In 2008, China's clothing industry summit forum was held in Wuxi, Jiangsu Province in early December. Du Yuzhou, President of the China Textile Industry Association, said at the forum that faced with the financial tsunami sweeping across the globe, China's textile and garment industry would like to break through with the trend and urgently need to accelerate technological innovation.

Together with the 2008 China Clothing Industry Summit Forum, the national textile industry skill competition is also held.

In Du Yuzhou's view, China's textile exports account for 30% of the world's textile exports, and there are still many countries with lower labor prices than China. China's competitiveness lies in the quality of its workforce.

The more high-tech blue collar, the better, so that we can improve the market competitiveness of the entire textile industry.

Since the beginning of the new century, China's textile industry has been developing at a high speed.

In the 2002~2007 years, the total industrial output value of Enterprises above designated size increased by 1.78 times, profits increased by 2.7 times, employment increased by 41%, exports increased by 1.79 times, and the trade surplus of the whole industry increased 2.22 times.

The biggest trade surplus among industries is the textile industry, which is the biggest reason why the state attaches importance to the textile industry.

After disclosing the above situation, Du Yuzhou said that the proportion of small and medium-sized enterprises in China's textile and clothing industry was mainly high and low, and 99.4% of the entire textile industry was small and medium-sized enterprises.

After entering the 2008, affected by the international economic environment and domestic price rise, labor costs rise and other factors, most of the small and medium-sized enterprises should not cope with the shortage.

According to statistics, the textile industry lost 15 billion 600 million yuan in the first 8 months.

Profits fell from..38% in 2007 to 3.47% this year.

In terms of structure, state-owned enterprises account for 1.82% of the total textile industry, with a loss of 900 million yuan, which is a total loss.

Collective enterprises account for 3.8% and profit is 5 billion 570 million yuan.

Privately held enterprises account for 72.24% and profit is 55 billion 750 million yuan.

Hong Kong funded Taiwanese enterprises accounted for 12.64%, making a profit of 7 billion 590 million yuan.

Foreign capital accounted for 9.5% and profit was 5 billion 900 million yuan.

In 1~8 months, the textile industry accounted for 7% of the sales profit rate of more than 10%, the average profit rate of clothing was 10.04%, but the average profit margin of chemical fiber was only 1.78%, so it was very difficult for enterprises to operate.

For this reason, the state has already supported the textile industry by adjusting the export tax rebate rate and other policies.

2008 is the most difficult year for the textile industry since the new century. At present, the entire textile industry is in a critical period of industrial upgrading and implementation of Scientific Outlook on Development.

Coupled with the external financial crisis, the textile industry in the pition period of labor pains are very obvious.

According to the China Textile Industry Association, the average profit margin of the whole industry increased in August compared with the same period last year.

But there are still serious problems in terms of structure: 1/3 of enterprises have 32% employees, 89.2% of total profits, more than 7500 of deficit companies, and the total loss is 11 billion 600 million yuan.

According to statistics, the per capita value of the textile industry is 9800 yuan, and the value of 1/3 of the enterprises is 24800 yuan per capita, while the average value created by 2/3 of the enterprises is only 1600 yuan.

Du Yuzhou said, this situation shows that the quality of enterprises is not the size, but whether there is innovation, the textile industry should rely on technology rather than rely on the number of people to create value.

Now there is a misunderstanding in the textile industry that the comparative advantage of China's textile industry is disappearing.

Du Yuzhou believes that such a statement needs clarification.

He believes that the comparative advantage of the textile industry is the opportunity cost. The comparative advantage is not only static but also improving.

The comparative advantage of textile industry is still very large, and the structure is also constantly optimized. But this requires two brands of textile enterprises to make technological innovation and brand building.

Du Yuzhou said: compared with the overall weakness of SMEs, enterprises with independent brands and high-end technology make up more than 90% of the total profits of the industry.

This shows that technology and brand is the key to enhance market competitiveness.

He said that the implementation of technological innovation is the best way to deal with the financial crisis.

The international financial tsunami has also provided an opportunity for many domestic SMEs to complete the pformation of their industrial structure. If we can survive this "pain", enterprises led by technological innovation and brand marketing will surely become the new force in the future economic growth of China's textile industry.