China Knitting Industrial Association (CKIA) recently held its 6th boarding meeting, during which, the "13^th Five-year Development Program of Knitting Industry" (hereinafter referred to as "Program") was released.

On the meeting, Lin Guangxing, vice chairman of CKIA interpreted the "Program". He reviewed the achievements of the knitting industry in the 12th "Five-year Plan" period (2011-2015), analyzed the situation faced by the industry both at home and abroad, put forward the guidelines, principles and targets for the development of the industry in the next five years and underlined key tasks and projects in the coming five years.

The development of the knitting industry reached a new level in the past five years

During the 12^th "Five-year Plan" period (2011-2015), promoted by globalization and technological progress, the knitting industry developed steadily, it made great progress in transformation and upgrading and realized positive growth in five straight years.

According to the National Bureau of Statistics, in 2015, there were 5,739 knitting enterprises above designated size (with annual revenue more than CNY 20 million); their prime operating revenue amounted to near CNY 717.26 billion, registered an aggregate growth of 24.42% compared with 2011, growing annually by a compound rate of 5.61%; the total profits reached about CNY 39.84, up 38.25% over 2011, growing at a slower pace compared to the previous five-year period. About 11% of the above-designated-size enterprises operated in deficit and the asset-liability ratio kept at around 55%. Generally speaking, the industry maintained steady growth.

Domestic market has played increasingly important role in supporting the development of China's knitting industry, with 72.62% of the production of above-scale enterprises were sold on domestic market in 2015, compared with the 64.48% in 2011, rising 8.14 percentage points annually in average.

During 2011-2015, the investment of the knitting industry grew faster than the textile industry's average speed in most of the years.

According to the General Administration of Customs, the export of the knitting industry amounted to US$ 109.69 billion in 2013 and US$ 106.14 billion in 2014, accounting for over 1/3 of China's total textile and garment exports. In 2015, the export stood at near US$ 98.44 billion, presenting 8.33-percent aggregate growth over 2011, in which, the export of knitted garment saw 3.14-percent aggregate growth and knitted fabric saw 36.74-percent aggregate growth.

Europe, the United States and Japan remain the key destinations for China's knitted goods export. During 2011-2015, the export to the above-mentioned three markets accounted for 40% of the total (17.36%, 11.88% and 9.53% respectively). ASEAN has also become an important market for China's knitting industry. In 2015, the export of knitted fabric to this region amounted to near US$ 4.84 billion, up 84.69% over 2011, rising 16.58% in annual average, accounting for 33.08% of the total export of knitted fabric, improving 8.59 percentage points from 2011. In the same period, China's export of knitted garment to ASEAN amounted to US$ 5.197 billion, up 35.98% over 2011, with annual average growth of 7.99%, accounting for 7.3% of China's total export of knitted garment, improving 1.76 percentage points over 2011.

New targets draw up blueprint for the future

The "Program" sets the goal for the development of knitting industry in the next five years (2016-2020):

Maintain steady development – The industry will maintain medium- and high-speed growth, and at the same time, the structure of the industry will be fully optimized, the distribution and layout will become more rationalized, the export will grow steadily with the total amount keeping at around US$ 100 billion; and the "going abroad" strategy will be further implemented, with overseas investment seeing certain growth.

Further optimize product structure – The knitting industry will continue to promote the balanced development of knitted products for three major applications: garment, decoration and industrial uses. It will enhance the presence of conventional knitted fabric, garment and stockings on market, highlight the fashion elements of knitted goods and open up new application fields for knitted products.

Make breakthrough in brand cultivation – The industry will secure the share of competitive brands on domestic markets; cultivate a number of brands with competitive advantages on niche markets both at home and abroad; cultivate 10~15 knitted garment brands that have strong independent innovation ability and strong presence and competitiveness on international market and a number of knitted fabric brands that integrate into the supply chain of world-leading garment producers.

Further improve the construction of talent team – The industry will create a sound environment for decent work and safe production; cultivate a team of outstanding designing, management and technical talents that can satisfy the requirements of modern enterprises and finish the task of replacing the old with the new, so that the share of R&D and designing personnel as well as senior skilled workers and technicians will increase 2 percentage points over 2015.

Promote green development to a higher level – The industry will further promote the concept of green development, make breakthrough in the R&D of energy-saving, water-saving technologies, make progress in comprehensive use of resources and pollution control technologies and popularize related new technologies.

Develop a number of modern industrial clusters – The industry will give greater support to brand enterprises and flagship enterprises; establish modern service system including intermediary organizations and professional markets; and give full play to the role of industrial clusters. It will set up a number of regionally-influential demonstration industrial clusters respectively specialized in fabric, warp-knitting, T-shirt, stocking, underwear and garment.

To reach the goals, the "Program" sets eight major tasks and four key projects.

The eight major tasks include: improve independent innovation ability; promote the application of intelligent technology and equipment; enhance ecological civilization of the industry; improve product standards system; push forward brand construction; push forward the construction of talent team; developing modern industrial clusters and optimize the layout of the industry.

The four key projects to be carried out in the next five years include: smart factory project; green manufacturing project; brand promotion project; and global layout project.