Textile Enterprises Will Pay More And More Attention To Their Brands. Are You Ready?

In the first half of 2019, China's industrial textiles industry maintained a smooth operation to overcome all kinds of unfavorable factors. The industry continued to rely on the huge domestic market and actively explored the international market, especially along the "one belt and one road" market. Through technological innovation and meticulous management, the competitiveness of the industry was improved, and the risks caused by the uncertainty of the macro environment were ensured, so as to ensure the smooth and healthy development of the industry. The industry textile industry will continue to enhance its capability of independent innovation, enhance the connotation of the efficiency of science and technology innovation in the industry, focus on the major common key technologies and applied basic research of the industry, accelerate the transformation and application of scientific and technological achievements, strive to make substantive breakthroughs in common key technologies, and realize the comprehensive upgrading of textile technology and equipment, independent innovation, product development level and capability.

Industry operation

Rapid growth in production and marketing

Exports face greater pressure

In the first half of 2019, China's industrial textiles industry maintained a smooth operation against all kinds of unfavorable factors. The industrial added value increased by 7.6%. The total business revenue and total profit of Enterprises above designated size increased by 6.32% and 1.49% respectively. The growth rate of three indicators was basically flat with the same period last year. According to the China Textile Industry Association (hereinafter referred to as the middle class) survey, member enterprises in the first half of the business climate index 69.5, compared with the same period last year dropped 8.4, but still in the relatively prosperous section.

According to the research of the middle class association, the demand index of enterprises in the first half of the year was 49.7, the first time was lower than that of the ups and downs line. Among the enterprises surveyed, 34% of the enterprises indicated that the market demand decreased to varying degrees, and 6.5% of the enterprises indicated a larger decrease. 1/3 enterprises indicated that the market demand was basically flat, and 1/3 enterprises thought that the demand increased. However, the production index of the industry still maintained a high level of 66.2, and the actual situation is better than the enterprise's judgement of demand.

According to the data of the National Bureau of statistics, the production of Nonwovens for Enterprises above Designated Size reached 2 million 162 thousand tons, up 11.41% over the same period last year, indicating that nonwoven fabrics are important raw materials for industrial textiles, and their demand in various fields is still very large. In terms of exports, China exported 497 thousand tons of non-woven fabrics in the first half of this year, an increase of 6.88% over the same period last year. In the first half of the year, the output of cord fabric of Enterprises above designated size was 295 thousand tons, down 9.83% from the same period last year. Cord fabric is a traditional product in industrial textiles. The application market of tire cord is very simple. It is subject to the downturn in the automotive market. In recent years, the production of tire cord cloth is basically in a state of contraction.

According to the National Bureau of statistics, in the first half of the year, the total revenue and profit of the main businesses in the industrial textile industry above the scale were 118 billion 770 million yuan and 6 billion 20 million yuan respectively, representing an increase of 6.32% and 1.49% compared with that of the previous year, and the profit rate of the industry was 5.07%, a decrease of 0.24 percentage points. However, from the perspective of profit composition, the gross profit margin of the industry is 14.07%, a 0.5 percentage point increase over last year. The proportion of three fees is basically the same as that of last year, and the operating profit margin has increased by nearly 0.5 percentage points. The reason for the decline in the industry's profits is not the operating factors, but the abnormal changes in the income and expenditure outside the business.

In the first half of the year, the deficit of the industry was 15.52%, and the deficit of the deficit companies increased by 20.73%. The research results of the middle class also confirm the relevant data. In the first half of the year, the industry's income index is 61, the profit index is only 52.6, the output index is 66.2, but the finished product price index is only 44.2. The output growth is higher than the income, and the income growth rate is higher than the profit. The growth in the first half is mainly driven by output. In the same period, the tax and fee index of enterprises is only 44.2, which is in a decreasing range, indicating that the policy of reducing taxes and lowering taxes has really benefited enterprises, and also ensured that enterprises maintain relatively good performance under relatively difficult conditions.

In terms of sectors, the main business revenue and total profit of the cable and cable industry increased by 15.62% and 17.01% respectively, but the profit margin was only 4.94%, at a relatively low level; the total business income and gross profit of other industrial textiles increased by 5.17% and 3.38% respectively; the gross profit margin increased by nearly 1 percentage points, the highest level in the industry; the main business income of nonwovens increased by 6.84%, but the total profit decreased by 5.91%, and the profit margin was 5.03%. The profitability was at a relatively low level in recent years. The main business revenue of textile belt and tire cord industry increased by 2.24%, total profit decreased by 3.73%, gross profit margin decreased by 0.7 percentage points, the cost structure of industry fluctuated more sharply, profit rate was only 3.44%, which was at the lowest level in industry. In recent years, the overall economic benefit of this field was not satisfactory due to the downturn of the downstream industry of tire cord cloth.

