In the past two years, due to the elimination of backward water-jet looms in the textile industry and the restriction of excess production capacity, a large number of weaving companies were shuffled out, and the balance of supply and demand was immediately broken. In order to cope with the pressure and protect their own profits, the surviving companies continue to raise prices! Due to the substantial reduction in actual production capacity, the shipment volume of gray fabric factories is far less than the order demand, resulting in the situation of “hard to find” for conventional hot-selling products such as polyester taffeta and pongee. At that time, the owner of the gray fabric factory was in a state of “making money while lying down, without worrying about not selling the product.” Normally, the daily profit of a water-jet loom producing polyester taffeta was about 20 yuan, but at that time, the daily profit But it reached 100 yuan, which was unimaginable.
Increase profit and sell inventory, but the market does not allow it
The dividend period of any product is limited, and no product can sustain huge profits, especially low-end fabrics, which have low cost and simple technology and do not have the ability to dominate the market. With the “rise and invasion” of peripheral production capacity and the weakening of the overall textile market this year, the relationship between supply and demand has reversed, and the prices of conventional fabrics have been immediately reduced to their original shape. The price of gray fabrics has “fallen again and again”, and customers are queuing up with cash in their hands to wait for goods. Gone are the days.
If gray fabric factories were still cutting prices to remove inventory some time ago, now they are completely saving themselves at a loss. When some bosses give quotations to customers, they directly quote the cost price and then let the customers look at it. Some polyester taffeta manufacturers have given up their “struggle” and are selling at a loss of five cents per meter of fabric. If they don’t sell, they will lose even more.
The four-sided bullet manufacturer, which had some success at the beginning of the year, is now in a very difficult situation. After all, four-way elastic is different from other fabrics. If pressed together for a long time, the spandex yarn will break and the cloth will be scrapped. Factories of all sizes are working hard to sort out the types and quantities of fabrics, and they all add the sentence “price is negotiable” when “crying out” to the outside world.
The plan to add new machinery and equipment has slowed down, and the project to build new factories has been shelved. The equipment and factories that we were proud of in the past seem to have become The “baggage” that cannot be shaken off. Suspension of production will result in losses, and non-stop production will result in even greater losses. Weaving factories are faced with a situation where it is difficult to get off the line.
Increasing machines to expand production capacity, but times do not allow it
“Unfortunate manufacturers are Everyone has their own misfortunes, but all happy manufacturers are similar.” According to our market visits, some gray fabric factories have been limited by the off-season, and some sales and profits have even risen instead of falling. Almost all of them have a common feature, which is the integration of industry and trade. They not only produce and sell gray fabrics, but also accept trade orders for finished fabrics.
Compared with ordinary gray fabric factories, they have more choices. They do not need to rely entirely on local customers for the consumption of gray fabrics. They can use the fabrics they receive Finished product orders to consume gray fabric. Compared with ordinary traders, they have price and time advantages. They can appropriately give up part of their profits in the gray fabric or finished product links, and can get many orders at a low enough price. Moreover, weaving gray fabrics is in our own hands, and we can fully control the quality and delivery time of gray fabrics.
After balancing production and sales, such manufacturers have more time and energy to maintain customers and innovate research and development. It avoids the vicious cycle of shrinking sales, stagnant R&D, and customer exodus of other manufacturers. Direct contact with customers allows them to understand first-hand information, clarify customer needs, and understand market trends. It is also an opportunity to demonstrate their own strength and keep customers in mind.
According to the person in charge of a factory with 300 looms, they have almost given up on selling gray cloth and have shifted their focus to the trade of finished products. . They have always invested a lot in developing new varieties because they realize that new product research and development and customer introduction are complementary to each other, and the profit is basically guaranteed to reach 30%, which is very valuable in the current market conditions. At present, the 300 looms in the factory are operating at 100%, but they are still stretched thin. It is no longer possible to purchase machines to increase production capacity. The current demand for gray fabrics can only be met through outsourcing.
Unsatisfactory market conditions are a problem that all manufacturers have to face. It would be a big mistake to regard being complacent, stagnant, and refusing to innovate as a form of cost-saving self-protection. The competition and fighting among conventional fabric varieties will only get worse and worse. Who can guarantee that he will be the final winner? Being a service provider and an innovator with concentration, making good use of the advantages of the weaving factory, accurately grasping customer needs, and constantly earning the first wave of profits from new varieties is what we are proud of.�The right approach to the textile market. </p
