In last year’s textile market, the author believes that the hottest topic should be: the spring of “bad cloth” has arrived. Conventional products such as polyester taffeta and pongee are hard to find, and even if you have money, you can’t buy them… …If polyester taffeta and pongee had a circle of friends at that time, I think it would be like this:
From the above examples, you can feel how popular polyester taffeta and pongee were last year! However, as the saying goes, “Thirty years in Hedong, thirty years in Hexi”, for the fabric market, product updates are faster. Now that it’s June, how is the performance of last year’s sales champion polyester taffeta and pongee?
Today is different from the past: there are fewer orders, prices have dropped, and we are losing money!
The traditional off-season of summer is approaching, and the weaving market is showing a coolness that is different from the weather. The China Silk City Network Acquisition and Editing Center team recently visited the market, and the most common complaint they heard was the complaint from the cloth boss: No The order has been placed and the price has dropped…
Sheng Mr. Huang, the person in charge of an integrated industry and trade enterprise specializing in polyester taffeta and pongee in Ze area, said: “There have been no factory orders recently, and there are not many trade orders. It will probably be by the end of this month. Now our main business The price of the product 190T polyester taffeta is 1 yuan/meter, and the profit is very low. It was at least 0.20 yuan/meter higher in the same period last year.” Similarly, Manager Yuan of Wujiang Yanfeng Textile Co., Ltd. is not convinced about the prospects of polyester taffeta. Not optimistic, “We are a weaving manufacturer with 88 looms. Currently, orders for polyester taffeta are generally low, and some shade cloths are still shipped. For example, the price of 210T polyester taffeta is currently 1.4 yuan/meter, which is basically only 1.4 yuan/meter. Able to break even, the price in the same period last year was 1.8-1.9 yuan/meter, and the peak price reached 2.0-2.1 yuan/meter.” As a pongee that coexists and prospers with polyester taffeta, the situation is not optimistic. A textile company in Wujiang area The person in charge said: The price of 300T pongee last year was 2.9 yuan/meter, and the supply exceeded demand. Now it is 1.95 yuan/meter. We currently have basically no orders on hand, and we are selling them at a loss. ”
From the survey situation, compared with the same period last year, this year’s “rag cloth” polyester towers Tiffany and pongee are indeed not prosperous, but I would like to remind everyone that the “hard to find” situation of polyester taffeta and pongee last year was due to the elimination of water-jet looms and the reduction of production capacity. , That’s not the norm. Back to three or four years ago, Divajev and Chunya Textiles have always been mainly profit -making and running, and the situation is not much better than now. On the road of slowly returning to “rag cloth”.
The phenomenon of selling goods at low prices appears in the market: the inventory is too high!
Recently, many cloth bosses have said that the top priority is to destock, and the inventory is too high. According to data monitored by China Silk City Network, the current weaving inventory in Shengze is about 42 days, which is much higher than the same period last year. About 19 days!
A weaving factory in Wujiang area said: “We The current inventory is about one month old. Due to inventory pressure, some machines may have to be stopped in the future. There are many cases of selling goods at low prices in the market. “Mr. Huang from Jiashan Yiming Textile Co., Ltd. also encountered a similar situation, “Our inventory pressure is relatively high. Recently, in order to reduce inventory, we have sold goods at low prices, and the prices for cash purchases are relatively low. ”
So, what led to the once popular ” Now that “Internet celebrity” fabrics have come off the altar, the author has tried to make the following analysis
1. The impact of foreign production capacity and fierce low-price competition
It is understood that the newly added loom production capacity in northern Jiangxi, Jiangxi, Anhui, and Hubei has now reached about 200,000 units, and the elimination of the entire Wujiang area The target is only about 100,000 units. The number of transferred looms has increased by hundreds or hundreds. Most of these looms produce mid- to low-end gray fabrics, including polyester taffeta and pongee.
The current production capacity is already oversupplied, and coupled with the surge in transferred production capacity, the competition for the originally not enough cake can be imagined to be more intense. All peripheral looms have been officially put into production. Low-price competition is about to break out, and I’m afraid “bad cloth” will never return to its peak last year.
2. End customers are not as good as in previous years, and order volume has decreased
The order volume of terminal clothing customers this year is not as good as in previous years. According to relevant data, the cumulative retail sales of knitted textiles for clothing, shoes and hats in April were -1.1% year-on-year, and terminal orders are deteriorating. For the current weaving market, whether downstream terminal demand can absorb the market’s new production capacity has undoubtedly become a difficult problem to predict the market situation in the second half of the year. Many cloth bosses are not optimistic about the market in the second half of the year. “Terminal orders are decreasing, and the market in the second half of the year is not expected to change much.” Ms. Lu from Wujiang Wangduo Textile Co., Ltd. said.
3. Orders affected by Sino-US trade relations
The recent escalation of Sino-US trade frictions As a result, the overall sales of the entire fabric market are not as good as expected, and customers have a serious wait-and-see mood, especially European and American customers who have been slow to place orders. A trading boss in the Wujiang area said: “It is mainly due to the impact of Sino-US trade. Many American orders cannot be completed, and it is difficult to see an improvement in the market outlook.”
Future Market It’s unclear, but there are still companies that can do well!
After visiting the market, the author found that the pessimism in the market is relatively strong, but as the saying goes, “There is no bad market, only bad companies.” Although the overall environment this year is not good, there are still companies whose operating conditions are relatively stable and their profits can grow. This is a good sign. Therefore, all cloth bosses do not need to worry too much. The only way to find sand is to constantly adapt to the market. Only by making your own products can you survive the changes in the world. I hope you are one of them! </p
