March 4, 2025 Stocks Topics

Modernizing Traditional Industries

Advertisements

The textile industry in China stands as a cornerstone of both its traditional economy and the daily lives of its people, revealing a clear picture of the nation's strengths in international marketsWith a rich legacy, this sector not only contributes to economic growth but also plays a crucial role in balancing international tradeIndia's textile industry has recently demonstrated resilience through an integrated industrial system characterized by adaptation and evolutionDespite the overall positive trajectory, the industry faces a host of universal challenges shared by many traditional markets—growing costs, fierce price competition, and a lukewarm domestic demand.

China's textile sector is vast in capacity, yet it struggles with length and complexity in its supply chainThis complexity often leads to imbalances in innovative development capabilitiesAs per the survey conducted by the China National Textile and Apparel Council in the second quarter of this year, about 51% of textile enterprises indicated their focus on upgrading existing production capabilities rather than digital transformation

Furthermore, the sector's sensitivity to environmental issues has not gone unnoticed; many companies still exhibit patterns of high energy consumption and emissions despite the government's push for a greener textile industryTherefore, in order to maintain its competitive edge and ensure sustainable growth, the sector needs to delve deep into transformation, embracing advances towards higher quality, intelligence, and environmental consciousness.

High-tech fiber innovation is paving the way for a significant evolution in the textile field, making it increasingly evident that “everything can be woven.” Innovative textiles and high-performance fabrics have expanded their applications into various high-stakes industries, including aerospace, healthcare, and renewable energyTo remain competitive, textiles must intensify their research and development in cutting-edge materials, smart manufacturing, and eco-friendly processes

By doing so, they can build a solid foundation of original innovations and facilitate the broad application of intelligent technologies, thereby accelerating the establishment of networked collaboration, mass customization, and agile production methodsUtilizing robotics and artificial intelligence can dramatically enhance efficiency and management capabilities, aligning well with the development of a high-quality textile industry.

On the consumer front, China has an average fiber consumption of around 25 kilograms per capita, a figure that mirrors that of moderately developed nationsHowever, shifting consumer demands are increasingly prompting people to seek not just comfort and durability but also unique craftsmanship and design in textilesThe future of textile consumption appears set to focus on fulfilling the personalized, upgraded demands of consumersThe industry must leverage the changing lifestyles and circumstances, strengthening its application of novel materials and technologies in end products while enhancing its innovation research across the entire supply chain

This includes ensuring that traditional crafts and expertise are not just safeguarded but also adapted for commercial application, allowing for a vibrant exchange of cultural heritage through modern innovation.

Moreover, China proudly claims the title of the world’s largest producer and exporter of garmentsIn recent years, exports of textiles and clothing consistently accounted for over a third of global figures, reflecting China's undeniable competitive strengthsHowever, the landscape is shifting; the global economy is decelerating, and international supply chains are adjusting rapidlyThe textile industry now faces a confluence of complex foreign trade challengesTrade tensions globally, alongside the increasing cost advantages of Southeast and South Asian markets, have collectively dampened export demandsIn 2023, the share of Chinese textiles imported by the U.S., EU, and Japan witnessed a decline from peaks reached around 2010, dropping 17.2%, 12.8%, and 26.3% respectively

alefox

To bolster the international competitiveness of its textile offerings, several strategic pathways must be pursued.

First and foremost, there needs to be a continuous enhancement of the export structureBy leveraging the advantages of its comprehensive manufacturing and research capabilities, China should aim to elevate the quality and value-added aspects of mid-to-high-end textile productsAlongside this, it is essential to steadily expand exports of new fiber materials and textile machinery, nurturing new growth points in international trade and increasing market shares in developed countriesThe development of payment systems like cross-border RMB settlements can also provide a solid footing to explore emerging markets actively.

Additionally, fostering new forms and models of international trade will be pivotalPromoting the healthy and efficient growth of cross-border e-commerce, establishing robust overseas sales network platforms, and strengthening brand export capabilities will play a key role

Share:

Leave a Reply