Boss Jiang’s daily schedule these days is basically running outside to find customers during the day, and returning to the factory at night to check on production and deal with various problems. He lamented that every extra day he endured felt like he was surviving a disaster.
Boss Jiang, a man who has been struggling in the market for two years As a textile boss for more than ten years, this is also in line with the experience of most textile bosses. They have experienced the low ebb in 2008 and the high tide stimulated by the 4 trillion policy in 2010. Compared with the second generation bosses who have just entered the market, , he can be said to be used to the big world!
“We really can’t afford the price you mentioned!” Faced with the customers who had finally waited for them, Mr. Jiang was helpless and pressed the computer button over and over again, but still nothing happened. I can’t calculate the price quoted by the other party.
“The market prices have been so chaotic recently!” He smiled awkwardly. Outside his office, there was an open space filled with gray fabrics. Looking at the piles of gray fabrics, his expression darkened and he gritted his teeth, “Okay, I’ll give it your price!”
Faced with the unprofitable orders, Mr. Jiang felt helpless: “The current situation is that there is a lot of supply in the market, and buyers have no worries about not being able to buy the goods. There is no lowest price, only higher prices. Low price! But if you don’t take orders, shutting down the machine will cost you tens of thousands of yuan in depreciation every month. It’s better to keep taking orders and get some money back!”
The market comes and goes in a hurry, and the “messy” prices disrupt the market’s “nerves”!
In the business environment, buyers and sellers never have absolute say, and their status is determined only by supply and demand. Today’s fabric market is in a buyer’s market, so customers lower prices from time to time, and you can only accept it or not.
In late November, the off-season trend of the weaving market began to emerge. In the early stage, it was boosted by the e-commerce season and the Christmas season. Both market goods and order goods performed well. Autumn and winter clothing The shipment of fabrics is relatively smooth, which has driven the shipment of gray fabrics, and the inventory has also fallen slightly. However, the good times are short-lived. In previous years, this wave of market prices can last until the year before, but this year’s wave of market prices “comes and goes in a hurry”, and it probably only lasts for a while. Most of a month. Nowadays, the inventory of gray fabric manufacturers has rebounded again, and it is difficult for manufacturers to maintain stable production and sales.
Monitoring from the sample companies monitored by China Silk City Network found that this The inventory of gray fabrics in Zhoushengze area has increased from about 37 days in the previous period to 38-39 days, which is higher than the inventory level in the same period last year. “Some time ago, polyester taffeta and pongee were fine, but recently they can no longer carry goods!” said Mr. Chen, a textile boss in Wujiang area.
“Many factory warehouses are now filled with gray fabrics. Anxious to sell more before the year,” Mr. Chen said, “So there is a lot of competition at low prices, and some are even cashing out at a loss, so the market is very chaotic now!”
It is reported that , the owner of Yibu issued a discount price of 0.30 yuan/meter to sell gray cloth in the circle of friends. Everyone in the textile industry knows that the profit of 300T pongee is no more than 0.30 yuan. This “low price” is definitely a “loss”!
The last wave of market conditions before the year is coming to an end, and the operating power of each cluster is insufficient!
Nowadays, the winter that textile people have been looking forward to is “belatedly coming”, and the driving effect on autumn and winter cold-proof clothing fabrics is different from last year. It is reported that both brand owners and garment factories are currently not very enthusiastic about purchasing autumn and winter fabrics. Even though there will be replenishment and duplication of orders during e-commerce seasons such as “Double Twelve”, the market for large-scale replenishment has passed. It is difficult for the market to have good positive stimulation.
Instead of holding on to the fantasy of a market counterattack, it is better to actually solve the inventory problem. Recently, I heard that many peripheral loom manufacturers have reduced or suspended production. According to Mr. Wang, the head of a textile company with 500 looms in northern Jiangsu, half of the machines in the factory have been stopped. If the cloth in stock can be sold this year, it will be considered a “victory”!
Not only the peripheral market, but also the warp knitting market, which was operating at full capacity in the early stage of production, is also showing signs of weakness. For example, leather base fabrics, ammonia super, golden velvet and other goods in Haining are stagnant. Slow down, it is reported that a local warp knitting factory has stopped half way, with more than 1,000 tons of suede in stock; the overall water-jet market is also sluggish, and the operating rate in Changxing has dropped from 80-90% in the early stage to about 70%. Shengze The region has also dropped from 90% to 80-90%; the circular knitting machine market as a whole also lacks bright products, manufacturers have few orders on hand, and the market operation rate has also dropped to about 50%.
The start-ups of all weaving clusters are falling. Many textile bosses also said they would take holidays early. Some manufacturers with inventories that have been piled up for more than 2 months are even considering Start planning your vacation in early December.
Nowadays, both garment and weaving manufacturers are worried about the market outlook. The market destocking has not been smooth and the pressure of overcapacity in the market has not diminished. A few years ago, we were still trying to achieve profits by “competing on price and scale”, but now this road is no longer feasible. What does the future hold? If we follow our previous assumptions, the days ahead are not expected to be easy!
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