Today’s textile market can be said to be as calm as water, because everyone knows in their hearts that the prices raised by speculation with the help of sudden information will eventually return to their original state. In layman’s terms, they will rise when they should. If it falls, it falls!
For example, on November 16, the leaders of both sides of the China-U.S. high-level economic and trade consultations had a phone call again. The two sides had constructive discussions on their respective core concerns about the first-phase agreement, and We will continue to maintain close communication.
In the past, when this good news came out, the textile market would feel like it had been given a “shot in the arm” Similarly, the overall market from raw materials to fabrics is showing a positive trend, with price increases and procurement becoming more “busy”. However, as soon as the news came out, there was not much “splash” in the market. A textile boss even asked: If you have heard the story of the boy who cried wolf too many times, would you still believe it?
The editor chatted with several textile friends and talked about the market situation this year. Everyone has a common feeling, no matter whether the market is good or bad, whether it is gray cloth or trade, the cloth business It’s getting harder and harder to do it, and the landlord’s family has no food left! But when the editor asked them why it is more difficult to do now than before? The editor was deeply touched by what a friend said. He believed that it was not that the cloth selling business was getting harder and harder to do, but that the environment for doing cloth business was completely different.
The gray fabric market is going through a “pain period”: prices are too transparent, profits are As thin as paper!
In the fabric business, it was easy for everyone to make money in the past, but the most critical point was poor information flow. Mr. Yuan, a textile boss who has been in the business for more than 20 years, said: “In the past, everyone had little information, so it was easy for you to decide the price. In the early days, I sold polyester taffeta for more than ten yuan per meter. It’s easy to make money now.” With the popularization of the Internet, information flows faster. No matter where you go, you can always understand all aspects of information. Whenever there is a price increase or decrease, the entire upstream and downstream markets will know about it, so traders have lost their original Advantage.
So everyone is under the same information, traders can only make decisions based on their own experience To judge the future market trend, to put it bluntly, it is betting on the market. Since it is gambling, there must be winners and losers, and making money is not that easy. “Now the prices we quote to customers are generally very low, because if we don’t do it, others will do it.” Mr. Shen, another polyester taffeta boss, said, “Recently, I saw that some people in the circle of friends have begun to sell gray fabrics. Now The price of gray fabrics has dropped sharply, so our prices can only follow the decline!”
It is reported that taking 400T polyester taffeta as an example, the price of going to the gray fabric factory to get the goods in June was 3.60 yuan / meter, it has now fallen to 2.70 yuan / meter, and the price has dropped by 25%. When it was higher last year, the price was 3.95 yuan / meter.
This is a change in the information environment, which will lead to a revolution in the traditional fabric circulation model. If We still operate in the same old way, and it becomes increasingly difficult to do business. As said, if the environment changes and our methods remain the same, we will be “led by the nose” by the market.
Phaseical and structural “excess” of production capacity: the normalization of one million meters of peripheral inventory has become a “thorn” in the boss’s heart!
Let’s first look at a set of data. As of the end of 2018, China has 36 national textile industry transfer pilot parks. Except for two in Jiangsu, the rest All are distributed in the central and western regions; the labor-intensive textile industry is moving from the coast to the central and western regions.
In addition, according to incomplete statistics, in the past two years, in northern Jiangsu, Anhui, Hubei, The production capacity of emerging water-jet looms transferred from Henan and other places has exceeded the 200,000-unit mark, far exceeding the number of water-jet looms eliminated by traditional textile clusters in the Yangtze River Delta region.
We all know that the textile industry is developing rapidly and its production capacity is expanding significantly, which can easily cause overcapacity in the market. As a result, almost all conventional products are experiencing oversupply this year. As a result, the majority of textile practitioners have a very sensitive mentality and are deeply afraid of making mistakes in their judgment and causing greater losses. Therefore, once a product becomes popular in the market, most of them will dive in head first and everyone will make the same product, which will lead to market problems. Rapidly rising and falling prices.
“Now when I go out and take a look, every factory has a lot of inventory. If production is not reduced or stopped, the inventory will still be rising, and the warehouses will no longer be able to store it. A friend of mine only has a hundred or so looms in his factory, and his inventory has exceeded 1.2 million meters. Half of the machines were stopped last month!” said Mr. Chen, owner of a textile factory. It is reported that the inventory of gray fabrics in the peripheral market is generally high at present, and most manufacturers have reduced production and suspended production.��Relieve stress.
The landlord’s family does not have much leftover food, and this year is destined to be an “early year”!
In short, profits are thin, inventories are high, and landlords have no food left! At present, the negative news in the entire textile industry has formed a bottom-up transmission to the industrial chain. Although the weaving end has reduced its operating hours, the terminal clothing sector market is not prosperous and demand is at a low level, which has led to another weak market mentality. In late November, the overall market transaction atmosphere dropped again, so these contradictions will still be reflected in the later period until the end of the year.
Now that the economy is down and wallets are shrinking, consumers are becoming more rational in their consumption concepts and pay more attention to experience, personality and cost-effectiveness. This will inevitably make the market gradually move towards the industry. With the concentration of leading companies in the market, market polarization will intensify, and most companies will feel the pressure of “hard to make money” even more! In this regard, many companies will choose to take the New Year holiday in advance to adjust their status and fight again next year!
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