In the past two days, the editor saw this video:
Hangzhou Sijiqing merchant: In previous years, the promotion was two to three hundred yuan, but this year it is only one hundred and fifty yuan
It’s January 2020, and it’s the annual clearance time. The down jackets at the Sijiqing stall are only selling for 150 yuan! Much cheaper than the clearance price in previous years…
In order to attract consumers, businesses are also doing their best The answer is that in addition to low-price temptations, there are also dedicated clothing display models, professional call-in staff, and online and offline live broadcasts to bring goods.
Professional shout-out clerk: Business is really difficult this year, much worse than in previous years. Use microphones to increase store entry rates.
Live streaming store clerk: Since most of the products are developed online now, I decided to use this live streaming method.
Display models: Models wear models and sell goods. This has always been the model. The discounts are very strong, much larger than in previous years.
The clothing market has experienced a downturn in 2019. Down jackets cannot be sold, and prices have been reduced again and again. News of clothing companies closing stores and going bankrupt has frequently spread in the market. Even the Sijiqing stall wholesale market, which used to be crowded with people, is also facing difficulties this year. Cold, this series of phenomena is really disappointing.
The temperature is more than 10℃ higher! How can this down jacket be sold!
To say that this winter, the temperature is indeed a bit unusual. Let’s talk about the slight cold in the past few days. The temperature was above 15℃. It felt like a steady “Indian Spring”! This year, both the highest temperature and the lowest temperature are more than 10°C higher than the average for the same period of the year.
The weather is not cold, so consumers’ demand for down jackets is naturally not very strong. This wave of impact is transmitted to the textile market, directly causing the inside of down jackets to Materials are also not easy to sell. A company making gall cloth in Shengze area said: “This year’s order volume has been reduced by half compared with last year, and the price has dropped by about 0.7-0.8 yuan/meter compared with the beginning of the year!” Coincidentally, a company Mr. Chen, a trader who sells imitation memory, said: “This year, the price of imitation memory gray fabric has dropped by 0.7-0.8 yuan/meter compared with last year, and the profit is 20% less.”
The textile and clothing industries are the least valuable. It’s in stock!
In addition to the slow sales of down jackets due to the warm winter this year, another reason is that the inventories of clothing companies remain high!
“The least valuable thing in the textile and clothing industry is inventory.” It is said that due to the high market sentiment in the past two years, many companies have stocked up on down jackets and cotton clothing in several warehouses. This wave of inventory by clothing companies, among others The pressure has been transmitted to weaving factories, which are experiencing a lack of orders. Furthermore, due to the expansion of hundreds of thousands of machines in peripheral areas, the weaving market is flooded with gray cloth and oversupply exceeds demand. Taking the Shengze area as an example, the current gray fabric weaving inventory is about 39 days!
The entire industry chain is in a state of overcapacity from top to bottom, and a price reduction and inventory war will be staged at the end of the year!
Next, digesting inventory is still the top priority!
Some manufacturers have to sell goods in order to collect funds and pay wages to workers. But sadly, even if the goods are sold, the effect is not very obvious. Fabric merchants are not very motivated to purchase, and many traders do not want to take the opportunity to stock up on low-priced gray fabrics.
“It is really difficult to do physical business this year. Last year, when cloth was hard to find, it was very prosperous. This year, all of a sudden It has hit the bottom, taking pongee as an example. 240T pongee has dropped from 2.80 yuan/meter last year to 2.10 yuan/meter now. The price of selling goods is even lower than it can be. Raw materials, rent, water and electricity, labor It’s free, but the price of gray fabric is so low.” said a cloth boss who has been dealing with Chunya Textile for more than ten years. “But when the order comes, whether to do it or not, the answer is definitely to do it. No matter how low the price is, we have to do it. First of all, there are a lot of goods on the market now, and buyers don’t have to worry about not being able to buy cloth. But if we don’t take orders, the inventory will only be It’s getting higher and higher. Even if the machine stops running, the depreciation expenses will be tens of thousands.”
In fact, For cloth bosses, cutting prices and selling goods is a helpless move, just to relieve financial pressure. During the visit, many cloth bosses hoped that there would be a wave of orders for gold, three, silver and four next year, and they could take the opportunity to go to the market. There is a wave of inventory, but I don’t dare to have too much hope. After all, the market situation in 2019 is too bad.
For the entire clothing and textile market, high inventory is still their biggest headache. Some textile companies that make conventional products and are not very competitive in the market may be waiting for them if the inventory factor cannot be effectively alleviated in the future. Bankruptcy, closure…
