Observation On The Operation Of Rudong Textile Industry

Reinventing faith

In a century of unprecedented changes, textile industry is also ushering in the evolution of industrial ecology.

With the label of backward production capacity and sunset industry, it has an almost eternal demand market; the quality of development is not good, lack of high growth of emerging industries, but its own foundation is solid. In the ups and downs of the times, Rudong textile industry seems to be at a loss.

"In fact, the advantages of developing textile here are very good, and we should never give up lightly." Hua Shan, director of China Textile Economic Research Center, visited Rudong in August last year. After conducting relevant research, she said that although there are problems in Rudong's textile industry from the perspective of high-quality development requirements, there is no need to fight for the preservation or abolition of the textile industry.

With the completion of China's goal of building a moderately prosperous society in an all-round way, China's huge domestic demand market has accelerated to form, and the textile consumption demand of 1.4 billion people is a solid support for the development of the textile industry. Huashan said that Rudong weaving enterprises are mainly engaged in the production of bedding grey cloth, which accounts for half of the domestic textile market in China and the world, and is still growing at a certain speed every year. Rudong textile back to the bridge, relying on years of solid basic plate, can make a difference.

"When we comb deeply, we will find that traditional industries are not actually traditional." In response to Hua Shan's conclusion, Yang Jingjing, deputy county magistrate, said that in the face of the plight of the textile industry, the government's decision-making focus is to get rid of the myth of transformation, that is, to change jobs, and to strengthen the determination of macro-control. "If there is a new industry, there may be no new stove." Shen Xiumei, Secretary of the Party committee of Chahe Town, also believes that in the face of mature resources, giving up some disadvantages easily is tantamount to giving up all advantages.

At present, what needs to be reshaped is not the industrial map, but the development belief.

In order to offset the impact of grey fabric price fluctuation on profits, Nantong qingyufeifei Textile Co., Ltd. was forced to extend its production chain to home textile products. The original intention was to digest the cost in its own hands. However, after obtaining the OEM qualification of "Mercury home textile", the enterprise decided to terminate the grey fabric production for 15 years and transform into a home textile product enterprise We should deepen enterprise management, introduce professional manager system, continuously strengthen quality control and brand building, and produce inspection free products of "golden sun", a top domestic home textile fabric supplier

"Even if 80% of the enterprises are half dead, 20% of the enterprises can still make profits." In the eyes of the State Council of Commerce, the textile industry is still in trouble. As far as home textile grey cloth is concerned, Rudong has exported 60% of the country's output, which is an absolute heavyweight coordinate. Textile enterprises must face up to the current difficulties, but also to strengthen the vision, tell the true story of the textile industry.

People's recognition of the vision of an industry will profoundly affect the resources and future development space of the industry. Mao Guoping believes that if an enterprise really sets up a vision, it will make conscious improvement in profit safety, talent introduction and education, fine management, product innovation and other aspects. For example, in the problem of debt, we can consider the replacement of unreasonable credit with moderate profit. In the process of reducing the accounts receivable, we can gradually upgrade the customer level and force the product upgrading, thus bringing about the linkage adjustment of business strategy.

"The question is, do you want to go to that 20%," he said

The return of power

The law of modern economic development shows that there are various limitations in either simply relying on administrative forces to allocate resources directly or allowing the market to allocate resources completely. In reality, even if we do not touch these two limits, if the "two hands" fail to coordinate their efforts, the economic operation will also have problems.

Almost all respondents agree that the current development pattern of the county's textile industry, which is "small, scattered and disorderly", is inseparable from historical factors. Encouraged by the policy in the past specific period, small workshops in front of the house and behind the house are in full bloom, creating a relatively large base for Rudong textile enterprises. Then, in the process of market allocation of resources, due to the lack of matching macro-control system arrangement, the allocation gradually goes out of order and the industry falls into anomie.

"It's time to regulate." Yuan Weihua, a member of the Party group of the county's development and Reform Commission and full-time deputy director of the Bureau of industry and information technology, said that from the overall situation, it is difficult to rely on enterprises and the market to adjust to get rid of the predicament, and the "visible hand" of the government is needed to return.

On the basis of in-depth investigation, the national development and Reform Commission began to take the lead in formulating the implementation plan for the transformation and upgrading of the county's textile industry. This is the third time in the history of our county to carry out similar work. "The starting point of the first two times was to seek benefits from enterprises, but this time, it was different to be determined to really dig out the root causes of the industry."

The first step is to control the increment from the source. Yuan Weihua said that at the approval level, it is necessary to raise the threshold of high-tech weaving projects. Only when the project reaches a certain scale and has the corresponding environmental protection and safety management ability can the construction be approved. New equipment and technical transformation projects of existing enterprises should also be submitted for approval in strict accordance with regulations. If the increment can not be controlled, it will be very difficult to carry out the regulation work.

Secondly, we should standardize the financial and tax management of enterprises. Many textile enterprises tax behavior is not standardized, insiders see very clearly, but because of the loopholes in laws and regulations, it is difficult to deal with them. "Zhejiang and other places have the practice of checking and approving tax by electricity consumption instead of billing. We have made a connection with the tax authorities. We feel that although it is difficult to implement in Rudong, we must formulate a systematic rule to provide reference for specific industries."

