The current textile market has entered a sluggish cycle. Under such a dull market, there will always be some situations that cannot be seen at ordinary times. The author will briefly describe some of the more representative recent developments in the textile market. Sexual phenomena, and behind these phenomena lies the market, or in other words, they are the market itself.
There are fewer large orders and more small orders
Phenomena: During the visit, many cloth bosses were He said that although the market is not very good now, the number of orders in the market is not much less than in previous years. However, relatively speaking, large orders of tens of thousands or even hundreds of thousands of meters have become extremely rare, while hundreds of thousands of meters have become extremely rare. The number of small orders has increased.
Reason: In addition to the huge inventory pressure faced by weaving companies, the inventory pressure faced by clothing companies is not much smaller. In addition, with the rise of online stores, people are more concerned about style and cost-effectiveness. With higher requirements, clothing companies will no longer be as “willful” as before.
Prediction: In the future, the number of large orders will only become smaller than before, and the situation of “small but numerous” orders will become a new normal.
The number of orders in Southeast Asia has increased
Phenomenon: According to the import and export data released by the General Administration of Customs of China from January to May, ASEAN has surpassed the United States to become China’s second largest export destination, and the number of textiles from China to ASEAN is also growing rapidly. According to incomplete statistics, in the Shengze market, orders from Southeast Asian countries such as Bangladesh and Vietnam currently account for about 22.5%, and this proportion is constantly increasing.
Reason: Affected by the Sino-US trade friction, China’s exports to the United States have been continuously suppressed. In the face of uncertainty in the future, exports to the United States are facing great risks. With the rise of China’s “One Belt, One Road” strategy and the gradual transfer of the textile industry, ASEAN countries such as Vietnam and Bangladesh have become an important transit point for China’s textile exports.
Forecast: In the next few years, textile exports to Southeast Asian countries will continue to grow at a rapid rate.
There is a lot of selling, and it has become a “routine operation”
Phenomena: Nowadays, there are many sales of conventional products in the market. Many weaving companies sell gray fabrics at a price lower than the cost, but it may be because there are too many people selling the goods. , even if the goods are sold, in many cases the cloth still cannot be sold.
Reason: Affected by the excessive growth of peripheral loom production capacity, the supply of conventional products in the market exceeds demand. In addition, the market is already not very prosperous, which ultimately leads to excessive inventory of weaving companies. Excessive inventory has brought great financial pressure, and the company can only sell inventory to maintain operations.
Forecast: The situation of oversupply will not be reversed, and the phenomenon of selling goods will continue.
Drought causes drought and waterlogging causes death, the two levels of differentiation are serious
Phenomenon: Although many companies said that life is very difficult, we also found that some textile companies said that they are doing well now and the downturn in the market has not had a great impact on them.
Reason: Some of these companies that are doing well are traders and do not have the pressure of gray fabric inventory. There is no shortage of orders in the market, but the price reduction is obvious. Fortunately, the gray fabric, printing and dyeing, finishing and other aspects of the market are currently “green lighted”, and the order is relatively smooth. Another group of companies have their own characteristics and are different from conventional products on the market, so they are less affected by the imbalance between supply and demand of conventional products.
Prediction: As the oversupply of conventional products in the market becomes more severe, polarization will become more and more serious.
To stop production or not to stop production, that is the question
Phenomena: On June 11, a certain weaving company issued a production suspension notice, which was widely forwarded in the circle of friends. At present, many cloth bosses are also struggling with the issue of whether to stop production or not.
Reason: Don’t stop production. The fabric produced cannot be sold. Even if it is sold, it will be sold at a loss or even at a loss. Everyone is selling goods. Sometimes, even if you sell at a loss, you may not be able to ship the goods. , Inventory is accumulating day by day, and the pressure on capital turnover is getting bigger and bigger; you can stop production. On the one hand, all the workers are gone. Once you stop, it will be difficult to start work again. On the other hand, will it give people the impression of poor management? Confidence, not to mention that if production is stopped, rent, water and electricity must still be paid, so no one wants to stop production unless it is a last resort.
Prediction: Nowadays, many weaving bosses are under great financial pressure. The first step is to sell goods.�But if the goods cannot be thrown away, more and more weaving companies will definitely stop production.
When the market gets worse, opportunities and the ability to seize them become more important. I hope all the bosses can grasp the market situation, seize the opportunity, and survive this difficult time. </p
