Innovation gains More Strengths

Innovation , is ahot word in 2oo7 for theChinese textile industry.Encountering theexport drawback, RMBappreciation, trade barrier,energy-saving and socialcompliance, Chinesetextile industry find outthat the innovation, alongwith the advancing ofproduction technology,branding strategy andscientific management,could improve itscompetitiveness indomestic and overseasmarkets. The ChinaTextile InnovationConference, held in Nov.2oo7, could be definedas an annual generalsummary, for the textileenterprises in Chinaas well as the wholeindustry, to acknowledgewhat they have achieved,and to know what to do inthe future.

On Oct. 3oth- Nov. 1st, the ChinaTextile Innovation Conference, organizedby the China National Textile & ApparelCouncil, and co-organized by the ChinaTextile Information Center,China Textile DevelopmentCenter, and the Sub-Councilof Textile Industry of CCPIT,was held successfully inShanghai. Oriented withthe purpose of promotingindustrial innovation, andwith the theme of 'Resource,Environmental-protectionand Health', this conferenceprovided a platform to discusshow to realize the sustainableand healthy developmentfor the textile industry distinctly.Representatives from the government,textile industry, enterprises, and expertsfrom the field of economy, finance andmanagement were invited to take part inthe conference and share their views andexperience on the 'topic'.

innovation andTexlile

During this conference, Mr. DuYuzhou, the president of China NationalTextile & Apparel Council made akey-note presentation. He reviewedthe current situation and developmenttrend of textile industry in recent years,and expounded the way to enhance thetechnology and brand contribution rateand realize the transfer of economicgrowth mode, by utilizing the superiorityof complete industrial chain, integratingresource, and emphasizing integrationand value innovation. He pointed outthat, for the sustainable development inChina, textile industry should set twoinnovation key-points, and realize twobreakthroughs:

~ High and new technology is thekey to reconstruct the traditional textileindustry, to advance technical progress,leading to a breakthrough realized by theincreasing industrial contribution rate.Oriented with the technical advancement,the whole industry should strengthenthe organization of innovation system,including the integrated, longitudinalas well as the transverse organizations.Besides, the research on application andadvanced technology should also beencouraged and supported. Meanwhile,the public technical service, and thepopularization of newly-developedscientific achievement should beenhanced, which will be an importantelement to promote the industrialtechnical advancement, especially forthose 135 industrial clusters;

~ Brand is one of the most essential

resources for the development of textileindustry, so that the whole industryshould make effort to improve thecompetitiveness of brand, and theenterprises should raise and develop theirown brand independently. The brandcontribution rate means lot to increasethe industrial value-added, to improvethe international competitiveness andindustrial image obviously. While theindustry are focusing on thebrand research and valueinnovation, the integrationof traditional textile industryand modern innovationcould not be ignored:integration innovation is notonly the integration of theupstream and downstreamof the industrial chain, orthe transverse integration oftextile-related industries, butalso, what is more important,is the integration withcultural innovation industry. Moreover,the integration and inosculation ofthe cultural elements inner or outerthe textile industries are helpful andnecessary to reach and realize the valueof innovation integration during thewhole industrial chain, which couldbring an unimaginable and marvelouseffect to the industrial upgrading.

As Mr. Du figured out that the keywords of the industrial integrationinnovation in China should beinnovation, cooperation, and win-win,Of them, three transformations of theindustrial development mode shouldbe emphasized: firstly, the shift fromlabor-intensive mode to the capitalintensive mode; secondly, the shit~ fromproduct innovation to industrial chainintegration innovation; thirdly, the shiftfrom the price-factor competition to thecompetition of non-price factors.

As the conference declared,innovation is the theme of this era, thesoul for the industrial development, andthe key for the sustainable developmentof textile enterprises, during theconference, the CNTAC set the 'ChinaNational Textile & Apparel CouncilProduct Development & ContributionAward' and the 'Fabrics China CreationCompetition' specially, and awardedthe enterprises that emerged as thetextile industrial innovation pioneers(See the Awarded Enterprises NameLists in Sheet I). According to Mr. Du,the whole industry should strengthenthe popularization of the advancedexperience and innovation mode ofthose awarded textile enterprises, whichcould become a valuable wealth of thetextile industry, and promote the wholeindustry to become a real innovation,energy-saving and environmental-friendly industry markedly. Furthermore,Mr. Sun Ruizhe, the vice president ofthe CNTAC and president of the ChinaTextile Information Center, expressed hisadmiration to those awarded enterprisesand fabric designers.

