The time has come to late May, and the entire textile market has been shrouded in a “decadent” voice, and the saying that “it is hard to find an order” is rampant in the market. Is the current market really that bad? What is the reason?
The inventory of gray fabrics is so high that no orders have been seen for more than half a month
In the current market, the accumulation of gray fabric inventory is indeed very serious. Because the off-season in the first half of this year is nearly half a month earlier than in previous years, most weaving companies have more than half a month more inventory than before.
Assuming that a water-jet loom can weave 300 meters of cloth per day, a large and medium-sized weaving factory with 500 water-jet looms can weave 300*500*30 in one month, which is equal to 450 Ten thousand meters of cloth, even half a month’s inventory, is more than 2 million meters. And if more than two million meters of inventory were piled up, what a spectacular sight it would be.
Manager Shen, the head of an industry and trade company that specializes in polyester taffeta and Oxford cloth and also has its own weaving factory, told the author: For weaving factories, there is obviously a lot of inventory. , the pressure is great, and it poses a great challenge to funds.
Mr. Liu of another textile company also said that this year there are fewer large orders from customers. Last year, there were many orders of hundreds of thousands of meters per variety, but this year there are no more. Instead, they are making samples and placing small orders. There are more tanks. Judging from what we know, there is indeed a lot of gray fabric inventory, and there are also some sales of goods on the market.
It can be seen that this year’s textile business has indeed declined compared with the past two years, and the large accumulation of gray fabric inventory that is difficult to digest also exists objectively.
The market is slightly affected, but normal operations are guaranteed
But some cloth bosses don’t think so. For them, the market this year is indeed not as good as the previous two years, but it is not as exaggerated as “it’s hard to find an order.”
Manager Wang of a textile trading company told the author that their main customer groups are some clothing brands in Shanghai and external orders from Shenzhen. Compared with last year, the number of orders has decreased by 20%. About %, but the basic profit can still be guaranteed, and there will be no problem with normal production and operation.
Although the Sino-US trade war has affected exports to the United States, exports to Southeast Asia, Europe, Japan and South Korea have not been greatly affected. On the contrary, due to exchange rate changes, the RMB has depreciated. If you put some unsettled money over there and you can exchange it for a lot more RMB, it feels like you picked it up for nothing.
A certain textile company specializes in four-way elastic fabrics, and its main export destinations are Vietnam, Myanmar and other countries. Their manager, Mr. Li, said that foreign trade in Southeast Asian countries has not been greatly affected this year. The big impact is that although profits are about 5% less than last year, they are within an acceptable range. On the contrary, after the devaluation of the RMB exchange rate, their profits increased a lot.
Therefore, the business this year is indeed not as good as the previous two years, but for some cloth bosses, it is just a little less orders and a little decline in profits, far from being unable to survive. the point. The previously raging Sino-US trade friction has had a relatively limited impact on them, and even the depreciation of the RMB exchange rate has brought some substantial benefits.
No matter whether the market is good or bad, it seems to have its own reason. So what is the entire market? How is it? Why are everyone’s feelings so different?
There are more stocks, fewer orders, prices have dropped, and the market has indeed gotten worse
First of all, we must be sure The most important thing is that the market has indeed declined this year.
It is a fact that this year’s off-season started half a month earlier than in previous years. It is also a fact that weaving manufacturers have a very serious backlog of gray fabrics. The reduction in corporate profits is irrefutable. These are all objective realities.
However, these can all be explained from the economic point of view, or explained by the relationship between supply and demand. The reason is actually very clear to everyone. Starting from the second half of last year, the production capacity of water-jet looms in peripheral areas was suddenly put into production too much, and the products produced were some conventional products. Then the supply of conventional products on the market suddenly exceeded demand. , it is not difficult to understand the inventory backlog and reduced profits.
Manager Shen said that the inventory in the factory is currently rising. Since the last month, raw materials have been falling, which has caused the prices of polyester taffeta and other products in the factory to also fall. The production capacity of conventional products is relatively large, and peripheral gray fabrics still have a certain impact on the gray fabrics we produce here. It is not easy for the market to improve this year.
After research, the author also found that almost all conventional products have been reduced in price. Almost all conventional products with very thin profits, such as imitation silk and polyester taffeta, have been reduced in price by 0.1-0.2 yuan. However, the sales situation was not very satisfactory.�
Therefore, it is indeed an objective fact that the current market is sluggish, and the production capacity of conventional gray fabrics is indeed excessive, and there seems to be no sign of improvement in the short term.
There are fewer large orders and more small orders
Nowadays, people are pursuing uniqueness, and clothing companies have begun to follow the trend, blooming more, focusing on style design, fashion, speed and other aspects.
Reflected in the fabric market, current orders have changed from the original “large orders” to “small batches, multiple batches”.
And influenced by design elements, in addition to some conventional fabrics, the market share of some differentiated and functional fabrics is increasing year by year.
Mr. Liu also said that the variety of orders now is much more complex than before, and customers will make various requests, and they are all relatively small orders. But the good news is that dyeing factories have not been busy recently, and some small orders can be delivered soon.
It is foreseeable that such a small order model will become more common in the future, and business owners should also change their thinking in time and find a reasonable response.
Don’t compare with last year! That’s not the norm
The mentality is mainly related to people’s expectations. If the expectations are set too high, and the final result is too different from the expectations, it will be easy to lose the balance of mentality.
In the first half of last year, due to the renovation of water-jet looms in Jiangsu and Zhejiang regions, “bad fabrics” such as pongee and polyester taffeta were in short supply. A water-jet loom The daily profit exceeds 80 yuan. At the same time, there seems to be an endless supply of orders in the market. If the order is too small, we will not do it. If the order is too troublesome, we will not be too lazy to do it. Anyway, there will be no shortage of orders.
But that was a special phenomenon that occurred in a special period. Back to three years ago, pongee and polyester taffeta were always known for their small profits but quick turnover. At that time The inventory of gray fabrics is not much better than it is now.
If we take the first half of last year as a benchmark, then the current textile market cannot be described with a simple word “bad”; but what about two years further? This is just an ordinary year with relatively poor market conditions.
The market has a boom cycle. It is undeniable that the current textile market has entered a relatively sluggish period. status; the market is constantly developing, and “large orders” are beginning to shift towards “small batches, multiple batches”. Functional and differentiated fabrics are taking an increasing share of the market.
Only by recognizing the objective environment, being down-to-earth, striving to improve one’s own technical level, and maintaining a heart for eternal progress, can we remain in an invincible position. </p
