Sun Weiting Talks about the Way Out for Textile Industry under Sino-US Trade Friction

On November 21, the Fourth Extended Seventh Executive Board Meeting of Zhejiang Textile Industry Association was held in Haining. The participants exchanged current situation and Countermeasures around Sino-US trade frictions. Sun Weiting, chairman of Huafu Holding Co., Ltd. and Huafu Fashion Co., Ltd., made a concluding speech at the meeting. He said: Sino-US trade frictions will be lasting, but Zhejiang textile industry does not lose confidence; new manufacturing under the industrial Internet mode is the general trend; product differentiation and cost differentiation are the kingdom; Vietnam and Xinjiang are the inevitable choice of manufacturing industry transfer. Textile and Garment Weekly publishes its speeches here for readers.



The Way Out for Textile Industry under Sino-US Trade Friction



Although Sino-US trade friction will last forever, Zhejiang textile industry is confident < br/>.


Now the world trade protectionism and isolationism are on the rise, expectations are not optimistic, uncertainty is growing, so everyone will be nervous. In fact, from the point of view of consumption, the change will not be very big. The main change is the inventory of circulation and production links, such as the original three months, now only one month, leading to the whole. The demand of each industry chain has shrunk, and this situation will persist for a long time. Nowadays, the connection of the whole world is getting tighter and tighter. Everyone's nerves are tightened and become very sensitive when the wind blows.



The trade frictions between China and the United States have changed from cooperation-oriented to competition-oriented. We need to change our ideas and ideas in two different environments. Sino-US trade frictions are actually an excuse for the United States. Trump has seized on China's weakness because you are a commodity exporter. China's state-owned enterprises are becoming stronger and stronger. Made-in-China 2025 focuses on subsidizing China's weak and strong industries in the United States. China's protection of intellectual property rights is insufficient. China's tariffs are higher than those of the United States-hellip; & hellip; so the United States requires China to open up and suppress China's export trade.



Sino-US relations are long-term, complex and changeable. Friction will normalize, not for three or five years, but for 10, 20 or even longer years. It is a comprehensive reflection of bilateral relations, not the result of normal trade rules. If you are committed to expanding and strengthening the Chinese market, the American market and other markets, you should have a three-day layout, which will be relatively balanced; if you want to do trade between China and the United States, you can do it through a third country, such as Vietnam; if China exports to the United States, the United States imports to China. It's safe to do less.



Zhejiang people's marketing ability and intelligence, including reaction speed, hard working spirit, etc., are obvious to all; in addition, Zhejiang's understanding of private enterprises is more thorough, the weight of private enterprises in Zhejiang is heavier, and many government innovations are based on Zhejiang. If we fail to run textile enterprises in Zhejiang, frankly speaking, we should not go anywhere else. We should have this confidence. Every enterprise is facing different situations, so your business model and strategic planning are also different. In fact, everyone knows how to go, and they choose their own positioning.



The trend of new manufacturing under industrial Internet mode is
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Ma Yun talked about a new manufacturing, in fact, Ma Yun talked about new manufacturing with Internet thinking. Ma Huateng's speech on Tencent's 20th anniversary bets Tencent's next 10 years on the industrial Internet. According to the size of his enterprise and the location of his station, he can see more clearly than us. Whether the people in the industry go to the Internet or the people in the Internet go to the industry is the topic for everyone to talk about. Commodity consumption Internet, with Alibaba Tianmao, Taobao as the main body, now has gathered, mostly, its basic business model is traffic. The future of industrial Internet is industrial intelligence, its content must be based on big data, cloud computing, Internet of Things & hellip; & hellip; it is not the industry of the past, nor the Internet of the past. Whether a business has a future or not depends on the ability to go up, such as 4G to 5G. Huawei is sure to have a future. Now the consumer Internet has reached a bottleneck, so we are concentrating our efforts on the industrial internet.



It is possible that after 2018, industrial change will accelerate, and what kind of logical relationship will it constitute? Your business model becomes your data model, and how to apply your data model becomes the application model-hellip; & hellip; in the future, all enterprises without data-driven capabilities may not be on the platform, for many small and medium-sized enterprises, you have to wait for the fate of the arrangement, you can do is the product. In today's business environment, there are many stocks in every link. There are three kinds of changes in stocks, one is in short supply, the other is in excess of demand, the other is in basic balance of supply and demand. The changes of stocks are totally different in three situations. When the market is invisible, a large number of links are game. If it is purely trading, it is totally subject to the fluctuations of these three states, and inventory is uncontrollable. It is possible to carry out strategic cooperation by means of contract, how to deal with the price increase, how to deal with the price drop and how to deal with the level. Enterprise inventory, about 10% to 20% is due to mistakes, but industrial Internet can reduce these mistakes. Once the industrial Internet is connected, the data is synchronized rapidly from the consumer side, and you are in your place. At this time, you are well prepared.



