Su Lihua, deputy manager of Industrial Technology & Finance Research Department of DIW Group (Shanghai), delivers her report Explore new ideas for the management of cotton spinning enterprises

Su Lihua, deputy manager of the Industrial Technology & Finance Research Department of DIW Group (Shanghai), shared with us Explore new ideas for the management of cotton spinning enterprises . The report is mainly divided into three parts: 1. The status of the industry 2. Bottlenecks and opportunities 3. Business Operation Ideas

1. The status of the industry

The report summarizes the output value of the industry, spinning capacity and cotton textile capacity, specifically showing that the annual domestic production of the textile industry is 7 trillion yuan. China has the largest spinning capacity in the world. China's cotton yarn capacity is about 110 million spindles, accounting for about 50% of the global total. After that, the report elaborates the industry cycle, mainly the capacity cycle. Capacity investment cycle is the main cycle in economic fluctuations, with a length of 6-11 years. At present, the cotton textile industry is in the transition from capacity expansion cycle to capacity removal cycle, and capacity utilization is in a declining stage.

2. Bottlenecks and opportunities

The current bottleneck encountered by the industry is mainly in three areas: the ban on Xinjiang cotton, the slow improvement in domestic demand, and the damage to the industry. At the same time, it is also faced with new opportunities. First, the new opportunities brought by the price difference between domestic and foreign countries, and second, the opportunities at the economic level. The present economic cycle at home and abroad is different, and the United States is facing the risk of recession. Aggressive interest rate increases the risks at the later economic level, while China is in a period of slow recovery after the epidemic. Third, opportunities at the industrial level. The ban on Xinjiang cotton has made it more difficult to export, and the price advantage of Xinjiang cotton has appeared. In addition, the cost of spinning abroad has risen, the spinning loss has sharply enlarged, and China's international competitiveness has appeared. Then, the report compares the international environment, production cost, raw material cost, current situation in Southeast Asia and China. Facing a series of realistic conditions, the report points out that what Chinese enterprises should do is to take advantage of the cost of raw materials and the core competitiveness of manufacturing industry to go out.

3. Business Operation Ideas

This part first points out the pain points of the industry: lack of standardization and low level of digital intelligence; Obvious industry cycle and weak anti-risk ability; Low industry concentration and weak voice in the market. Then it introduces the development history, general situation, business layout, main products, etc. of DIW, including the exploration and ways to solve the pain points of the industry.