Mr. Sun believed: "we havealready paid more attention to the pricecompetition. However, the next step ofour works in the future is to focus on thecompetition of those non-price factors,which are quality, intellectual propertyright, social compliance and fair tradeenvironment. Basing on this target, we

should establish a scientific developmentconcept that fits the development trendof the whole industry, which requires usto emphasize technical contribution rate.the brand contribution rate and industrialself discipline; besides, we should alsoimprove the industrial facilities, providemore public service, and raise the imageof brand nationally. For an enterprise,its final purpose is not only to becomea product and service provider, but alsoto be a value creator." According to Mr.Sun, in order to bea successful valuecreator, these fouraspects the industryshould pay attentionto:

Firstly, therelationship betweenthe whole industryand the social demandshould be noted. Theincreasing demandof three giant fieldsof textile industry-garment, hometextile, industrial textile, is a sign ofthe development of the whole textileindustry. As for industry and lifestyle,industry is not only a product produceror providers, but also could help tocreate a healthy lifestyle to lead socialconsumption;

Secondly, pay more attentionto the relation between industry andcapital. Recently, so many textile andgarment enterprises are searching for afurther operation in the capital market,for they believed that the concentrationof industrial production, scale andtechnical investment could be enhancedsignificantly as the capital entering thetextile industry.

Thirdly, relation between industryand the ecological environment. Thedispose of terminal pollution is only oneof the methods to protect the environmentfor those textile enterprises. What ismore, the cycle economy, which could bedefined as the resource and raw material,the process of economic production andthe product and sustainable consumptionand so On, should also be emphasized.

Fourthly, the relationship betweenindustry and commerce could notbe ignored. How to establish a goodcommercial development mode? Tosolve this question you could find theway to upgrade from a 'good' enterpriseto 'outstanding' enterprise. As for thedomestic consumption market, brand-orientated is the way; as for the overseasconsumption market, service-orientatewill be our target.

Textile InnovationPioneers

The 'China National Textile &Apparel Council Product Development& Contribution Award', oriented withthe core of product innovation andenterprises brand-value promotion.with two important indexes of technicalcontribution rate and brand contributionrate, highlighted the following aspectson: technical innovation, marketinginnovatiou, cultural innovation.environmental protection innovation andindustrial chain integration innovation.Of them, the comparison mainlyconsisted of two parts: one is productdevelopment, and the other is innovationmanagement.

Product Development: foundedon the basic social demand andlifestyle, the enterprise shouldpay more attention to the cultural

transmission, technical innovation,the products they design and produceshould be completed independently andmeet the need of market; the appraisalconsidered the elements of market-orientation, technical innovation,energy-saving and environmental-friendly, cultural transmission, benefit-producing, and so on;

Innovation Management: theenterprises should emphasize thesustainable development, settle theproduct development strategy andmanagement schedule, should carryout brand construction, marketingpromotion, quality management andhuman resource construction actively,realize industrial chain integrationinnovation by integrating resource, andimprove the market competitivenesscomprehensively.

According to organization committee,there were 23 enterprises awarded theprize. As the Mr. Sun Ruizhe expressed:"those 23 enterprises has made greatachievement in their own fields. Thisaward was not a purpose; however, itis an important tool. On one aspect.it affirms the contribution that thoseenterprises did on product developmentdefinitely: more over, it also gives thetextile industry a signal, or a direction --what the enterprises should do during theprocess of product development."Technical Innovation:Key for development

Shandong Helon Co., Ltd, ShandongDemian Group Co., Ltd, ShandongTongda Island New Materials Co.,Ltd, Anhui Huamao Group Co., Ltd,Fengzhu Textiles Joint-stock Co., Ltd,Jiangsu Huajia Investment Group,Zhejiang Tiansheng Stock Co, Ltd, thespecific personal characteristics of eachenterprise made themselves superioramong other enterprises in the field oftechnical innovation outstandingly:

Jiangsu Huajia Investment Groupfocuses on the integration of production,learn and research, which is helpful topromoting the technical innovation andbrand advancement;

Fengzhu Textiles Joint-stockCo, Ltd emphasizes the constructionof information system and qualitymanagement system, providingstrong support to improving productcompetitiveness in market;

