Staff Reporters

2009 is under the shadow of the global economic downturn. The World Bank on March 31 announced the global economic outlook, predicting that the "global GDP growth, after a robust eight-year stretch, is now set to contract by 1.7% this year. This is a historic contraction, with world output set to decline for the first time since World War II."

China's textile industry, which has depended largely on exports, faces unprecedented challenges.

Against this background, staff reporters from the textile industry portal of 2456.com recently interviewed a number of industry leaders at textile light industry departments and bureaus (administrative offices and industrial associations) to share views.

Major textile provinces along the eastern coast, emerging provinces in Central China, and developing provinces in Northwest China are being covered in the three-section Pre-ShanghaiTex 2009 Report.

Key Eastern textile provinces

Zhejiang, Shangdong and Fujian are well-established textile provinces in East China, housing some of the most advanced technologies and a pool of rich talents equipped with mature skills within the country.

Nevertheless, they are also under acute challenges such as rising production and labor costs that have driven them to innovation and branding. The presence of the global economic crisis became a catalyst to deeper and faster industry optimization, technological upgrade and innovation in various fronts of management, marketing and product.

Branding is important to eastern garment makers

Zhejiang province

Huang Xianfa, Deputy Director of Textile & Light Industry Administrative Office at Zhejiang Provincial Economic & Trade Commission was interviewed.

Last year, there were 11,505 sizable textile enterprises (with a registered capital over RMB 5 million) in Zhejiang, amounting to a quarter of the total in the entire country, according to the data from the Zhejiang Provincial Economic & Trade Commission.

These sizable textile enterprises registered a total sales revenue of RMB 725.8 billion and an export value of US$243.7 billion, accounting for 21.99% and 23.05% in the country respectively.

In China, Zhejiang province is a leading producer (in volume) in such textile products as chemical fibers, dyed/printed fabrics, garment, home textiles and industrial textiles.

Particularly, about 44% of the total chemical fiber output of the country came from Zhejiang province, making it the largest chemical fiber producing province in China.

The province also houses a large number of brands and products that have earned their reputation as "Top Brand in China" and/or "Outstanding Trademark in China".

Mr Huang told 2456.com that there was no widespread close downs of small and medium textile enterprises in Zhejiang in 2008. Few textile enterprises went bankrupt. Instead, a number of them suspended or reduced their production. As many private enterprises in the province depended on exports, they are impacted by the global economic crisis.

"Overall, the Zhejiang textile industry marked a sound industrial operation last year, witnessing a 10% increase in sales revenue and growth in output," he said.

Huang advised that textile enterprises should further strengthen themselves through product differentiation and technical upgrade. Important textile product categories in the province include chemical fibers, garment and accessories, premium fabrics and silk products. Potential segments are home textiles and technical textiles.

Industry-wise, development directions such as relocation to Central and Western China will continue and intensify. Enterprises should also pay attention to the research of key technologies along the textile and garment supply chain, Mr Huang said.

Shandong province

In 2008, Shandong textile industry experienced unprecedented challenges that hampered production and business operations of textile enterprises. As a whole, however, Shandong textile maintained steady growth last year, according to Kong Lingwei, Deputy Director of Planning & Development Division of Shandong Provincial Textile Industry Office.

Sizable textile enterprises in Shandong reached an industrial added value of RMB 150.8 billion last year, up 15.69% from previous year, and a sales revenue of RMB 558.795 billion (+20.77%).

Shandong's textile output recorded last year was: 6.194 million tons of yarns; 13,180 million meters of fabrics; 2,600 million pieces of garment; 4,550 million meters of dyed/printed fabrics; 135 million meters of woolen fabrics; 67,000 tons of knitting wool; and 785,000 tons of chemical fibers.

In the recently announced document, entitled "Shandong Textile Readjustment and Promotion Program (Draft)", the Shandong industry is recommended to focus on the following areas for future development.

In addition, clean production is emphasized, as well as strategies aiming to expand domestic consumption in China.

Fujian province

Fujian textile industry maintained a steady operation in 2008, said Chen Jianxin, Director of Textile & Light Industry Administrative Office at Fujian Provincial Economic & Trade Commission.

Sizable textile enterprises in the province achieved a total industrial output value of RMB 190 billion last year, up 15.8% compared to the previous year, and a sales revenue of exceeding RMB 180 billion (+16.8%).

Exports were disrupted after the outbreak of the global economic crisis last year. As a result, the total textile and garment export value in Fujian was US$7.784 billion (+9.29%) while the delivery value of export was RMB 45 billion (+6.3%).

East China includes the provinces of Jiangsu, Zhejiang, Fujian, Shangdong, etc

The Fujian textile industry is known for its complete supply chain ranging from chemical fibers, cotton spinning, weaving, dyeing/printing, nonwovens, industrial textiles, home textiles, garment & accessories, and textile machinery.

Moving ahead, Mr Chen believed that it is crucial to produce differentiated chemical fiber products, e.g. specialty products with high-value functionality, not only commodity goods. Product development in cotton spinning with combed cotton and blended yarns and other textile sectors is also needed.