How the Cotton Industry Leverages "Internet +" to Instigate Industrial Upgrading

The 2015 China International Cotton Conference was held in Ningbo, a beautiful coastal city. Everyone gathered together to discuss new issues, study new issues, share experiences, and share results.

How the Cotton Industry Leverages "Internet +" to Instigate Industrial Upgrading

At present, our country is at a historical turning point from the accelerated evolution of the industrial economy to the information economy. The rapid economic growth model in the first decade of the century has encountered bottlenecks, the economic growth rate has slowed down, the problem of insufficient development momentum has become increasingly apparent, and the profitability of enterprises has fallen sharply. The “New Normal” has become the new economic development since 2014. The trend, and the current adjustments, changes, and transformations facing the cotton textile industry in China are a microcosm of this trend change, and are consistent with the state of economic development.

The theme of the conference was "Quality, Consumption, Inheritance and Innovation." Regarding this topic, yesterday's speakers spoke about the quality and efficiency of the industry. The topics this morning were industrial innovation and e-commerce. Just now, Jingdong's Mr. Zhang Jianshe made a very brilliant exposition on the topic of e-commerce, and I also benefited a lot. I believe that our friends here will also have a lot of inspiration. In the current period of change, China's cotton industry should make good use of this opportunity for e-commerce and make its own exploration in the domestic cotton industry innovation.

During this year's ** period, Premier Li Keqiang of the State Council put forward for the first time in the government work report, “Developing the “Internet +” Action Plan to promote the integration of mobile Internet, cloud computing, big data, Internet of Things, etc. with modern manufacturing, and promote e-commerce and industrial Internet. And the healthy development of Internet finance." "Internet +" has become a hot topic of concern and discussion at all levels of society.

What is "Internet +"? "Internet +" represents a new economic form that fully utilizes the optimization and integration of the Internet in the allocation of production factors, and deeply integrates the innovation results of the Internet in various fields of economic and social development. Economic innovation and productivity create a new form of economic development that takes the Internet as an infrastructure and implements tools. The concept of "Internet +" has not only been associated with the characteristics of China's economic environment, but also the need for the development of the times. China has a huge Internet population and domestic demand market. It has a wealth of manufacturing advantages and possesses other giant Internet business platforms, ecosystems, and inclusive Internet policy environments that are not yet available in countries with rapid development. These are the Internet and traditions. Industry integration, and promote the endogenous power of economic development. The combination of "Internet +" and traditional industries changes not only the mode of production but the innovation of 1+1>3. It is a change from production mode, sales mode, logistics mode, payment mode, and even management mode. It is an industrial performance. Systemic changes. We have seen that in a very short period of time, “Internet+” has gone beyond the scope of theory and concepts and is exploring and practising in different industries: “Intelligent Manufacturing of “Internet + Manufacturing” has been included in “Made in China 2025” "The plan, its goal is to comprehensively promote the strategy of implementing a manufacturing powerhouse, and the use of Internet technology to innovate a new financial service model not only significantly reduces the transaction costs of the real economy, but also successfully builds an online payment system represented by Alipay and a credit-based system." The emerging financial models such as the tripartite platform and P2P online lending influence the current and future of China’s capital market; China’s traditional industry, agriculture, also stands above the “Internet+” prestige. At present, the Ministry of Commerce is working with more than 20 ministries and commissions including the National Development and Reform Commission, the Ministry of Finance, and the Ministry of Agriculture to research and formulate the "Guidance Opinion on Accelerating the Development of Rural E-Commerce", focusing on providing policy support for the transformation of rural traditional distribution network information. "Mobile Internet + Agriculture" is creating a new mode of agricultural development. Many listed companies have begun to increase the layout of "Internet + Agriculture" in the three major areas of farmer e-commerce, rural Internet finance, and agricultural informatization. It can be said that "Internet +" will play a vital role in the future economic transformation and development of China. It can even be foreseen that this will be a comprehensive subversion and reorganization of people's future production, living, and consumption patterns.

