A Study Of The Transformation Strategy Of Traditional Textile Industry

Textile industry used to be the main body of Chinese modern industry，and Shanghaiis the birthplace of China textile machinery manufacturing. From70s to80s of the20thcentury, Shanghai textile industry has entered its peak time and become an importantindustry as it developed a large production scale and a variety of categories. But after thelate80s, Chinese economic system shifted from planned economy to market economy, andthe textile industry faced severe challenges as it featured "low-tech","labor intensive" and"low added value" features.Founded in1921, the17th Cotton Textile Factory（hereinafter as the "the17thCotton"）has also experienced the change in Shanghai’s economic function. In order to seekthe space to survive and develop, the17th Cotton had to adopt intensity change in theindustry pattern and the train of thought. It has to make efforts to concentrate on cuttingprimary processing capacity and low-tech equipment of primary products, the oldequipment, low level of profitability of the industry, and meanwhile to preserve andtransfer those sustainable productions and businesses. In order to match image of theinternational metropolis of modern textile industry and to make correspondence to theconcept of fashion development, the factory, which was located on2866Yangshupu Road,the East Bund Area, was expanded to be a fashion creative park for the carrier, fashionactivities and as a platform of the fashion industry. To promote industry from merelymanufacturing to the follow-up service value chain extension.This paper is based on an analysis of the textile industry and makes use of the theoryof strategic transformation, enterprise core competence analysis method and thereorganization of value chain management theory in its analysis. It introduces the concretescheme of transformation, the method of resources allocation, and innovative applications.The conclusion of this paper not only is helpful to the domestic textile factory, but also canbe referenced by other state-owned manufacturing industry on how to take transformationsteps.