The Chinese textile industry in Italy is facing a recession and urgently needs innovation and development

Italy’s “European Times” published an article on May 3, saying that if Chinese businessmen in Italy cannot break out of the existing business framework and seek innovation and change, external pressure will further reduce the living space of Chinese businessmen. Although they once had the glory of yesterday, if they do not deeply consider the future development of the entire industry, do not seek breakthroughs and innovations in their own production and marketing models, and do not effectively integrate marketing channels, the entire overseas Chinese textile industry is not far away from decline. .
​Excerpts from the article are as follows:
The Italian Chinese textile industry, catering industry, and leather industry constitute the three pillars of the Chinese real economy. This industrial structure is very similar to France and Spain. The concentration of European Chinese in these three industries is not accidental, but is determined by the characteristics of their industries: first, the entry threshold is low and the capital requirements are small; second, the profits are relatively considerable; third, the labor intensity of industry employees is high, Long work time. Chinese people have many innate advantages in their character. If they can better grasp these characteristics, they will gradually occupy a place in these industries.
The Chinese textile industry in Italy started in the 1980s and began to rise in the late 1990s. Especially in recent years, it has gradually ushered in a heyday.
On the one hand, this is due to the increasing number of Chinese in Italy year by year, the growth of second and third generation immigrants, and the growing number of workers with skilled skills, which ensures the stability of the number of employees; on the other hand, the Chinese who started in the 1980s, as of Today, after more than ten or twenty years of hard work, I have accumulated my first pot of gold, which ensures the source of funds for a large number of small and medium-sized enterprises; at the same time, due to the development of the Chinese, their family relationships and nepotism play a vital role. The early development of the same industry enabled the entire family to accumulate deep experience in the same industry. Therefore, the entire family is often engaged in the same industry and this is also due to the sharing of this deep experience; the Chinese generally have the “prefer to cook chicken” With the personality of “head, not tail”, they all choose to start their own businesses on the premise of having a certain amount of capital, which leads to an increasing number of garment factories and tailoring companies. This is also due to the collective character of the Chinese. In addition, “hardworking and hardworking” is a common advantage of the Chinese, and it is fully displayed in the textile industry, an industry with high labor intensity and long working hours. It is precisely because of this that Chinese businessmen were able to gradually replace the Italians, French, Jews, etc. who were originally in this industry.
It is precisely because of the above reasons that Chinese businessmen have ushered in the glory of occupying a place in the Italian textile industry. But behind the glory, we also need to see calmly that the situation is actually not optimistic.
The biggest advantage of Huashang Textile Industry in the past was that employees could work long hours and with high intensity at cheap wages. With its low cost and low price, we can respond to customer needs efficiently. It is precisely with this advantage that it beats the Italians in the original market. But today, the Italians and the French have withdrawn from the mid- to low-end ready-made clothing market, leaving it to the Chinese business community. In this market, Chinese businessmen now face competition from their own compatriots. And because Chinese businessmen face limited industry choices, more and more new Chinese businessmen are being added. The original advantages of low price and high efficiency no longer exist. Insufficient design capabilities, lack of brand building, lack of large-scale operations, etc., all that is left to Chinese businessmen is a price war.
In the past ten or twenty years of rapid development of Chinese businessmen, it was also a period of rapid development of China’s domestic economy. The huge domestic production capacity and the export of low-cost raw materials also benefited Chinese businessmen a lot. However, since 2008, affected by the overall decline of the world economy, the domestic economy has also been under tremendous pressure. At the same time, the exchange rate of RMB against the Euro has changed significantly, as well as domestic labor costs have increased, and the price of raw materials has risen sharply, causing the prices of various clothing fabrics and accessories used by Chinese businessmen to fluctuate significantly. The rising cost of domestically exported textile raw materials has become an unavoidable problem for Chinese businessmen.
The textile production capacity of Italian Chinese businessmen is expanding day by day, but the market they face is facing many uncertain factors. The textiles of Italian Chinese businessmen are mainly positioned in the mid- to low-end range, and their marketing systems cover France, Spain, the Netherlands, Greece, Poland and other places. However, Europe’s economic growth has been sluggish for many years, and the economic crisis that began in 2008 has made it even worse for European residents. Although the high-quality and low-priced mid-to-low-end clothing provided by Chinese businessmen is suitable for the European public’s mentality of saving money at this time. However, due to the uncertainty about the duration of the crisis, reducing consumption and cutting expenditures will be problems that most European families have to face. Therefore, although the decline in this part of demand is limited, the growth lacks support.
In summary, on the one hand, the original advantages of Italian Chinese businessmen in the textile industry are no longer obvious, and the increasing number of Chinese businessmen has intensified competition; on the other hand, the cost of raw materials for enterprises has increased, and the growth of original market demand has been weak. Faced with these unfavorable factors, if Chinese businessmen cannot break out of the existing business framework and seek innovation and change, external pressure will further compress the living space of Chinese businessmen. Although they once had the glory of yesterday, if they do not consider the future of the entire industry in depth,If we do not seek breakthroughs and innovations in our own production and marketing models, and do not effectively integrate marketing channels, the entire overseas Chinese textile industry is not far away from recession.