It’s almost the end of the year and it’s time to make a summary and issue year-end bonuses.
Since the beginning of this year, the global economy has been in turmoil. Not only the textile and garment industry, but also many well-known old companies have fallen into financial and inventory crises… In the relatively low economic period, life is difficult for everyone, and many companies have tightened their belts early. Spend the winter with your trouser belt tight, and if you can’t increase revenue, start cutting back!
The legendary industry that is closest to money and makes the most money has set off a large-scale Wave of layoffs!
Since July, Deutsche Bank has announced plans to lay off 18,000 people globally by 2020. This number is five times the current number of Deutsche Bank employees. one part.
In August, Barclays, one of the largest banks in the UK, announced that it would lay off 3,000 employees in the second quarter, accounting for approximately 3.6% of the total number of 83,500 employees at the end of 2018. The reason for the layoffs is that the economy has entered a cold winter and “the business environment this year has obviously faced challenges.” Recently, Italy has joined a wave of layoffs at major global banks. UniCredit, Italy’s largest bank, announced it would lay off 8,000 employees and close 500 branches in response to Italy’s slow economic growth and negative interest rates.
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The financial industry has laid off heavy workers, and the textile industry Woolen cloth?
Why is the most profitable industry also in difficulty? The financial sector has laid off workers heavily, and the manufacturing industry is not much better. As a manufacturing industry, the textile and apparel industry is actually having a hard time this year.
After all, the entire global economy is in poor condition, disputes continue in the foreign trade market, and terminal consumer demand is also shrinking. As a result, the textile market, which was still “progressing” last year, can only “die” this year. . Many domestic and foreign brands have chosen to close stores to reduce costs, and some weaving companies have also adopted various methods to save costs.
Some textile people lamented: Under the overturned nest, are there any eggs left? The threshold is too low, and the imbalance between market supply and demand is infinitely amplified by this general environment…
Company A: Closing a factory
Company A It is an old textile factory that has been in the market for more than ten years. It also closed one of its factories this year. Some of the workers were assigned to another branch factory, and the remaining workers could only be fired;
Company B: Eliminate 1/3 of the machines
Factory B has hundreds of looms. The boss eliminated 1/3 of the machines this year due to excessive operating pressure. /3 of the machines, laid off a few employees;
Company C: sold the machines in November last year
C Textile Factory was originally a manufacturing company Processing orders and owns about 30 looms. The boss also sold off his machines in November last year and dismissed the workers who had been with him for several years.
Many people in the industry predict that 2019 will be a turning point in the market from prosperity to decline. Natural selection will cause this phenomenon to continue to increase in the future. Why are there so many layoffs and factory closures in the textile market?
01. The first reason is that both domestic demand and foreign trade are weak, which directly leads to a decline in sales of manufacturers.
The demand in the entire textile market this year is not as good as the same period last year. Many downstream garment factories and brands themselves had more inventory last year, and the destocking effect was not good, thus inhibiting The enthusiasm for purchasing upstream fabrics has caused the overall sales volume in the domestic demand market to shrink this year, especially autumn and winter cold-proof clothing fabrics. Last year, most clothing companies expected to stock up on a large number of cold-proof clothing in anticipation of the cold winter. As a result, the warm winter arrived unexpectedly and hit the bottom of their planned pace. Manufacturers had a large amount of cotton clothing and down jackets on hand and it was difficult to realize them, and it was difficult to open up sales in the domestic market.
In terms of domestic trade, this year has been affected by the continuous trade friction between China and the United States. U.S. orders have shrunk significantly. Companies that used to focus on the European and American markets have been relatively “injured”, such as Shaoxing. A foreign trade fabric company in the region has not been able to run enough machines this year, with sales at a low level of 50%. This is due to a significant decline in orders.
02. The second reason is that market profitability is difficult and corporate funds are tight.
In the textile industry, if you start a profitable company, it may only take one year or even less, provided that the market is as “powerful” as in 2017 and 2018. , making money every day, the most common water-jet loom weaving the most common polyester taffeta can earn 160 yuan a day, a small manufacturer with 100 looms can earn 16,000 yuan a day, and a year The profit of more than 5.8 million yuan is definitely “earning money lying down”. However, the market this year has been “turned upside down”. The market is not good, supply and demand are imbalanced, prices have fallen to the bottom, and manufacturers’ profits have been diluted and diluted. Recently, the machine rate of polyester taffeta has dropped to 10 yuan or even lower. Poor profit performance has caused manufacturers to be more strapped for funds this year than before.
03. The third reason is that the consumption model of Generation Z is changing and dilution regular productsneeds.
Generation Z (born between 1995-2009), if we say Generation Y (born between 1980-1994) grew up with game consoles, computers, and the Internet , then Generation Z has grown up with the mobile Internet, mobile games, animation, etc. The current population of Generation Z in my country is 230 million people.
Industry insiders believe that Generation Z will be the mainstream group of Chinese clothing consumers in the future, and its unique The characteristics of the times and group characteristics have formed new demands, new cultures and new economies. When purchasing goods, what they focus on is no longer purely the quantity, quality and price of the goods. They pay more attention to the emotional satisfaction they can obtain during the purchase process. , psychological recognition and the sense of experience in the shopping process, so they no longer accept conventional products, but instead seek individual trends. This makes it even more difficult for textile owners who already dominate the market with conventional products to do business.
04. The fourth reason is that automation gradually replaces simple manual labor.
Of course, in addition to the poor market conditions that have affected the operation of enterprises, as labor costs rise, more and more outstanding enterprises are seeking to “machine replacement” To upgrade, such as automatic browning and reeding machines, the demand for some technicians will also be reduced.
The editor wants to say that in today’s environment, the days of wanting to “make money” as before are gone forever. There are many concerns about the market next year. Textile bosses are also worried. Of course, cutting costs is just one of thousands of business methods. As the Spring Festival approaches, many textile bosses are still worried about the labor situation after the spring, hoping that the “labor shortage” in previous years can be alleviated this year.
The editor wants to say that in today’s environment, if you want to “lay down” like before The days of making money are gone forever. Many textile bosses are also worried about the market situation next year. Of course, cutting costs is just one of thousands of business methods. As the Spring Festival approaches, many textile bosses are still worried about the labor situation after the spring, hoping that the “labor shortage” in previous years can be alleviated this year
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