Sun Ruizhe: Using live broadcast e-commerce as a breakthrough to systematically promote the digital transformation of the textile and apparel industry
On June 26, the second “626 Chinese Clothing Brand Live Broadcast Day” was held in Xiping County, Henan Province. Sun Ruizhe, President of ChinaTextile Industry Federation, delivered a speech. The original text of the speech is published here for the benefit of readers.
Speech at the 2021 China Clothing Brand Live Broadcast Conference and Digital Economy Empowerment Industry Development Summit Forum
Chairman of China Textile and Apparel Federation Sun Ruizhe
June 26, 2021
This year is the first year of the “14th Five-Year Plan”, and China has embarked on a new journey to comprehensively build a modern socialist country. Based on the new development stage, China’s textile and apparel industry is becoming the backbone of promoting regional highquality development and creating high-quality life for the people.
The role of the textile and clothing industry is reflected in several aspects:
First, it is an important engine for building a new modern industrial system. Cotton, wool, linen, petroleum, coal, trees, shells, straw, etc. are all textile fiber raw materials, which can eventually be turned into a piece of clothing. The industry connects the primary, secondary, and tertiary industries and is a combination of material innovation, design innovation, process innovation, and equipment innovation. Highly integrated innovation. Extending from the manufacturing economy to the creative economy and service economy, and transforming from the brown economy to the green economy and the blue economy, the industry is promoting the reengineering of the industrial base and the improvement of the modernization level of the industrial chain.
Second, it is an important support to meet the new needs of people’s livelihood and well-being. From meeting material needs to meeting spiritual needs, from improving the quality of life to improving the quality of life, and from promoting consumption upgrading to promoting industrial upgrading, the industry continues to create and meet people’s needs for a better life. The industry directly affects the employment and income of more than 20 million workers, drives the innovative development of other industries and new jobs, and is related to the people’s ability to meet the needs of a better life.
Third, it is an important carrier for building a new pattern of regional development. The center of gravity of the textile and apparel industry highly overlaps with the center of economic development, and towns are the main spatial carriers of textile and apparel industrial clusters. The agglomeration development of the industry and inter-regional linkage will help consolidate the results of poverty alleviation and achieve comprehensive rural revitalization. It will help promote the new urbanization construction with the county economy as the core and help form an urban agglomeration as the core and surrounding towns. Coordinated development of spatial pattern.
Currently, as a common form of the global economy, the digital economy is changing production methods, organizational methods, innovation methods, and governance methods in all scenarios. From digital industrialization to industrial digitization, the digital economy has been deeply integrated with the textile and apparel industry, becoming a new driving force for high-quality development of the industry. The role of the digital economy is reflected in several aspects:
First, the digital economy is shaping more efficient industrial supply. Data is deeply integrated into the industrial value chain, driving industry tool updates and organizational restructuring. By eliminating information asymmetry, the synergy and coupling between the upstream and downstream of the industrial chain are improved, supply and demand are matched in a timely manner, and production factors achieve optimal allocation and efficient circulation.
Second, the digital economy is driving greater market integration. Mobile and ubiquitous networks break the limitations of time and space and connect more market entities with business scenarios. From overseas markets to rural markets, from long-tail markets to community markets, the market space is constantly expanding, the industrial division of labor is constantly being refined, and economies of scope and economies of scale have been highly unified.
Thirdly, the digital economy is giving rise to more dimensional business format overlays. The deep participation of consumers makes adaptive innovation the norm, and products become a process and the starting point of services. The platform-based and ecological characteristics of the digital economy have accelerated the penetration of industrial entities and content, the deep integration of manufacturing and services, and the deep integration of virtual and physical entities.
As an important form of digital economy, live broadcaste-commerce integrates content economy and e-commerce and is an important outlet for industrial development. According to statistics, from 2016 to 2019, the average annual market size growth rate of China’s live broadcast e-commerce remained above 200%. In 2020, the number of e-commerce live broadcast users has reached 388 million, of which 66.2% are users who purchase goods through live broadcast. Clothing products are the category with the largest transaction volume in live streaming, and textiles and clothing accounted for 32% of Taobao’s live streaming e-commerce in 2020. Live streaming e-commerce is becoming an important way for the apparel industry to promote high-quality development and trigger new consumption.
Henan is a major economic, populous and industrial province in my country. The clothing industry is distributed in all prefectures, cities and counties and has a good foundation. In recent years, in the context of implementing major national strategies such as ecological protection and high-quality development in the Yellow River Basin and promoting the rise of the central region, Henan has taken on and developed the textile and garment industry from a high starting point. A number of characteristic industrial clusters have sprung up in Zhengzhou, Zhumadian, Xinxiang and Zhoukou. Taking the opportunity of building a national big data comprehensive pilot zone, the Henan Provincial Party Committee and Provincial Government are striving to build a digital Henan and promote the deep integration of the digital economy and the textile and clothing industry.��Take the development of live broadcast e-commerce as an important work direction. The holding of activities and forums related to China Clothing Brand Live Broadcast Day Xiping Station is an important measure to promote the implementation of relevant work under the new stage and new pattern. The event fully reflects the responsibility of “the people’s government serves the people, and the people’s livelihood industry promotes people’s livelihood” and will surely promote the realization of “the digital economy promotes the economy, and brand live broadcasts build brands”.
The national “14th Five-Year Plan” will “accelerate digital development and build a digital China” into a separate chapter, and for the first time proposes a new indicator of the proportion of the added value of the core industries of the digital economy in GDP, clarifying the goal of reaching 10% by 2025. This fully highlights the special importance and strategic significance of developing the digital economy. Use opportunities to gain momentum and lead from point to point. Taking the opportunity of the forum, I will use live broadcast e-commerce as a breakthrough and promote the digital transformation of the industry around the system. I would like to put forward four ideas and suggestions.
First, we must exchange space for innovation and promote high-quality circulation in internal and external markets. Based on the strategic basis of domestic demand, with characteristic industries as the core, we will build a vertical industrial e-commerce ecosystem. Develop new models and new business formats such as live streaming e-commerce and social e-commerce, and expand new fields and new markets such as cross-border e-commerce and rural e-commerce. Promote scenario innovation and transform data elements into market value and customer value.
Second, we must promote supply through consumption and achieve a high-level balance between supply and demand. Driven by innovation on the consumer side, we will accelerate the formation of a data-driven flexible supply system. Apply common basic technologies such as AI, blockchain, and VR to drive the optimization and reengineering of process processes and business models. Improve new infrastructure such as the industrial Internet, guide enterprises to “go to the cloud and use data to empower intelligence”, and promote the collaborative transformation of the entire industry chain.
Third, we must use data to strengthen management and promote a high-efficiency ratio of input and output. Focusing on the goal of carbon neutrality, we integrate the entire industry chain of data to promote green management of the entire product life cycle. Through the reshaping of flexible production, circular economy and other models, precise control of input and output and efficient use of resources can be achieved. Promote the transparency and greenness of the supply chain.
Fourth, we must use the platform to gather traffic and promote the high-level development of regional brands. Use live e-commerce and social platforms as entry points to present the beauty of products, enterprises and regions in a three-dimensional, comprehensive and true way. Strengthen content innovation and interactive experience, tell brand stories well, and accelerate the formation of a brand ecosystem in which manufacturing brands, consumer brands, and regional brands empower each other.
“Time waits for no one, but everything is new again.” The development of the digital economy provides strategic opportunities and a window of time for the industry to develop with higher quality. Only by seizing opportunities can you win the future. Let us be pragmatic and seize the day!
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