as our endpoint. We will deepen the application of the Internet, big data, artificial intelligence, and 5G technology in the textile and garment industry, creating digital application scenarios for the entire industry chain," Yang Weidong said.
Policies assist in "stabilizing the start"
On the first working day of the new year, a new round of policies to assist enterprises in alleviating difficulties has been successively implemented across various regions, including recruitment subsidies, holiday retention subsidies, financial loan discounts, and rewards for sales growth... Multiple measures are precisely targeted to help textile enterprises achieve a "stable start" in 2023.
Inside the workshop of Anhui Unique Textile Co., Ltd. in Lixin County, there is a busy scene. "The company has recently received multiple reward and subsidy funds, which makes me feel very warm," said Liang Botao, the head of Anhui Unique Textile Co., Ltd. He explained that because the enterprise meets the three reward and subsidy policies of national information technology and industrial integration management, provincial-level specialized and innovative small and medium-sized enterprises, and provincial-level new products, the reward funds were directly credited to the company's account without the need for application or submission of materials. "No application, immediate enjoyment" allows the enterprise to enjoy policy dividends at the first moment.
It is understood that Lixin County has recently introduced a digital service implementation plan for enterprise benefit policies, helping enterprises to enjoy policies without having to run around, allowing "policy red envelopes" to reach enterprises more accurately.
Recently, Quanzhou City, Fujian Province, released a series of measures including "seizing orders, starting work early, and achieving a good start" for the textile and footwear industry, coordinating the work of this year's industrial economy, focusing on early and practical actions, and ensuring stable production in the first quarter. The measures require the in-depth implementation of special actions for overseas order grabbing by textile and footwear enterprises, adjusting and optimizing measures for expanding international markets in 2023. The city and county aim to organize more than 19 overseas order grabbing activities in the first quarter, with over 170 enterprises and more than 230 participants going abroad for exhibitions and visits.
"Seizing the opportunity to 'go out' lays the foundation for a good start in the new year," said the head of Quanzhou Pengtai Clothing Co., Ltd. In 2023, the company will actively respond to the government's call, participate in various foreign exhibitions, and will also deeply explore the market potential along the "Belt and Road", making good use of the preferential policies encouraging enterprises to participate in overseas exhibitions at all levels of government, and fully expanding the international market. The enterprise is full of confidence and expectations.
In addition, Quanzhou City encourages textile and footwear enterprises to operate at full capacity. For large-scale manufacturing enterprises that meet national industrial policies and achieve a certain growth in industrial output value in the first quarter of 2023 compared to the same period last year, rewards will be given based on the incremental part of the industrial output value in the first quarter. At the same time, efforts will be made to increase financing support at the end of the year and the beginning of the year, supporting the use of industrial funds and other means to provide emergency transfer loan services for textile and footwear enterprises, and vigorously developing supply chain finance.
To ensure a "good start" for the economy in the first quarter of 2023, textile enterprises in Shaoxing City, Zhejiang Province, have recently organized a special action called "seizing the start, stabilizing growth, and promoting development", focusing on seizing time, expanding efficiency, seizing orders, expanding markets, seizing projects, expanding momentum, seizing space, expanding elements, seizing confidence, expanding the environment, seizing talent, and expanding innovation. "The six major actions introduced by the government have greatly boosted our confidence in development," said Yang Baolin, chairman of Zhejiang Qisecai Rainbow Printing and Dyeing Co., Ltd., who has already begun preparations for the Paris TEXWORLD fabric exhibition in January 2023. "The government organized us to participate in the exhibition together, helped us register for the booth in advance, and assisted in scheduling visa applications; everything went very smoothly." Yang Baolin expects that the company's order volume will increase by 20% year-on-year in 2023.
"This year, Shaoxing will deepen the implementation of the 'Hundred Groups and Thousand Enterprises' market expansion series of actions, fully opening up the connection channels between domestic and foreign professional exhibition organizers, helping textile enterprises expand markets and seize more international orders," said a relevant person in the local commerce bureau. In the first quarter of 2023, the focus will be on organizing local enterprises to participate in 11 overseas exhibitions, including the Heimtextil Frankfurt Home Textiles and Commercial Textiles Exhibition in Germany, TEXWORLD New York International Apparel Fabric Exhibition, APP New York International Apparel Sourcing Show (Spring), and Paris TEXWORLD Fabric Exhibition.
