In the face of frequent trade frictions, large fluctuations in the RMB exchange rate, labor shortages, and rising production costs, Cao Jiachang, president of the China Chamber of Commerce for Import and Export of Textiles, said at the "2019 China and Asian Textile International Forum" held in Shanghai recently, from OEM production. (OEM) to ODM (independent design and development) and OBM (own brand export) is the fundamental basis for China's textile and apparel to maintain export competitiveness. Intelligent manufacturing and transformation and upgrading are inevitable choices for Chinese textile and garment enterprises to maintain export competitive advantage.

The reporter learned that in 2018, China's textile and garment industry encountered 14 trade remedy investigations, including 11 new cases involving Mexico, India, Argentina, Turkey, Egypt, Madagascar, and the United States, involving polyester staple fibers. , linen yarn polyester, denim, polyester processing silk and other products; 3 sunset review investigations. The total amount involved in the 14 cases was approximately $260 million. Although the amount is not large, it also has a negative impact on companies that are mainly engaged in these products and markets.

"The fluctuation of RMB exchange rate has a strong correlation with China's textile and garment exports. In the first quarter of 2018, the RMB exchange rate showed rapid appreciation and a large shock, which caused many problems for export enterprises. Some enterprises said that the exchange rate fluctuated adversely. The impact is no less than the impact of Sino-US trade friction. "Cao Jiachang said that exchange rate fluctuations put forward higher requirements for China's textile and garment export enterprises to strengthen the use of various tools to avoid exchange rate risks.

Labor shortages and rising costs still exist. According to the "Statistical Communiqué on National Economic and Social Development of 2018" issued by the National Bureau of Statistics, the number of working-age people aged 16-59 at the end of 2018 was 897 million, 4.7 million fewer than the end of 2017, and the first drop of the population of 900 million. The proportion of working-age population to the total population is 64.3%, which is lower than 0.6 percentage points in 2017. In 2018, 16 provinces and cities raised the minimum wage, with an average increase of 7%.

Environmental pressures are also continuing to increase. According to research institutes, if the raw material procurement cost, labor cost, tariff preference and income tax concessions are comprehensively considered, the net profit margin of most textile and garment export enterprises in their Southeast Asian factories is 5-6 percentage points higher than that of China. Many enterprises are ready to do both, and domestic and foreign factories are developing at the same time to cope with the new global economic and trade situation.

"Half of China's total output of fabrics and garments is sold to the international market, which means that half of China's 20 million people in textile and apparel employment depends on the international market." Cao Jiachang said that in 2017, China's textile and garment manufacturing R&D investment increased by 22.6% year-on-year. It reflects the efforts of China's textile and garment industry to actively carry out transformation and upgrading.

"From OEM to ODM and OBM is the fundamental basis for China's textile and apparel to maintain export competitiveness." Cao Jiachang said that many companies are actively exploring international marketing networks, through international mergers and acquisitions, cross-border e-commerce, setting up studios and showrooms overseas, Expanding the wholesale and retail channels and other ways to actively expand the independent design products and private label exports, Chinese designer brands have also begun to shine in the international fashion week, China's down jacket e-commerce brand even "swipe screen" on overseas social media.

Intelligent manufacturing and transformation and upgrading are inevitable choices for enterprises to maintain export competitive advantage. The integrity and production efficiency of China's textile and apparel industry chain is beyond the reach of Southeast Asian countries. Clothing production involves many details, and the supply of accessories is crucial. "If the zipper and button are miscalculated before production, it only takes two hours to solve in China, and in Southeast Asia, at least two days of production line shutdown are required to wait for the accessories to be in place. For some complex products, the delivery of Southeast Asian countries. The period is at least one month slower than that of China. Therefore, brands with fast fashion brands and low inventory needs to replenish quickly still have a competitive advantage in China.” Cao Jiachang said that in response to changes in international textile and apparel consumption patterns and procurement needs in recent years, many Excellent enterprises focus on high value-added links, upgrade to strengthen R&D and lean management, invest a large amount of funds for equipment upgrades and intelligent transformation, and effectively enhance the international competitiveness of enterprises.

In addition, the huge potential of China's domestic market provides survival guarantee for China's textile and garment industry. In 2018, the retail sales of clothing, shoes, hats, knits and textiles in China above the designated size reached 1.37 trillion yuan, a year-on-year increase of 8%, a cumulative increase of four times over 10 years ago.