With the continuous improvement of economic levels, people are paying more and more attention to creating a home atmosphere. Consumers have higher requirements for the fabrics, styles, patterns and quality of home textiles. In recent years, my country’s home textile industry has developed vigorously and has become one of the fastest growing industries in the textile industry.
For the textile industry, 2018 can be described as “unfair”. Raw materials have skyrocketed and plummeted, and environmental protection inspections must not relax for a moment, making every cloth boss tread on thin ice and be cautious. So, what is the situation in home textiles?
The market situation in the second half of this year is not as good as the first half
Suzhou Yinjin Textile Co., Ltd. is a domestic and foreign trade company that specializes in curtain fabrics, blackout fabrics and other home textile fabrics. Zhang Junzhe, the person in charge of the company, said: “The business in the second half of this year is a little worse than the first half, and the profit is also less in the second half.” At the same time, Mr. Wu, the person in charge of Qiancheng Textile, a home textile company engaged in foreign trade, also said that orders in the second half of this year are not very good and profits are also declining.
In general, both domestic trade companies and foreign trade companies said that in the home textile sector this year, the market situation in the second half of the year was not as good as the first half of the year, and profits were also on a downward trend.
So, what are the reasons for the decrease in orders and profits in the second half of this year?
1. Raw materials surged and plummeted
2018 was a year of great fluctuations in raw materials. In the first half of the year, raw material prices rose steadily and were relatively stable. In August, PTA skyrocketed, and so did polyester. However, the price of fabrics failed to rise, causing the profits of most fabric manufacturers to shrink sharply, and there were even collective protests to stop production! The skyrocketing price of polyester has also turned this year’s “Golden Nine, Silver and Ten” into “Bronze, Nine and Iron Ten”.
Mr. Chen of Wujiang Golden Sun Textile Factory said: “The main reason for the shrinkage of profits in the second half of the year is the frequent fluctuations of raw materials.” Manager Zhu Hailong of Wujiang Xingda Textile Factory He also complained: “The profit of products in the second half of the year is very low, because the price of finished products cannot rise, but the prices of all aspects of production are rising.”
Taken together, this year The raw materials have been rising from the beginning of the year to September, and then began to plummet in October. The sharp rise and plummeting of raw materials really made weaving manufacturers and traders unable to bear it!
2. Sino-US relations are uncertain
my country has always been a major textile exporter, and its key export markets mainly rely on the United States. , the European Union and Japan. More importantly, these three countries and regions account for almost 52% of my country’s total exports of home textile fabrics. This year’s Sino-US relations are complex and changeable, which has also affected the export of home textiles.
Wujiang Miao Timeshare Home Textile Finishing Co., Ltd. mainly focuses on foreign trade Zhong Ting, the person in charge of the company, said: “The decrease in orders is more affected by Sino-US trade. In the past, American customers would steadily repeat orders every month. Although they are also repeating orders now, the order volume has shrunk. In the past, one order was 1 Ten thousand meters, now one order is 5 kilometers.” Qian Jianxing, manager of Wujiang Manjianghong Textile Co., Ltd., also said that the impact of Sino-US relations has made it more difficult for companies to receive orders and quote prices.
Fortunately, both China and the United States have released many good signals, and the Sino-US trade friction is tending to ease. Perhaps, the foreign trade situation will improve next year!
3. Environmental protection inspection
In recent years, environmental protection has been in full swing. Affected by environmental protection, printing and dyeing , the production capacity of the coating industry has been greatly restricted. The home textile fabric industry has also been deeply affected.
Zhu Hailong from Wujiang Xingda Jet Weaving Factory said: “Affected by environmental protection, the “three-stop operation” has a greater impact on production capacity.” The reduction in production capacity will have a greater impact on production capacity. There is a certain impact on the company’s order acceptance, mainly because the delivery time is extended, which makes many customers unable to accept it, and the orders are canceled or transferred. This is also a very common phenomenon.
In general, the sharp rise and fall of raw materials, Sino-US relations And environmental protection inspections all have a certain impact on the home textile industry, whether it is domestic trade or foreign trade. Now that the New Year has come, everyone is preparing to clear inventory, collect payments, wait for the holidays, and wait for the Chinese New Year. So what is the payment situation in the home textile sector?
Customers’ payment returns are slow
Qian Jianxing, manager of Wujiang Manjianghong Textile Co., Ltd., complained to the author that this year The payment collection situation is not satisfactory. Because the terminal demand is relatively weak, the customer’s payment collection is also slow. As a result, our payment collection situation is not as good as the same period last year. Now most of them are more than 2 months old, and some old customers have longer. This is the greatest pressure we face right now.
Zhang Junzhe of Suzhou Yinjin Textile also said that the repayments also follow the market trend. If the market situation is slightly different, the repayments will also be similar.��Slow down.
Generally speaking, due to the market situation this year, customers’ repayment situation is not very good, and the payment period is about two months. At present, the pressure on the cloth boss is mainly in the areas of payment collection and inventory.
Forecast of the market outlook
Nowadays, the external environment is very volatile, and the transferred looms are growing. The supply of home textile fabrics already exceeds demand. Some market participants predict that all production capacity in the central and western regions will explode next year. By then, will the home textile cake be enough?
Zhang Junzhe from Suzhou Yinjin Textile Co., Ltd. said that the main impact of the external environment on us is that it is difficult to recruit workers, and skilled workers have returned to their hometowns. Qian Jianxing of Wujiang Manjianghong Textile Co., Ltd. is also relatively pessimistic. He believes that the impact of peripheral looms on the local market is still great. In this case, what will happen next year? What other factors will affect the market next year?
Mr. Wu from Wujiang Xiancheng Textile Co., Ltd. is more optimistic. He said that the home textile sector should be fine and there will not be much change because the demand is certain. Mainly inventory and raw materials will affect the market next year.
Zhong Ting from Wujiang Miaoshi Home Textile Finishing Co., Ltd. is not optimistic about next year’s market. He said that the current pressure on environmental protection is so great that companies have higher requirements. In addition, The current macro environment is not very good, demand is weak, and it is difficult to predict orders for next year. And affected by the textile cycle, three ups and three downs, now the peak has passed and it has begun to show a downward trend.
It can be seen from the words of the cloth bosses that the explosion of production capacity, raw materials, Sino-US trade environment, environmental protection and the entire macro environment in the Midwest will have an impact on the home textile industry next year. certain influence. But at present, we can only take one step at a time. What companies need to do is to improve the quality and added value of their products and win with quality! </p