Resolving difficulties to ensure orders
Since the end of last year, epidemic prevention measures have gradually been optimized and relaxed, but short-term staff shortages due to virus infections have caused certain difficulties for enterprises' normal production and operation. Therefore, textile enterprises are closely following the changes in the situation, coordinating various HR resources, and doing everything possible to ensure contract fulfillment, fully pushing the safety production "progress bar".
After optimizing epidemic prevention measures, Tai'an Jinrong Wool Textile Co., Ltd. guides employees to be the "first responsible person" for their own health, ensuring health monitoring and hygiene protection. More than 90 workers in the spinning and weaving workshop wear masks properly and work in shifts to ramp up production. "After receiving the notice to resume work, our company quickly adjusted its work status and rapidly invested in production, striving to make up for the production progress lost during the epidemic in a short time," said the production manager. Currently, the company has over 30 looms and 6 spinning machines operating at full capacity, producing more than 40 pieces of woolen fabric daily. The company's annual production plan for 2023 is expected to increase by about 15% compared to the previous year.
In the production workshop of Shandong Tai'an Aoshi Clothing Co., Ltd., workers are busy at their respective stations in an orderly manner. The orderly production of the enterprise is inseparable from the support of relevant departments. In late December 2022, in the context of a temporary shortage of local logistics personnel, the local government organized a special team for the textile and clothing industry chain to increase service efforts for enterprises, alleviate difficulties, and ensure that logistics and supply chains remain uninterrupted during this special period. The special team opened a green channel for textile and clothing trucks, ensuring the smooth shipment of military orders for Aoshi Company.
In the production workshop of Yangguang (Henan) Clothing Technology Co., Ltd., workers are busy cutting, laying fabric, trimming, inspecting, and packaging uniforms on the production line, working hard to fulfill a batch of uniform orders. Currently, the company's orders are very saturated, with orders scheduled until the end of March 2023.
According to the company's general manager Zhao Weiqiang, the repeated outbreaks of the epidemic in 2022 brought unprecedented difficulties and challenges to the operation of enterprises. The Huaiyin County Party Committee and government increased support for enterprises, especially in terms of rent reduction and logistics transportation, providing significant help and support. "The government coordinated the issuance of transportation green cards for our company, facilitating the transportation of materials and products. As of now, orders have been scheduled until the second quarter of 2023. The key tasks during the Spring Festival period are to arrange the production plan well, recruit workers effectively, and strive to meet the challenges of the new year in a better state," Zhao Weiqiang said.
In addition to helping enterprises alleviate short-term pressure, the long-term survival and development plans for enterprises in 2023 are also in the minds of government departments. On the first working day after the New Year's Day holiday, the government of Jingzhou City, Hubei Province organized textile and clothing enterprises to negotiate cooperation in Guangdong, proposing to deepen government-enterprise understanding and jointly create a new situation of interactive cooperation and win-win development between Jingzhou and the Guangdong-Hong Kong-Macao Greater Bay Area in the textile and clothing industry. A total of 36 textile and clothing industry projects were signed on-site, with a total investment of 20.42 billion yuan, including 6 projects with an investment of over 1 billion yuan, covering various links of the textile and clothing industry chain such as raw material production, spinning and weaving, garment manufacturing, research and development centers, testing platforms, and textile and clothing industrial parks.
"Currently, Jingzhou is showing significant characteristics of overlapping three periods: a policy support window period, a comprehensive advantage reshaping period, and a potential accumulation burst period. We need to strengthen cooperation between Hubei and Guangdong, and vigorously organize and implement the relocation and upgrading of the textile and clothing industry. We should adhere to the dual approach of introducing leading enterprises and encouraging entrepreneurship and innovation at home, formulate relevant policies, strengthen leading enterprises, cultivate revival brands, expand traditional industries, and promote the improvement of the textile and clothing industry chain in Jingzhou, expand scale, and achieve high-quality development," said Liang Fubin, president of the Guangdong Province Hubei Chamber of Commerce Fashion Industry Association.
Chen Shaotong, secretary-general of the Guangdong Garment and Apparel Industry Association, pointed out that this year the industry is expected to gradually restore normal operating order, with production and sales likely to show qualitative improvements. With the arrival of the Spring Festival and other holidays, market sales demand will be concentrated and fully stimulated. Therefore, Chen Shaotong suggested that enterprises start exploring the upgrade and transformation of their business models actively from now on, and focus on cost reduction and efficiency improvement to better seize the opportunities of market recovery.