When the "Internet Plus" hit, the cotton circulation industry in China was just on the cusp of adjustment, transformation, and change. In 2014, the three-year temporary purchase and storage policy was withdrawn and replaced by a cotton pilot reform policy, which once again opened the engine of cotton marketization. In the past year, the effect of the pilot policy for the regional target price in Xinjiang has become apparent. The market-based pricing mechanism has been initially established, the market awareness of participants has been significantly enhanced, and the industrial vitality has been effectively improved. At the same time, the optimized allocation of resources has achieved initial success. The overall cotton quality of Xinjiang has been achieved. After the restoration, especially in the 2015 planting season, the quality awareness of cotton cultivation in some regions of Xinjiang has been significantly improved, and the planting methods and planting methods have been undergoing gratifying new changes. The cotton production is continuously becoming large-scale, mechanized, and highly efficient in this round of marketization reforms. In the direction of expanding, the vitality of the cotton industry has been rekindled; and for three consecutive years, due to domestic and foreign cotton prices upside down, the downstream industry dilemma caused by the comprehensive increase in the cost of production factors has also been significantly improved. The cotton textile industry is also in the survival of the fittest, but also In the direction of high-tech, high added value, and low energy consumption, the transformation and upgrading of new policies, industrial changes, and adjustments in the layout of cotton cultivation have also led to a serious oversupply of cotton processing capacity, and industrial adjustment has become inevitable. This change is irreversible, in this revolution Many of our businesses is not lack of spirit and power, but ways and means of how to achieve faster and better transformation, the flow in major adjustments and major transformation, to seize a place, a matter of life and death cotton-related enterprises, waits for no man.

"Internet +" provides such a rare opportunity for development. The value of the Internet is to greatly increase transaction efficiency, and the important production factor of “Internet Plus” is big data. In the era of big data, data has become an independent commercial capital and economic factor, and has provided unlimited innovation possibilities for the transformation of business models. "Internet+traditional industries" is through the continuous breakthrough of information technology, acting on the real economy, maximizing the value of data, and ultimately improving the efficiency of economic and social operations. Today, we have discovered this core value brought by data. The pilot reform of the target price has created a price mechanism in the reconstruction of the market, and at the same time has prompted Xinjiang's cotton production and sales data to be more accurate, transparent, fair and open. In 2014, through Xinjiang's professional cotton warehousing and library public inspections, the company has for the first time discovered resource data such as production, sales, and inventory of cotton in Xinjiang, providing a reliable data base for the country's cotton macro-control and corporate business decisions.

In the future, modern information technologies with the cores of the Internet, big data, cloud computing, and the Internet of Things will be gradually applied to the fields of e-commerce, modern logistics, and online supply chain finance in the cotton industry, driving the cotton industry to open wider and wider at a new height. The development of space, "Internet +" and the combination of the cotton industry, the core is to achieve the data of the transaction, the online service. The National Cotton Exchange Market, which provides comprehensive services for the cotton industry in China (hereinafter referred to as “the trading market”), is also actively trying to adapt to the trend of informatization and applying innovations in the Internet, big data, cloud computing, and the Internet of Things. By combining its advantages in business flow, logistics, capital flow, and information flow that have been accumulated in the cotton industry for a long time, it has created an open, convenient, and highly efficient integration of cotton big data, e-commerce, online supply chain finance, and logistics distribution. The comprehensive service platform will promote the upgrading of comprehensive cotton supply chain services to higher levels and build a new type of cotton industry development ecosystem for effective service industries. In 2015, the trading market is focusing on building four platforms:

The first is to build "big data platform" and build "baidu" in the cotton industry with "i cotton net" as the carrier.

The cotton industry has a long chain, numerous participants, and disorganized data and information at all levels. The use of the Internet to speed up the integration and sharing of industrial data resources is of great significance in promoting the transformation and upgrading of China's cotton industry. On January 16, this year, the trading market “i Mianwang” was formally launched, initially constructing a data system covering all aspects of the cotton supply chain including cotton production, acquisition, processing, warehousing, distribution, and quality inspection. The future “i Cotton Net” will Relying on big data, build a nationwide cotton public information service platform integrating information collection and inquiry, inventory supervision, logistics distribution, cargo rights registration and change, quality traceability, statistical analysis, and decision support, to create a cotton industry “Baidu” provides the industry with full-scale industrial chain, full-calibre, and full-process data services to track and inquire information on cotton sales, processing, warehousing and logistics, and provide information support for government departments, related organizations and enterprises. Decision-making reference, ultimately providing value-added services for the accurate convergence of production and sales.

The second is to use "e cotton net" as the core to build a B2B e-commerce platform and create the "Alibaba" of the cotton industry.

