2020 is only 29 days away.
Textile people, how are you doing?
The two-level polarization in the textile market this year has become more and more obvious. Companies that do well make a lot of money, but this kind of company Very rarely, most companies have experienced reduced orders and declining profits this year. Many people hope that the fabric of cold-proof clothing can move when the temperature drops! Although the temperature has dropped now, the fabrics of cold-proof clothing still have not improved much.
Some companies have even gone on holiday in advance because of the sudden drop in orders and the inability to maintain normal production at the factory! The holiday period is: December 1, 2019 to March 1, 2020, a full 3 months. It can be said to be the longest vacation!
Since the beginning of this year, many companies have taken holidays and suspended production due to a sudden drop in orders. So, what caused this situation? ?
Excess production capacity, gray fabrics with nowhere to put them!
The excessive growth of loom production capacity in peripheral areas is a commonplace topic. In addition to the growing production capacity in peripheral areas, many weaving factories in Jiangsu and Zhejiang also said: “The warehouse is bursting! Nearly one million The rice inventory has nowhere to put it!”
The textile company said: “Our factory has 60 looms, and generally speaking, sales are between It is about 2 million, and there is only more than 1 million left this year, and workers’ wages, taxes, etc. have to be paid. The current inventory has reached more than 1.3 million meters! Normally, we don’t dare to reduce the start-up at will. Once the start-up is reduced, we will be in big trouble. Now we are taking advantage of the Spring Festival, so we can take an early holiday and relieve our inventory.”
This year the market is full of regular products, but there is only one cake, and if there are too many people sharing it, it won’t be able to divide it.
The terminal clothing market demand is weak: people don’t like buying clothes anymore!
Although the above video is mostly funny, it also reflects that people’s desire to buy down jackets is weakening. We all know that the demand of the clothing market affects the textile market. Since this year, some companies have reported: “Our next store (garment factory) has stocked down jackets and cotton jackets in several warehouses, but has not sold them. How can it come to us to place an order? This year, the terminal clothing market demand is weak, and some international Fast fashion frequently encounters “Waterloo” in the Chinese market. The old American brand Forever 21 withdrew from the Chinese market and later declared bankruptcy. Well-known British brands such as New Look and Topshop have successively withdrawn from Greater China; La Chapelle closed stores on a large scale to protect itself. …..The phenomenon of this series of clothing companies closing stores and going bankrupt really makes people sigh: “Don’t people like buying clothes anymore? “But the answer is indeed! In recent years, people’s interest in clothing has not been as strong as it was a few years ago. Judging from the proportion of transaction volume in various major industries, during the Tmall Double 11 period in the past five years, compared with home decoration As the proportion of industries such as home decoration and beauty cosmetics increases, the proportion of clothing, shoes and bags continues to decline significantly.
From national statistics According to bureau data, clothing sales in 2018 were 54.06 billion pieces, a decrease of 24.8% compared to 71.91 billion pieces in 2017. This number means that on average, each person in China bought 12 fewer pieces of clothing in 2018.
Coupled with the high market sentiment in the past two years, clothing companies have accumulated a lot of inventory. However, starting from the second half of last year, the textile and clothing industry began to decline, resulting in a backlog of inventory that cannot be sold or cleared. There is simply no extra funds to place new orders, which is also the reason why the number of orders received by many traders this year has shrunk!
China-US trade is divided and combined, and the uncertainty is too strong !
During the visit to the market, many people said that the biggest reason for the sudden drop in orders this year is the Sino-US trade war!
A company that makes Oxford cloth in Shengze said: “In March and April this year, the customer placed a large order of 150,000 meters for us, but it was canceled in May due to tariffs! “Some companies also said that although they do not export to the United States, their end customers are from the United States.” We first sell the fabrics to garment factories in Southeast Asia and make them into garments before exporting to the United States. Therefore, Sino-US trade has also indirectly affected us! ”
It is said that the Sino-US trade war is the biggest negative factor this year, and it is uncertain and long-term. Now, market participants have reacted very blandly to any news about Sino-US trade. They may have seen it before. After the big storms, it’s no surprise! “What we can do now is to develop new products and new customers, and try to weaken the impact of Sino-US trade on us. “A trader in Wujiang area said.
Afterword
It is already early December, and the textile market is stillThere are a lot of voices selling goods at low prices, and the reason is nothing more than a wave of inventory withdrawal to withdraw funds. But speaking more deeply, we are not optimistic about the market next year. Factors such as overcapacity, recurring Sino-US trade relations, and insufficient demand are difficult to reverse, and the market sentiment is not high. What will happen to the textile market next year? Perhaps the test of the market will be more severe. Textile people, are you ready? </p
