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Exposition of the 14th 5-year Plan for Sewing Market Part I

From:Date:2021/04/29 15:53:51

Stepping into the starting year of the 14th five-year plan, China Sewing Machinery Association has issued the Market Work Planning for Sewing Machinery Industry in China during the 14th Five-year Plan (hereinafter referred to as the Market Work Planning) following national 14th five-year plan and the directions of industrial high-quality development. Of the development paths devised by CSMA for the 14th five-year plan, it's the top-level design for market related activities, and it's a task with top priority that has been put forward separately in such field for the first time.

Why publish the market work planning during the 14th five-year plan? What's the background, key targets, and major development direction? How to provide guidance to such planning? Practitioners in sewing machinery industry have been in desperate pursuit of answers. Now, let's go through them one after another.

I Context

Major elements of industrial development, for instance, satisfaction of market demand, maintenance of market competition, establishment and preservation of market order, have always been listed into all the previous five-year plans as key tasks, and it is the first time that market work planning has been formulated separately.

Yang Xiaojing, Deputy Director-General of China Sewing Machinery Association, and Director of Market Work Council, noted that from the perspective of national strategy, our country, at the closure of the 13th five-year plan and the opening of the 14th one, is transitioning from building a modestly prosperous society in all aspects to substantially realizing the socialist modernization and the first centenary goal, and is faced with significant opportunities to embark on a new journey of socialist modernization and power enabling. The outline of the 14th national five-year plan has mentioned the word of market 46 times, and issues definite directives on "speeding up the development of modern service industry, enhancing the professional extent of manufacture-wise service and its expansion into high-end value-chain, facilitating various leading market players to provide services, and boosting the complete integration of modern services with advanced manufacturing. It has also placed an emphasis on building a resilient domestic market, figuring out a novel development route, consistently implementing the opening up policy in larger scale and deeper level, promoting international cooperation and striving for win-win relying on the advantages of a huge domestic market; all in all, market related work will play an indispensable part in making breakthroughs in future development."

From the industrial perspective, it's a key period as well where the sewing machinery industry in China pursues for its inclusion into manufacture powers after setting a solid foundation. In the coming five years, China's sewing machinery industry will march with full strength towards phase-two goals set by the power strategy, i.e. "capable of meeting market demands, guiding the market and delivering innovations, further consolidating its first-tier status among international counterparts, and fulfilling the transition from a manufacture giant to a manufacture power." Against the backdrop of unprecedented new tasks and stages, and such a change that has never been seen in a century, it's the matter of how to handle the transitional period and prepare the plan for the following five years that fast-tracks the publication of the 14th five-year plan for sewing markets.

II Content

The market work council of CSMA has initiated the preparation of the 14th five-year plan in the first half of 2020, and eventually made it public during the annual industrial conference held on Dec 4, 2020 after feedbacks collection, revision, and review.

Drawn up in compliance with the High-quality Development Guidelines for the Sewing Machinery Industry during the 14th Five-year Plan and Sewing Machinery Manufacture Power Strategy, it states the fundamental principles and guidelines for the development of domestic and foreign sewing machinery trading in the coming five years, defines the strategic goals, main tasks and important measures of market development, for the purpose of accelerating the transformation and upgrade of trading mode, improving commercial services, and boosting enterprises' going abroad; it also puts forward the requirements of considering the new growth stage, practicing the new belief, constructing a new pattern, and stimulating high-quality development.

III Opportunities and Challenges

The 14th five-year is the essential opportunity to set off on a new journey of socialist modernization, ease the economic transformation and upgrade, and render high-quality development. Meanwhile, the market is blessed with strategic openings to take off, but faced with increasing difficulties and latent risks, revealed Yang Xiaojing.

Globally, situations like economic pattern, innovation landscape, trading mode, global governance are complicated and volatile, and the time of foreign capital or export-driven growth has long gone. The production cost has risen indirectly due to the fact that the threshold for utilizing international resources becomes higher, and the green technical barrier causes the decline in the export category and amount of manufactured goods. Phenomenon like trade protectionism, de-globalization has emerged, the multi-lateral commercial mechanism has been dealt a heavy blow; moreover, China's manufacture industry will be confronted with tough challenges in terms of lower barrier to entry and tariff rate, protection of intellectual property right, and expansion of opening up policy.

Regarding domestic situation, the principal contradiction in China has changed from "the discrepancy between people's increasing demand for material culture and backward social production" to "the disparity between people's growing demand for prosperous lives and unbalanced and incomplete development". The 14th five-year plan, following the baseline of "establishing in a timely manner a new development scheme in which the domestic and foreign circulation complement each other with domestic circulation as the focal point", is aimed to revamp related policies and regulations, ignite the innovation potential, reinforce the industrial capacity and optimize the industrial structure.

In terms of industrial application, the sales of global apparel retailing has grown at an average rate of 4.2% over the past five years; with a national output of 43.3 billion pieces, provinces in mid-west China including Anhui, Hu'nan, Hubei, He'nan have gradually shown their growth potentials. The bag and suitcase industry in China has created an annual output of 210 billion CNY with a yearly growth rate of 9%; the shoe-making industry, 13.4 billion pairs, 9%; and the upholstered furniture industry, 200 billion CNY, 6%. The super huge demands foretell a promising prospect of the industries.

With regard to technical tendency, advanced technologies like IT and AI have developed a new space for the industry. They will definitely create more demands for intelligent sewing machineries with features including efficiency improvement, manpower reduction, quality assurance and easy operation; a new generation of information technologies like big data, IoT, industrial Internet, cloud computation will provide an impetus for industrial innovation and transformation; the exploration into application areas like intelligent housing, intelligent automobile, intelligent security, intelligent healthcare, intelligent robotics, intelligent wearable devices will further the expansion of industry chain, and propel the economic transformation and upgrade.

IV Guidelines

Concentrating on the improvement of market development quality and efficiency, the 14th five-year plan will put an emphasis on the new development model where internal and external circulation complement each other with internal circulation as the focal point, make more efforts to reform the supply side, promote commercial and trading information and boost its standardization and internalization. Furthermore, it also puts stress on introducing step by step a new market development system with innovation drive, uniform standard, and higher level of inclusion.

V Targets

During the 14th five-year plan, a de-layered marketing structure with first tier distributors as the focus and second tier ones as the foundation will be put in place phase by phase, and a market network effectively consolidating the east, mid and west regions, coordinating manufacturers, the domestic market and foreign counterparts will come into play; the standardization and internationalization of information-based commercial and business services will be greatly enhanced, the competitiveness in domestic and foreign trading continually reinforced; the gross domestic trading value shall reach 38 billion CNY and the aggregate export value 2.7 billion USD in 2025; the cost of commercial and trading services will be noticeably reduced, services quality and efficiency significantly improved; the competition order will be optimized, and the business atmosphere characterized by honest operation and self-disciplined governance perfected.

To be continued.