Textile firms tailor work to changing market

Challenges turned into opportunities amid transformation, Ding Congrong reports.

Major companies in the textile and clothing industry in Jiangsu's Nantong city have taken measures to tackle challenges brought about by the nation's changing economic landscape.

Figures from the Nantong government meeting on economy show that profits of some of the city's textile and clothing factories were nearly halved in 2014 compared with previous years.

"The textile industry in China is experiencing a period of structural adjustment with the ongoing economic downtown globally and stronger competition within the industry in recent years," said Xue Weicheng, president of Luolai Textile in Nantong.

"How to turn the challenges into opportunities through transformation is a main subject for textile companies to think about in the next few years," he added.

Workers in action at a textile company in Nantong, Jiangsu province. The city is known for a cluster of flourishing textile and clothing enterprises. Xu Congjun china Daily

In 2014, the company made development, production and sales of home textiles and other home products its business focus and continuously enhanced the influence of its brands and retail market, according to Xue.

He said the company also planned to build a supply chain to meet market demand and improve internal management.

Luolai Textile also tried to increase its business channels and areas through investment and acquisitions.

The company had revenue of 2.76 billion yuan ($445 million) in 2014, an increase of 9.4 percent from the previous year, and saw profits of 450 million yuan, an increase of 15.25 percent compared with that of 2013.

"The economic ‘new normal’ has come along with lower consumer demand, unstable export needs and higher costs of production. As companies that mainly rely on exporting, we feel great pressure," said Xue Qinglong, president of Lianfa Textile in Nantong.

"We will take the challenges and boost growth by carrying out multiple measures and innovations."

He said annual sales of the company grew by 10.9 percent and its profits increased 8.8 percent in 2014.

Innovation has been a focus of textile companies in Nantong.

Luolai Textile launched strategic business arrangements relating to home intelligence called “big health” and “big data” and was a pioneer in producing intelligent home products for sleep monitoring.

In 2014, the company invested nearly 84 million yuan in research and development.

It partnered with some well-known European R&D institutes, as well as top international and national textile design organizations and fabric suppliers. The company’s R&D headquarters is the workplace of more than 300 designers from home and abroad.

In recent years, Jiangsu Dasheng Group has taken full advantage of its role as a national-level high-tech company and quickened the development, production and promotion of new products.

Up until the end of 2014, new products accounted for more than 40 percent of the group’s entire product range. The company has patented 31 technologies in recent years and in March three new products passed Jiangsu province’s technological achievement authentication.

"Among them, the ultraviolet-proof tencel biological mixed fabric has great potential in making shirts and special protective suits and will open a wide market for us," said Zhao Ruizhi, director of the company’s technology management department.

Several industry players have looked to build their own brands.

Luolai Textile has expanded cooperation with well-known e-commerce brands in China and abroad to promote its brands in recent years. It has carried out multi-brand operations since 2004, according to Tian Lin, vice president of the company.

"The goal of our multiband development strategy is to better prepare us for competition in the home textile retail industry," said Tian.

Contact the writer at dingcongrong@chinadaily.com.cn