In the first half of the year, China's industrial textiles industry exported a total of 13 billion 130 million US dollars, compared with the same period last year, an increase of 1.23% over the same period last year. The impact of Sino US trade friction on the industry's exports has been apparent in 2019. Exports to the US in the first half of the year amounted to 2 billion 40 million US dollars, down 3.05% from the same period last year, especially for products already subject to tariffs. In the first half of the year, the export of nonwoven and special yarns to the US decreased by 17.65%, and the export of industrial textiles to the US decreased by 28.6%. The exports of the two kinds of products increased by 0.7% and -1.61% respectively. In the first quarter, the share of the two categories of Chinese products dropped by 6 percentage points in the US import market. However, the share of the United States in the export market of the above two kinds of products is not large, and the impact of the reduction in US exports on the total export is basically controllable.

For products not included in the tariff catalogue, such as nonwovens protective clothing, tents, wipe and disposable hygiene products, exports to the world increased by 10.83%, 6.04%, 7.47% and 16.09% respectively. The competitive advantage of Chinese products in the world is obvious. However, with the expansion of Sino US trade frictions, the pressure of industrial export growth will increase in the second half of this year.

From the export market, Asia is the largest export area of industrial textiles in China, accounting for 45.7% of the total, 17.7% and 17.2% of the European Union and North America, and only 6.2% of Africa. From the national perspective, the United States is the largest export market in China, accounting for 15.58% of the total, while Japan and Vietnam share second and third respectively, accounting for 6.53% and 6.02% respectively.

On the whole, in 2019, the industry textile industry was able to overcome all kinds of unfavorable factors and keep stable operation. It is expected that the situation will continue for the first half of the year. The production and sales of the main products will continue to grow at medium and high speed, and the profits of the industries will increase at a low speed.

enterprise operation

Active response to market changes

Innovative models have their own characteristics.

In the first half of this year, China's industrial textiles industry has overcome various unfavorable factors by improving management efficiency, increasing investment, technological innovation and opening up new product application fields and markets in the first half of this year. The economic benefits have continued to improve. Enterprises in the industry have also taken the initiative to respond to market changes, strengthen technological innovation and management innovation, especially actively developing new products, improving product quality and expanding sales channels, forming distinctive innovative development models.

Reporters from China textile daily interviewed several enterprises in the field respectively. In the interview, they also found that several interviewed enterprises were mostly satisfied with the business situation this year.

Parallel two component new products create higher commercial value

Interview enterprise Heng Tian Jiahua nonwoven Co., Ltd.

This year, Heng Tian Ka Wah nonwoven Co., Ltd. is actively responding to market changes. The company's business situation is not quite different from that expected.

In the first half of this year, Heng Tian Ka Wah also launched a new EXCELTM series beyond the series of two component nonwoven products. Heng Tian Jia Hua has released a series of parallel products with a micro spiral structure. Its products are soft, breathable and skin friendly, and meet the needs of high-end development of sanitary products. It can provide consumers with better comfort and safety experience and create greater value for partners.

Deng Lianhua, general manager of the company, said that in the face of increasingly fierce market demand, Heng Tian Ka Wah launched EXCELTM beyond the series of two components. It has better fluffiness, softness, breathability and skin affinity. It can be widely used in the health and medical industries. It is believed that the product will bring new opportunities and vitality to the nonwovens industry, and will further promote the development and progress of China's nonwovens industry.

According to Deng Lianhua analysis, the trend of consumption upgrading in China's health products market is obvious. The demand for high quality products is very strong. It is necessary for enterprises in the industry to expand effective supply through technological innovation. The market penetration rate of domestic baby diapers and female hygiene products is close to that of developed countries. The growth mode of the industry is driven by quantity and evolves into value driven, and enterprises must provide high value-added products to ensure sustained growth of their performance. In addition, the environmental friendliness and consumer safety of products have become an important part of corporate social responsibility.

In the second half of the year, the key work of Heng Tian Jia Hua will focus on 5 aspects: first, strengthen the fine management, consolidate the management foundation, solve the outstanding problems in operation and reduce the operation cost; two, actively develop the market, steadily release the production capacity and achieve the new production line's production; three, promote the landing of all special projects, including the goal of controlling the losses, not loosening the target of "two gold", and the goal of controlling the voltage can not be retreated; four, make good procurement management, standardize the procurement process according to the requirements, improve the centralized purchasing rate; five, co-ordinate and coordinate, strengthen the management of funds, study the ways of financing through multiple channels and multiple ways, and ensure the smooth flow of cash. Deng Lianhua said that Heng Tian Ka Wah will work hard to shoulder the important task of the national team of our nonwoven industry, adhere to the innovation drive, give full play to the function of "innovation platform of China's medical and nonwoven materials research and development base", gather more wisdom and synergy industry chain upstream and downstream innovative resources, develop more and better medical nonwoven materials, make new contributions to the structural adjustment and industrial upgrading of the industry, and realize their own high-quality growth.

The concept of liquid cotton nonwoven is recognized by customers.

Interview with Shandong new Mstar Technology Ltd

Shandong's new Mstar Technology Ltd has steadily increased product sales in the first half of this year. The latest concept of "liquid cotton" nonwovens has been approved by customers.

According to Zhang Fei, director and chief technology officer of the company, the liquid cotton series nonwovens are produced by a two-component production line. PP is used as the main raw material. The continuous filament spinning process is combined with the self-developed softening modified material. It has good spinning stability and achieves stable production at the highest unit yield of 200kg/m/h. The lowest fiber can reach 0.6 denier fineness, and has excellent spiral curling effect. It is at the international leading level.

