Source: Yiwu sourcing agent Author: Helan Date: 2008-09-08
In a working conference of national textile industry two years ago, Yiwu was honored as "China Famous City of Seamless Knit Garments" by China National Textile and Apparel Council and China Knitting Industrial As sociation . From then on,Yiwu seamless knitting industry's clustering advantage as well as its whole brand image has been confirmed authoritatively .
Tao Jianwei, president of Yiwu Seamless Weaving Industrial Association, said,after years of development,Yiwu has built up a supporting product system or an industrial cluster with hosiery, knit goods and seamless garments as its core, as well as a relatively integrated industrial chain consisting of research & development, design,and various supporting services . With the development of the seamless knit products of the third-generation, its industrial chain is improving day by day . At present,in Yiwu,there are nearly 20 thousand employees in 150 seamless kit garment enterprises with 25 thousand manufacturing equipments of various kinds,of which over 3,000 are electronic jacquard machines at the advanced world level and over 6,000 are auxiliary equipments . The output of the city's seamless knit goods accounts for 80 percent of the country's total and 15
percent of the world's total . Currently, Yiwu's seamless knit garment industry produces over 80 million garments every
year,resulting in over 3 billion yuan of annual sales value,whose sales network reaches every part of the country and
whose products are distributed to more than 30 countries and regions in America, Europe and Southeast Asia . Due to their absolute predominance in the number of seamless knitting equipments and their excellent performance at home and abroad,Yiwu seamless knit goods enterprises emerged from the domestic competitive knit garment industry and became the largest distributing center and export base for seamless knit garments in the world .
As a newly-developed strong industry, Yiwu seamless knit garment industry has a short history,but owns high technology content in its equipments and products,and is remarkable in its industrial intensity and regional characteristics . According to the introduction by a local enterprise,seamless knitting is an industry based on design and technology, whose proportion of research & development costs is high compared with that of the traditional textile industry,which makes it extremely difficulty for any enterprise to monopolize the technology and resources . Therefore,to maintain the sound development of this industry,it is necessary to carry out effective integration and configuration over the industry,relevant technology,expertise and resources; it also demands professional management, cooperation and more mass effects . Industrial
chain without a certain degree of aggregation,or a high degree of aggregation accompanied by incomplete industrial chain,cannot possibly produce sustainable competitiveness . So,the optimization of industrial aggregation and industrial chain is of the utmost importance to Yiwu's regional economic development.
Yiwu Seamless Weaving Industrial Association was established during the rapid development of the local seamless knitting industry; in other words, it emerged as the times called . From the November of 2005 when the association was founded,Tao Jianwei shifted his role as an enterprise owner to the president of the association and channeled his energy into working for the association . He said, "For example,when the profits of the industry decrease,the enterprises may start a price war,which brings about the expanded scale of production and output but does no good to the benefits . A series of similar problems including the shortage of talents and the unfair talent competition all need the guidance and coordination from the association . As the president,I cannot just stay at this position without doing anything . I want to do some real work for the industry and enterprises,with industry self-discipline and fair competition as the ultimate priority ."
Yiwu is a market enjoying the lowest production factor price in global processing and manufacturing industry, whose competitive edge in the seamless knitting industry mainly comes from the environmental advantages . These market features lead to the myopic business strategies of many seamless knitting enterprises ,which hold that their advantages will always stay along with the increased output . On the contrary, this kind of cheap products not only cuts the profits but also brings about many negative effects . Therefore,the shortperiod prosperity only results from the opportunity instead of a successful strategy . Once the environment changes,the industry will be inevitably confronted with new problems and choices .
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