A basic overview of the textile and garment industry

The upstream industry of China's garment and textile industry chain is the textile raw material supplier such as natural fiber supplier and chemical fiber supplier. The middle reaches of the industrial chain are dominated by garment and textile enterprises. Downstream of the industrial chain are garment enterprises and consumers. Garment enterprises further process the textiles produced in the middle reaches into garment finished products and sell them to consumers.

Ii. Analysis of the current situation of textile and garment industry

With the improvement of the epidemic situation at home and the recovery of overseas downstream retail, the performance of the textile and apparel industry continued to improve in the first three quarters of 2020. In the third quarter, according to data from 2020 years ago, the selected 61 main business income is 135.66 billion yuan of listed company, fell 16% year on year, implement buckle not belong to the mother net profit of 3.67 billion yuan, down 66% year-on-year, affected by the outbreak, the growth rate of decline, but compared with the mid - 2020, revenues decline narrowed somewhat, buckle the female net profit declined a little change.

In terms of gross margin, the gross margin of China's textile and garment industry in the first three quarters of 2019 and 2020 is 31.2% and 30.9% respectively. In the textile manufacturing sector, the gross profit margin in the first three quarters of 2020 was 18.1%, down 1.2 percentage points from 19.3% in the first three quarters of 2019, mainly due to the weak demand in the downstream of overseas market and the active development of the domestic market, which was usually caused by low prices. In the first three quarters of 2020, the gross profit margin of the clothing and home textile sector was 40.2%, up 0.8 percentage points from 39.4% in the first three quarters of 2019. This was mainly due to the high growth of e-commerce under the epidemic situation and the increase in the proportion of revenue, which was caused by the high direct profit margin of e-commerce.

From the perspective of market segment, compared with the first three quarters of 2019, the gross profit margin of menswear, women's wear, leisure, underwear, outdoor and other sub-industries in the first three quarters of 2020 has decreased to a certain extent, while the gross profit margin of shoes and hats, home textile, and children's wear has slightly increased.

Iii. Analysis on the development mode of textile and apparel professional market

The professional textile and garment market is a service platform from raw materials to fabrics, mainly providing B2B commodity trading, online wholesale, centralized procurement and supply chain integration and other professional services. Most of these platforms provide online information release, enterprise publicity, offline transaction matching and other functions. At present, more products are traded online to find commodity information, and transactions, payments, logistics and other links are conducted offline. Consumer category platforms such as clothing and home textiles have diversified service models, and focus on the convenience of website functions and the quick response ability of offline services.

Based on the main products of the platform, the professional market service platform can be subdivided into raw yarn, grey fabric, clothing and home textile and public service. According to the operation mode of the platform, the characteristics of these platforms, users and products are compared and analyzed.

Iv. Suggestions on promoting the transformation and upgrading of the textile and garment industry

1. Seize the opportunity of reform to improve the overall innovation ability of the textile and garment industry

With the increasing risk of international trade environment, the potential impact of Sino-us trade friction on international purchase orders and global supply chain layout will gradually emerge, and the export pressure of textile industry will continue. In this regard, textile and garment enterprises need to set up the framework of circular economy to transform and upgrade the textile industry under the premise of paying attention to the development of textile renewable resources. At the same time, we should give full play to the role of "Internet +", attach importance to the development of industrial informatization, increase the investment of r&d funds and r&d personnel, improve the level of intelligent manufacturing, and build an innovative and high-efficiency intelligent textile platform. Strengthen the cultivation of compound talents and improve the innovation ability of enterprises. We will actively stimulate domestic demand. By developing new products and adopting new production technologies to promote dynamic competition, we strive to stabilize the international market share of China's textile and garment industry and continue to maintain a steady and healthy development trend.

2. Give full play to the advantages of textile and garment industry clusters to enhance their technological innovation ability

The open platform is used to build the textile and garment industry cluster ecosystem, and the new operation mode of logistics, Internet, textile enterprises, garment enterprises, after-sales terminals and consumer participation is integrated to improve the whole service system. Make full use of the national "One Belt And One Road" and other major strategic decisions and the policy opportunities of developing the textile and garment industry to drive employment, strengthen the connection with countries and relevant regions along the "One Belt And One Road", increase investment, and promote the construction of international production capacity cooperation and overseas cooperation parks. By using the resources such as low labor cost and preferential trade terms of countries along the "One Belt And One Road", the textile and garment industry agglomeration area can be embedded into the national and world industrial chain at a higher level, so as to promote the transformation of the industrial agglomeration area from "channel economy" to "industrial economy" and "hub economy". We should give full play to the leading role of the textile and apparel industry in the construction of the core area of the Silk Road Economic Belt, and accelerate the transformation from a major exporter of textile and apparel to a major exporter.

3. Strengthen market research and judgment and provide policy support

We will increase the growth of r&d investment in state-owned enterprises and improve the innovation environment for private enterprises. The textile and garment industry should strengthen its in-depth integration with overseas enterprises, give full play to the regional advantages of Xinjiang and other inland provinces along the Silk Road Economic Belt, and speed up resource sharing. Consolidate the traditional mode and explore the new mode of textile and garment industry innovation and development. Leading enterprises with large scale and abundant capital should increase overseas investment and increase the speed and intensity of capacity transfer. Brand clothing plate need to do a good job in brand cultivation management system, establish a brand culture, brand consumption idea, promote the internationalization of the brand and innovation in marketing mode and customer experience at the same time, to cope with competition in the passenger flow, and to improve the production efficiency, optimize the allocation of resources as the goal, make full use of intelligent manufacturing, mobile terminals, such as technology, build collaborative innovation development of the upstream and downstream production and service platform.