Since its establishment in August 2016, the company has been concentrating on the design and development of two component equipment. Through in-depth cooperation with Qiingdao University, the company has been innovating and innovating from functional modification materials, equipment, technology, products to final application, and is committed to becoming the most innovative and innovative enterprise in the nonwoven industry. The launch of the liquid cotton series of non-woven raw material system and parallel two component equipment is the initial research and development results of integration and innovation. The liquid cotton series nonwovens have the characteristics of uniform cloth surface, fluffy handle, dryness, good drapability and good air permeability. They can be widely used in sanitary products, filtration, medical treatment and other fields.

"Liquid cotton nonwovens can be used for the inner and outer waistlines of the slacks, which can make the products more soft, skin friendly, more breathable and comfortable. It will not affect the effect of thermal adhesion or ultrasonic bonding on the side of the waist. If used on diaper surface, it has better cotton soft fluffy feeling, and is more skin friendly and more dry. More than 40 grams of products can be used for air or liquid filtration, disposable underwear, wipes and so on. Shen Zhang Fei said: "the product can avoid the potential stimulation of hot air nonwoven short fiber, and has the characteristics of traditional spunbonded filament, and has higher production efficiency. The leftover material can also be recovered directly, which can save resource consumption. He disclosed that in the first half of this year, many international and domestic well-known brands and raw materials enterprises showed great interest in their products, and offered cooperation invitation.

In recent years, China's health products industry has been innovating frequently, and its products are constantly upgrading. Shen Zhang Fei thinks that the development trend of the future will be towards high-end, personalized and functional development. He said that with the improvement of living standards, consumers have higher requirements for skin care and comfort of hygienic products. In terms of functionality, the need for skin care, bacteriostasis and flavour is becoming clearer and clearer. In addition, due to the strengthening of environmental awareness, biodegradable sanitary products will also be one of the key development trends in the future. The company has carried out special research on these directions.

Shen told reporters that Zhang Fei's initial goal is to meet the increasing demand for high-end health and medical care by optimizing the whole set of technical solutions for two component products. And gradually to the material function, more environmentally friendly mainstream direction. "In the future, we will increase investment, deep plough and compound spinning technology, focus on modified materials, equipment, technology, and final application, continue to integrate innovation, provide customers with comprehensive product solutions, and create a more dynamic non-woven industry innovation ecosystem." He concluded.

Layout of hot air Nonwovens Market

Shanghai Enterprise Co., Ltd.

Hu Junjie, general manager of Shanghai Ying Zi nonwovens Co., Ltd., told reporters that the company was doing well in the first half of the year, and the order grew steadily, and the expected sales target was basically fulfilled.

In recent years, the company has made great efforts in improving productivity, market development and scientific innovation in three aspects. In terms of improving production capacity, the company imported the French French andriz company's 3.75 meter high speed hot-air non-woven carding line in the second half of the year to start production formally, adding more than 300 tons of hot air non-woven production capacity every month. The new five punch and embossing post processing line production capacity tends to be stable, and the monthly customized 100 tons of customized products. In terms of market development, the company has expanded Japan, Korea and Indonesia market on the basis of continuing to cultivate large domestic customers, and opened up a new market in the case of high raw material costs.

In terms of technological innovation, the company launched two innovative nonwovens in the first half of this year. One is the "vitamin E+ weak acid" hot-air nonwovens with bacteriostatic effect, and the other is anti infiltration hot air nonwovens. According to Hu Junjie, the characteristics of these two products are that their pH value can be stabilized between 4.5 and 5, which can greatly slow down the propagation of fungi and bacteria and make them difficult to breed. At the same time, weak acid materials are also beneficial to the skin, so they can be used in diapers and sanitary napkins to protect consumers' skin. "At present, there are usually two ways to produce this type of material in the market, one is functional ingredients directly added to the fiber, but the cost of doing so is high, and the effective ingredient retention after product formation is not ideal, or the residual rate and effective concentration are not particularly high, so we choose the second option, that is, spray method, which costs less, but the effect is excellent." Hu Junjie said.

Turning to the development priorities of the company in the second half of the year, Hu Junjie said that this year will be a year of integration of the industrial chain for the hygienic products industry. Because of the overheated expectations of capital for the hot air industry in the past few years, the overall capacity of hot-air nonwovens has been overstated by the end of 2018. Micro businesses, purchasing agents and so on have also caused a considerable impact on the traditional offline retail and online business platform. There are also three kinds of poor diapers and sanitary napkin products on the part of the network platform, which make the sanitary products manufacturers facing the industry integration period.

Hu Junjie believes that enterprises will pay more and more attention to their brands, because this year will be the pattern of stronger and weaker, and the market shuffle is inevitable. Mergers and acquisitions will be more frequent than ever before. In the face of these problems and challenges, the company will insist on taking innovation as the leading factor, taking into account domestic demand and external demand market, walking on two legs, continuing to cooperate with Japan's top fiber materials manufacturers, and continuously improving product stability, optimizing production capacity and cost.