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| Issue date:15/10/2009 |
| ATA Journal for Asia on Textile & Apparel - Oct 2009 Issue |
| Source:Journal for Asia on Textile & Apparel |
| by Amy Xiao |
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The city of Wuxi (无锡), located in Jiangsu province (江苏省), is an important production and export area in East China for medium- to high-end textile and apparel products.
There were 1,044 sizable textile and garment enterprises in the city last year with a total workforce of 283,000 people, according to statistic data of Wuxi Statistics Bureau. Sizable enterprises are those having an annual principal operating revenue of RMB 5 million or more, according to the Department of Statistics of China.
These enterprises earned an annual revenue of RMB 142.3 billion in 2008, registering an average yearly growth of 11.1%. Profit reached RMB 5.56 billion.
Strong growths recorded were partly attributed by the advantageous position of the city itself, which is centrally located in the Yangtze River Delta (YRD) region. With five expressways and other transportation, Wuxi is well connected with nearby cities (e.g. Suzhou, Changzhou, Hangzhou, Shaoxing and Shanghai), serving as a hub in not only textile and apparel production but also logistics.
Output of key textile and garment products in Wuxi in January-May 2009 |
Moreover, many textile enterprises in Wuxi are characterized with an extensive use of advanced textile machinery to manufacture quality yarns and fabrics, for instance, combed yarns, knotless cotton yarns and yarns made on shuttleless looms.
Among them are a new generation of strong enterprises. In 2008, three large enterprises in Wuxi recorded an annual sales income exceeding RMB10 billion, another six earned more than RMB5 billion a year, and 17 others over RMB1 billion. The total capital registered of sizable textile enterprises in Wuxi was RMB11.877 billion last year.
There are five world-class brands, 11 famous Chinese brands and five prestigious Chinese trademarks in the city. Jiangsu Sunshine (江苏阳光), Hongdou Group (红豆股份), Huaxicun (华西村) and Sanjiaxiang (三房巷) are some of the renowned names in Wuxi.
R&D spurred by talents
Apparel is a major export of Wuxi city |
The Wuxi textile and apparel industry is growing in an astonishing speed, said vice secretary-general of the Wuxi Textile Industry Association (WTIA) (无锡市纺织工业学会), Chen Zhengming (陈正明). From 2000 to 2008, the total industrial output value and profit of the industry expanded in an averaged rate of 18% per annum.
Furthermore, the city’s textile and apparel product portfolio is comprehensive and marketed at a higher end of the price spectrum. It is one of the leading manufacturing areas for numerous types of fabrics (except silk), ensuring a higher profit margin level of the enterprises. Profit margin of the Wuxi textile industry was 3.87% in 2008 despite the economic challenges during the year.
Another strength of Wuxi lies in the availability of talents, which supports product research and technological development.
More than 3,000 intermediate and senior technical professionals are working in the Wuxi textile industry.
Education and training is also available in the Jiangsu Wool Textile & Garment Technical Development Center (省级毛纺和服装技术开发中心), Wuxi Textile Machinery Research Institute and Testing Center of China Textile Machinery Group (中国纺机总公司无锡纺机研究所和纺机试验中心), Jiangsu Textile Research Institute (江苏省纺织研究所) and Textile & Garment College of Jiangnan University (江南大学纺织服装学院). “Industrial development is inseparable from technical and research support,” concluded Mr Chen.
“The Wuxi textile industry started early in its development in the country, and has established a relatively stable customer base and sales network among developed areas such as the EU, the US, Japan, Australia and Canada. In addition to a large volume of exports, wool textile products made in Wuxi are also a frequent winner in bidding for tenders of manufacturing military uniforms and workwear in China,” said Mr Chen.
The establishment of a wholesale market by Wuxi Municipal Government has facilitated both local and international trade of textile and apparel products. “The wholesale market has attracted large flocks of local and overseas buyers,” said Textile Chief Engineer of Jiangsu Kanghe Textile (江苏康和), Zhou Minghui (周明惠).
Responding economic crisis with varied strategies
About 60% of the Wuxi textile and apparel production is exported, thus it was substantially affected by the current global economic recession. The Wuxi textile industry saw only a 2% growth in industrial output value at the current price last year and drops in profits and investment.
Business strategies of Chinese enterprises were also modified to accommodate market changes.
Fabrics enterprises such as Yixing Lucky G&L Dyeing and Finishing (宜兴乐祺) and Wuxi Shuangmao (无锡双毛) sought cooperation with apparel distributors in Italy, France and South Korea this year to jointly develop products that target the branded segment of these overseas markets.
Home market becomes more crucial. Export-laden Jiangsu Kanghe Textile (江苏康和) has shifted to emphasize the domestic market, which was projected to contribute 30% of the company’s business, Mr Zhou told ATA Journal. “In July and August, we began to receive more export orders while experiencing booming sales in the domestic market. Sales of thermal underwear will get more active in these months. Product expectation in the domestic market is lower, and the market appetite remains good compared to those abroad, so we are optimistic with the home market,” he said.
Targets laid down in the Wuxi Textile & Garment Industrial
Readjustment and Promotion Program (2009-2011) |
Some enterprises in Wuxi see product development as their key to future success.
Yixing Lucky G&L Dyeing and Finishing (宜兴乐祺) recently developed functional fabrics that better absorbs and evaporates moisture. Wuxi Pacific Group (无锡太平洋集团) invited Chinese famous designers to develop fashionable fabrics, thereby boosting the gross profit of these products to around 25%.
Efforts done by the textile and apparel industry has been encouraged by the Wuxi Municipal Government, as stated in the “Wuxi Textile & Garment Industrial Readjustment and Promotion Program (2009-2011)”, which pledged to advance the Wuxi textile industry up into a textile industrial base and a research and development center, by intensifying its strengths in the manufacturing, marketing and distribution of higher end apparel (e.g. using worsted wool fabrics and special chemical fibers), for markets at home and abroad.
Background information was provided by the Wuxi Textile Industry Association
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| Copyright © Adsale Publishing Limited. Any party needs to reprint any part of the content should get the written approval from Adsale Publishing Ltd and quote the source "ATA Journal for Asia on Textile & Apparel", Adsale Textile English Website - www.AdsaleATA.com. We reserve the right to take legal action against any party who reprints any part of this article without acknowledgement. For enquiry, please contact Editorial Department. |
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| Copyright © Adsale Publishing Limited. Any party needs to reprint any part of the content should get the written approval from Adsale Publishing Ltd and quote the source "ATA Journal for Asia on Textile & Apparel", Adsale Textile English Website - www.AdsaleATA.com. We reserve the right to take legal action against any party who reprints any part of this article without acknowledgement. For enquiry, please contact Editorial Department. |
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