Shandong Helon Co. Ltdspecializes in the R&D and applicationof regenerated cellulose fiber withthe characteristics of anti-bacterial,environmental protection, high-tenacity,differential and functionak of which themarket rate has already reached 95.2%,enhancing the core competitiveness ofenterprise significantly;

Oriented with the strategy ofHigh Value-added, High TechnicalContent, High Quality, High-endProducts, Low Cost', Anhui HuamaoGroup pays attention to the constructionof informatization, realizing a net profitof 28.87%. ranking at the front placesamong other textile enterprises;

'Equipment, Resource, Technique,Technology, and Human Resource' arefive essential elements for ZhejiangTiansheng, providing favorable guaranteefor production innovation evidently;

With clear product developmentorientation, applying with the coretechnology strategy. Shandong Tongda

quickly formed its own productcollections, and established a soundlinkage between production andmarketing.

Marketing Innovation:to explore new island

Oriented with market demand,New Wide Group utilized marketingcombination strategy, integrating theproduct development and organizationmode, and improving the research andservice of products independently;

EVE Enterprises Group appliedits new sensibility marketing strategyto gain more consumption support,raising its market share and brand valueobviously;

With the orientation of being aplatform of industrial development, HighFashion Silk (Zhejiang) Co., Ltd madeeffort to do research and release on thenewest fashion trend of silk products,and established an integrated innovationplatform for the marketing platform andconsumption network;

Jiangsu Danmao Textile Co.,Ltd paid more attention to the accurateorientation of differential products,rather than to enlarge its productionscale; recently, this enterprise issuperior for its advanced fabrics forwomen's wear;

Wujiang Fuhua Weaving Co.,Ltd is famous for the R&D of its nylonproducts, which helps itself to find theright way to develop in the diversifiedproduct markets;

Focusing on the integration ofup/downstream of industrial chain, FuJian Zhonghe Co., Ltd established a non-gap supply operation system, and a newR&D system for product production.

Cultural Innovation: Essentials of brand

The enterprises that followedgave us a sample on how to improvethe core competitiveness of brand bystrengthening the cultural innovation andenterprise integration.

Zhejiang Grace Textile Group hasachieved progress in the brand relatedfields of quality construction, imageconstruction, cultural construction andso on;

Guangzhou Mixmind Art &Design Co., Ltd becomes famousin domestic market as its brand'EXCEPTION' is well-known ininternational fashion runway. Thisgarment enterprise chooses designer-brand as its development strategy, it issuccessful, and this is no doubt that,which promotes the combination ofculture and market popularization,realizing a highly cultural connotationof those garments;

The training system and humanresource cultivation system that KedaWoolen Textile Co., Ltd establishedare scientific and operation markedly,proving a formation of high-qualityhuman resource team gradually;

Green Innovation:Guarantee for sustainable &healthy development

Environment protection andsustainable development are hot issuesin recent years, which require theenterprises not only emphasize this greentheory during the process of productorientation and production, but alsowould follow out during managementand marketing.

Green textiles are the mainproducts for Shanxi Greenland TextilesCo. Ltd. the idea of environmentalfriendly is emphasized and supervised

during the process of production andoperation;

The characteristics of NatongDadong Co. Ltd are cleannessproduction and terminal disposaltechnique. Its green management andmarketing strategy makes itself stand outamong others.

Industrial Chain IntegrationInnovation:Target for industrialdevelopment

Shandong Ruyi Group hasalready finished its product integrationinnovation of the up/down industrialchain transversely and longitudinally.Besides, the enterprise now hasextended itself to the consumptionterminal: it defines itself not only as aproduction enterprise, but also a serviceenterprise providing product, serviceand lifestyle guidance to the consumersdirectly;

Jiangsu Goldsun Home TextilesCo., Ltd, recently, with its corecompetitiveness of design innovationability, has realized its service-oriented extension in its exportmarkets, by applying the new strategyof innovation design and integrationmarketing;

As LUTHAI Textile Co.,Ltd actively integrated with theupstream industry tightly, withsufficient upstream resource and thewin-win cooperated developmentmode, the products it producedgain much more competitivenessconfronting with other products inmarket;

Jiangsu China Oriental SilkMarket is the new model of industrialclusters integrating specialized marketwith enterprises clusters. The large-scaled industrial market, along with theresearch and release of fashion trend,and cultivation of special talents, andso on, Jiangsu China Oriental SilkMarket has already being outstandingamong other industrial clusters in China,with its predominant achievement andprogress.