Yuan Weihua said that the core purpose of this move is not to expand tax sources, but to better introduce performance evaluation mechanism. The comprehensive performance can be judged by checking the average sales per mu and tax revenue per mu, and the power and energy consumption can be controlled by the approved data, which will force the existing enterprises to make full use of inefficient land. At the same time, we should use performance evaluation to promote the transformation of individual enterprises and small scale upgrading to improve the quality and efficiency of the overall development of the industry.

Rectification can not be "one size fits all", which is the place to test the accuracy of power operation. For example, although the size of individual households is very small, the procedures should be recognized by the government. We need to sit down and talk about how to standardize the development in the future. For new market players, a threshold can be set when entering the market, because individual businesses have no ability to deal with some problems in the development of textile industry

It is more important to note that the implementation of macro-control system arrangement, power should return to its position, but not offside. Yuan Weihua believed that the government should actively act in providing policy support for enterprises and leading the construction of textile industry concentration areas. However, the government should keep the border and stop interfering in the "internal affairs" of enterprises. "The government holds the general direction and believes that enterprises are smarter than us in the adjustment of specific business strategies."

New productivity

Although Rudong textile nominally has a production chain from textile, weaving, printing and dyeing to finished product processing, it can not form its own system. Considering that Nantong is a complete textile industry chain. "Rudong mainly supplies grey cloth, Tongzhou is responsible for printing and dyeing and accessories, and Haimen is mainly engaged in the processing and sales of finished products. This has always been the characteristic and division of labor in different regions. " It is obvious that the "3 + 3" is built on top of the "n + 3" industrial cluster, which is one of the leading industries in Nantong.

This is an important background to investigate the path of Rudong textile industry breaking through the situation. On the one hand, as a raw material product, grey fabric is subject to the back-end demand in development, production and sales. In theory, the industrial chain should be stretched to drive the value chain up. However, under the large textile pattern of Nantong, what Rudong needs to do is to actively integrate into it, rather than repeat construction. On the other hand, it has actually formed the largest grey cloth supply base in China. It is perhaps the most practical way to deeply cultivate the source of the industrial chain, firmly grasp the supply chain foundation, and turn the disadvantages into advantages.

In order to consolidate the source advantage of Rudong textile, the most urgent need is to solve the problem of production capacity. Many respondents believe that grey fabric weaving, as a highly mature industry and in the front end of the industrial chain, is becoming more and more difficult to break through in a single dimension and can not form a huge industrial driving force. In order to reverse the operation quality of the whole industry, we must optimize the most original resource allocation factor, that is, price.

"If capacity doesn't come down, prices will always be distorted." Gu Xuchun, vice president of Matang Textile Association and chairman of Nantong Yongshang Textile Co., Ltd., believes that in order to better resolve the excess capacity, it is necessary to establish a truly effective system to promote enterprises to unite with each other and unify their thoughts and actions. "We should give full play to the role of industry organizations." He said that there are many trade associations of various sizes in Rudong textile industry, but they lack strong policy support and many things that should be done have not been achieved.

At the government level, our county has a certain amount of funding for textile chambers of Commerce. In principle, the annual subsidy amount is about 100000 yuan. "The symbolism is too big. In fact, organizing a large-scale event may cost more than that." Mao Guoping said that since the chamber of commerce can not provide personal services for enterprises, it is difficult to collect membership fees, which in turn leads to the chamber's weak service ability and insufficient discourse power.

To break the deadlock, the government and the people need to work together. He suggested that we should refer to the practices of Zhejiang, Fujian and other places to support the development of industrial agglomeration through policy guidance. For example, part of the tax revenue will be returned to the chamber of Commerce for special use. The chamber of Commerce will be given certain management powers to promote the substantive operation of the chamber of Commerce, and commercial means will be used to replace oral appeals to promote real self-discipline of enterprises.

"The problem is that we're stuck in a buyer's market and are always led by the nose." Mao Guoping said that once enterprises start to group together, they can not only solve overcapacity, but also form "new productivity". He believes that with Rudong's industrial foundation, in the future, it is possible to build an online and offline grey fabric trading center and a warehousing and logistics center, and formulate the grey fabric price index, so that Rudong publishing can become a "barometer" of the national industry.

"Shengze in Wujiang and Keqiao in Zhejiang Province, the children's wear market and silk market are all promoted by the government, dominated by the chamber of Commerce and participated by enterprises. Some markets are still listed companies. Not only does the government need extra money, but it doesn't need additional revenue. " Mao Guoping said that with an entity operation platform, the interaction between the government and the people can be better promoted in investment, financing, management and innovation. As long as you have the determination, you can make a big move.

At Nantong level, it has become the government's will to promote the development of textile industry. In March this year, municipal Party Secretary Xu Huimin and Mayor Wang Hui investigated the home textile market of Zhihao in Tongzhou and Dieshiqiao in Haimen, emphasizing the need to promote collaborative development and enlarge the agglomeration effect. Relevant reports show that although there is a general division of labor in the industrial structure of the two home textile cities, there are still problems such as isomorphic competition and overlapping functions. Since this year, a number of municipal leaders, including party and government officials, have visited the two places to study the action plan for coordinated development of the home textile market. In July, 2020 Nantong international high-end textile industry expo was held in Nantong, and the "four centers and one new city" planning of Nantong international home textile trade city is on the front stage.

As for the textile industry, some of the signals are worth catching. No matter the future is facing more challenges or opportunities, Rudong textile enterprises should end the era of fighting alone. This is the common conclusion of all respondents.