At present, it can be said that it is “hard to get an order” in the market. As long as every textile boss has an order, even if the cost is a loss of one or two cents, as long as the goods can be shipped, it can be negotiated. Nothing else, gray cloth Inventory is about to explode!
The market is deserted, small orders become life-saving straw
After entering mid-April this year, the market began to weaken rapidly, and the orders received by textile bosses declined rapidly. The boss of Youbu complained that it had been nearly a month since he had received a decent order. Even if you receive an order, it is only a small order of a few kilometers, like chicken ribs, tasteless to eat, and a pity to discard. This kind of order was too lazy to take in the past two years, but now it has become their life-saving straw. It’s rare to have a “big” order that exceeds 10,000 meters, which can make them happy for several days.
The lack of orders is also due to sluggish demand in the terminal clothing and luggage industries. It is understood that some luggage companies in Pinghu have begun to significantly reduce production capacity due to product sales problems, and they have not yet started construction. Half of previous years, but even so, inventory is still overstocked.
Some weaving bosses are also wondering why there haven’t been any orders recently. Isn’t everyone wearing clothes?
With millions of goods pressed there, who can withstand it?
The most direct result of sluggish demand is that inventories have skyrocketed.
Due to the difficulty in recruiting workers in recent years, weaving manufacturers are unwilling to stop production, because once production is stopped, although the cost can be reduced in a short period of time, they will want to resume production once the market improves. , it was impossible to recruit so many workers at once.
If we can’t stop production, we can only continue production. If we want to produce products that are marketable, when the market is uncertain in the future, we will definitely not be able to produce those more special varieties. We can only produce traditional “bulk goods” such as pongee and polyester taffeta.
After all, the demand for these bulk goods is there every year. Once the market improves, it will be easier to get rid of them.
Then the problem is, there are already few orders in the market now, and everyone is producing conventional products in order to maintain the operating rate of looms. The supply and demand relationship of conventional products is completely out of balance.
Take a water-jet loom weaving 300 meters of cloth a day as an example. A larger weaving company’s The number of looms exceeds 500. Even if it has 500 looms, if it does not receive an order for a month, it will accumulate 300*500*30=4.5 million meters of cloth inventory. For weaving enterprises, raw materials, personnel wages, water, electricity, rent and other costs must be paid in cash, but the cloth is stored there and cannot be sold, which means that millions of working capital are locked up. In the off-season, when cash is king, how many companies can withstand such huge financial pressure?
If you have an order, you have to sell it at a loss
“If you have an order, you are the master” may sound bizarre, but this is indeed a true portrayal of the current textile market.
According to some textile bosses who are deeply troubled by inventory, they are now in a state of “getting and asking”. As long as there is an order, is the process troublesome? fine! Want to change the weft? change! Want a lower price? Everything is negotiable!
In short, as long as the goods can be sold and funds can be recovered, they are meat on the chopping board, and any request can be discussed.
In April, it was still a new thing for some companies to sell goods at low prices because their inventories were too high, but By late May, this kind of operation had become commonplace.
The bosses of some weaving companies said that if the market is still like this in June, they will stop production even if it is difficult to resume production in the future. There is no way, the capital chain is already tight, and if we don’t stop production, we will not be able to survive.
The increase in emerging production capacity is too large, and the balance of supply and demand is broken
Two years ago, traditional textile clusters such as Wujiang, Jiaxing, and Huzhou in the Yangtze River Delta began rectification of water-jet looms, resulting in a large number of water-jet looms being eliminated in a short period of time. Conventional products such as husband and wife were suddenly in short supply, and the profits of “rag cloth” were unexpectedly high.�Catching up with some mid-range products.
Therefore, many cloth bosses are paying attention to transferring production capacity to Anhui, Northern Jiangsu, Hubei and other places. But the problem is that the production capacity of water-jet looms is not only in Transferred and still expanding.
The newly added production capacity of water-jet looms exceeds 200,000 units, which is far higher than the number eliminated in the Yangtze River Delta. Since the second half of last year, these transferred production capacities have been put into production one after another, and the balance between supply and demand of conventional products on the market has been suddenly broken.
Domestic demand is sluggish and foreign trade has been hit
In terms of domestic sales, the demand for domestic fabrics began in the second half of last year Slowly declining, the overall situation is not as good as in previous years; in terms of foreign trade, due to the sharp increase in Sino-US trade frictions, trade risks with the United States have increased sharply in a short period of time.
Domestic demand is sluggish, and foreign trade has also been hit hard. Production capacity has increased, but demand has decreased, making Boss Bu’s life even more difficult.
The situation of “hard to find an order” in the market has been going on for some time, and as the weather changes As the weather gets hotter, the textile market will officially enter the off-season, and this situation will become more common. In such a market environment, how to arrange production, adjust prices, and control inventory is a great test for the production and operation capabilities of cloth bosses. </p
