New technologies and new channels empower foreign trade development – the reason behind the adverse growth of Baoji’s textile and apparel exports
On July 5, Zhao Lihui, general manager of Shaanxi Qinyuan Textile Co., Ltd. (hereinafter referred to as Qinyuan Textile), became busy as soon as he returned from studying in Shanghai. “In addition to holding meetings to arrange the company’s production and operation tasks, we also need to supervise the construction progress of the new intelligent plant,” Zhao Lihui said.
Qinyuan Textile, located in Changxing Textile Industry Park in Mei County, Baoji, is a large-scale private textile enterprise integrating production, sales and service. The company produces Polyester cotton fabrics are exported to Europe, the United States and countries along the “One Belt, One Road“. Most of the customers are foreign mid-to-high-end brand clothing factories. From January to May, the company’s product export volume was 12.648 million meters, a year-on-year increase of 36.2%; the export value was US$11.218 million, a year-on-year increase of 56.1%.
During the same period, Baoji City’s textile and clothing exports were 410 million yuan, a year-on-year increase of 65.7%, accounting for 31.3% of the province’s total textile and clothing exports. Among them, the export of polyester-cotton cloth was 220 million yuan, a year-on-year increase of 34.5%; the export of masks was 190 million yuan, a year-on-year increase of 156.1%.
Currently, in the face of the significant decline in demand in the global textile market due to the epidemic and the extremely severe export situation caused by factors such as poor international shipping capacity, why has Baoji’s textile and apparel exports grown against the trend?
Increase the intensity of technological transformation and let quality speak for itself
“Since the beginning of this year, due to the significant decline in global textile market demand compared with previous years, and the continued high price of international shipping costs, foreign customers have been more cautious in placing new orders, resulting in a sluggish state in the entire export market.” Zhao Lihui said frankly. In response to the severe situation in overseas markets, Qinyuan Textile promptly adjusted its product structure, shortened the order operation cycle for foreign customers, shared risks with foreign customers, and sought long-term cooperation. At the same time, according to the requirements of foreign high-end customers, the company has accelerated the acquisition of relevant technology patent certificates and obtained multiple internationally recognized certificates such as quality system certification to increase the added value of its products.
“We use recycled polyester and organic cotton as breakthrough points to continuously develop new products to accelerate the breakthrough of technological bottlenecks in the textile industry and achieve independent innovation.” Zhao Lihui said. In addition, the company adheres to “walking on two legs” and formulates a simultaneous development strategy for domestic and foreign sales. In the first five months, Qinyuan Textile’s domestic sales volume of gray fabrics was 21.515 million meters, achieving sales of 102 million yuan, a year-on-year increase of 9.1% and 8.4% respectively. At the same time, the company’s new intelligent factory, Shaanxi Boyu Textile Co., Ltd., currently has a monthly yarn output of more than 1,300 tons and a monthly output value of 26 million yuan; the weaving workshop has completed the infrastructure work and is expected to be fully operational by the end of August. put into production.
“After the new factory is completed, it will adopt new textile machinery, cooperate with ERP system and industrial robots, and carry out digital production management, which will enrich the company’s product types and meet the needs of different customers. demand, laying a solid foundation for product and market transfer.” Zhao Lihui said.
Turn crises into opportunities and pressure into motivation. In response to the slowdown in global market demand since the epidemic, with the support of relevant government departments, Baoji textile companies have launched technical transformation projects. A large number of textile companies such as Qinyuan Textile, Xingzhou Textile, Huayuan Textile, and Jinlian Textile have restructured their original production lines. The technical transformation or expansion has not only greatly improved work efficiency, reduced labor costs, but also further improved product quality to meet the needs of the international market.
Expand logistics channels and open new channels for foreign trade
On the morning of July 8, the X75069 China-Europe freight train Chang’an departed from Xi’an International Port Station and headed west to Prague, the capital of the Czech Republic. This is the 2,000th China-Europe freight train running in Shaanxi this year.
The China-Europe train Chang’an, which departs from Xi’an, currently operates 15 trunk routes to Central Asia, South Asia, West Asia and Europe, covering the entire Eurasian continent, and has become the “Belt and Road” trade hub for countries along the route. “Golden Channel”. Under the epidemic, China-Europe freight trains have become the safest and most reliable mode of international transportation.
Baoji Tedakang Medical Technology Co., Ltd. is the only mask export enterprise in the city. It has 120 automated mask production lines and can produce 1.2 billion masks of various types annually. Since the epidemic, the company’s mask exports have increased significantly, and its products are exported to more than 20 countries and regions, including Germany and the Netherlands. Zhang Xiaodong, the company’s sales general manager, said that since last year, relying on the transportation advantages of the China-Europe train Chang’an, the company’s products can be shipped to European countries within 15 to 20 days, providing an opportunity for the products to seize the market.
