Oxford cloth is a relatively conventional textile. Its gray fabric has been processed by printing, dyeing, coating and other processes. Finally, it has the advantages of strong drape, novel style, and good waterproof performance, and is mainly used in the production of various luggage products.
This year, under the impact of unfavorable factors such as the transfer of water-jet looms and Sino-US trade friction, the textile market has performed unsatisfactory. As one of the traditional textiles, how will Oxford cloth perform under such market conditions?
Suppressed by trade frictions, demand The decline is obvious
To summarize the sales of a certain textile product this year, Sino-US trade is always a topic that cannot be avoided, and the Oxford cloth market is also In this way, it has been greatly suppressed by the Sino-US trade friction.
China-U.S. trade friction began last year. On July 10, 2018, the United States announced a 10% increase in tariffs on $200 billion, which actually included Oxford cloth and The subsequent finished products have put tremendous pressure on Oxford cloth and luggage manufacturing companies. On May 10 this year, the 10% tariff suddenly became 25%. Such a tax rate is unacceptable to both Oxford cloth companies and luggage companies.
Manager Tao, the person in charge of a textile trading company, said that one of their downstream customers has suspended two U.S. orders this year. One of them is a 40,000-meter Oxford cloth order from Wal-Mart. Budu Weaving Okay, but the order has been suspended indefinitely, and the cloth can only be piled in the warehouse.
Manager Yao, the head of another textile company mainly engaged in sofa fabrics, also said that the impact of Sino-US trade is really great. In the first half of this year, there was a big order finalized at the end of last year. In March and April, more than 100,000 meters had been completed, and everything went smoothly. However, as soon as the tax rate was increased in May, the subsequent part of the order was canceled by the other party.
In order to cope with the Sino-US trade friction, many luggage companies have chosen to move their factories to Southeast Asian countries.
Manager Zhao, the sales manager of a large textile foreign trade company in Jiangyin, said that his company mainly targets the Southeast Asian and Indian markets. This year, the export volume of conventional commodities such as pongee and polyester taffeta has increased. Despite the sharp decline, the export volume of Oxford cloth has increased instead of decreasing. It is made into finished bags in these areas and then exported to Europe, the United States and other countries.
It can be said that the Sino-US trade friction has not only suppressed the normal production and operation of Oxford cloth companies, but also accelerated the pace of the transfer of China’s overall textile industry chain to Southeast Asian countries.
Keep the principle of “three cents per acre” Land”, less than the upper and more than the lower
After being suppressed by the Sino-US trade friction, how are Oxford cloth companies doing? After research, we found that most Oxford cloth companies are not having an easy time this year.
Manager Wang, the person in charge of a company mainly engaged in Oxford cloth trading, said that the profit of Oxford cloth has dropped sharply this year. Taking conventional 210D Oxford cloth as an example, the sales volume in previous years has been The profit was around 0.4 yuan/meter, but now it is only about 0.2 yuan/meter.
Another boss, Sun, who trades nylon Oxford cloth, also said that this year’s sales have dropped by about 30% compared to last year. Due to raw materials, the price of cloth has also dropped by 30%. The dyeing fee of the dyeing factory has risen sharply in excess of the cost, so the overall profit has dropped significantly.
But on the other hand, although sales However, compared with traditional pongee, polyester taffeta and other products, the “life” of Oxford cloth is relatively better.
On the one hand, Oxford cloth has formed a relatively mature supply chain in the market. It is not easy for new companies to join it, and the final profits they can get are not high. It seems The gain outweighs the loss; on the other hand, because the volume of Oxford cloth is much smaller than that of traditional “bulk goods”, there are not so many companies engaging in vicious competition, so although the profits are not large, they will not operate at a loss.
It can be said that although Oxford cloth has been suppressed to a certain extent in terms of demand, because there is not much influx of production capacity, although it has declined slightly compared with last year, it has not fallen to the point of ” To the point of “selling goods to survive”, we can only say that “it is not enough compared with the top, but more than enough than the bottom”.
The problem of receivables is serious this year. It’s been a tough year
For Oxford cloth companies, although the market situation this year is a bit worse, it is not unacceptable. This is not the headache for textile people.
It’s almost the end of the year, and the biggest headache for Oxford cloth companies is the issue of receivables.
Affected by sluggish downstream demand, the problem of receivables this year has become serious again. Different from the “old debtors” in people’s impression in the past, this year’s downstream enterprises There really is no money to spare.
First of all, the reason for the order cancellation, above After the United States suddenly raised the tariff rate on May 10, many orders were suddenly canceled. Some of the finished fabrics have been produced and are just waiting to be shipped out. The final payment for this part is basically It’s hard to get;
In addition, there is also the problem of luggage companies’ normal operations being hindered. Jiaxing Pinghu is one of China’s major luggage production clusters, and a large part of them are OEM and then OEM. Exporting to the United States, now that the United States has increased taxes, the OEM profits are not enough to meet the additional tariffs. Therefore, let alone settling receivables, some luggage companies have even started their normal operations.
Compared to traders, the receivables situation of weaving companies is even more tense, because funds are generally tight in all links of the textile industry chain this year. If there is a problem in one of the links, it will Leading to a series of receivables problems. Weaving companies need to pay cash to buy polyester raw materials, which means they have reached the upper reaches of the credit sales link in the entire textile industry chain. They need to “accept the most orders”, and the risks they bear naturally become the greatest.
Development has entered a bottleneck period and needs to be solved urgently “Upward” channel
From a macro perspective, the development of Oxford cloth in the Shengze area has now entered a stage of “If you can’t do it high, you can’t do it low.” bottleneck stage.
In terms of low-end products, Jiaxing area also produces Oxford cloth, but compared with Shengze area, the price of local Oxford cloth is relatively lower, and the dyeing and finishing costs are also higher. Cheaper; In terms of high-end products, today’s high-end Oxford cloth is still dominated by products from Taiwan, Europe and other places. There is still a certain gap in the quality of Shengze’s local products.
A boss Sun who is in the nylon Oxford cloth business said that the finished product price of nylon Oxford cloth is about half more expensive than polyester products of the same specifications, and the relative added value is higher. , but there are not many local companies that can produce with this strength. His products are all made of gray fabrics from Taiwan, which are then processed in Shengze and then sold.
Nowadays, ambitious and powerful Oxford cloth companies are trying their best to improve their technical level in order to open up channels for high-end products with high added value, including recycled environmental protection and military products. It is the latest trend that has become popular in recent years, and may provide local textile companies with an opportunity to “overtake in corners.”
Oxford cloth, as a type of conventional textiles, cannot be used in It is widely used in clothing, so the overall volume is limited. In this year’s situation of declining demand and overcapacity, although Oxford cloth cannot survive alone, it has a better life than pongee, polyester taffeta, etc. because there is not a lot of vicious competition.
Nowadays, the Oxford cloth market as a whole has fallen into a bottleneck stage of development. Textile companies urgently need to improve their technical level and develop towards high-end routes.
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