At the beginning of this year, the trading market also launched the cotton e-commerce platform with “e-net” as the core, and continued to optimize and perfect it. The platform integrates the domestic and international market resources of domestic and foreign markets, domestic cotton and imported cotton, and builds a safe, efficient, and convenient cotton O2O trading platform for the cotton-related enterprises. The domestic cotton trading platform integrates the spot market of the trading market. , Online supermarkets, bidding contests and other centralized trading models and negotiated transactions, online shops and other personalized trading tools; import cotton trading section in addition to retaining imported cotton online supermarket, but also brings together the United States's largest spot electronic trading platform The Seam's real-time spot Resources provide users with more diversified choices. In the future, “e-net” will provide all resource information search functions on the basis of “i-MartNet” big data, so that enterprises can find suitable sources in massive trading resources.

Third, with the focus on “e Cotton Link” and “Mian Mao Tong”, build an online platform and create a “micro bank” for the cotton industry.

The cotton circulation industry is a capital-intensive industry with large capital requirements. As early as 2003, the trading market began to provide financial services to cotton-related enterprises, and accumulated over RMB 60 billion in funds for more than 1,000 cotton-related enterprises. Starting this year, the trading market will continue to leverage on the advantages of low interest rates and high efficiency, continue to promote financial services, and further develop on-line such as convergence network**, transaction settlement, third-party payment, credit guarantee, security prevention and control, etc. Supply chain financial services provide more diversified financial solutions for cotton-related businesses.

Fourth, support the third-party logistics supervision network system in the trading market, build a logistics distribution platform, and create the “SF Express” in the cotton industry.

After more than 10 years of development, the trading market has established a third-party logistics supervision system based on video surveillance, which is based on more than 220 cotton delivery and professional supervision warehouses, and provides a guarantee for the implementation of cotton transportation and effective monitoring of warehouses. In 2014, most professional supervised warehouses realized video and RF real-time monitoring. In 2015, the mobile market has newly developed a mobile scanning code check-up method, which is in line with the accurate positioning of Baidu maps to ensure the safety of the cotton in the library.

In 2014, Xinjiang road transport and Xinjiang cotton road transport have increased greatly compared with previous years. They have been in a courtesy position against railway traffic, each occupying half of the country, and in some months, the traffic volume is even higher than that of the railway. The trading market seized the opportunity to effectively analyze the data of more than 10,000 cotton transport vehicles passing through the highway checkpoints and their flow direction in more than two years, and timely launched the Xinjiang cotton highway logistics distribution business, with special personnel tracking and full service. The future trading market will further develop a modern cotton logistics platform based on this, and use big data and internet of things technology to effectively track Xinjiang cotton road inspection data, professional storage data, etc., and realize the entire process of Xinjiang cotton from acquisition processing to textile cotton. Supervision, while ensuring the safety of cotton transportation, improve logistics efficiency and reduce logistics costs.

In the Internet age, the distance between users and platforms has become infinitely close. In real time, “Internet Plus” is what makes it possible to combine the advantages of the platform with traditional trade, and ultimately realize the restructuring of business models. The trading market is willing to become the explorer and pioneer of the cotton industry in this field, advancing with the times, and innovating continuously to build a platform for information sharing, interaction and comprehensive services for the upstream and downstream industries. It is believed that in the near future, a new type of trade model combining modern technologies with traditional businesses will become a booster for the cotton industry to take off again.

Friends of the cotton industry: Popular entrepreneurship and innovation are becoming the new engines of the Chinese economy. The spirit of the Internet is the embodiment of this innovative spirit. Using the innovative achievements of the Internet to improve the innovation and productivity of the real economy, “adding” The advantages of traditional industries have become the power of the times. The cotton industry is now at an important point in the transformation and upgrading of the industry and the development of information technology. If you go against the tide, you will not be able to advance or retreat. It is a passive choice or an active choice. These "cotton people" have no choice.

Co-creation, sharing, and win-win are the values ​​of the cotton industry ecosystem. Not only do they need to build the platform, but they also need the active participation and input of the entire industry. “Everyone's firewood is high,” and “one flower alone is not spring, A hundred flowers bloom in Spring Garden." Let us work together, work together, set the industry wisdom, let the "Internet +" become a new driving force to upgrade the cotton industry, to promote the progress of the cotton industry, expand the development of space-related cotton companies to contribute!