Abstract: In the past week, a news about "Yiwu's largest textile factory officially entered bankruptcy proceedings" spread on the Internet platform, causing widespread attention from the outside world.According to industry news, the Yiwu Municipal Court previously issued an announcement saying that it had ruled to accept the bankruptcy liquidation case of Yiwu Feiteng Textile on November 20, 2023 according to the application of Zhejiang Binwang Paper. Since then, this 27-year-old textile factory in Yiwu, once regarded as the largest textile factory in Yiwu, has officially entered the countdown to "closure".
According to public information, Feiteng Textile Factory was registered in Yiwu in 1996 and has been in operation for 27 years. Over the past 27 years, Feiteng Textile Factory has been committed to the production and sales of cotton and tape yarn, with steady development, standardized management and advanced technology, and was once regarded as an industry benchmark. There is a set of data show that Feiteng Textile Factory has 50,000 spindles of ring spinning at its peak, the factory covers an area of more than 40,000 square meters, more than 800 textile workers, and has an operating income of more than 100 million yuan for many years, making it the largest textile factory in Yiwu. Over the past 20 years, Feiteng Textile Factory has not only promoted the local economic development, but also provided thousands of jobs, playing a role in maintaining local social stability.
Despite this, in the face of the bleak situation in the market, the largest textile factory in Yiwu is still under great pressure, and finally came to the situation of bankruptcy, which is really embarrassing.
We know that China is not only the world's largest textile producer, but also the largest exporter of textile products, with a global leading position in terms of output and export volume. Since the reform and opening up, China's textile industry has gradually formed a complete industrial chain, covering from spinning, weaving, printing and dyeing, garment manufacturing to textile machinery, chemical fibers and other links, which enables China to achieve the whole process of production from raw materials to finished products, and has a strong industrial agglomeration effect, so as to have a competitive advantage in the international market. However, with the transformation of the internal and external situation, China's textile industry is also facing some challenges, such as environmental pollution, rising labor costs, and international frictions.
In the past few years, factors such as high housing prices and environmental protection in China have made textile enterprises face cost pressure, and the original low-cost advantage is now being lost. As a traditional manufacturing industry, the textile industry is characterized by labor-intensive, high energy consumption, low output, low profits, and the cost of ** means that the original very low profits are "threatened", and even losses will occur. Against this backdrop, some textile companies have had to make new choices by shutting down their factories or relocating to lower-cost locations.
In addition to rising costs, affected by international geopolitical conflicts, orders in the textile field have begun to migrate to emerging manufacturing countries, among which Laos, Cambodia, Bangladesh and other Southeast Asian countries are undertaking textile production capacity from Chinese mainland at a speed visible to the naked eye.
It is important to note that the above factors are all external influences, and in fact, internal influences cannot be ignored. For many textile enterprises, the successful model of the past is still followed, but the past model is not suitable for the current competitive environment. Therefore, actively innovating, developing new business models, and developing diversified markets have become compulsory courses for textile enterprises, and only in this way can they be invincible in the future competition.
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