It has to be said that this year’s textile industry is indeed in a state of ice and fire. The orders for good products are pouring in, but there are very few people in this group. Those who do not do well will send samples everywhere to get orders! The traditional “Golden Nine and Silver Ten” hot market has not been reflected in the textile industry in 2019. Previously, many market participants had placed their hope that the market temperature would drop after November to boost market demand.
However, today’s temperature still has not dropped significantly, and some companies have already withdrawn from this battlefield in advance because they can’t survive it!
A few days ago, a gallbladder company issued a message:
Although it is only on WeChat The message was sent to a group, but it also revealed the reason why the boss had no choice but to end the factory – operating at a loss!
From making money every day last year to exiting at a loss now, “When the market was good before, I didn’t think anything of it, but now when the market is bad, the contrast is obvious. Now the prices of peripheral loom products are very high. It’s cheap and we can’t even compete with mass-market products, it’s too difficult!”
It is too difficult for large-scale goods to either lose money or maintain capital!
Recently, the editor asked Boss Bu, and the most common answer he got was “capital preservation.” Although after entering mid-October, the transaction atmosphere in the market improved for a time, and the shipment of conventional products was also loosened. However, in the face of the accumulated inventory of gray fabrics in the early stage, weaving manufacturers lacked the confidence to “increase prices”. In addition, the raw materials were not strong enough. It has been in a downward trend since the quarter, and gray fabrics have lost their only support, making it difficult to raise prices.
Mr. Chen, a polyester taffeta manufacturer in the Wujiang area, said, “Currently, the factory has always had inventory. Faced with the falling prices of raw materials, profits have not improved at all. Customers have already pushed prices to lows in advance. ”
According to the sample companies monitored by China Silk Capital Network, it was found that the profit margin of conventional chemical fiber gray fabrics has not been large, even in When raw material prices are high, there is still room for loss.
Take 190T polyester taffeta as an example. The current price of gray fabric on the market is about 0.90 yuan/meter, and the profit of a loom is also maintained at about 10 yuan per day. The profit is relatively meager, and the profit was the highest last year. It can reach 120 yuan/day, which has directly shrunk by 90%.
“In fact, no one in the textile industry wants raw materials to keep falling, because only when raw material prices rise steadily can we have the confidence to increase prices, and inventory prices can also increase. However, judging from the current market situation , it’s more difficult!”
The money is either being withdrawn or sitting in inventory. It’s too difficult!
Every year in the fourth quarter, many textile bosses begin to calculate two things: first, how much money is left floating outside and yet to be paid back; second, how much of the gray fabrics piled in the warehouse will be used? Can be realized from time to time.
Last year, when the market was good, most of the weaving bosses took goods in cash. But this year, the market has taken a turn for the worse. The cloth bosses are no longer strong and have been shipping goods at lower prices and taking goods in arrears. “This year we will visit customers every quarter, hoping to get the payment back as soon as possible. In fact, it’s not that the customer doesn’t want to pay, his customers also owe him money, one after another!” said Mr. Wang, the owner of a jet factory. .
Compared with the accounting period of 1-2 months in the same period last year, the accounting period this year is generally about 3 months. Although they know in their hearts that once the payment is owed outside, it will be more difficult to recover, in order to retain old customers, most textile owners will still choose to ask them to pay a deposit and take the goods away first, at least they feel that the inventory can be reduced.
“Now the money is not coming back The payment is just stuck in inventory!” A cloth boss lamented that in the face of the current falling prices of raw materials and fabrics, the market is “too crowded” and it will not be easy for manufacturers to collect accounts this year!
It’s so difficult to take advantage of the last wave of market conditions before the year and compete on price!
When the market is good, no matter what product the market sells, everyone can make money. But whenever the market goes bad, the contrast becomes obvious all of a sudden. I used to like to make big orders. I would rather have lower profits because it is easier to do and the money comes quickly. But when it came to the “cold winter”, I saw that the quantity of other people’s products had not changed, but my own products were still unable to be sold. Because when the east is not bright, the west is bright!
At present, the stocking of autumn and winter fabrics by most clothing companies is nearing completion. Orders for spring and summer fabrics have begun to rise. A few proofing for next autumn and winter are also progressing steadily. However, according to usual practice, market orders will gradually increase after November. With the Spring Festival coming earlier this year, orders are expected to weaken faster than in previous years. Taking advantage of the last wave of market conditions this year, textile bosses are scrambling to grab the last “bite of the cake.”
At this time, “price fighting” has become a very good “sharp tool”, especially since last year, hundreds of looms have been launched in the periphery. The new production capacity in the market has long exceeded the production capacity cleared due to environmental protection rectification, and the market is homogeneous. International competition is relatively fierce, resulting in relatively confusing prices.
Take 190T polyester taffeta as an example. The outer price is 0.80 yuan/meter, while the local gray fabric price is around 1 yuan/meter, and the middle price is 1 yuan/meter. -2 cent competition is likely to be the only profit margin left by manufacturers. Therefore, for companies with relatively high costs such as labor, rent, water and electricity, etc., if they only produce conventional products, their space for survival in the “era of overcapacity” will become smaller and smaller. .
In today’s textile market, trends come and go, and the wave of trendsetters change one after another. The only thing that remains unchanged is that after the tide recedes, there will always be people swimming naked…</p
