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Under the New Normal, Home Textile Industry Returns to Market Essence-Interview with Yang Zhaohua, President of China Home Textile Association
Release Date:
2015/01/27
"In 2015, affected by factors such as high costs and labor shortages, as well as exchange rate fluctuations, Chinese home textile enterprises, especially small and micro enterprises and enterprises below designated size, will encounter many difficulties in their operations." Recently, Yang Zhaohua, president of the China Home Textile Industry Association, said in an exclusive interview with a reporter from China Enterprise News. China's home textile industry smoothly into the new normal statistics show,
"In 2015, affected by factors such as high costs and labor shortages, as well as exchange rate fluctuations, Chinese home textile enterprises, especially small and micro enterprises and enterprises below designated size, will encounter many difficulties in their operations." Recently, Yang Zhaohua, president of the China Home Textile Industry Association, said in an exclusive interview with a reporter from China Enterprise News.
China's home textile industry smoothly into the new normal
Statistics show that the 40 small and micro enterprises (with an average annual turnover of less than 7.5 million yuan) tracked by the association experienced negative growth from January to November 2014. The average main income of the enterprises decreased by nearly 14%, the total profit decreased by 21%, and the domestic sales decreased by 6.9. Its average profit margin was more than 2 percentage points lower than that of the whole industry. However, enterprises below the designated size (with an average annual turnover of less than 20 million yuan) have changed from positive growth in 2013 to negative growth.
However, in this case, the leading enterprises in the industry still maintain a relatively rapid development momentum, and the trend of merger and reorganization in the industry is strengthening.
Driven by leading enterprises, in 2014, the entire home textile industry achieved a growth of 6.1, and the export scale increased by 6%. From the perspective of business operations, the industry has basically maintained a "steady development".
Yang Zhaohua believes that the unfavorable factors faced by the industry will not disappear in the short term, and the competition among enterprises will further intensify. In this case, enterprises with poor management and unreasonable product structure will naturally be eliminated in the competition. For those enterprises that still have development potential but lack financial and technical support, they may choose to reorganize or be merged by leading enterprises.
"Enterprises need to base themselves on the development and changes of the market, find the right market positioning, make full use of the leverage effect of capital, development will be very fast, market share will also be improved. This is a process of survival of the fittest and progress in the whole industry, which can solve the problem of structural overcapacity in the industry." Yang Zhaohua analysis pointed out.
Wisdom to stimulate domestic demand, home textile industry service upgrade
"Under the new normal, companies need to proactively adjust their development thinking to adapt to the changes in consumption structure brought about by changes in consumer consumption habits. We advocate that the industry should shift from production-oriented to consumption-oriented, relying on guiding consumption to boost domestic demand."
Yang Zhaohua also gave an example to illustrate that in this regard, the Home Textile Association has also made many attempts in conjunction with home textile enterprises. For example, through questionnaires and scientific experiments, it points out to the public the misunderstandings in the use of towels and core products, and guides consumers to use home textile products correctly.
At the same time, the association is introducing the concept of "4S" stores into the home textile industry, guiding enterprises from production-oriented enterprises to production service-oriented enterprises. Enterprises need to effectively improve the ability of after-sales service, through the service to increase customer stickiness. For example, the demand for professional services such as curtain cleaning and repair is huge. If enterprises can provide such services to customers, consumers' investment in home textile products will change from one consumption to multiple consumption.
By advocating a healthy and scientific lifestyle to guide consumers, it can not only effectively stimulate domestic demand and solve the problem of structural overcapacity faced by enterprises, but more importantly, it can also effectively improve the quality of life of consumers, and ultimately achieve consumers and A win-win situation for enterprises.
In addition, the rapid development of the Internet has brought about the model innovation of home textile enterprises. The business model of home textile enterprises should return to market demand-oriented, and can no longer mass-produce those luxury and high-end products behind closed doors, but should do more subtraction, save unnecessary processes, reduce costs, and provide consumers with high cost-effective products.
Culture Leads Fashion, Carpet Enterprises Seek Breakthrough
With the diversification and personalized growth of consumer demand, there is still a big gap between the ability of Chinese home textile enterprises in design and development and brand culture construction and international counterparts. Especially in the excavation and performance of Chinese national culture, it has not grasped the true meaning of Chinese traditional culture, mechanically copied Chinese cultural elements, and failed to combine the soul of Chinese local culture with modern consumer aesthetic concepts.
"under the increasingly serious problem of homogenization of home textile products, it is the breakthrough to find the national cultural complex from the traditional culture, draw wisdom from the intangible cultural heritage, and integrate the most representative Chinese cultural elements into the modern way of life." Yang Zhaohua pointed out, "This is the reason why the association very much supports companies such as Oriental Carpet to apply for national product projects, and we believe that this is also one of the important paths for the development of Chinese home textile companies."
China has a long history of making and using carpets, but there is a considerable gap between the overall level of per capita consumption of carpets in China and the level of per capita consumption of 2 square meters in developed countries in the world. Therefore, carpet enterprises have the responsibility to inherit and carry forward carpet culture and guide the important task of carpet consumption concept.
Carpet products themselves have strong national and cultural characteristics, and the current consumer market also has strong national and regional characteristics. In this case, Oriental Carpet's application for a national product project is not only conducive to occupying the market, but also conducive to promoting carpet culture, inheriting national culture and intangible cultural heritage, especially through the "Belt and Road" strategy, learning Persian carpets and India The cultural characteristics of the carpet, learn advanced foreign design concepts, and use it for Chinese companies. Oriental carpet can rely on its own advanced technology and equipment and talent advantages to produce cultural products with personalized and national characteristics, which will help to accelerate the improvement of the enterprise's own level and promote industrial upgrading.
Source: China Enterprise News
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