The year 2020 is a year of uncertainty in China’s silk industry. There was a sudden drop, and yet the turning point of innovation and change begun.
The industry fell to a decline but also saw a chance for recovery.
In 2021, they started actively innovating by embracing the technology.
Hence, it is worth looking forward to the future of the silk industry.
Under the new epidemic prevention and control situation, how should one reshape the silk industry pattern and revive market confidence?
How to innovate silk products to achieve high-quality development?
Every person engaged in the silk industry faces these problems.
Companies to deliver a bright report card
Since February, the silk industry has shown a return for 2020 one after another. Because of the epidemic, silk companies have taken the initiative to seek opportunities. Despite the crisis, their performance is also commendable.
In 2020, the total import and export volume of Guangdong Silk Textile Group Co., Ltd. increased by 58% year-on-year. The total export volume increased by 69% year-on-year, and the total profit increased by 31.5% year-on-year.
“The past year was unusual for all people. Under the challenges of the outbreak, our company has reformed and reorganized a small body. This is for secondary restructures and efficient mass transfer. We have also withstood hurdles and tests, perform security prevention and control despite the outbreak. There were powerful major reforms to promote those effective,” said Xiao Zhiping, chairman of Guangdong Silk Textile Group Co.
Guangdong Sili Group carried out the “double coordination” of economic development, reform, and restructuring under epidemic prevention and control. The silk industry see a total import and export volume to reach 1.829 billion US dollars for the year. With a year-on-year growth of 73.7% and the completion of the target task of 100.06%. As a result, it made positive contributions to stabilizing the foreign trade of Guangdong Sili Group.
Duan Binxin, Chairman of Guangdong Sili Group, said, “In 2020, Sili Group achieved phased results. But there are still problems and challenges to be solved. Weaknesses and shortcomings will be corrected immediately after reflection.”
The total import and export volume of Suhao Holding Group reached US $1.596 billion. With a year-on-year growth of 3.47%, the national average level of 1.5% and the average level of Jiangsu Province of 2.1% were better than the national intermediate level. Among them, the import volume increased by 55.61%.
Its operating revenue reached 17.799 billion yuan, up 1.59% year on year. As a result, the total profit was RMB 1.763 billion, up 9.93% year on year. The quality and efficiency indexes continued to rank first among the enterprises in Jiangsu Province.
Brand innovation operation has become a general trend
When epidemic prevention and control have become the “new normal,” the silk industry has either passively or actively accelerated their transformation. It is from their business model to their way of working. In addition to strengthening their brands, expediting innovation have been pushed into the spotlight.
“In the first half of 2020, we struggled amid chaos.
When cold winter is gone, the economy recovers. And there are a lot of things to do,” said Wang Chunhua, chairman of Jiangsu Huajia Holding Group Co, one of the leaders in silk industry.
“In terms of R&D and innovation, we will combine independent innovation with industry-university-research. We will also make full use of high-tech biotechnology and scientific research. Also, our company will strengthen and carry out high-tech R&D and innovation.
We have layout products at all levels of the whole silk industry chain for product development and category innovation. We also implement collaborative innovation and constantly break through the silk market’s existing older product category pattern.”
In terms of brand layout, we will constantly build and expand the brand effect of each port in the whole silk industry chain, from the middle to downstream. This is to complete the setup and optimization of the brand within the group and strengthen production of silk.
The brand is the embodiment of the core competitiveness of the silk industry. To strengthen the brand, we should meet the market demand and accelerate the speed of innovation and change.
For instance, Wasili Silk constantly strengthens the innovation of new business forms and new technologies. They continuously make up for technical shortcomings in key areas and tries their best to explore all possibilities in promoting industrial development.
In the research of new biological materials of silk protein, Wasili Silk has improved the extraction technology of small molecular silk protein by cooperating with production, education, and research. They do it by taking advantage of the characteristics of biological safety of mulberry silk, with no rejection by the human body. Consumers have well received the silk protein facial mask and skincare products developed by Wasili Silk.
In terms of artificial intelligence design, the system independently developed by Wasili can provide powerful computing power and creative ability. As a result, they can achieve massive pattern design in a short time and realize the interaction with consumers.
Tu Hongyan, chairman of Wanli Group, said that the building of a brand is not a matter that anyone can do overnight. It requires five elements: time accumulation, quantity accumulation, reputation, and public praise accumulation, cultural support, and sustainable innovation ability.
Digital transformation and upgrades, the full-dimensional transformation of talents, technologies, processes, management systems, and other aspects are essential improvements for the silk industry.
We will accelerate constructing a public service platform directly geared to the digital upgrading of traditional industries.
In terms of promoting the industrial chain upgrading of brand, we can learn from the practice of the “river chief system.” In addition, we will implement the “chain length system” of the consumer brand industrial chain and strengthen the precise service for all links of brand enterprises.
Preemptive planning layout improvements
In 2021, with the arrival of the vaccine, the global economy may see an accelerated recovery. However, the impact of the epidemic on human society is far from over.
To improve the silk industry in the “post-epidemic era,” the leaders said that for the subsequent development of the silk industry, we must work hard in the innovation capacity to achieve a high-quality result.
“The main idea is to develop confidence in 2021 by making silk and silk fabric perfect. The clothing supply chain competitiveness will be enhanced continuously. This is for a continuous burst of vitality and creativity. After that, the shortcomings, changes, breakthroughs, and risks are enough reason to gather courage and moving forward united,”
Jiaxin silk group chairman Zhou Guojian said.
Concerning the goal for the silk industry in 2021, Xiao Zhiping, chairman of Guangdong Silk Textile Group Co., Ltd., believes that intensifying the main business, seizing opportunities, and encouraging developments should be the top priorities. At the same time, we should accurately recognize innovations, respond scientifically and actively seek changes to make silk industry more successful.
While focusing on expansion and investment, we should focus on key areas and key points to promote the transformation and upgrading of enterprises.
Besides, we should also center on talents and mechanisms, implementation and effectiveness for practical results.
Ma, chairman of Anhui Jingjiu Silk Co., Ltd., said, “In the New Year, we will focus on the group’s 14th Five-Year Plan. This plan includes provisions, base promotion, middle drive, brand positioning. As we give action to the driving role of the Huashiyati brand, the whole industrial chain of the company enhances the brand value. We try our best to build Huashiyati high-end silk brand. In the market, to emancipate the mind, do a good job in the existing sales work. Above all, we should actively explore, find a new sales model, open up new sales channels.
Wang Chunhua put forward higher requirements for the development of Huajia Group in 2021. In terms of strengthening management, a systematic assessment system should be established to arouse employees’ enthusiasm and help employees and the enterprise improve their performance. The assessment must be fair, just, and equitable.
In the New Year, to pay attention to products, company development depends on quality. Because quality is the silk industry’s life, the company’s life depends on each employee’s responsibility and effectivity.
In addition, Huajia will also start developing new products such as microfiber, which puts forward higher quality requirements for the silk industry.
Careful project construction management will strengthen equipment maintenance and equipment transformation.
It is necessary to inspect more equipment. Assess and manage each maintenance worker if they are doing a good job in the equipment management system manual.
In improving the management of supply and marketing channels, we should do a good job in purchasing and selling cocoon collection.
For the silk industry, strengthening cocoon collection work and purchasing high-quality cocoons are priorities to boost white silk sales.
There is a necessity to strengthen the financial management system. Also, improve the financial cost standard system, regularly check the warehouse, implement the quarterly inventory system. In addition to strictly abiding by the requisition system, adopt the old while implementing the new system.