After the 2010 China Textile Innovation Conference concluded, demand and innovation became central topics in the apparel industry. To gain deeper insights, the China Garment Reporter spoke with Sun Ruizhe, Vice Chairman of the China Textile Industry Association.
Q: What role do you think the "rich people" target proposed in the "Twelfth Five-Year Plan" will play for the apparel industry?
Sun Ruizhe: According to data, China’s capital formation rate increased from around 32% in the early 1980s to 46.8% in 2009, while the final consumption rate dropped from about 67% to 48.6%. This imbalance in income distribution has limited consumer spending power. In 2009, urban residents spent 1,284 yuan on clothing, while rural residents only spent 232 yuan—nearly a five-fold difference. The "rich people" goal aims to boost overall consumption and create a more balanced market between urban and rural areas, benefiting both textile and apparel sectors.
The textile and apparel industry is deeply connected to daily life. It's not just an industry with global competitive advantages, but also a key driver for improving quality of life and promoting sustainable living. In the future, it should become a strategic emerging industry and a major force in the fashion sector.
Q: How does domestic demand influence the development of the apparel industry?
Sun Ruizhe: Domestic demand is essential for economic growth. For example, developed countries like the U.S. and developing nations like India have domestic consumption rates exceeding 92% and 88%, respectively, compared to China’s 72.8% in 2008. As the economy evolves, domestic demand must grow. In recent years, sales of large textile and garment companies in China have risen steadily, reaching nearly 82% this year.
Q: How should we understand demand-driven industrial innovation?
Sun Ruizhe: To implement a demand-driven model, innovation must focus on technology, talent, branding, and sustainability. First, accelerate green and low-carbon technologies. Second, invest in human resources rather than just quantity. Third, strengthen brand value and move away from price competition. Fourth, promote sustainable practices through energy efficiency and new technologies.
Q: What is the ultimate goal of industrial innovation?
Sun Ruizhe: The goal is to enhance industry competitiveness, improve industrial structure, and gain control over the global value chain. This involves building standard-setting power and fashion influence, which requires integrated efforts in technology, talent, branding, and sustainability.
China’s per capita income surpassing $3,000 marks a shift in consumer behavior. With more people entering the middle class, demand for branded products is rising. This transition presents new opportunities for the textile and apparel industry.
Despite challenges like rising raw material costs and labor expenses, the industry continues to grow, driven by strong domestic demand. In the first three quarters of 2010, apparel retail sales rose by 85%, with a 12.3% increase in the third quarter alone.
Consumption in second- and third-tier cities is growing rapidly, and rural markets are also showing significant potential. As farmers’ incomes rise, their clothing preferences are shifting toward style and quality.
Online shopping is also becoming a major trend. In 2010, 70.8% of urban women shopped online, up from 42.3% the previous year. E-commerce is expected to grow exponentially as internet penetration increases.
With over 420 million internet users, China is poised for explosive e-commerce growth. Apparel e-commerce is set to experience a geometric progression in the coming years, driven by a vast and evolving consumer base.
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