“European and American ports continue to be congested. This year we mainly turn to the Russian market. Some products go directly to Russia through the China-Europe Express Chang’an, and some products adopt sea-rail combined transportation.” Zhao Lihui said that taking the Chang’an, it only takes 11 minutes to get from Xi’an to Moscow. About days.
According to Liu Minghui, deputy director of the Baoji Customs Office, the reason why Baoji’s textile and clothing exports have grown significantly this year is mainly because companies have broadened logistics channels and opened new trade channels through China-Europe freight trains, air freight, sea-rail combined transport and other methods.
�”On the one hand, we improve the empty container turnover rate of shipping containers through various means such as optimizing the supervision model, improving release efficiency, and strengthening port data connectivity. On the other hand, we help companies adopt China-Europe freight trains, air freight, sea-rail combined transport, etc. Expand logistics channels and help Baoji textile enterprises open new channels for foreign trade.” Liu Minghui said.
Chang’an, Xi’an Port, Comprehensive Bonded Zone, Free Trade Pilot Zone… By actively building channels and platforms for opening up to the outside world, Shaanxi’s geographical advantage in connecting the east and the west in the process of opening to the west has become increasingly obvious. Inland transit hubs and land, sea and air multimodal transport have enabled many foreign trade companies to break through the logistics difficulties caused by the spread of the international epidemic and achieve stable development.
Policies have made great efforts to boost the confidence of enterprises in “going global“
Shaanxi Huaye Textile Co., Ltd., also located in Changxing Textile Industrial Park, Mei County, has seen a much higher order volume this year than last year. Since it was unable to participate in foreign exhibitions, the company adopted various methods to increase online platform promotion channels. In the first half of the year, the company Export volume increased by 200% year-on-year.
“Although Baoji’s textile exports in the first five months have declined compared with 2019, they have increased significantly compared with the same period last year.” Chang Yongshe, chief of the Foreign Trade Section of Baoji Municipal Commerce Bureau, said. In his view, export growth mainly comes from the innovation of international market development models in the later stages of the epidemic.
In the past, traditional textile companies mostly contacted customers and signed orders by participating in domestic and foreign exhibitions such as the Canton Fair, fabric exhibitions, and textile and apparel exhibitions. Since last year, in the face of the raging international epidemic, many exhibitions have been canceled or held online. The actual situation is that the Baoji Municipal Commerce Bureau has organized companies to participate in online exhibitions and the Online Canton Fair from time to time since June last year, using e-commerce platforms, live broadcasts and other measures to seize the opportunity orders, effectively helping companies resume international trade. At the same time, we have cooperated with the Administration of Foreign Exchange, China Sinosure and other financial and insurance institutions to carry out publicity and collective training sessions on introducing policies to enterprises to help enterprises coordinate loan financing, insurance and hedging, etc., further strengthening the confidence of enterprises in exploring international markets.
Affected by the epidemic, labor-intensive industries, including the textile industry, have been greatly affected. However, the independent innovation capabilities and brand competitiveness of Shaanxi’s textile industry are relatively weak. To this end, the Provincial Government Office issued a notice in February this year requiring greater support for enterprises exporting labor-intensive products such as textiles, clothing, furniture, agricultural products, etc., while implementing tax reductions and fee reductions, export credits, export credit guarantees, and job stability We will further increase support based on inclusive policies such as Employment.
As the provincial commerce department, the Provincial Department of Commerce not only proactively serves enterprises and provides “one-on-one” assistance, it has also issued relevant policies and measures to encourage enterprises to adopt advanced technologies, processes and equipment to carry out digitalization and intelligence. , green transformation, promote the high-end and refined development of labor-intensive products such as textiles, clothing, shoes and hats, optimize the structure of export products, and improve the quality of export products.
“The company has reached strategic cooperation with professional textile colleges such as Xi’an Engineering University, actively introducing professional talents in the textile industry, and accelerating the research and development of new products.” Zhao Lihui said, In the next step, Qinyuan Textile will establish a domestic first-class industry-university-research base for the textile industry that integrates spinning testing, intelligent loom research, and special fiber R&D experiments to promote the traditional textile industry to become high-tech, high value-added, and intelligent. Production transformation and development.
“We will rely on research institutes, colleges and universities, industry and business associations, professional service organizations and leading enterprises to build public service platforms in R&D, testing, marketing, information, logistics and other aspects, and make use of the advantages of our province’s scientific and educational resources, Break the technical bottleneck of industrial innovation and development and improve innovation capabilities.” said the relevant person in charge of the Foreign Trade Division of the Provincial Department of Commerce.
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