Cross-border Transformation of Textile City Xiajin

The terrain is high, the soil is sandy, and it is suitable for planting cotton. The cultivation of cotton for more than 600 years has made Xiajin a “silver Xia Jin” name. For decades, the prosperity of the cotton textile industry, Xiajin is another title: a famous textile city.

Nowadays, the downward pressure on the economy has increased, and the market for cotton textile industry in China has become saturated. What is the way out for “Silver Xia Jin”?

The original spinning line now produces wine; the original weaving cloth is now used as an electric vehicle component. With the re-examination of the market and the guidance of policies, cross-border industry has become a new choice for Xiajin's corporate transformation. Therefore, “Silver Xia Jin” has become more colorful.

Encounter ceiling

Wang Zixiang, general manager of Xiajin Tianhong Textile Co., Ltd., did not want to mention the operation of the company in 2015. The poor prospects for profit made him very distressed. In spite of this, he is still full of passion when talking about the company's performance during his heyday.

In 2010, Tianhong made a profit of 67 million yuan, while the figures in recent years have shrunk dramatically.

Looking back at Tianhong, which was just created in 2007, cotton textile companies have blossomed in Xiajin with the advantage of producing cotton. “Buying and selling expensive, don’t waste in the middle”, relying on this unique method, a large number of cotton textile business operators made their fortune.

Today, this situation can only appear in talks. “As far as market conditions are concerned, the purchase price of lint in China is around 12,000 yuan/ton, which is basically the same as the price of cotton yarn imported from Myanmar. To achieve the production process of Burmese yarn, at least 1,000 yuan per ton is required. The cost," said Wang Zixiang.

This can also be seen from the situation of the national cotton textile industry.

From January to October this year, China imported 2 million tons of cotton yarn, which is equivalent to the total amount of cotton yarn imported last year. The price difference between cotton prices at home and abroad of nearly 5,000 yuan/ton caused China's yarn products to lose its due market. Yarn products from India, Pakistan and other countries accounted for a large share of the low-end yarn market in China.

Under the impact of the market tide, the cotton textile industry faced many unfavorable factors such as insufficient market demand, high internal and external cotton price gaps, and imported yarn impacts. The price of cotton raw materials was unstable, and the cost of production factors such as labor and electricity consumption continued to rise. The wave of the cotton industry has caused many companies that are unable to steadily manage to talk about cotton. According to data provided by the Xiajin County SME Bureau and Statistics Bureau, during the peak period, the Xiajin cotton textile industry reached 149, and the current figure is 80.

Tian Wenxing, who was even more desperate than Wang Zixiang, directly shut down Shandong Hengshun Textile Co., Ltd., which had been struggling for nine years, in 2013. From the development of three spinning machines to a scale of 13 to 20,000 spindles, Tian Wenxing, who is now dedicated to the microelectronics controller industry, is still worried about the cotton textile industry: "Prices are on and off, and small businesses are at their mercy, even if they are now cotton yarn prices. If you go up, you won't do this again.” “The cotton textile industry is an industry where the poor go where there is no science and technology content, where the electricity bill is low, the labor cost is low, and where it can be profitable.” As the cotton textile industry “Old man”, Zhang Jianfu, chairman of Shandong Shengyuan Group, has a deep understanding of this.

Catch the policy

On December 12, at the promotion meeting for the integration of Texas into Beijing, Tianjin, and Hebei held in Beijing, Zhang Jianfu signed the “big single”. Shengyuan Group and the chief researcher of the China Academy of Chinese Medical Sciences, doctoral tutor Ye Zuguang and Beijing Baode Runsheng Pharmaceutical Technology Development Co., Ltd. reached a cooperation agreement.

According to the agreement, Ye Zuguang's team will complete the project's process research and quality research within three months. Beijing Baode Runsheng Pharmaceutical Technology Development Co., Ltd. is responsible for the design of dosage forms, methods of administration, and product packaging.

However, this signing has nothing to do with the cotton textile industry. The goal of Zhang Jianfu was to make Xiajin Sangjun his own brand.

Ye Zuguang was a member of Tu Yuguang and has certain authority in the field of Chinese medicine. "The successful introduction of Ye Zuguang has made Zhang Jianfu very confident.

