Recently, the editor’s circle of friends has been flooded with clothing clearance.
4 pieces for 100 yuan on clearance!
Jackets are on sale instantly, just sell them for money!
Down jackets are on sale for 120 yuan each!
22% off the entire site, flash sale as low as 39 yuan!
…
Clothing clearance is very intensive
These clothing advertisements are all over the editor’s circle of friends, and clothing stores are also full of such advertisements, which are played through loudspeakers. Clothing stores will hold similar clearance activities at the end of every year, but this year I feel that the clearance activities are particularly obvious. Especially after the large-scale epidemic broke out in late December, many clothing stores launched very vigorous clearance activities on WeChat.
The clothing market has been cold in 2019. Down jackets cannot be sold. Prices are reduced and prices are reduced. News of clothing companies closing stores and going bankrupt frequently comes out in the market. Even the Sijiqing stall wholesale market, which used to be crowded with people, this series of phenomena is really disappointing. So sad. In recent years, such phenomena have been common in the clothing market, occurring every year.
Clothing companies in winter often rely on the weather. This winter, the temperature is indeed a bit unusual. Summer seems to have been extended this year, and winter temperatures have not been felt until November, resulting in poor sales of winter clothing and a sluggish fabric market during the peak season. As soon as November enters, winter enters again overnight, and heavy snowfall weather hits all parts of the country. Boosted by snowy weather, the fabric market has received a wave of orders. But the good times did not last long, and the market quickly returned to dull conditions. The epidemic broke out in December, causing various places to suspend work and stay at home during the holidays, and no one visited clothing stores. Therefore, online sales have become the only sales model for clothing stores.
The phenomenon of clothing debt repayment still exists
In addition to the slow sales of winter clothing due to the warm winter this year, another reason is that the inventories of clothing companies remain high! “The least valuable thing in the textile and clothing industry is inventory.” It is said that due to the high market sentiment in the past two years, many companies have stocked up on down jackets and cotton clothing in several warehouses. The pressure from this wave of inventory from clothing companies has been transmitted to weaving factories. There is a lack of orders from weaving factories. Furthermore, due to the expansion of hundreds or thousands of machines in peripheral areas, the weaving market is flooded with gray cloth and oversupply exceeds demand. Taking the Shengze area as an example, the current gray fabric weaving inventory is about 36 days!
At the end of each year, in addition to clothing stores conducting low-price clearance, some fabric trading companies will also put some clothes for sale in front of their store departments. The source of these clothes was used by the garment factory to pay off debts. After the garment factory placed the order for fabrics, the clothes were unsalable and could not be sold, and they were unable to pay for the fabrics. Fabric companies are also helpless. Instead of not getting a penny, it is better to sell clothes and sell as many pieces as they can.
Clothing stores are having clearance sales, fabric stores are selling at bargain prices, and online APPs have various discounts… Clothes are on sale everywhere. Although it is a New Year tradition to add new clothes at the end of the year, it is difficult to clear out all these stocks. The same is true for gray fabric inventory. For the entire clothing and textile market, high inventory is still their biggest headache. Some textile companies that make conventional products and are not very competitive in the market will have to wait for them if the inventory factor cannot be effectively alleviated in the future. Maybe it means going bankrupt or shutting down…
Summarize
Hot market conditions are what all textile people dream of, especially when this wave of market conditions finally arrived in early December, everyone wanted to seize it. However, the sudden relaxation of the epidemic policy caused the epidemic to break out on a large scale. Workers asked for leave at home and factories shut down, causing this wave of orders to come to an abrupt end. But next year, under the liberalization policy, the economy may recover quickly, and it is expected to usher in an explosion of demand.
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