Recently, the editor learned from a friend that the owner of a weaving factory in Jiaxing area said that the factory may have to stop production during the holidays in June, and the summer vacation will be ahead of schedule. The inventory of gray fabrics is too high!
After the “slow peak season” became a reality in the first half of this year, the mentality of the entire textile market has been bad. Bosses of textile clusters such as Changxing, Haining, Shengze, etc. have reported that they should have been relatively busy at this time in the past, but this year it is not. Extraordinarily free. For the boss, he is too busy to complete the order. It’s even worse if you’re too idle. If you don’t have any orders, how can you get the money to support your employees? In addition, the recent escalation of Sino-US trade friction has caused a certain degree of panic in the textile market, and the mentality has become even worse. Looking at the increasing number of gray fabrics, orders have not come yet. The cloth boss said that the most important thing recently is to reduce inventory!
The inventory is half a month higher than the same period last year!
According to the data monitored by China Silk Capital Network, during the same period last year, the inventory of gray fabrics was 25 days, while this year’s inventory was 39 days! In comparison, the inventory has been higher for half a month!
When the market is good, weaving factories mostly produce according to orders; When the market is bad, weaving factories will reduce orders and increase the production of conventional cloth. Currently, orders are decreasing and regular cloth production is increasing. Factories with sufficient funds can withstand even increasing the production of conventional fabrics in the short term, while factories with greater financial pressure may increase the production of conventional fabrics, which may lead to operating difficulties due to increased inventory, and may lead to downtime or factory closure. . A factory in the Shengze area that specializes in imitation memory said that it has had few orders on hand since May and its inventory is getting higher and higher. We have 60 looms, and the current inventory is more than 800,000 meters, which is already very high. We are still holding on. Now that we have orders, we will make them even if the profit is low. After all, no one wants to really close the factory. The industry and trade enterprise of Nisi Fang also said: “The price of our 380T Nisi Fang, which has always been relatively easy to sell, is much different from last year. It is now around 3.7, and the orders on hand are almost finished. This year’s poor market is mainly due to There is overcapacity, hundreds of thousands of looms are put into production in external areas, and the market cannot get a piece of the cake.”
The off-season may be ahead of schedule. How should textile companies respond? !
Seeing that June is only 10 days away, it can be said that it has truly entered the off-season of the textile market. Although the peak season this year is not busy, cloth bosses must be prepared! The off-season may be lighter than before, so what can textile people do during the off-season?
Actively reduce inventory
We all know that most of the gray fabrics sold are in arrears, and manufacturers do not have much working capital on hand. , the financial pressure is still great. Therefore, many companies will choose to reduce prices and inventory during the off-season. In this way, the inventory on hand can be converted into cash and reduce financial pressure. In addition, the price of raw materials will generally decrease accordingly in the off-season. It is also a good strategy to purchase some low-priced raw materials at this time.
The off-season is a good time for textile companies to make internal adjustments
During the off-season, the order volume decreases, and companies can make timely checks and adjustments. Machinery and equipment, the introduction of some new technologies, etc. At the same time, you can also use your free time in the off-season to study more and recharge yourself. In doing business now, it is difficult to succeed based on integrity alone. You also need to learn more business skills and marketing strategies. We can also develop some new products in a timely manner to give customers more choices.
Build sales in peak seasons and market in off-seasons
This saying is widely circulated in the sales world. The same applies to the textile market. The growth in off-season sales will obviously not come from the increase in the market, but from the decrease in sales by competitors. When your opponent is relaxed, that’s when the opportunity comes. You can take advantage of this time to visit your customers more. It’s also out of politeness. After all, customers are God. Visiting customers more will make them feel that you are a thoughtful person, and then the order will be closed. The possibility will be greater.
Afterword
The deterioration of Sino-US relations has a certain impact on the Chinese market. Southeast Asian textiles are also accelerating to eat up China’s market share, so we still have to wait and see about exports in the second half of the year. From the perspective of domestic sales, the blowout of external production capacity is the biggest negative factor. In addition, Boss Bu is under increasing cost pressure. The market situation in the second half of the year is not very clear. At present, we can only look forward to this year It is a cold winter, and I hope it can drive demand in the second half of the year. </p