However, Zhang Jianfu can attribute this to the "hand in hand" of the Big Coffee of Science.

Not long ago, the Municipal Party Committee and the Municipal Government promulgated the “Two Personnel Work Policy Documents of Dezhou City Construction Coordinating Development Demonstration Area Talent Support Plan” and “Some Measures on Strengthening the Construction of Entrepreneur Teams”. 30." It was this series of favorable conditions that led to the arrival of Ye Zuguang's team.

If we say that the cross-border of Shengyuan Group is "escaped from" the cotton textile industry, Xinqiu's cross-border business is "being aware that there are tigers in the mountains and favoring tigers in the mountains".

Xin Qiu is a well-known cotton breeding company in Shandong. Not satisfied with the development of only the breeding industry, they extend the industrial chain to the textile industry. Unlike the previous low value-added operating model, Xin Qiu hits high-tech cards.

The quilts were washed directly in the washing machine, and after drying, the cotton was still fluffy and soft. This washed quilt produced by Xia Jinxin Qiu Jiafang subverts people's concept that the quilt can only be dried in the past. In addition, a series of new types of cotton textile products have been launched.

In the face of the downturn in the cotton textile industry, whether it is “escape” or choosing to stick to it, there are shadows of policies behind Xiajin companies.

Since the beginning of this year, Xiajin has confirmed more than 30 intellectual support projects including cotton textile enterprises, and has signed strategic cooperation agreements with universities and scientific research institutes such as Shandong University, Donghua University, Shandong Agricultural University, and Energy Research Institute of the Chinese Academy of Sciences. These have added support for the breakthrough of traditional enterprise transformation.

Finding new areas

Turning to the drinks industry, Zhang Jianfu did not imagine it to be “acceptable to the soil and water”. The operating experience of cotton textile companies also applies to the wine industry.

From the south, old cellar mud was sealed up and the franchise stores were set up to direct sales. The liquor industry had done its utmost to achieve the ultimate in Zhang Jianfu, and it also focused on the ancient mulberry trees in Xiajin.

Relying on a variety of mulberry trees and authentic raw materials, in 2014, Xiajin was recognized as a base for authentic medicinal herbs. Last year, Sanyuan’s mulberry wine production line was formally put into production. Based on the direct sales model, Zhang Jianfu also took advantage of the “Internet +” east wind and made appearances on several online platforms, such as CCTV.com, and gained a lot of female consumer groups. Favor. "Enhance immunity, relieve physical fatigue, anti-oxidation, relieve visual fatigue, ecchymosis, and assist blood sugar lowering." It is the treasure of the mulberry, and how many products are required to produce more functions. These are the questions that Ye Zuguang’s team will study.

Zhang Jianfu's vision for Mulberry is not limited to Mulberry Wine. His vision is to build a green and healthy food system and expand the health industry. The establishment of a national-level key laboratory and the establishment of a technical standard for mulberry industry. Zhang Jianfu, who intends to establish a benchmark for mulberry industry, is working hard in this blue ocean area.

The breakthrough of Tianhong Textile's choice is to enter the electric vehicle market and produce electric vehicle controllers. In 2014, Shandong Tianhong Xin Kairui Technology Co., Ltd. was established. "Cotton (industry) depends on raw materials, and electronics (industry) depends on innovation." Tianhong understands the difference between this industry and the management of cotton textile industry. Last year, Tianhong launched its R&D center in Shenzhen and has independently developed more than a dozen products.

As a major province of electric vehicles, Shandong has great confidence in the relevant components. Today, Tianhong concentrates its efforts on the production of high-powered electric vehicle controllers, and hopes to make a big contribution in this field.

Whether it is Zhang Jianfu or Wang Zixiang, when it comes to whether they will abandon the cotton textile industry, what they reveal is the true feelings of the cotton textile industry: Although the cotton textile industry belongs to the low end of the industry chain, this industry is indispensable. Will fall. They frankly will continue to operate carefully in this area. “Xiajin is a large cotton textile county with many small and medium-sized enterprises, but it has a low level of generality and lacks core technologies. We must change the concept of development, adhere to science and technology and innovation, and seize the strategic opportunity of coordinated development of Beijing, Tianjin and Hebei to explore new areas.” Xia Jin The county party committee member Wang Chunli said.