Textile material invisible champion: Growing fiber, fabric, accessories quality enterprise tour

After more than 40 years of development, China's textile industry is in a mature and fully competitive stage, and throughout the development of the global textile industry, we see that China's textile industry is in a new stage of transformation and upgrading, global expansion, and at the same time in the demand side, product competitiveness and supply chain response speed are increasingly becoming the key to brand success. Under the opportunities of the new era, China's textile manufacturing enterprises with high added value and strong competitiveness have broad space for future growth.

Shenzhou International: fabric clothing integration leader, deep binding top brands continue to grow

(1) History of development: forward-looking layout, continue to build core barriers, long-term leading the industry

Looking back on the 30 years since the company was founded, after the ups and downs of the industry, it has finally become a textile leader with profound barriers, and the road of Toray's rise has a similar place: persevere in the research and development of innovative clothing fabrics, timely cut into the best track, complete layout of industrial chain bases at home and abroad, improve automation efficiency, and deeply bound leading customers with core advantages are the main reasons for the company's success.

1. 1988-2005: Under the background of China's textile transfer, it occupied the leading position of integrated knitting suppliers

The company was founded in 1988, the current chairman Ma Jianrong's father Ma Baoxing served as the deputy director of two knitting factories, relying on senior industry technology and original resources to introduce technical team, positioning in the high-end clothing manufacturing field. Initially to undertake high-quality requirements and high-profit Japanese baby clothing orders, gradually build a reputation. In 1997, Uniqlo placed 350,000 large orders to the company, but it was required to be completed within 20 days, and Ma Jianrong decisively won and successfully delivered. In the following years, orders from Japanese customers such as UniQlo, Idu Jin, ITO Yokado and other brands increased significantly, and Shenzhou's output value increased rapidly from less than 100 million yuan in 1997 to 2.5 billion yuan in 2005.

2. 2006-2009: Correctly cut into the sports track and become a leading sports brand head supplier

In 2005, quotas were abolished among WTO members, and China's textile manufacturing was booming. Shenzhou chose to enter the sports industry, after rigorous assessment, one after another won Nike, Adidas, Puma and other head brand supply qualifications, from 2005 to 2009, sportswear accounted for 9% of revenue increased to 42%, product structure and geographical distribution further rationalized, despite the financial crisis, The company's capacity expansion is progressing smoothly.

3. 2010-2013: industry turmoil, layout of overseas integration base, deep binding of large customers

Rising labor costs have prompted brands to shift orders to Southeast Asia, while the domestic market has been affected by the brand inventory crisis. In the face of industry adjustment, the company continued to increase innovation and research and development and began to layout overseas. In 2012, the company achieved a breakthrough in the development and mass production of Nike Flyknit vamp, Flyknit is called the historic technology upgrade of sports shoes, Nike earned $650 million in half a year with this technology, 12 to 16 years Flyknit vamp orders in the company's revenue increased from 2% to 6%. Excellent fabric development ability makes the company obtain Nike priority supply right. In 2013, the company built a fabric base in Vietnam, and is committed to copying the integrated production model overseas.

4. 2014-2018: The overseas integrated base climbed rapidly, the efficiency was significantly improved, and the scale grew against the trend

China's garment export growth has gradually stalled, and Southeast Asia has shown cost and policy advantages. On the one hand, the company responds to cost pressure through research and development technology improvement, and on the other hand, quickly completes the climb of Vietnam fabric factory and the production climb of 10,000 garment factory, and still maintains an annual growth of 15% under the pressure of the industry. At the end of 2018, Vietnam fabric factory has undertaken 45% of the company's fabric supply, Southeast Asia's garment production capacity accounted for 25% of the company, Vietnam's newly built 10,000 factories increased to 80% of the domestic factory, efficient operation of the overseas integrated production base has been replicated successfully.

5. 2019 to date: Frequent trade frictions, accelerated overseas production capacity expansion, and maintained the lead

Global trade protectionism is on the rise, and Sino-US trade frictions are intensifying. The company's new round of downstream capacity expansion at home and abroad has entered the construction and production period. 21 H1, the company's fabric production capacity has reached 700 tons, clothing scale 70,000 people, of which 350 tons of overseas fabric production capacity, clothing about 34,000 people, accounting for 50% of the group, reaching a reasonable distribution at home and abroad. Looking forward to 2-3 years, the company will continue to build 200+ tons of fabric production capacity in Cambodia, the scale of 6,000 people Adi garment factory, and expand the new industrial park in Cambodia to 18,000 people. The company's production capacity also continues to grow with the improvement of production technology and efficiency. (Report source: Future Think Tank)