Rectify the name of textile! The textile industry, which the public considers to be a "sunset industry", is actually singing all the way!

For decades, China's textile industry has experienced peaks and valleys in its development, and has been misunderstood many times. Until now, China's textile industry is still misunderstood in many aspects. Once upon a time, many people believed that the textile industry was a sunset industry, a backward industry, and it was far less supportive of the national economy than the automotive electronics and other industries. In fact, the textile industry has made important contributions to my country's economic development.

What is "sunset industry"?

Generally speaking, the sunset industry has three characteristics. The first is that the market and demand have stopped growing or even shrunk, such as the global steel industry. Secondly, backward technology is replaced by new technology, such as the film industry, which is eliminated by digital technology. The third is the long-term downturn in the industry as a whole, and the marginal profit is close to zero or even at a loss.

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1. The market demand of the textile industry

In recent years, the growth rate of physical retail in the clothing industry has not been fast, but in the field of e-commerce retail, the total transaction volume has increased by more than 20% year-on-year! Far exceeding GDP growth rate! It is no exaggeration to say that dressing and eating are the eternal needs of human beings. There is no shrinking demand in this area.

2. Technology in the textile industry

The technology of the textile industry can be said to be changing with each passing day and in the ascendant. In the field of fiber materials, new varieties are constantly being used, which is dazzling. For example, the graphene fiber, which is very popular recently, is still in its infancy. Fields such as Tencel and carbon fiber are also monopolized by developed countries.

In the field of textile machinery, intelligence and integration with Internet technology have just begun, but we should soon be able to see the labor-intensive hat removed, and unmanned factories are ready to emerge! At present, the latest spinning mill adopts the most advanced equipment, uses intelligence and Internet technology, and it is completely worthy of the name to say that he is a high-tech enterprise!

3. The benefits of the textile industry

According to data from the National Bureau of Statistics, China's textile industry achieved a profit of 219.4 billion yuan in 2016, an increase of 3.5% over the previous year. The sales profit rate is 10.6%. This level is not too ideal but higher than home appliances! So last year, the industry's fixed asset investment also increased by 10%!

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Even in everyone’s impression, the textile industry is an absolute sunset industry, but in fact, the overall operating conditions have continued to improve. The average asset-liability ratio has dropped from 75.68% in 1998 to 53.7% in 2014. In the subprime mortgage crisis that swept the world in 2008, there was no rebound, and profit margins continued to improve during the same period. Moreover, in recent years, the RMB exchange rate has been strong and labor costs have soared, which is fatal to the export-oriented and labor-intensive textile industry.

China's textile industry is being reborn. The future textile industry should be an emerging industry with high-tech intensive, promising development prospects, less labor, and stable return on investment.