Future enterprisesOne is to practise one's own internal skills and occupy a good position at the moment of the arrival of the industrial internet; the other is to be in a marginalized free state and out of the market main body. Once the industrial Internet is formed, even the strongest single enterprise will face challenges.



03 Product differentiation and cost differentiation are Kingdom < br />.


The basic logic of business will never change. The first is product differentiation, if you have someone else or not, if they have you updated and better quality than others, then you will always have food and make money; the second is that your organizational efficiency is higher than others, and the cost is lower than others, then price war is strategy rather than tactics. All enterprises should practice these two skills, either differentiating products or differentiating costs. Even if there is only one martial art, it will earn less at most. Otherwise, the enterprise strategy is nothing.



As for how an enterprise or a workshop intellectualizes and where production capacity is transferred, it's just your positioning, which grade you want to make and which category you want to make. For example, if you want to have low cost, you must transfer out. There is no way out for you to stick to Zhejiang. Your competitiveness today will not exist tomorrow. If you want to make a global layout, you must transfer industries to Xinjiang, Vietnam and so on. Don't think that the temporary cost advantage can be retained in a developed region for a long time. We have a deep understanding of this. When we arrived in Vietnam four years ago, we felt that their learning ability must be worse than that of the Chinese people. In fact, it is not.



I suggest to Secretary Che Jun that Zhejiang should be positioned as China's & quot; Italy & quot;. What's the strongest thing in Italy to date? Silk is the strongest. China and India sell factory silk and grey silk. High-end products all over the world are related to it. In fabrics, hemp and wool are related to it. In clothes, it goes hand in hand with France. What does it depend on? By differentiation, the most expensive equipment in the world is in Italy. Another core competence is fashion. Fashion is not only a color fashion, but also a technology embodied in products. Sustainability and environmental protection are fashion performances. We should keep pace with the times.



Differentiation is eternal, cost is temporary, embracing the Internet is an opportunity. If you are not ready, you may be eliminated if you do not join the future chain. Being a single company is a process of boiling frogs in warm water. It changes year by year. Suddenly, when you find out which club you are not, your industrial ecology will disappear.



04 Vietnam and Xinjiang, the inevitable choice of manufacturing industry transfer < br/>


Huafu manufacturing industry transfer, one Aksu, one Vietnam.



There will be fewer and fewer conventional products in Huafu's main industry, but products with certain differentiation ability in subdivisions will be developed. In addition, we build supply chain model by docking terminal brands. We have contacts with more than 100 large-scale end brands around the world. First, we provide popular trends and give them advice. Two years ahead of schedule, it is a complex game to integrate color, material, technology and some social trends, lifestyles, etc. into several themes, and finally express them through color, which is trend-leading. The trend is vague, so it is quite difficult to make the virtual reality. All markets start with trends, and when there are trends, you can innovate. Huafu is to skip the direct customer to the terminal brand, let their designers and buyers recognize our trend, and then designate our products. Huafu has more than 200,000 orders a year, making large-scale customization of small batches of multi-variety color yarns. Either mergers and acquisitions, or cooperation in the establishment of supply chains, and then in our town to do new manufacturing layout, access to data, in accordance with the principle of market-oriented, to do agreement cooperation.



Vietnam has been very hot recently. Land prices are speculating very fast. Huafu went there four years ago and sold 50 cents of land. Now Huafu Vietnam Industrial Park has sold 140 cents. Vietnam is different from China. It has less land and more people. If you want to go to Vietnam, you can become a link in the chain. I can find the order for you. With capacity transfer, Vietnam is now in the mid-term, and the initial stage is over. When we went, the cost of a worker's salary was 800 yuan, and now it's 2100. The annual growth rate is about 15%.



Vietnam's industrial restructuring has no transitional period. Industrial transfer and division of labor like China, we have no industry, small industry, to large industry, and now we are facing transformation. The society needs talents, ideas to change, too short a time. It took 100 years for the UK to iterate from traditional industries to technology industries. It took only 30 years for us, so we felt very hard. As long as there are good projects, capital is not a problem, but talent is seriously disjointed, you are not satisfied with the use of him, no one needs him. We still have 30 years of transition, and Vietnam has a shorter time, so the future of Vietnam is more painful. Nowadays, many Japanese electronic enterprises have moved to Vietnam, which has a great impact on textile transfer. After all, the overall environment of electronic factories is better than that of textile factories.



In recent years, Xinjiang has made efforts to maintain stability and fewer and fewer cases have been reported. Starting this year, Xinjiang has begun to focus on economic construction.



We expect to encourage Houdao to do industrial extension in Xinjiang, which will usher in development opportunities. With the construction of China-Pakistan economic corridor, freight lines are expected to open to Gwadar Port in three years.It must be good for enterprises related to this road to invest in southern Xinjiang. Anyway, China's national unity, social stability and economic growthWe have no doubt about that.