A Study On The Innovation Development Strategy Of YD Textile Group

Chinese textile and apparel industry is one of the traditional pillar industries with comparatively obvious international competitive advantage. During the subprime mortgage crisis in 2008 and European debt crisis in 2010, Chinese textile and apparel industry was greatly affected; the recently international macro-economy and foreign consumption have been not improved significantly, cost pressure of production is keeping increasing, as a result the living environment is becoming more and more serious especially for Chinese textile and apparel enterprises who just shares low profit proportion of product in the middle of the global value chain. In addition,China also proposes Chinese industry 4.0 strategy with the industrialization and informatization integration, it is extremely urgent for textile and apparel industry to fulfill the industry 4.0. Under such background, only the enterprises who succeed in innovation can keep sustainable development and maintain excellence. The trend towards collectivization and large-scale group encourage textile and garment industry to eagerly search a same and reproducible mode to promote the enterprise development level.YD group is a large export-oriented and high-tech textile and garment enterprise, it has formed the vertical supply chain from cotton breeding to garment production.Innovation is the engine for this company to keep its core competitiveness and realize great leap-development, this article is to study the internal mechanism of YD group in innovation and summarize the innovation means and methods in order to bring some enlightenments and references for the entire textile industry to upgrade and transform.This paper has six chapters. The research background, significance, contents and study methods are introduced in the first chapter; The innovation theories and core competence theories are reviewed in the second chapter, and the development process,the current exploration in transformation and upgrading of the textile industry are also discussed in this chapter; the description of the case is focused on in the third chapter,including the brief introduction of YD group, its main business operation status and the main six challenges YD group encounters now; the overall development trend of textile industry is analyzed in the fourth chapter, analysis with PEST, five forces and SWOT model are conducted to analyze the internal and external development environment for YD group while combining with the analysis from value chain and internal resources aspect, accordingly the strategy of innovation and development for YD group is suggested; 5 aspects of innovation ways and countermeasures are summarized in the fifth chapter including institutional innovation, management innovation, product innovation, process innovation and brand innovation; finally the conclusion, implication and suggestion of the study are composed in the last chapter.