As 2019 comes to an end, China’s textile industry is becoming increasingly confusing. Under the turmoil, the global economic pressure is too great, and the market capacity is saturated. However, the circle of friends is always full of selling goods, selling poorly, cutting prices, asking for debt, etc.!
A few days ago, there was a picture that went viral on the Internet. It said that the year to the left is 2017 and the year to the right is 2019. At this time in 2017, the country proposed that “lucid waters and lush mountains are gold and silver mountains”, and the market suddenly ” It’s so lively” and it’s so hard to find! Two years have passed in the blink of an eye. Some people say that the market has entered a cold winter, while others say that sales are good. Which one is the truth that is happening?
I heard from my friends at Guangzhou Zhongda University that in the past two years, the market Many business owners have changed over time, but none of them can survive. From May to September, there is almost no single shop rent, and warehouses are extremely expensive. It is impossible to survive without capital at this time. And judging from the current market situation, next year The market estimates are not optimistic either! However, the laws of market economy generally follow the 80/20 rule. In layman’s terms, no matter how good the market is, 20% of people will lose money, and no matter how bad the market is, 20% of people will make money.
This year’s textile market has an obvious feature, which is “polarization”. For example, when the volume and price of conventional chemical fiber fabrics fell and no one was interested, non-ammonia super elastic fabrics such as T400 and T800 were queued up for delivery; when the trade friction between China and the United States escalated and U.S. orders shrank sharply, orders from Southeast Asia such as Vietnam increased significantly. ; When the salespersons of dyeing factories selling market goods were begging customers to buy some fabrics, some dyeing factories went out of stock and couldn’t even bring in several kilometers of cloth… Various signs indicate that even though everyone says the general environment is not good, , there are also highlights to be found!
Traders began to stock up, and gray fabric prices finally “firmed” their footing!
Let’s take a look at the fabric market in the last month first!
“I went to the market to pick up fabrics in the past two days, but I couldn’t negotiate the price. Now everyone thinks it’s time to stock up on some goods, so sellers are not willing to lower their prices.” Mr. Yang, a gray cloth trader, said.
As the transaction of autumn and winter fabrics comes to an end, the pace of sample search, proofing and order placement in the spring and summer market has begun to accelerate. Among them, the sales of products such as crepe, hemp, chiffon and so on have all increased. Things have improved, and inventories of some manufacturers have declined.
Mr. Wang, the person in charge of a manufacturing enterprise specializing in imitation silk fabrics in Shengze area, said that 20,000 to 30,000 to 30,000 meters of silk fabrics are being sold every day recently, and the inventory in the factory has also increased. There is only some old inventory left. Although the price of artificial silk dropped significantly in September and October, the price has stabilized recently.
In addition, another company that specializes in pongee fabrics also said that although the recent inventory has been relatively slow, the orders on hand can be made until the end of December, at least before the holidays. No worries. “The price of gray fabrics on the market has dropped to very low levels now. We are not planning to lower prices this year.” Mr. Chen, the owner of the weaving factory, said.
It is now the last month of 2019. Compared with previous years, the current market is still not satisfactory. At least at this time in previous years, dyeing factories would issue news of liquidation. Traders are rushing to ship out the last batch of goods before the Spring Festival. However, most dyeing factories have said that there is not much work this year, and the operating capacity of dye vats has only remained at about 80%. A very few dyeing factories will experience warehouse explosions.
However, compared with the market conditions after Double 11, the current trading atmosphere in the fabric market Slightly better, taking the Shengze area as an example, more than half of the textile bosses can have orders on hand until mid-to-late December. The increase in manufacturers’ inventories has begun to slow down, and some are even reducing inventories. In addition to the reduction in operating load, improving demand has also boosted the market. One of the factors has led to the stabilization of gray fabric prices, which had been falling.
Winter has arrived, can spring be far behind?
After experiencing the “craziness” of 2017 and 2018, the market has returned to rationality in 2019. Now textile bosses are not willing to look at the market conditions of the previous two years because Basically, I found that in addition to pulling out the cold, I still want to cool down. There are also a few companies that have taken relatively large steps and have gradually reduced their market share in the second half of the year. After all, businessmen seek profits. If an industry is losing money for a long time, more companies will flee or collapse.
It is reported that a company originally owned more than 600 water-jet looms In the second half of the year, 150 looms were sold, and the operating rate of the remaining looms has been maintained at about 80%, which has even dropped to less than 50% recently. And this phenomenon is not an isolated case. The industry as a whole is in poor condition, and textile bosses have to “cut off their tails to survive”!
As for the textile market next year, many textile people still have seeds of “uneasiness” in their hearts. After all, there are so many stocks piled up in the market that cannot be digested.It is the biggest “ticking time bomb”. Once manufacturers sell goods on a large scale, market prices will inevitably drop, and the originally “thin as a wing” profit margin will be directly exposed, so life may not be easy in the first half of next year.
An industry source said: “The current poor performance of the downstream clothing end of the textile industry has directly led to the demand for fabrics being difficult to blow out. For example, the sales volume of Double 11 was not as expected, which caused many brands to For businesses, the business model in the first half of next year will still focus on destocking, which will inevitably reduce the purchase of raw materials.” It can be seen that the pressure for improvement on the demand side is still relatively high.
Of course, at the end of 2019, there is little chance that a short-term improvement will lead to an improvement in the entire industry, but there may be opportunities to make money in small varieties or new categories. After all, winter has arrived, can spring be far behind?
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